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Agenda
Definitionofestimating
Whatisestimatinginconstruction?
Costvariableinconstruction
Typesofestimates
Conceptualestimate
Detailedestimate
AvoidingErrorsinEstimates
ESTIMATINGCONSTRUCTIONCOSTS
Thekeytoagoodjobandsuccessfulcostcontrol
isthedevelopmentofagoodestimateasthe
basisforbidsubmittal.
Estimatingistheprocessoflookingintothe
futureandtryingtopredictprojectcostsand
resourcerequirements.
Tominimizeerrors,aconsistentprocedureorset
ofstepsforpreparinganestimateisneededto
minimizeerrorsandachievereliableresults.
TYPESOFESTIMATES
TYPESOFESTIMATES
Type
When?
How?
Conceptual
Priortothecommencementof
design
Arepresentativeunitismultiplied
byapriceperunittoobtainagross
estimate( 10%accuracy)ofthe
facilitycost.
Preliminary
40%completionofthetotal
design
Bythearchitector
architect/engineertoreflect
expectedcostsbasedonmore
definitivedata.
Engineer
Detaildesignisaccomplished
Totaljobcostminusmarkup
Shouldachieveapproximately
3%accuracy.
Bid
Biddingphase
Onthebasisofthebidding
documents,
Includeamarkupforprofit.
ConstructionManagement,3/EbyDanielW.Halpin
Copyright 2006byJohnWiley&Sons,Inc.Allrightsreserved.
ConstructionManagement,3/EbyDanielW.Halpin
Copyright 2006byJohnWiley&Sons,Inc.Allrightsreserved.
CostCapacityformulaisoftheform:
x
C1 Q1
= , where x = cos t capacity factor (< 1)
C2 Q2
Q
15
C2 = C1 2 = 20 = 20 30.37 = 30 M
Q
5
1
C2(now)=30*107/99=32.4M
0.37
Example 2: You are required to submit an estimate for 6m high, 3000 m2 warehouse
construction. You looked up your cost file and found that you had built an
8mhigh,2500m2 for2.5M,7yearsagowhenthecostindexwas120.Ifthe
costindexisnow165,whatisyourcostestimatepercubicmeter?
Cost/m3(7)=2,500,000/(8*2,500)=125
Cost/m3(Now)=125*165/120=171.88
Estimate=171.88*6*3000=3,093,840
DETAILEDESTIMATEDEVELOPING
STEPS
1.Breaktheprojectintocostcenters.
2.Estimatethequantitiesrequiredforcostcentersthat
representphysicalenditems(e.g.,cubicyardsofearth,
linealfeetofpipe,etc.).Forphysicalsystemsthis
procedureiscommonlycalledquantitytakeoff.Forthose
costcentersthatrelatetononphysicalitems,determine
anappropriateparameterforcostcalculation(e.g.,the
levelofbuilder'sriskinsurancerequiredbythecontract
ortheamountsoftherequiredbonds).
ESTIMATEDEVELOPINGSTEPS(Contd)
3. Priceoutthequantitiesdeterminedinstep2usinghistorical
data,vendorquotations,suppliercatalogs,andotherpricing
information.Pricedevelopmentforphysicalworkitemsmay
requireananalysisoftheproductionratestobeachieved
basedonresourceanalysis.Ifthisanalysisisused,the
estimatormust:
a. Assumeworkteamcompositiontoincludenumberof
workers(skilledandunskilled)andequipmentrequired.
b. Onthebasisofteamcomposition,estimateanhourly
productionratebasedonthetechnologybeingused.
c. Makeanestimateoftheefficiencytobeachievedonthis
job,consideringsiteconditionsandotherfactors.
d. Calculatetheeffectiveunitprice.
4. Calculatethetotalpriceforeachcostcenter.
TypicalEstimate
SummarySheet
QUANTITYTAKEOFF
(SURVEYING)
Thedevelopmentofthequantitiesofworktobeplacedin
appropriateunits(e.g.,squarefeet,cubicyards,etc.).
Theproceduresemployedbytheestimatortocalculatethese
quantitiesshouldincorporatestepstominimizeerrors.
Fiveofthemostcommonerrorsexperiencedduringquantity
takeoffare:
1. Arithmetic:Errorsinaddition,subtraction,andmultiplication
2. Transposition:Mistakesincopyingortransferringfigures,dimensions,
orquantities
3. Errorsofomission:Overlookingitemscalledfororrequiredto
accomplishthework
4. Poorreference:Scalingdrawingsratherthanusingthedimensions
indicated
5. Unrealisticwasteorlossfactor.
WorkBreakdownStructureWBS
Foundation
Excavation
Concrete
Steel
ProjectControl
13
Workpackages
Aworkpackage isawelldefinedscopeofwork
thatusuallyterminatesinadeliverableproduct.
