What does OBCE mean in UNCLASSIFIED

Open Book Cost Estimate (OBCE) is a method of cost estimating that applies to all construction contracts, allowing contractors to submit bids based on their own independent estimates for the cost of a project or job.

The benefits of using an OBCE include creating competition among contractors and driving down cost, as well as increasing transparency in the bidding process. Additionally, it allows contractors to gain better control over their bottom line and manage risks more effectively.

An OBCE should be prepared by completing an estimate detail listing the items required for completion of the project or job, along with labor costs, material costs and other such related costs. The estimate should also include any applicable taxes and fees, subcontractor costs and overhead expenses necessary for completion of the job.

An Open Book Cost Estimate can usually be found online from sources like suppliers or subcontractors who offer specialized services related to your project type. Additionally, they can often be found in bids issued by owners or developers requesting proposals from various contractors involved in various projects.

An OBCE is important because it provides clarity on what the project's estimated costs will be before work begins and acts as a measuring stick throughout the course of the project so that both parties know exactly where they stand financially at any given time. Furthermore, it encourages fair competition between contractors, which helps drive down overall construction costs and increases transparency and accountability within the industry.