An estimate that misses by 15% at GMP has cost the owner a redesign, a financing problem, or both. Here is why it happens and what to ask.
1. The estimate is square-foot history
A number built from what similar buildings cost per square foot last year is a guess with a spreadsheet. Ask whether the estimate was built from quantities and current subcontractor pricing, by trade. Ask to see the assumptions.
2. Scope is missing
Site work, utilities, impact fees, owner-furnished equipment, IT, furniture, signage, commissioning. A conceptual estimate that leaves these out is not conservative; it is incomplete. Ask what is excluded and why.
3. Optimism won the job
A contractor who needs the work gives a number that wins. Ask for the firm's track record: on how many projects did the GMP hold within a few percent of final? If they do not track it, that is the answer.
What we do
Quantities and sub pricing, assumptions written down, every exclusion listed, and reconciliation at each milestone so the number moves for reasons the owner can see. Within 4% on 86% of projects since 2018, and we publish that because an owner should be able to ask.
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Weekly, with the critical path marked, the float shown and the slips explained. If your updates do not look like this, ask why.
Tell us about the project. We will tell you what it costs and how long it takes.
A project executive replies the same business day. Conceptual estimates within two weeks of the information we need.