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EstimatingProcess
Agenda
Definitionofestimating
Whatisestimatinginconstruction?
Costvariableinconstruction
Typesofestimates
Conceptualestimate
Detailedestimate
AvoidingErrorsinEstimates
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ESTIMATINGCONSTRUCTIONCOSTS
Thekeytoagoodjobandsuccessfulcostcontrol
isthedevelopmentofagoodestimateasthe
basisforbidsubmittal.
Estimatingistheprocessoflookingintothe
futureandtryingtopredictprojectcostsand
resourcerequirements.
Tominimizeerrors,aconsistentprocedureorset
ofstepsforpreparinganestimateisneededto
minimizeerrorsandachievereliableresults.
TYPESOF
ESTIMATES
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TYPESOFESTIMATESType When? How?
Conceptual Priortothecommencementof
design
Arepresentative
unit
is
multiplied
byapriceperunittoobtainagross
estimate(10%accuracy)ofthe
facilitycost.
Preliminary 40%completionofthetotal
design
Bythearchitector
architect/engineertoreflect
expectedcostsbasedonmore
definitivedata.
Engineer Detaildesignisaccomplished
Totaljobcostminusmarkup
Shouldachieveapproximately
3%accuracy.
Bid Biddingphase
Onthe
basis
of
the
bidding
documents,
Includeamarkupforprofit.
ConstructionManagement,3/EbyDanielW.Halpin
Copyright 2006byJohnWiley&Sons,Inc. Allrightsreserved.
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ConstructionManagement,3/EbyDanielW.Halpin
Copyright 2006byJohnWiley&Sons,Inc. Allrightsreserved.
Example1:A5MGPDdesalinization plant wasconstructed in 1995 at a cost of20M.
What
would
be
the
cost
of
15M
GPD
in
2005,
if
the
cost
capacity
factor
is
0.37,andDesalinizationIndexDI2005=107,andDI1995=99.
CostCapacityformulaisoftheform: 1)(cos,2
1
2
1
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DETAILEDESTIMATEDEVELOPING
STEPS
1.Breakthe
project
into
cost
centers.
2.Estimatethequantitiesrequiredforcostcentersthat
representphysicalenditems(e.g.,cubicyardsofearth,
linealfeetofpipe,etc.).Forphysicalsystemsthis
procedureiscommonlycalledquantitytakeoff.Forthose
costcentersthatrelatetononphysicalitems,determine
anappropriateparameterforcostcalculation(e.g.,the
levelofbuilder'sriskinsurancerequiredbythecontract
orthe
amounts
of
the
required
bonds).
ESTIMATEDEVELOPING
STEPS
(Contd)
3. Priceoutthequantitiesdeterminedinstep2usinghistorical
data,vendorquotations,suppliercatalogs,andotherpricing
information.Pricedevelopmentforphysicalworkitemsmay
requireananalysisoftheproductionratestobeachieved
basedonresourceanalysis.Ifthisanalysisisused,the
estimatormust:
a. Assumeworkteamcompositiontoincludenumberof
workers(skilledandunskilled)andequipmentrequired.
b.Onthe
basis
of
team
composition,
estimate
an
hourly
productionratebasedonthetechnologybeingused.
c. Makeanestimateoftheefficiencytobeachievedonthis
job,consideringsiteconditionsandotherfactors.
d. Calculatetheeffectiveunitprice.
4. Calculatethetotalpriceforeachcostcenter.
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TypicalEstimate
SummarySheet
QUANTITYTAKEOFF
(SURVEYING) Thedevelopmentofthequantitiesofworktobeplacedin
appropriateunits(e.g.,squarefeet,cubicyards,etc.).
Theproceduresemployedbytheestimatortocalculatethesequantitiesshouldincorporatestepstominimizeerrors.
Fiveofthemostcommonerrorsexperiencedduringquantitytakeoffare:
1. Arithmetic:Errorsinaddition,subtraction,andmultiplication
2. Transposition:Mistakesincopyingortransferringfigures,dimensions,
or
quantities
3. Errorsofomission:Overlookingitemscalledfororrequiredtoaccomplishthework
4. Poorreference:Scalingdrawingsratherthanusingthedimensionsindicated
5. Unrealisticwasteorlossfactor.
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ProjectControl 13
Foundation
Excavation Concrete Steel
WorkBreakdownStructureWBS
Workpackages
Aworkpackageisawelldefinedscopeofworkthatusuallyterminatesinadeliverableproduct.
Eachpackagemayvaryinsizebutmustbeameasurableandcontrollableunitofworktobeperform.
Italsomustbeidentifiableinanumerical
accountingsystem
in
order
to
permit
capture
of
bothbudgetedandactualperformanceinformation.
Aworkpackageisacostcenter.
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CE321ConstructionManagement
CSI MasterFormat 95 Titles for Divisions 1-16
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
CE321ConstructionManagement
Division3 Concrete
Plain Concrete
Reinforced Concrete: Substructure
Reinforced Concrete: Superstructure
1. Concrete:
2. Formwork
3. Reinforcing Steel
Foundations
Columns
Beams
Slabs
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CE321ConstructionManagement
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
Use 5-10% waste factor
CE321ConstructionManagement
FoundationDetails
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CE321ConstructionManagement
ASTMStandardReinforcingBars
SoftMetric
Size
NomDiam
mm
Areamm2
WeightFactors
kg/m
10 9.5 71 .560
13 12.7 129 .994
16 15.9 199 1.552
19 19.1 284 2.235
22 22.2 387 3.042
25 25.4 510 3.973
29 28.7 645 5.060
32 32.3 819 6.404
36 35.8 1006 7.907
43 43.0 1452 11.384
57 57.3 2581 20.239
CE321ConstructionManagement
Bar Size (kg/m) Area (mm)
6 0.222 28.3
8 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
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SmallWall
Construction
Activity
Material
List
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UnitPrice
Iftheworkisfairlystandard,thecostcanbecalculatedbysimplytakingdollarperunitcostfromcompanyrecordsandapplyingthiscostwithaqualitativecorrectionfactortothequantityofworktobeperformed.
Unitpricingvaluesareavailableinmanystandardestimatingreferences:
R.S.MeansCompany,buildingConstructionCostData
F.R.Walker'sTheBuildingEstimator'sReferenceBook
TheRichardson
General
Construction
Estimating
Standards
LineItemCostDevelopment
UsingR.S.Means
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Figure13.1 (p.206)Costsbasedonarepresentativeunit.(FromBuildingConstruction CostData.CopyrightReed
ConstructionData,KingstonMA7815857880allrights
reserved.)
AvoidingErrors
in
Estimates
Theaccuracyofanestimateisameasureof
howaccurateorcorrectthenumbersinthe
estimateare
Thecompletenessofanestimateisameasure
ofwhether
the
bid
has
all
the
items
needed
fortheprojectwithoutduplicatingitems
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AvoidingErrorsinEstimates
ListCostCodes
SpendMoreTimeonLargeCosts
PrepareDetailedEstimates
MarkItemsCountedDuringtheQuantity
Takeoff
AvoidingErrors
in
Estimates
DoubleCheckAllTakeoffs
IncludeUnitsinCalculations
AutomatewithSpreadsheets
UseWell
Tested
and
Checked
Formulas
DoubleCheckAllCalculations
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AvoidingErrorsinEstimates
PerformCalculationsinTwoWays
DropthePennies
HaveSomeoneReviewtheEstimate
ReviewEachCostCodeasaPercentageofthe
TotalCosts
AvoidingErrors
in
Estimates
CheckUnitCostsforEachCostCode
CompareCoststoanotherProject
AllowPlentyofTime
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Questions