Larry R. Dysert and Bruce G. Elliott

Cost Engineering, Vol. 42, No. 8

AACE International, Morgantown, WV, 2000

Preparing estimates for capital projects is a key part of a company's strategic asset planning. It is one of the core processes of total cost management. Although the procedures, processes, and steps needed to prepare an estimate are often discussed and written about, the organizational aspects of creating and maintaining an estimating department are usually ignored. This article reviews many of these organizational issues. We have experience in estimating from both an owner's and architect/engineer-contractor's viewpoint. Both organizations may maintain estimating departments to develop cost estimates. This article is based primarily upon our experience with the worldwide capital estimating department at the Eastman Kodak Company (an owner organization), but much of the discussion is relevant to a contractor's estimating department as well.

Originally published by AACE International.

Reprinted with the permission of AACE International,

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