Performing Quantity Surveys Oversees 1

[tkhan]

Hi all,

I’m a cost estimator and work for one of the largest cost estimating firm in the US. Lately I’ve been working on a business plan for an IT enabled remote services company in cost estimating. My plan is to go into contracts with cost estimating firms in the US in order to provide low cost quantity surveying services in a developing country at around 60% of what they charge their clients. This would enable the cost estimating firms to hire quantity surveying services at a very cheap rate and they won’t have to worry about hiring new employees and retaining them. The quality of work performed would be great and maintained by following the standards of ISO 9000. I need some comments from experienced cost engineers on this forum:

(1) Do you think the Cost Estimating firms would like to use a firm as a partner or service provider for such services that performs work oversees?

(2) How important do you think the price factor is for the cost estimating firms?

(3) Who should we approach first, the bigger firms or the small ones.

I’d greatly appreciate a reply.

Thank you.

Tkhan.

 

[kook]

Tkhan,
As an Estimator working in the BipPharm, Chemical and Petrochemical areas for one of the largest international E&C companies, I can extend to you my personal opinion.
The true cost of an Estimate is determined by the amount of risk the bidder underwrites (using the Estimate)versus the return on the Project. Make a lot of money and the Estimate cost (@ 1%-3%) was a bargain - lose major money ? well...just shoot the Estimator (or Estimating Firm) and call the Lawyers.
Remember, "quantity surveys" are just a starting point. Having relevant return data such that the detail can be accurately priced is just another milestone. Your true risk may lie in the Contract language committed to. I describe this as the potential for "Lumps" in the Lump Sum Tender.
Additionally, the fees,taxes,import duties and...oh yes, "soft money" - requirements in your host country will all play a major role.
For all of these reasons our organization prefers to do our own Estimates. If we we were to trust this task to others the exhaustive process of verification which is required would engender the same effort as if we had performed the work ourselves.