Confessions of a Cost Estimator’s Post

"The Grinch Who Stole the Contingency Fund" Ah, contingency funds. That carefully calculated cushion we build into every project is designed to absorb the unexpected. But just like the Grinch stealing Christmas, there are always those pesky "Grinches" lurking in the shadows, ready to steal our precious reserves. The Usual Suspects: #1 Scope Creep: The project starts small and grows like a weed. Suddenly, those "minor additions" have morphed into a new beast. #2 Material Price Volatility: Remember the stable price you based your estimate on? Yeah, about that...concrete C32, deformed steel rebars, you name it – prices have a mind and an awkward sense of humour. #3 The "Forgotten" Factor: You accounted for labour, materials, and equipment...but did you remember that obscure permit or the site access complications? Oops! Unforeseen Site Conditions: Buried utilities, hidden water bodies, surprise archaeological finds – the ground beneath our feet is full of surprises. The Impact: According to a study by KPMG, 75% of infrastructure projects experience cost overruns. And let's be honest, those "Grinches" play a significant role in that statistic. Fighting Back: While we can't predict everything, we can certainly arm ourselves. Meticulous planning, robust risk assessments, and clear communication are our best weapons against those budget-busting Grinches. Let's have some fun! Share your own "Grinch" encounters in the comments below. What unexpected expenses have you battled in your projects? Let's commiserate and share strategies for keeping our contingency funds safe this holiday season (and all year round)! #InfrastructureHumour #CostPlanning #BudgetQuest #InfrastructureAdventures #UnexpectedCosts #BudgetBuster

"The Grinch Who Stole the Contingency Fund" Ah, contingency funds. That carefully calculated cushion we build into every project is designed to absorb the unexpected. But just like the Grinch stealing Christmas, there are always those pesky "Grinches" lurking in the shadows, ready to steal our precious reserves. The Usual Suspects: #1 Scope Creep: The project starts small and grows like a weed. Suddenly, those "minor additions" have morphed into a new beast. #2 Material Price Volatility: Remember the stable price you based your estimate on? Yeah, about that...concrete C32, deformed steel rebars, you name it – prices have a mind and an awkward sense of humour. #3 The "Forgotten" Factor: You accounted for labour, materials, and equipment...but did you remember that obscure permit or the site access complications? Oops! Unforeseen Site Conditions: Buried utilities, hidden water bodies, surprise archaeological finds – the ground beneath our feet is full of surprises. The Impact: According to a study by KPMG, 75% of infrastructure projects experience cost overruns. And let's be honest, those "Grinches" play a significant role in that statistic. Fighting Back: While we can't predict everything, we can certainly arm ourselves. Meticulous planning, robust risk assessments, and clear communication are our best weapons against those budget-busting Grinches. Let's have some fun! Share your own "Grinch" encounters in the comments below. What unexpected expenses have you battled in your projects? Let's commiserate and share strategies for keeping our contingency funds safe this holiday season (and all year round)! #InfrastructureHumour #CostPlanning #BudgetQuest #InfrastructureAdventures #UnexpectedCosts #BudgetBuster

Alberta Bound Boondoggle?⚠️🤠💰⛔️⚠️ CBC News : Federal government faces potential loss if Trans Mountain pipeline sold: budget watchdog. The Canadian Press: PBO says pipeline could be worth between $29.6B & $33.4B PBO says pipeline could be worth between $29.6B and $33.4B The Canadian federal government faces a potential loss on the sale of the Trans Mountain pipeline as it estimates it's worth less than it cost to build, the Parliamentary Budget Office said Friday. The pipeline could be worth between $29.6 billion and $33.4 billion, depending on what happens after the initial 20-year contracts expire, the budget watchdog said in an updated financial assessment of the controversial project. Meanwhile, the cost to build the pipeline, which went into service in May, came in at $34.2 billion, dramatically higher than the $7.4 billion estimate in 2017. https://lnkd.in/g5aAbiGB

Local govt and capacity. There is a tendency to look to expand our budgets through levers like taxes, fines, fees to build more capacity. Our public is rarely enamoured with this strategy. There is another way. Mine from within current capacity instead. Reallocate.

Here's the math that shocked me about land investing… 🤯 Houses in the US: 142 million Vacant land parcels: Over 3 BILLION Yet guess where 99% of investors focus? The truth is, that most investors avoid land because they don't understand it. They can't figure out: ✔️How to comp it ✔️How to value it ✔️How to profit from it But that's exactly why it's such a goldmine for those who know how. Double tap if you want to be part of the 1% who gets it. 👊 #LandInvesting #RealEstateInvesting #WealthCreation

Landlords Push for Higher EPC Standards: Do They Grasp the Implications? Read the article: https://lnkd.in/eyEf82xv #Landlords #Tenants #Property #PropertyManagement #Investors #LettingAgents #Housing #Investment

Here's the math that shocked me about land investing… 🤯 Houses in the US: 142 million Vacant land parcels: Over 3 BILLION Yet guess where 99% of investors focus? The truth is, that most investors avoid land because they don't understand it. They can't figure out: ✔️How to comp it ✔️How to value it ✔️How to profit from it But that's exactly why it's such a goldmine for those who know how. Double tap if you want to be part of the 1% who gets it. 👊 #LandInvesting #RealEstateInvesting #WealthCreation

Local govt and capacity. There is a tendency to look to expand our budgets through levers like taxes, fines, fees to build more capacity. Our public is rarely enamoured with this strategy. There is another way. Mine from within current capacity instead. Reallocate.

Landlords Push for Higher EPC Standards: Do They Grasp the Implications? Read the article: https://lnkd.in/efeb7-Ru #Landlords #Tenants #Property #PropertyManagement #Investors #LettingAgents #Housing #Investment

🔑 Unlocking Value in Land Deals - How to Spot Undervalued Land with Planning Permission Finding undervalued land with planning permission is one of the biggest opportunities in property investment—but only if you know what to look for. From understanding planning policies to spotting high GDV potential, getting it right can mean serious returns. In our latest blog, we break down the key factors that separate a great deal from a costly mistake. Read more here 👉 https://lnkd.in/eUy4b_Za #PropertyInvestment #LandDevelopment #PlanningPermission #Investing Daniel Cawdron Thomas Garratt Joe Martin Loren Moreton