This is the most common (and costly) mistake I see people make in estimating.
It's failing to understand the difference between production and program-driven estimates.
Here’s the difference:
Production Estimating is how work is actually performed. It’s crew outputs, equipment productivity, and how long things take when boots are on the ground. These estimates reflect site conditions, sequencing, and construction methods.
Program-Driven Estimating starts with the schedule. It’s top-down. We begin with how much time the project takes. Then back-calculate costs and resources to fit that timeframe.
Let’s break it down with a real-world example:
On a greenfield earthworks project, production estimating works well. Say your earthworks fleet costs $400/hr and can cut to fill at 50m³ per hour. That’s a unit rate of $8/m³. Simple and driven by how fast the machines and conditions allow you to work.
Now compare that to a crane operation on a brownfield bridge site. The crane might technically be able to lift one girder every 30 minutes. Therefore, you could estimate $400/hr × 0.5 hr = $200 per girder.
Sounds correct?
In reality, the rate girders get delivered to site drives the crane utilization. Not the rate the crane can lift girders. If only 8 girders arrive daily, the crane is idle between lifts, you’re paying for a full shift regardless.
So now your cost looks more like: $400/hr × 8 hrs = $3,200 total → or $400 per girder.
Same crane, same crew, different estimate—because the program, not production, drives cost.
Key takeaway: Know which estimate you’re building. Are you working from the ground up—or backwards from the delivery schedule? Mixing the two can lead to major disconnects between cost, time, and reality.
Working under a lump-sum contract? Getting approved variations (change orders) is essential.
To get variations approved: Before the job: Make sure your contract scope is clear and matches your pricing. During delivery: Keep good documents and records, justify the variation first, then price it.
If the scope is unclear, don't quote; offer to do it on rates.
I pick up my phone an average of 100 times per day. For the 16 hours I’m awake, that equates to every 10 minutes.
It disturbs me how much more I could get done without distracting myself every 10 minutes.
My 2025 goal is to improve on this. The strategy I’m using is the pomodoro technique.
The Pomodoro Technique is named after the Italian word for "tomato," inspired by the tomato-shaped kitchen timer its creator, Francesco Cirillo, used while developing the method.
The simple structure limits distractions and trains your brain to stay on track.
You need a schedule to prepare an accurate estimate.
The schedule drives the estimate in two ways.
For direct costs (the costs of doing the physical construction works), the schedule tells us if a task is production driven or productivity driven.
For example, if we have 3km of trenching to do and can trench 100m/shift, we allow 30 shifts. We allocate the mobilisation costs across 30 shifts.
If we only have 50m of trenching, we still have the same mobilisation costs, but we now only have 0.5 shifts of work. We also have additional non-productive time (its hard to fill 0.5 of a shift).
The cost per m of doing 50m is very different to doing 3km.
For indirect costs the schedule tells us how long we need our recurring overhead costs.
How long we need to pay staff salaries, hire site facilities and temporary fencing.
Battery Limit Drawings define the boundaries of responsibility for a project.
They show:
• Scope Divisions: Where one contractor's work ends, and another's begins.
• Interfaces: Key connection points like pipes, cables, or utilities.
• Clarity: Avoids confusion in scope, ensuring smooth handovers.
From this history channel talking about the Panama Canal:
“Construction crews literally had to move mountains in a snake-infested jungle with an average temperature of 80 degrees and 105 inches of rainfall a year.”
ConstructIQ
I learned more in my first month of work than 4 years of uni.
There is a big gap between what we study and the real-world skills we need.
I had no idea how to estimate, how contracting worked or even what an ITP was.
I was lucky enough to have some amazing managers and mentors who filled in the gaps for me. But I know many others don't get that same support.
That's why I've teamed up with industry experts to create a short, practical library of courses that cover the real-world skills you need on the job.
So far we've had almost 35,000 students enroll. They are all completely free on my website.
So if you know anybody starting off in the industry, I'd love it if you could share these with them:
courses.construct-iq.com/pages/course-categories
3 weeks ago | [YT] | 8
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ConstructIQ
This is the most common (and costly) mistake I see people make in estimating.
It's failing to understand the difference between production and program-driven estimates.
Here’s the difference:
Production Estimating is how work is actually performed. It’s crew outputs, equipment productivity, and how long things take when boots are on the ground. These estimates reflect site conditions, sequencing, and construction methods.
Program-Driven Estimating starts with the schedule. It’s top-down. We begin with how much time the project takes. Then back-calculate costs and resources to fit that timeframe.
Let’s break it down with a real-world example:
On a greenfield earthworks project, production estimating works well. Say your earthworks fleet costs $400/hr and can cut to fill at 50m³ per hour. That’s a unit rate of $8/m³. Simple and driven by how fast the machines and conditions allow you to work.
