Monthly Archives: September 2013
Posted on September 26, 2013 by FMI CorporationConstruction Estimating Software UserView, 2013 By Kelley Chisholm Software Advice, a company that helps people find the right software for their companies, recently published the results of its survey on estimating software. It heard from 202 construction professionals from a variety of trades and company sizes to understand the use and effectiveness of construction estimating software. Its key findings include the following:
Posted on September 18, 2013 by FMI CorporationThe Basics of Cost-to-Complete Forecasting By Scott Kimpland For the first eight months, the project manager had been telling them that it was going to be tight, but the project was on budget. For the past three months, the project has been stuck at 85% complete, labor costs continue to escalate and the cumulative write-downs approach a quarter of a million dollars. Everyone, including the project manager, is surprised, hoping that the latest cost-to-complete forecast is accurate and that the project has truly found the bottom. Does this sound familiar? It happens every month across the industry. Project managers recognize too late in the project that they are going to have significant costs overruns and write-downs. How and why this happen so often? Having worked with thousands of contractors and tens of thousands of project managers, FMI has developed a good understanding of the reasons behind poor and inaccurate cost-to-complete (CTC) forecasts and why so many companies get surprised with bad news at the end of their projects. While forecasting all of the direct costs and general conditions is an important element of developing an accurate CTC, let us focus on the most variable direct cost item, labor.
This post was posted in Consulting and was tagged with construction industry blog, FMI Corporation, CTC forecasting, construction labor costs, construction project management, Software Advice estimating software survey results
Posted on September 6, 2013 by FMI CorporationNonresidential Construction Index Third Quarter 2013 Highlights By Randy Giggard The NRCI Index for Q3 of 2013 = 60.3. Although only 0.2 points higher than last quarter, we can say that this is the highest point since we began the NRCI index in 2007. However, if we had avoided a couple of “current issues” questions this quarter, our report for the third quarter 2013 would look very much like the second quarter. But that’s not a bad result.