Estimator: A prototype of an integrated bid preparation system

Compiling bid proposals for construction projects is a process that depends on extensive computation as well as on experience-based judgement. Despite the proliferation of estimating tools, bid proposals focus primarily on the computational component and leave the more difficult aspects of risk assessment and mark-up estimation to estimators' judgement. This may lead to unrealistic estimates that do not account for the operational environment of projects. Such estimates often result in either losing bids or inflicting undesirable cost overruns. In an effort to circumvent such drawbacks, this paper presents a structured system for cost estimation and bid preparation. Unlike current tools, the proposed system supports a holistic bid-preparation process, accounting for a number of quantitative as well as qualitative factors that are used in practice for bid preparation. The system incorporates three principal features: 1 Integrated cost and schedule computation 2 Adequate risk assessment and mark-up estimation 3 Optimum bid unbalancing and cash flow optimization. The developments made in the integrated system are described along with a PC-based prototype Estimator, developed to automate the process. An example application is presented to illustrate the capabilities and essential features of the prototype and demonstrate its practicality.