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Chapter9a.pdf

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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