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O P I N I O N
Down the road
If you don’t want scope creep and unforeseen expenses to ruin your profit margins, try improving your estimating process.
Y ou planned for your project to make 14 percent, but you end up with 8 percent. That elusive project profit variance is often caused by many different factors, and can be very difficult to control and mitigate. So what has caused this loss of potential revenue that your firm was counting on? Is it deficient project management? Scope creep? Lack of systems and processes? Poor scope development and management? Very often it is all of these. But the number one way to start a project off with the highest chance of success is with a great scope and estimate.
June Jewell GUEST SPEAKER
to get it right and plan for all the possibilities is critical to making your full margin on your projects. project, yet many estimators do not have the tools and skills to develop a scope and estimate of costs that will stand up to all the challenges faced during project execution.” “Estimating is one of the most crucial steps to ensuring a successful
Estimating is one of the most crucial steps to ensuring a successful project, yet many estimators do not have the tools and skills to develop a scope and estimate of costs that will stand up to all the challenges faced during project execution. From unexpected delays, changes in clients’ staff, regulatory issues, unplanned meetings, and unrealized client expectations, your estimate must anticipate and account for anything that could happen. The recession and all the bad habits it created are long gone, yet many estimators still try to cut corners and lower fees believing they must shave fees to get a job. Your greatest negotiating power is before you sign a contract, so taking the time
See JUNE JEWELL, page 12
THE ZWEIG LETTER February 5, 2018, ISSUE 1234
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