Cost Estimating
& Control

COST ESTIMATING, TRACKING AND CONTROL
FOR PROJECT OWNERS, DESIGNERS AND CONTRACTORS
Accurate cost estimates, timely cost accounting, and effective cost control
are essential to project success. Pinnell/Busch’s full spectrum of construction,
engineering and architectural professionals have broad, in-depth experience in all three
areas. We can help your organization estimate, track and control costs.

OUR TEAM OF EXPERTS

Steve Pinnell, PE
Steve has estimated and created job
costing systems for contractors and
capital improvement budget & control systems for public works agencies.

Blake Marchand
Blake has estimated mechanical/civil work for 15 years, including 10 years for mechanical contractors.

Butch Henry
Butch has 30 years experience as Esti-
mator to Vice President of Operations for a $350M/year mechanical/industrial contractor and five years as a consulting estimator.

Brad Johnson
Brad has 30 years experience estimat-
ing and constructing excavation, utili-
ties, roads, and other civil projects.

Dennis van Kirk
Dennis has 45 years experience
estimating engineering projects for
public works agencies and engineers.

Larry Palermini
Larry has estimated complex electrical
and control systems for over 25 years.

Walt Lemon
Walt has estimated commercial,
industrial and multi-family residential projects for over 40 years.

Plus Specialty Estimators When Needed

MAJOR PROJECTS AND PROGRAMS Program and major-project management
requires a high level of cost estimating
skill and sophisticated control systems.

Budget Estimating - Project and
program managers need reliable budget
estimates for setting scope, prioritizing
alternatives, establishing budgets, and
creating financial management plans. We
can provide these estimates, and establish
Excel-based estimating templates and
procedures manuals for facility managers
or public works agencies.

Program Management Cost Tracking
& Control Systems - Program manag-
ers need timely feedback of actual costs for tracking, reporting and corrective
action. This can include interface with the client’s financial management system,
clarified decision-making policy and procedures, and new accounting software
and procedures that track program budgets, current estimates, actual costs to
date, forecasts to complete, contingencies, and variances – by line item.

Cost & Scope Management - is a simple but effective means to control costs
by budgeting based on clearly defined scope, avoiding cost creep during design
while achieving all objectives, comparing budgets with current estimates to
focus attention on variances, taking corrective action when needed, managing
contingencies to expand scope when possible, obtaining feedback for more accu- rate estimates in the
future, and promptly
reporting status to
avoid unpleasant
surprises. The project
manager controls the
current estimate and
the governing body
controls the budget.
The project manager
focuses on reducing
over-run variances,
uses contingencies if
necessary, and asks
for additional budget
if the scope changes.

Copyright ©2010 All Rights Reserved Pinnell/Busch, Inc.

SPECIAL TOOLS AND TECHNIQUES
In addition to our expertise in estimating construction
costs from preliminary, mid-design, and final plans and
specifications, we also have experience and expertise in
special estimating tools and techniques:

Risk Assessment – Our cost estimates have been
an integral part of our risk assessment assignments for high
profile projects such as the Portland Aerial Tram, a $300
million water supply program, a North Slope oil drilling
rig, and other large projects.

Value Engineering & Constructability Reviews
Expert-led VE workshops use functional analysis and
brainstorming techniques to evaluate design alternatives
that perform the needed functions at less cost. Our expe-
rienced team has saved clients hundreds of thousands of
dollars by identifying potential constructability problems
and solutions to reduce costs and delays.

Earned Value Analysis - One of the most effective
ways to control costs is a technique called Earned
Value Analysis. This compares the percentage of work
accomplished to the actual costs to date, then extends
those costs to completion. It provides a realistic picture
of whether your project is on target to complete within
budget and on time.

Life Cycle Costing - An optional design will balance
cost with durability to minimize life cycle costs. Our
professionals estimate operation, maintenance and
replacement costs, and adjust with discounted cash
flow analysis to give you a better understanding of how
additional first costs will pay off in the long term.

Cost Segregation Studies – Segregate design and
construction costs by tax depreciation categories to
accelerate depreciation and improve cash flow.

TYPES OF COST ESTIMATES
Our experts have prepared hundreds of estimates on a
wide variety of projects for contractors, project owners,
and architect/engineers. We can track project budgets
from concept to final drawings and show the effect of
design decisions as the design progresses. Pinnell/Busch
is one of few firms with four decades of estimating
expertise and hands-on construction experience. This
provides a solid basis in real-world applications and
ensures realistic estimates.

BENEFITS OF 3RD PARTY ESTIMATES

•  Access to the highest level of expertise
•  Additional estimating support when needed
•  Creative second look at tried-and-true solutions
•  Tighter control and reassurance of reliability
•  Justification for, or defense of, construction claims
•  Evaluation and prioritization of design alternatives
•  Identification of potential problems and solutions
•  Optimization of costs vs. benefits
•  Timely, accurate notice of pending cost overruns
  

Definitive Estimates - Detailed estimates are based
on final plans and specifications, then compared with
contractor bids to verify competitive bids, or used to
negotiate design/build or CM/GC contracts.

Budget & Conceptual Estimating - These estimates
serve as the basis of setting project scope, selecting
design alternatives, or prioritizing alternatives.

Change Order Estimates - Estimating change order
costs requires a different approach which must consider
industry practice, means and methods, impacts on pro-
ductivity, the extent and cost of delay, and home office
and jobsite overhead costs, as well as an understanding
of contract law. Few estimators have this specific experi-
ence. Ours do. We can help contractors avoid underesti-
mating the impact of changes and delay and help owners
avoid paying exaggerated costs.

Estimating the Cost of Defective Work - Our estima-
tors have investigated and prepared remediation cost
estimates for hundreds of construction defect projects
and successfully defended these estimates in negotiation,
arbitration, and litigation.

Estimating for Construction Contractors - As a third-
party resource for contractors, we provide:

•  Quantity Takeoffs and Pricing
•  Value Engineering and Constructability Reviews
•  Job Cost Accounting Systems and Procedures
•  Productivity Improvement Analysis
•  Recovery of Extra Work, Delay, and Impact Costs
•  Financial and Job Cost Troubleshooting