Including the Estimator’s Leadership Traits with Your Basis of Capital Cost Estimate
This paper explores the often-overlooked role of leadership traits in the creation of capital cost estimates for large construction projects. While traditional project controls artifacts like estimates, schedules, and risk registers significantly influence public agency decisions, they do not capture the leadership qualities of the cost estimator, which are critical to project outcomes. Traits such as authenticity, empathy, influence, and trust impact the estimator’s ability to engage, analyze, and guide decision-making processes. Drawing from a six-month leadership development program and practitioner insights, the paper proposes a checklist to include leadership traits in the basis of estimate document, emphasizing their importance in project success.
Saumil Maniar, PE, CMIT, PMP
Presented at 2024 Association for the Advancement of Cost Engineering International (AACEI) Conference & Expo
June 16-18, 2024
Atlanta, GA
Leadership in Capital Cost Estimation
Capital cost estimates play a crucial role in the decision-making process for construction projects, yet the leadership qualities of estimators and their teams are often overlooked. While the development of estimates is guided by well-established standards, such as AACE International’s Recommended Practices, these frameworks do not consider leadership traits as part of the estimate classification. Cost estimators typically develop assumptions based on personal experience and historical data, but their leadership qualities—such as influence, trust, and collaboration—are not evaluated or incorporated into the capital cost estimate or its basis of estimate (BOE).
The Basis of Estimate (BOE) and Leadership
The BOE is an essential document that accompanies capital cost estimates, providing a narrative that explains the scope, methodology, and assumptions behind the estimate. However, existing standards, including those from AACE International, do not require the inclusion of leadership metrics. This paper argues that leadership traits, both individual and team-based, should be recognized as vital to the estimating process. By introducing metrics for leadership qualities in the BOE, stakeholders could gain a more holistic view of how an estimator’s leadership impacts the project’s cost, scope, and risk analysis.