Sept. 2015 | “SYNTHETIC VALUATIONS IN THE CONSTRUCTION INDUSTRY” BY G. BRIONI

The article written by AICE Board member Giampiero Brioni, entitled “Synthetic evaluations in the construction industry: from mono-parametric estimating to multifunctional parameterized estimating and grouped costs,” is published on the AICE website.

The estimating methodologies commonly discussed in the literature and used in current practice can be subsumed within two general categories: conceptual and deterministic. Conceptual (or synthetic) budgeting methods employ computational models based on relationships, inferred or statistical, between costs and the comparison parameters employed (usually extrapolated from the design), and these most often require a non-negligible effort in the preparatory collection of data to be used in the analysis. Deterministic (or analytical) budgeting methods, on the other hand, require a high level of precision in determining quantities, unit prices and scope definition.

The choice of one analysis methodology over another is most often determined by the state of definition and accuracy of the design. In the early stages of the project lifecycle, when the level of design depth is still modest, synthetic budgeting methods will be used while, conversely, when the level of design detail is now significant, analytical budgeting methods will preferably be used.

There is a definite correlation between the level of design detail, the accuracy of economic evaluation, and the effort required to prepare the estimate.

Read the Article