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Cost Estimating#

Budgets for GTE projects are generally developed in the 'Potential (or Prospective) Project' phase following a request for proposal (/tender/quotation).

GTE prepares estimates for the labour, third party, material and other costs associated with the work as it is understood from the (potential) client's definition of the work scope, and as built up from an executable activity level.

The estimate is presented to the client - along with any methodology, exclusions and qualifications - as part of a 'Proposal' for the works. Generally as dictated by the client, the estimate will be provided as either:

  • A lump sum price, built up from the underlying activity level estimates, or
  • A rates based price, comprising a detailed listing of the individual activities involved and the labour and other rates associated with each activity, or
  • A combination of the two.

In all instances, the estimate work used to build up the overall project cost to the client (or sell price) is used as a basis for the budgeted activities to which the project will be managed if/when awarded to GTE by the client.

Preparing Estimates in Smartsheet#

Creating the Estimate Sheet#

The Smartsheet Project Estimate involves underlying resource rates that are subject to change over time. It is critical that all estimates be prepared from the template, which will be updated as and when required. If work from a previous estimate can be used as a basis then this should be copied in after first creating the estimate sheet from fresh - refer to Copying in a Previous Estimate as a Basis.

Pre-Requisites

  • A Smartsheet license is required.

To create the estimate sheet for the potential project:

  1. Copy the folder named '_Pxxxx_GTE_EstimateTemplate' in the '1000 - Potential Projects' workspace in Smartsheet by choosing 'Save as New'.

    Note: To copy a folder, right click it in the workspace tree and choose 'Save as New'. See the Smartsheet documentation here for more detailed instruction.

  2. Name the folder according to the template convention, where:

    • The leading '_' should b removed,
    • 'xxxx' is the Project ID (maintain the leading 'P' in this instance),
    • 'GTE' should be replaced with the Client's name in pascal case, and
    • 'EstimateTemplate' should be replaced with the project name as it reads in the Project Register (which should be pascal cased).

    Note: Pascal case should be interpreted as all words capitalised, without spaces, and with underscores used to separate words where the first word ends in a capital (eg SCADA_Upgrade).

  3. Leave the 'Save in' location as 'Workspaces/1000 - Potential Projects'.

  4. When presented with options:

    • Under 'Sharing Options', check 'Sharing'. The templates within the workspace will adopt the appropriate standard collaborators and you can add others later as required.
    • Under 'Automated Workflow & Alert Options', check 'Include recipients & permissions settings'.

  5. Leave the 'Data & Formatting Options' all checked. Some templates are pre-populated with reference data and this ensures those rows will be copied to the new workspace, and forms, shared filters, etc will also be available.

  6. Leave 'Newly created sheets' selected.

Copying in a Previous Estimate as a Basis#

If a similar estimate has been prepared in the past then it may be appropriate to use that estimate as a basis. The previous estimate should not be simply copied and then worked on - a new estimate should be created from the template and then this procedure should be followed to copy over relevant rows.

Pre-Requisites

To copy rows from the previous estimate sheet to the estimate sheet for the potential project:

  1. Open the previous estimate sheet in Smartsheet.

  2. Select the relevant rows to be copied.

    Tip

    Click a row and then hold the Shift button whilst clicking another row to select all rows between, or hold the Control button while clicking multiple rows where they are not all adjacent.*

  3. Right click one of the selected rows on the gripper at the far left of screen and choose 'Copy to Another Sheet...'.

    Note: If you select parent rows, all child rows underneath will also be copied. After you copy the rows, you can delete the child rows from your destination sheet if these are not required.

    Caution

    Do not select 'Move to Another Sheet...'. This will effectively cut and paste the rows, and there is now Undo operation available.

  4. In the popup that presents, locate and select the new estimate sheet.

  5. Before clicking 'Ok', check the 'Include Attachments' or 'Include Comments' options if desired.

    Caution

    Predecessors and formulas won't be preserved, but you can copy and paste them between the two sheets. For more information about how to do this, see the Smartsheet - Using Copy and Paste article.

See the Smartsheet documentation here for more detailed instruction.

Preparing Tender Schedules in Smartsheet#

The Smartsheet Project Estimate forms the basis for the tender schedule. See the Tender Schedule Preparation section.

Outputting the Estimate Sheet#

Producing a Pricing Schedule to Client Requirements#

Migrating the Estimate to the Schedule Upon Award#

??? warning
    The below is temporary loose guidance only. To be reviewed and eventually automated.

Current manual process:

  1. In the future schedule, collapse the schedule up to its level 2 core WBS, copy those activity names (as below) and then remove all rows except row 1. Only need to copy if needing to reinstate at the end… which isn`t necessary if the estimate is already to the schedule format.

    Level 2 WBS

    • Milestones
    • Initiation & Planning
    • Concept & Confirmation (0-30%)
    • Development (30-100%)
    • Off-Site Testing
    • Site Works (incl Installation, Commissioning)
    • Execution Closeout
    • Monitoring & Control
    • Project Closeout

  2. In the estimate, create a column called 'Estimate Row' and give it an incrementing integer from 1 (ie assign 1 to row 1 and then use row above plus 1 formula).

    FUTURE STATE / TODO...

    Add this via the API process. Don`t want to add this column into the Estimate template as it requires a non-column-formula which is prone to breaking.

  3. Check for any Estimate Budget Issues. These should have been resolved before the estimate was issued anyway.

  4. Select all rows except row 1 in the estimate and use the 'Copy to Another Sheet' feature on the right click menu to copy to the schedule.

    Danger

    Do not use 'Move to Another Sheet'. This can't be undone and will result in lost information (see predecessors below).

    Note

    • Rows can be collapsed in the estimate at this point – no issues.
    • Include Attachments and Comments.

  5. In the schedule, select all the new rows (everything except row 1) and indent it beneath row 1. Expand everything.

  6. Expand all rows of the estimate and copy predecessors from row 1 to the bottom and paste into the schedule. These aren`t brought in as part of the process.

  7. Copy Activity Labour (hrs) to Budget Assigned [hrs]. Check the top line Budget [hrs] equals the top line in the estimate, and then rename Activity Labour (hrs) to Original Budget Assigned [hrs] for reference (or just delete it because it`s in the estimate anyway).

  8. Delete the following columns:

    • Revision
    • Client Pricing Schedule Issues
    • Estimate Budget Issues
    • Scope Qualification Input
    • Estimator
    • Scheduled Item?
    • Estimate Resource Loading
    • Qty
    • Time (Hrs)
    • Proposal Manager
    • Filter - Tender Schedule
    • Scope Table Row#
    FUTURE STATE / TODO...

    The above list has likely changed and needs to be revisited.

  9. Hide (or delete if you want) the following columns:

    • Client Pricing Schedule Ref.
    • Scope Ref.
    • Scope Description
    • Scope Qualifications
    • Resource Role
    • Location
    FUTURE STATE / TODO...

    The above list has likely changed and needs to be revisited.

  10. Tick Reimbursable? for any reimbursable lines on a lump sum + rates job. (No need to tick if all reimbursable.)

  11. At this stage, delete all $ columns in the schedule.

    FUTURE STATE / TODO...

    At some point we might bring in the $ columns.

  12. If required (because the estimate was built in a non-standard structure), insert X rows and insert the core level 2 WBS that was copied, and then move the estimate rows around within that structure as desired… keeping an eye on the top line so as not to make errors with the hierarchy that would affect that.