Would you use only industry average labor-rates, if you have your own?
Of course not!
If you have your own productivity-rates (even if just $/lb for Hardware estimating), you would want the option to use them, right?
For PRICE® customers, benchmarking is done by what we call calibration —
- Benchmarking gives you that ability to leverage your unique productivity in the marketplace, rather than rely on industry-average defaults.
- Calibration is a technique to leverage both your financial and project knowledge.
Certainly, if you do not have access to past financial and/or project actual details to properly calibrate at a desired fidelity, then you would leverage PRICE®’s industry-average metrics. In fact, you may want to use PRICE’s decades of benchmark knowledge to provide cross-checks or “should costs” of your project estimates.
These “out of the box” book-value metrics, in the form of “complexity” producibility values, are what our customers rely on as a default input to run our estimating algorithms.
If you can calculate your own producibility values, then of course do so! Your estimates are now dialed in to your organization’s benchmarked productivity rates, applied to our equations. The core estimating algorithms, validated by our 40+ years across sectors/ applications and continuously updated by the PRICE Cost Research™ Team, are driven by your selection of productivity rates as well as hundreds of potential key inputs.
There are many companies that only give you generic industry-average parameters to run their equations. No more. No less. Do you really want to settle for that option, and not consider your own metrics that define your organization and projects?
Of course not!
PRICE® and our suite of cost estimation solutions gives you the capability to dial-in your specific productivities based on technology, process, material, skillsets, etc. We give you control to utilize industry data, as well as benchmark and leverage your knowledge!