Module 4n

CONSTRUCTION
ESTIMATING
MODULE 4
©2018 Copyright Alusani Skills & Training Network®. All Rights Reserved.
The format, design, content and arrangement of this document constitute a trademark of Alusani Skills & Training Network®.
Unauthorised reproduction will be actionable under South African law.
COMPILING RATES / PRICES
Contents:
• Pricing an estimate compared to
pricing a tender
• Direct costs
• Indirect costs
• Preliminaries and General (P&G)
• Allowance for overheads, profit
and attendance
• Checking your numbers
• Adjustment of rates
Unauthorised reproduction will be actionable under South African law. 2
Pricing an estimate vs a tender
• To price an estimate you need to know the current prices
for specific trades in a specific location. These prices include
supply, delivery, installation, labour, plant, tools, profit etc.
• To price a tender you need the detail of each rate / price for
a specific location:
o Supply,
o Delivery,
o Installation,
o Labour,
o Plant,
o Tools,
o Profit, etc
Direct costs
• Labour
• Materials
• Plant and Equipment
• Sub contracts
Labour costs
• Salary – market related

• Benefits
• Protective clothing
• Health & Safety related costs
• Productivity - (KPI)
• Legislation http://www.labour.gov.za/DOL/
• UIF
• Minimum wage
• http://www.labourguide.co.za/general/registered-trade-unions-
in-south-africa-561
• Ensure you understand policies, figures, terms etc
• The type of resource / service will influence the price structure
Material costs
• Product cost (R)
• Procurement costs (Someone must order it / tender it)
• Delivery costs (Is it included in the; list price?)
• Handling costs (Offloading)
• Storage costs (Containers etc)
• Waste & Shrinkage (Plaster, layer works, etc)
Plant cost
• External hire costs
• Fuel costs
• Operator costs
• Operator accommodation etc
• Maintenance
• Standing time
• Availability
• Utilisation
• Efficiency
• Productivity
• Internal hire costs
• Include other projects in your planning
Subcontractor costs
• Selected / Nominated/ Domestic
• Direct costs (Payment for their installations)
• Attendance (Water, Electricity, Toilets, parking, storage)
• Special attendance (Scaffolding, hoisting, Crane use)
• Miscellaneous Items
Indirect costs
• Preliminaries
• Performance guarantee
• Insurance
• Payment guarantees
• Scaffolding
• Batch plant
• Tower cranes
• Vehicles and large equipment
• Small tools
• Maintenance
Preliminaries and General
P & G’s are defined as those expenses which are incurred before
work in producing the project deliverable commences, together
with those costs that are non-specific to a particular Bill or
Activity list item. P&G cost therefore represents those costs
which cannot be reasonably allocated to any specific identified
activity on a project. In this regard the international Webster
comprehensive dictionary defines the word preliminary as
“antecedent or introductory to the main business” and defines
the word general as “pertaining to including or affecting all of
the whole; not local or particular”. The term originates from
civil engineering industry where those costs which are not
attributable to a specific bill of quantity item rate or cost were
collected under the heading “P & G expenses.”
J.A. Kruger & Associates
The use of the term is generally appropriate where a bill of

quantities or an activity level contract value form part of the order
or contract to be accepted or placed. This is because changes in the
scope of work, either in terms of increase or decrease, will affect
the cost of the activity or bill item only, and the impact on
establishment cost and the management of the project will not
form part of the price adjustment. In order therefore to address the
cost of changes which are not directly related to a change in the
work content of an activity or a change in the quantity of a BOQ
item, the Bill or activity listing or BOQ will incorporate an item or a
heading called P & G expenses.
J.A. Kruger & Associates
• Items normally priced as P’s & G’s

o Design responsibility
o Site representatives
o Indemnities, Insurance, Guarantees
o Site establishment
o Temporary works & services
o Compliance to safety regulations
o Plant & tools
o Special attendance to subcontractors
o Security of the site & the works
o Period on site
o Works completion
Checking your numbers
• Put a quality assurance procedure in place

• Do sense checks
• Compare your total cost and rates to previous similar projects
• Checking procedures
o Did they answer all my queries / RFI’s?
o Are the rates I used current?
o Did you price all the items?
o Are the scale of the drawings correct?
o Proof read the complete document (hard copy)
o Have the document reviewed by one of your peers
o Have the document approved by your senior
o Compare the cost / m² with recent projects -
o If it differs vastly clarify why.
THANK YOU
Len Holder
Tel: 011 447 7470
Web: www.alusani.co.za
14

Module 4n

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Module 4n

Caricato da

Copyright:

Formati disponibili

CONSTRUCTION

• Salary – market related

• Selected / Nominated/ Domestic

• Direct costs (Payment for their installations)

• Attendance (Water, Electricity, Toilets, parking, storage)

• Special attendance (Scaffolding, hoisting, Crane use)

The use of the term is generally appropriate where a bill of

• Items normally priced as P’s & G’s

• Put a quality assurance procedure in place

Potrebbero piacerti anche