DiscoverClearTalkWhat Is Closed-Loop Estimating?
What Is Closed-Loop Estimating?

What Is Closed-Loop Estimating?

Update: 2023-02-15


On this episode of ClearTalk, Brad Malone, VP of Professional Services at Solutions360, joins CEO, Brad Dempsey, to discuss closed-loop estimating.

In simple terms, closed-loop estimating is the feedback loop from lessons learned from each project so they can be incorporated in future estimates, setting them up to be more accurate and profitable.

There are always similarities along with uniqueness across all projects, and there are lessons to be learned from both aspects. “When we have similarities, we can fine tune our estimates, and when we have uniqueness or risk, we can figure out how much contingency we’ll need,” Malone explains. “It's really a learning process.”

All of this relates to LEAN principles and six sigma, which Navigate encourages integrators to adopt.

“The way I look at Lean is about getting rid of waste, and drama, and really streamlining processes,” says Malone. I always use the metaphor of Michelangelo and David. How did Michelangelo carve David? Well, he just took away everything that wasn't David.”

Conversely, 6 Sigma is about variation - the more similar your projects are, the more you can look at reducing the variation. 

By embracing these concepts, Navigate finds integrators can save 20% to 30% of their labor on a project.

Also on the podcast:

  • What are the prerequisites for implementing closed-loop estimating.
  • Why you should not wait until the end of a project to go back and look at the original estimate.
  • How to develop the process to estimate the way you actually run a project.








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What Is Closed-Loop Estimating?

What Is Closed-Loop Estimating?