Canadian High Arctic Research Station

The Advantages of Parallel Estimates

A.W. Hooker were engaged by PWGSC to provide independent cost estimating at various design stages and for a series of tender packages. Since cost estimates were also being prepared by the construction management firm and the architect’s cost consultant, it was necessary to participate in a detailed reconciliation process involving individual line by line review, group sessions to investigate areas of divergence, expose differences in underlying assumptions, engage client and design team clarification or instruction to bring about estimate alignment.

We also investigated and reported on opportunities for value management and cost savings. We analyzed alternative systems, construction methods and procurement types provided cost advice. A particular challenge which was researched and addressed was the logistics of shipping all material and equipment by sea during an extremely short window of six weeks that the shipping passage is open each year. The weight of all material and equipment together with additional packaging/protection for shipping by ocean was calculated so transportation costs (priced per ton) could be estimated.

The detailed estimates A.W. Hooker prepared helped to identify differences in interpretation of scope where design or documents were not clear so values could be adjusted accordingly in the affected estimates. Differences in assumptions of labour productivity, material shipping costs, workers travel and accommodation costs were made apparent, could be discussed and reconciled based on multiple reasoned view-points. End result was improved cost certainty.