Background

Session 6 of 8

Tool: Opinion of Probable Construction Cost

NCHRP Research Report 939 presents practical guidance for the post-award administration of projects delivered using alternative, nontraditional methods.

Tool: Opinion of Probable Construction Cost (26 CM-GC)
Session 6 of 8: October 27, 2022

What is it?

  • Iterative process for monitoring and validating the development of the cost estimate at key design milestones

Why use it?

  • Verify that the CM-GC estimate is competitive
  • Provides agency with an early indication of the project cost
  • Discover discrepancies in the estimating assumptions

How to use it?

  • ICE and/or agency staff prepare a production-based estimate
  • Prior to estimating, a basic cost model and assumptions are developed collaboratively
  • OPCCs are prepared with key submittals
  • OPPC estimates are good-faith estimates and nonbinding
  • Cost comparison spreadsheet used for comparison
  • Discuss cost deviations and clarify and revise assumptions

 

Documents

NCHRP ACM Contract Admin – Session 6 Slides

 

Useful Links