Now compare that to a crane operation on a brownfield bridge site. The crane might technically be able to lift one girder every 30 minutes. Therefore, you could estimate $400/hr × 0.5 hr = $200 per girder.
Sounds correct?
In reality, the rate girders get delivered to site drives the crane utilization. Not the rate the crane can lift girders. If only 8 girders arrive daily, the crane is idle between lifts, you’re paying for a full shift regardless.
So now your cost looks more like: $400/hr × 8 hrs = $3,200 total → or $400 per girder.
Same crane, same crew, different estimate—because the program, not production, drives cost.
Key takeaway: Know which estimate you’re building. Are you working from the ground up—or backwards from the delivery schedule? Mixing the two can lead to major disconnects between cost, time, and reality.
3 weeks ago | [YT] | 15
View 1 reply
ConstructIQ
Working under a lump-sum contract? Getting approved variations (change orders) is essential.
To get variations approved:
Before the job: Make sure your contract scope is clear and matches your pricing.
During delivery: Keep good documents and records, justify the variation first, then price it.
If the scope is unclear, don't quote; offer to do it on rates.
Want a full breakdown? Check out our free construction contract management course:
courses.construct-iq.com/courses/construction-cont…
4 weeks ago | [YT] | 9
View 0 replies
ConstructIQ
Struggling to get ahead in your construction management career? Don't feel like you're getting paid what you deserve?
Certified construction managers earn, on average, 33-44% more than their non-certified peers (based on a study by the PMI).
You can get certified in weeks (as opposed to years for a degree).
That's why we've launched our new course to help you become a certified construction manager.
Start for free below:
courses.construct-iq.com/bundles/become-a-construc…
2 months ago | [YT] | 8
View 3 replies
ConstructIQ
I pick up my phone an average of 100 times per day. For the 16 hours I’m awake, that equates to every 10 minutes.
It disturbs me how much more I could get done without distracting myself every 10 minutes.
My 2025 goal is to improve on this. The strategy I’m using is the pomodoro technique.
The Pomodoro Technique is named after the Italian word for "tomato," inspired by the tomato-shaped kitchen timer its creator, Francesco Cirillo, used while developing the method.
The simple structure limits distractions and trains your brain to stay on track.
2 months ago | [YT] | 5
View 0 replies
ConstructIQ
You need a schedule to prepare an accurate estimate.
The schedule drives the estimate in two ways.
For direct costs (the costs of doing the physical construction works), the schedule tells us if a task is production driven or productivity driven.
For example, if we have 3km of trenching to do and can trench 100m/shift, we allow 30 shifts. We allocate the mobilisation costs across 30 shifts.
If we only have 50m of trenching, we still have the same mobilisation costs, but we now only have 0.5 shifts of work. We also have additional non-productive time (its hard to fill 0.5 of a shift).
The cost per m of doing 50m is very different to doing 3km.
For indirect costs the schedule tells us how long we need our recurring overhead costs.
How long we need to pay staff salaries, hire site facilities and temporary fencing.
2 months ago | [YT] | 11
View 1 reply
ConstructIQ
Confused by all the different types of steel reinforcement?
Hopefully this helps!
2 months ago | [YT] | 12
View 1 reply
ConstructIQ
Battery Limit Drawings define the boundaries of responsibility for a project.
They show:
• Scope Divisions: Where one contractor's work ends, and another's begins.
• Interfaces: Key connection points like pipes, cables, or utilities.
• Clarity: Avoids confusion in scope, ensuring smooth handovers.
2 months ago | [YT] | 8
View 1 reply
ConstructIQ
This table blew my mind.
From this history channel talking about the Panama Canal:
“Construction crews literally had to move mountains in a snake-infested jungle with an average temperature of 80 degrees and 105 inches of rainfall a year.”
2 months ago | [YT] | 7
View 3 replies
ConstructIQ
What’s the easiest way to save 10% of project costs?
Do the work 10% faster?
Order 10% less materials?
Negotiate 10% lower rates with sub-contractors?
What about doing 10% less work?
"The money is in the work we don’t do."
This was advice that changed my approach to construction management. It captures the core principle of design management.
Design management is the process of developing the project's technical solution.
Its primary objectives are:
To determine what we need to build
To ensure the solution is feasible within project constraints (time, cost, safety)
The easiest way to save money on a project is to eliminate work through value engineering – a critical part of design management.
Examples of Value Engineering in Action:
Instead of installing a new trench, reroute the cables through existing pathways.
Replace in-situ concrete with faster-to-install precast panels.
Reduce the size of a concrete slab by utilizing piles for support.
Design management is becoming increasingly vital in modern construction management for several reasons:
Outsourced Design: Clients are increasingly outsourcing detailed design work to contractors.
Tight Margins: Financial constraints drive the need for innovative solutions.
Competitive Advantage: Design management enables contractors to deliver higher value while maintaining profitability.
2 months ago | [YT] | 5
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