Open Book Estimate (OBE) ?

Any comments?

"Open Book Estimate" shall mean EPCM Contractor’s estimate of the cost required to complete the Work on the Project from the completion of the Phase I EPCM Work through to the Final Completion Date, together with a clear and comprehensive explanation of all elements, factors, assumptions, and data necessary to understand how the estimate was derived, that will become the basis for the Target Price upon review and approval by the Owner upon completion of the Phase I EPCM Work.

Dear Sreejith Nair,

Thank you very much for your valuable inputs.

I am really concerned about the OBE Period Work Schedule?What should be inculeded in OBE Period Activities?
And how the OBE Period Progress should be measured in terms of monthly progress reports?

Have any ideas?

Best Regards,

Hi David,
You may include ALL the activities which are visible at the time of award of contract in the programme.
You can make a tracker with all activity desc on left hand side and weighting for the activity and physical progress on the right hand side.
Weighting can be arrived based on the manhour allocated for each activity.
Please read my posting on progress trackers & weighting allocation in "Plotting s-curve" thread...

For progress measurement there are many methodologies..
1) 0- 100 method
2) 20- 80 method
3) breaking down to steps and measure progress of each step & then arrive at the overall progress

..etc

hope this helps..

Regards

Sreejith Nair