1. Errors in units or decimal places
Not a very common mistake, but sometimes people make mistakes in the number of decimal places or units of measure. For example, meters – meters, are confused with tens or hundreds of meters – 10 meters, 100 meters, forgetting to divide or multiply the value by 10 or 100, respectively, less often – by 1000.
On one of the objects worth about 700 million rubles. due to such errors, the total estimate turned out to be 90 million rubles. more than it should have been. That is, in fact, the estimates included hundreds or thousands of times more work or materials than can be applied in principle at this facility.
For example, instead of the actual 26 square meters of plaster, the volume was indicated as 2,600 square meters, and instead of the actual 350 kilograms of reinforcement, 350 tons. The case is outstanding, but absolutely real.
Thus, the total cost of these errors amounted to about 15% of the total cost estimate. All these works could not be performed, although they were in the estimate, so we had to bring the estimate in line and terminate the contract for the amount of erroneously overestimated volumes. All this certainly affected the profitability and the level of profitability of the object (the ratio of profit to the cost of work as a percentage).
As a rule, those who use ready-made estimate documentation in their work notice such things, but those who draw it up do not notice. It is very bad when such moments are clarified already in the process of execution of the contract, when it remains only to state the fact of budget cuts.
It is quite easy to detect errors in estimates if they are small – on 3-5 sheets, and it is almost impossible to immediately notice them if the estimate exceeds 50, 100 or 500 pages.