3 Tips for Conducting Third-Party Capital Cost Estimate Reviews

Third-Party Cost Estimate Reviews 3 Tips

In this short video, we explain the value of having a third-party estimate review for your capital project. This video includes three high-value tips that could potentially reduce your project estimate by millions of dollars.

3 Tips to Calibrate Cost Estimates for Capital Projects in the Energy Sector

Hi everyone.

I am Dane Finkbeiner, the Lead Estimator at Vista Projects, an integrated engineering consultancy.

At Vista, we do a lot of work with owners and operators of industrial infrastructure assets and energy processing facilities.

And right now, this market is heavily focused on cost.

Many projects have been paused.

Or for projects that are in the execution stage, we are working closely with clients to do
everything we can to control capital spending.

With everything going on, it is more important than ever to ensure your project estimate is accurate and reliable.

And now is a great opportunity to have an impartial third-party estimate review completed.

Third-Party Cost Estimate Reviews

Third-party reviews can be relatively low cost, but can still provide a ton of value to your project.

Here at Vista, we have a significant cost database that we can use to quickly benchmark your project against.

Rates of Placements

For quantity-based estimates, we often see rates of placements, or ROPs, that do not accurately reflect the current market environment.

Generally, we see estimates use our ROPs that you would have saw in a much busier market.

Factored Estimates

It is much the same with factored estimates, with estimates using install factors that you would have saw when oil was over $100 a barrel.

Aspen Capital Cost Estimator

Also, when using Aspen Capital Cost Estimator, it can be very difficult to calibrate the system to accurately reflect your unique project conditions.

On a recent estimate review of an estimate that was done using Aspen Capital Cost Estimator, Vista identified two unit rates that removed over a hundred million dollars from the project.

That represented around 10% of the project’s TIC, or total installation costs.

If you are working on a capital project and fear your estimate 32 might not be calibrated to the current market conditions, or if you just have any general estimate questions, please feel free to reach out to see if we can help you identify any potential opportunities.

I look forward to hearing from you and helping you with your estimate needs.


Professional Estimating Services

Vista’s professional estimating team provides everything owners and builders of industrial energy assets need to dependably develop and manage cost estimates. Our general estimating support includes:

  • Developing standard estimating methodologies and COAs to ensure consistent quality and formats from different service providers.
  • Reviewing and evaluating contractor bids.
  • Reviewing construction requests for proposals (RFPs) to ensure all information has been provided in a format that is easy for potential contractors to evaluate. Developing a clear RFP package helps improve the quality and consistency of proposals received.
  • Reviewing unit rate construction contract documents, such as bill of approximate quantities (BOQs) or preambles, for consistency and accuracy.
Professional Estimating Services

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Vista Projects is an integrated engineering services firm able to assist with your pipeline projects. With offices in Calgary, Alberta, Houston, Texas and Muscat, Oman, we help clients with customized system integration and engineering consulting across all core disciplines.

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