Estimation Department – Policies & Procedures
1. Introduction
The Estimation Department at BEC Arabia operates under a structured framework of policies and procedures to ensure accuracy, efficiency, and compliance in cost estimation and bidding processes. These policies align with KSA procurement regulations (Etimad, NUPP, PIF Projects), ISO standards, and best practices in construction estimation.
2. Policies
2.1 Accuracy & Compliance Policy
All cost estimates must be data-driven, verified, and benchmarked against historical pricing and market trends.
Compliance with KSA Public Procurement Law, FIDIC, and Saudization (Nitaqat) is mandatory for all estimates.
Estimates must be reviewed and approved by senior estimators and project managers before submission.
2.2 Cost Estimation & Transparency Policy
All cost elements, including materials, labor, equipment, indirect costs, and contingencies, must be transparently detailed in each estimate.
Cost breakdowns should be itemized and justifiable, with reference to supplier quotes, past project data, and market conditions.
Use of standardized templates and cost databases to ensure consistency in estimates.
2.3 Competitive Pricing & Value Engineering Policy
The department must ensure that estimates remain competitive yet financially sustainable.
Implementation of value engineering techniques to explore cost-saving alternatives without compromising quality or safety.
Continuous collaboration with procurement, project management, and vendors to optimize pricing.
2.4 Risk Assessment & Contingency Policy
Every estimate must include a comprehensive risk analysis identifying potential financial, operational, and procurement risks.
Contingencies must be allocated based on project complexity, market volatility, and execution risks.
Regular updates and adjustments must be made to align with current economic conditions.
2.5 Tendering & Submission Policy
All tender estimates must be submitted within the prescribed deadlines, ensuring full compliance with tender requirements.
A structured review and approval process must be followed before submission.
Strict confidentiality and anti-collusion measures must be maintained to uphold integrity.
2.6 Technology & Digital Transformation Policy
The department must utilize digital estimation tools (Candy CCS, Primavera P6, SAP ERP, BIM) for enhanced accuracy.
Implementation of real-time cost tracking and analytics dashboards (Power BI) to monitor estimates.
Continuous improvement of processes through automation, AI-driven estimations, and data analytics.
3. Procedures
3.1 Cost Estimation & Bid Preparation Process
Tender Analysis:
Review project scope, specifications, and client requirements.
Identify critical cost components and potential risks.
Data Collection & Market Analysis:
Obtain latest supplier quotations, labor rates, and equipment rental costs.
Analyze market trends and cost fluctuations in materials and labor.
Cost Breakdown & Calculation:
Develop a detailed Bill of Quantities (BOQ) for each project.
Calculate direct, indirect, and overhead costs, ensuring alignment with profitability targets.
Risk Assessment & Contingency Planning:
Identify uncertainties in supply chain, logistics, and execution phases.
Allocate risk-adjusted contingency funds to mitigate financial exposure.
Multi-Level Review & Approval:
Internal verification by senior estimators and department head.
Final approval by Finance and BD leadership before submission.
Tender Submission:
Prepare the final cost proposal and bid submission package.
Ensure compliance with client-specific submission guidelines (Etimad, NUPP, private clients, etc.).
3.2 Post-Tender Review & Lessons Learned Process
Bid Evaluation:
Compare estimated costs vs. actual awarded costs.
Analyze reasons for win/loss and competitor pricing trends.
Lessons Learned Documentation:
Maintain a centralized database of past bid outcomes.
Conduct periodic strategy reviews to improve future estimates.
Process Improvement & Training:
Regular workshops and training sessions for estimation teams.
Integration of new technologies and best practices to enhance accuracy and efficiency.
4. Compliance & Quality Assurance
Regular audits to ensure compliance with company policies, client requirements, and industry standards.
Implementation of ISO 9001 quality management systems for continuous process improvement.
Collaboration with internal and external stakeholders to refine estimation methodologies.
5. Conclusion
The Estimation Department at BEC Arabia is committed to delivering highly accurate, compliant, and competitive cost estimates. Through structured policies, streamlined procedures, and technological advancements, the department plays a crucial role in ensuring the company’s profitability, efficiency, and market leadership.
✅ Accurate Costing | ✅ Risk Mitigation | ✅ Strategic Bidding | ✅ Regulatory Compliance
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