Section 2.2.12 Estimate Closeout Flashcards Preview

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Flashcards in Section 2.2.12 Estimate Closeout Deck (21)
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What is the Estimate closeout?

 

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Estimate closeout is the process of organizing and storing all information for an estimate for future use, to support the development of historical archives, and the development of estimating tools
 

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How to close out an estimate?

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It is always a good idea at the completion to have an estimating team meeting to review how things went during the estimate: What went well? What went poorly? How can we do it better next time?

The other action at estimate closeout is to update the historical database with whatever information has been obtained during the estimating process

The final action of the closeout is to assure that all documents are properly filed so that they will be readily available to all stakeholders who may need them in the later project phases

If the project will now be moving into the construction phase it would be appropriate to meet with the project control team to help transition the estimate to the baseline budget and to familiarize them with the estimate, scope, risks, and opportunities learned.

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What is bidding

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Bidding is the process of submitting a formal proposal to enter into an agreement to provide a service, product, or project in return for an identified price.

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Factors involved in bid preparation and analysis include:

the nature of the prospective project

how closely the organization’s resources, abilities, and experience match its requirements

other expected bidders

Experience with the owner, architect/engineer, and other parties expected to be involved

the availability of qualified subcontractors and vendors

subjective evaluation of the risk factors of undertaking the project and how well the organization can manage those risks.

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Addenda

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Written or graphic instruments issued prior to the date for opening of bids which may interpret or modify the bidding documents by additions, deletions, clarification, or corrections.

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budgeting

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Cost Engineering Terminology defines budgeting as “a process used to allocate the estimated cost of resources into cost accounts (i.e., the cost budget against which cost performance will be measured and assessed”. That is to say that once we have completed the estimating process, if the project continues, that estimate become a basis to measure changes that occur.

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What is life cycle costs ?

 

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life cycle costs are the sum of every cost incurred for a particular item (project, product, etc.) over its lifetime from inception through disposal

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Working capital

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The funds in addition to fixed capital and land investment which a company must contribute
to the project (excluding startup expense) to get the project started and meet subsequent obligations as they come due. Working capital includes inventories, cash and accounts receivable minus accounts payable.

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GENERAL & ADMINISTRATIVE COSTS (G&A)

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The fixed cost incurred in the operation of a business. G&A costs are also associated with office, plant, equipment, staffing, and expenses thereof, maintained by a contractor for general business operations.

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PROGRESS MILESTONES

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Those project milestones identified as the basis for earning progress and/or making progress payments

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SCHEDULE OF VALUES

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A detailed statement furnished by a construction contractor, builder, or others, apportioning the contract value into work packages. It is used as the basis for submitting and reviewing progress payments.

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what provides The cash flow net?

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The cash flow net provides the company with information needed to determine the finances necessary to support the project.

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Retention
 

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The amount of money held from a payment to assure project completion and compliance

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LETTER OF CREDIT

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A vehicle that is used in lieu of retention and is purchased by the contractor from a bank for a predetermined amount of credit that the owner may draw against in the event of default in acceptance criteria by the contractor

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CRITICAL PATH METHOD (CPM)

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Technique used to predict project duration by analyzing which sequence of activities has least amount of scheduling flexibility. Early dates are figured by a forward pass using a specific start date and late dates are figured by using a backward pass starting from a completion date.

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EARNED VALUE CONCEPT

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In general (non-EVMS) terms, the objective measurement at any time of work accomplished (performed) in terms of budgets planned for that work, and the use of these data to indicate contract cost and schedule performance.

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EARNED VALUE MANAGEMENT

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A project progress control system that integrates work scope, schedule, and resources to enable objective comparison of the earned value to the actual cost and the planned schedule of the project

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What is cost control baseline

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The cost control baseline is an extension of the budgeting process that merges the estimate costs and managed resources into the schedule for Earned Value Management (EVM).

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What is budgeting

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A process used to allocate the estimated cost of resources into cost accounts (i.e., the cost budget) against which cost performance will be measured and assessed.

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what is needed to marry the estimate to the schedule for Earned Value Management

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The most critical factor to success is a code of accounts relationship between the estimate and schedule coding.

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The Cost Control Baseline takes the budgeting process one step further by

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Integrating the estimate with the schedule