THE CORPORATION OF THE NOV 30 1987
CITY OF PORT COQUITLAM

MEMORANDUM

TO: City Administrator November 25, 1987

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FROM: City Engineer

SUBJECT: Proposed Category System for Estimates ~- Public Works
Committee November 24, 1987

Recommendation:

That Counc!! adopt the following category system for an
indication of the rellability of future estimates:

CATEGORY A - This wilt! be a detalled estimate based on a fully
designed project. The relftabllity which Counc!]
can expect from this estimate Is about plus or
minus 10% for small projects, say around $10,000,
to plus or minus 5% on larger projects, say over
$200,000.

CATEGORY B =~ This category would represent preilfminary
estimates based on preliminary destgns, typicaily
the kind that would be prepared before budget
approval. Rellability of these estimates would be
plus or minus 25% for small projects and pilus or
minus 15% for iarge projects.

CATEGORY C =~ This category represents a ball park estimate done
without benefit of dasign. These would typlicaily
be the kind of estimates given off the cuff or
with minimal lead time In response to a question
from Council or the Public Works Committee.
Reilabiltty of these estimates would be plus or
minus 50% for small projects and plus or minus 25%

for large projects.

Background and Comments:

Because of the difficulties experienced recently with some
cost overruns and inaccurate estimates, | have become somewhat
gun shy with respect to providing estimates, to the point where
|} have been reluctant to provide any ostimate without full

Investigation and design.

While this approach will provide me with reasonable
protection against grossly Inadequate estimates, It Is not
necessarily the best approach from the polnt of view of The
City. One of the problems Is that Council! suffers by not belng
able to get quick and rough estimates when required. Another
problem {is that It becomes necessary to design for something

which might well not be included In the budget. This results
In a wasted time and effort.

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