By: Robert N. Kennedy, P.E.
Consulting Engineer of MDCSystems®

By definition, an estimate is an approximate calculation. This inherently infers that there is a certain amount of risk involved with any estimate. The risk will vary depending on the quality and the detail of the estimate and on the detail of the design information available at the time the estimate is prepared.

The quality and detail of an estimate is usually defined in the requested scope of services. An estimate can be an opinion of cost or a detailed estimate. The opinion of cost is an estimate prepared based on a professional’s best approximation of what a project will cost. It may take into account some basic parameters such as the type and size of the project or the expected product output from the project. It may even delineate some categories of construction following the CSI MasterFormat or UniFormat outlines. The opinion of cost is what was typically included in a standard AIA or NSPE contract. There is greater risk in an opinion of cost than in a detailed estimate. The detailed estimate is prepared based on a quantification of all items identified on the design documents at the time the estimate was prepared. It is then supplemented with parametric quantities for items not yet identified in detail on the design documents. The preparation of a detailed estimate is usually an additional scope of service. There is less risk in a detailed estimate than in an opinion of cost.

MDC's Bob McCue will be participating in a panel discussion with Post & Schell's Gary Wilson and Pinsent Mason's Peter Cassidy. The title of the panel discussion is "Risk Avoidance and Management for Infrastructure Projects."

Complex projects demand the latest project management techniques to maintain timely and proper completion. This session will discuss recent developments with CADD Modeling, Scheduling and Management tools to assist modern management of large, complex projects. The panel will also discuss the importance of clear contract language requiring proper modeling, scheduling and overall management of the project. The legal and contractual issues related to avoiding default termination will also be discussed. All Engineering and Construction undertakings involve risk. Some are insurable, some are avoidable and some can only be managed. The panel will outline key elements of risk that can be avoided by good management practice, identify the insurable elements and outline the management, schedule and cost elements of risk on infrastructure projects including “State of the Art” data banks, project websites and advanced CADD models. The panel will draw examples from recent projects to highlight pitfalls to risk resulting from failure to properly identify execution risk elements and their impact.

MDC's Mitchell Swann will be leading a forum titled, “Can Clean be Green? – How can Cleanroom-based industries climb aboard the ‘green train’?"

Green building design has gathered considerable momentum and many adherents amongst owners, designers and contractors. The goal has been to reduce the ‘footprint’ of buildings on the environment. Cleanroom-based industries (microelectronics, pharmaceuticals, aerospace, etc.) utilize some of the deepest ‘footprint’ buildings in the marketplace. These industries use lots of energy, water and other resources in their operation. Reducing energy and resource utilization in the cleanrooms would have a much greater impact per square foot than commercial buildings. This Forum will investigate the issues and challenges in making cleanrooms green.

• American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Inc. (ASHRAE) Winter Meeting, January 21-25, 2006.
• American Bar Association (ABA) Construction Forum Mid-Winter Meeting, January 26-27, 2006, New York, NY.
• American Bar Association (ABA) Alternative Dispute Resolution Meeting, April 4-8, 2006, Atlanta, GA.