Forums - should cost model

Quote:

Originally Posted by eiafstg (Post 476)

I'm trying to develop a "should cost" model for steel fabrications and other commodities. Does anyone know of a consultant group that specializes in this type of work?

For steel you can set up unit rates for a long term agreement or you can compete it. I work in the EPC industry and our clients usually require competition. You can use an Excel tool such as a 98% curve to get a "should cost" based on previous prices paid. I don't have the tool, but I had one at a previous employer. You plug in BLS indices and then do the 98% curve and compare to the last published BLS indice. I am sure there are any groups who do this, but we do our own cost analyses.