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The heart
of all of American’s success is its ability to consistently and
accurately estimate cost. Our success is based on the recognition
that each project is unique. Even when we are asked to provide a
price from a sketch on the back of a napkin, we proceed with a
detailed set of assumptions based on our experience, identifying
quantities for every element of the project, and with an outline
specification, identifying specific equipment material and finishes
our estimated costs are based on. During the last 20 years, American
has developed a proprietary estimating program. For the last 14
years, this program has been under the direction of the Company’s
Chief Estimator Jeff Chen, who is involved from creation to
close-out on each project, ensuring that the system is continually
updated as new information is available from the market place and
the field. Commodity price changes are reviewed at the Company’s
executive staff level each Monday morning. This is followed by a
review of each project’s variation from budget, with discussion and
analysis of the causes of the variation. On a monthly basis, each
labor and material budget line item for each project is reviewed in
depth to determine the cause of any variation from budget, and,
along with corrective action as needed, American’s estimating
database is updated with the experience of these lessons learned.
Through the years American has used the R.S. Means database to
back-up American’s proprietary estimating system to provide pricing
for new and different elements. This pricing is subsequently revised
with field feedback. This pricing which has been revised to reflect
the actual costs involved is then integrated into American’s
database. Collectively, it is our almost fanatical attention to
detail, which has provided us the ability to consistently develop
highly accurate estimates at every stage of construction, along with
American’s emphasis on quality that has been the hallmark to
American’s success. |