Eachpackagemayvaryinsizebutmustbea
measurableandcontrollableunitofworktobe
perform.
Italsomustbeidentifiableinanumerical
accountingsysteminordertopermitcaptureof
bothbudgetedandactualperformance
information.
Aworkpackageisacostcenter.
1. GENERAL REQUIREMENTS
2. SITE CONSTRUCTION
3. CONCRETE
4. MASONRY
5. METALS
6. WOOD AND PLASTICS
7. THERMAL AND MOISTURE PROTECTION
8. DOORS AND WINDOWS
9. FINISHES
10. SPECIALTIES
11. EQUIPMENT
12. FURNISHINGS
13. SPECIAL CONSTRUCTION
14. CONVEYING SYSTEMS
15. MECHANICAL
16. ELECTRICAL
CE321 ConstructionManagement
Division3 Concrete
1. Concrete:
Plain Concrete
Reinforced Concrete: Substructure
Reinforced Concrete: Superstructure
2. Formwork
Foundations
Columns
Beams
Slabs
3. Reinforcing Steel
CE321 ConstructionManagement
PlainConcrete
Concrete is classified by type, strength, and location
Concrete volume is measured from detailed drawings
in cubic meters, rounded to the nearest 0.5 meter
Concrete Mat
Foundation (Spread,
Continuous, Raft)
Pedestal
Grade Beams
Shear Walls
Slab on grade
Columns
Beams
Slabs
Retaining Structures
Stairs & Landings
FoundationDetails
CE321 ConstructionManagement
ASTMStandardReinforcingBars
Soft
Metric
Size
Nom
Diam
mm
10
13
16
19
22
25
29
32
36
43
57
9.5
12.7
15.9
19.1
22.2
25.4
28.7
32.3
35.8
43.0
57.3
Area
mm2
Weight
Factors
kg/m
71
129
199
284
387
510
645
819
1006
1452
2581
.560
.994
1.552
2.235
3.042
3.973
5.060
6.404
7.907
11.384
20.239
CE321 ConstructionManagement
Bar Size
(kg/m)
Area (mm)
0.222
28.3
0.395
50.3
10
0.617
78.5
12
0.888
113
14
1.21
154
16
1.58
201
20
2.47
314
25
3.85
491
28
4.83
616
32
6.31
804
40
9.86
1257
50
15.4
1963
CE321 ConstructionManagement
SmallWallConstruction
Activity
Material
List
UnitPrice
Iftheworkisfairlystandard,thecostcanbecalculated
bysimplytakingdollarperunitcostfromcompany
recordsandapplyingthiscostwithaqualitative
correctionfactortothequantityofworktobe
performed.
Unitpricingvaluesareavailableinmanystandard
estimatingreferences:
R.S.MeansCompany,buildingConstructionCostData
F.R.Walker'sTheBuildingEstimator'sReferenceBook
TheRichardsonGeneralConstructionEstimating
Standards
LineItemCostDevelopment
UsingR.S.Means
Figure13.1(p.206)
Costsbasedonarepresentativeunit.
(FromBuildingConstructionCostData.CopyrightReed
ConstructionData,KingstonMA7815857880allrights
reserved.)
AvoidingErrorsinEstimates
Theaccuracyofanestimateisameasureof
howaccurateorcorrectthenumbersinthe
estimateare
Thecompletenessofanestimateisameasure
ofwhetherthebidhasalltheitemsneeded
fortheprojectwithoutduplicatingitems
AvoidingErrorsinEstimates
ListCostCodes
SpendMoreTimeonLargeCosts
PrepareDetailedEstimates
MarkItemsCountedDuringtheQuantity
Takeoff
AvoidingErrorsinEstimates
DoubleCheckAllTakeoffs
IncludeUnitsinCalculations
AutomatewithSpreadsheets
UseWellTestedandCheckedFormulas
DoubleCheckAllCalculations
AvoidingErrorsinEstimates
PerformCalculationsinTwoWays
DropthePennies
HaveSomeoneReviewtheEstimate
ReviewEachCostCodeasaPercentageofthe
TotalCosts
AvoidingErrorsinEstimates
CheckUnitCostsforEachCostCode
CompareCoststoanotherProject
AllowPlentyofTime
Questions