Cost Estimating: Realistic cost estimates are vital to profitability. |
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A & G Engineering's cost estimating systems are designed to fit individual client needs. Most of these systems are based on standard data. When the standard data based systems are used with historic performance rates, the result is greater accuracy for the estimator. These systems remove the guesswork from building an estimate by giving the estimator the ability to pick from a listing of easily discernable elements with associated standard times. Then the standard time is converted to predicted time based on historic performance.
The A & G Engineering approach to cost estimating is based on labor standards, makes prediction cost easier. With a reasonably accurate predication of cost, the pricing decision is simplified. Costing by activity allows each job to pay for its "fair share" of overhead. With A & G Engineering's standard data, each job's contribution margin can also be more accurately predicted. When required, the system accommodates "low ball" estimates and formulates a direction based on accurate data.
Estimating labor time is simplified by using a computerized standard data calculation that requires only a minimum number of governing parameters. This allows the estimator to develop the standard time required by merely using a simple selection process.
Using computerized standard data to develop the standard time required assures uniformity. Since the estimator is "pointing and clicking" to select the items required for the job, consistency is guaranteed. Judgement based on customer specifications and required operations makes selection straightforward. If the same job was estimated at different times or by two different estimators, the cost estimate would be the same.
