module 1 estimate 2
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Page 1Powerpoint Templates
Module 1: Introduction to
Estimate
Instructor:
Engr. Cyrus D. Esguerra
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ESTIMATE???
a. to judge tentatively or approximately the value, worth,
or significance ofb. to determine roughly the size, extent, or nature of
c. to produce a statement of the approximate cost of
Merriam - Webster
It is a valuation based on opinion or roughly made from imperfect
or incomplete data, a calculation not professedly exact, an
appraisement; also a statement, as by a builder, in regard to the
cost of certain work.
Max B. Fajardo
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Estimating is the most important of the practical aspects ofconstruction management and the subject deserve a closest
attention of one aspiring to a career in the profession. It is
comparatively simple subject to understand, however, as it
bring one up against practical work, methods andprocedure, knowledge of it cannot be acquired without close
application.
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Purpose of Estimating
To give a reasonably accurate idea of the cost
An estimate is necessary to give the owner a reasonably accurate idea of the cost to
help him decide whether the work can be undertaken as proposed or needs to be
curtailed or abandoned, depending upon the availability of funds and prospective
direct and indirect benefits. For government works proper sanction has to be
obtained for allocating the required amount. Works are often let out on a lump sum
basis, in which case the Estimator must be in a position to know exactly how much
expenditure he is going to incur on them
1. Estimating Materials
2. Estimating Labor3. Estimating Equipment
4. Estimating Time
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Types of Construction Estimates
1. Estimates for Conceptual Planning
Based on very general parameters of facility size,
anticipated quality of construction and use of facility.
Conceptual Estimate is prepared based from only a
conceptual description of the project.
- Is done before plans, specifications and other
project details have been developed.
- 15 20 % accurate
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Types of Construction Estimates
2. Estimates for Feasibility
Using preliminary design information and after project
scope is completely defined.
An estimate of project cost that is prepared before
complete construction documents are available.
15 20 % accurate
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Types of Construction Estimates
3. Estimate During Engineering and Design
Based on schematic level design documents, it is probable
that major quantities can be quantified, concrete, steel based
from type of construction.
The designer and owner may use the estimate to evaluate
expected total project cost but for the purpose of reviewing
design cost drivers and performing value engineering
Value Engineering a evaluation of a project objectivefunction for the purpose of bettering the objectives in terms
of cost and functional parameters
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Types of Construction Estimates
4. Estimates for Construct ion
Itemized cost computation based on complete set of contract documents
(incl. plans and specifications)
Bid estimate submitted to the owner either for competitive bidding or
negotiation consists of direct construction cost including field supervision,
plus a mark-up to cover general overhead and profits. The direct cost ofconstruction for bid estimates is usually derived from a combination of the
following approaches.
Subcontractor quotations
Quantity takeoffsConstruction procedures.
5% accuracy
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Types of Construction Estimates
5. Control Estimates.
For monitoring the project during construction, a control estimate is
derived from available information to establish:
Budget estimate for financing
Budgeted cost after contracting but prior to constructionEstimated cost to completion during the progress of construction.
6. Estimate for Change Order
Performed on the project site in response to an owner directedchange in the project.
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Estimating Techniques
Approximate Estimates
An approximate estimate is an approximate or rough estimate prepared
to obtain an approximate cost in a short time. For certain purposes the
use of such methods is justified.
Detailed Estimate
A detailed estimate of the cost of a project is prepared by determining the
quantities and costs of every thing that a contractor is required to provide
and do for the satisfactory completion of the work. It is the best and most
reliable form of estimate. A detailed estimate may be prepared in the
following two ways
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Qualification of an Quantity Surveyor
1. A thorough understanding of architectural drawings.2. A sound knowledge of building materials, construction
methods and customs prevailing in the trade.
3. A fund of information collected or gained through experience in
construction work, relating to materials required, hourly output
of workers and equipment, overhead expenses and costs of allkinds.
4. An understanding of a good method of preparing an estimate.
5. A systematic and orderly mind.
6. Ability to do careful and accurate calculations.
7. Ability to collect, classify and evaluate data that would beuseful in estimating.
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Data Required for Preparing an Estimate
1. Plans, sections and other
relevant details of thework.
2. Specifications indicating
the exact nature and class
of materials to be used.
3. The rates at which the
different items of work are
carried out.
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Steps in Preparing Estimates
1 . Taking out quantities
- Measurements are taken off from the drawings and entered on measurementsheet or dimension paper. The measurements to be taken out would depend upon
the unit of measurement.
2. Squaring out- Working out volumes, areas, etc. and casting up their total in recognized units.
3.Abstracting- In the third step all the items along with the net results obtained in the second
step are transferred from measurement sheets to specially ruled sheets havingrate column ready for pricing.
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Work Breakdown Structure
Work Breakdown Structure (WBS) provide a common
hierarchical framework for summarizing information and for thequantitative reporting to customers (client/owner) and management.
Purpose of Work Breakdown Structure
1. Provide an organized manner of collecting project cost data in
a standard format for estimating, cost reporting and cost tracking
2. Provide a checklist for categorizing cost
3. Provide a means to maintain historical cost data in a standard
format.
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Basics for Preparation of Estimates
Review Contract Documents
Thoroughly examine the constructions documents
Drawings and Specifications
General Conditions part of the contract documents that defines the
rights, responsibilities and relationships of all parties to the construction
contract.
It is appropriate to make notes of anything that can affect construction
duration and the cost to perform the work or add indirect and overhead cost to
the work
Prebid Conference a meeting held prior to bid opening for the purpose of
explaining the project and answering questions that bidders have with respect to
the contract documents and the work.
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Basics for Preparation of Estimates
Planning The Work
Thoroughly understand the scope of work and the project environment.
A detailed review enables the estimator to formulate a construction sequence
and duration.
A site visit is strongly recommended to enable the estimator to relate the
physical site characteristics to the available design parameters and details.
Quantities
Quantity Take-off must be as accurate as possible and should be based on all
available engineering and design data.
Quantities should be shown in standard units of measure and should be
consistent with the design units.
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Basics for Preparation of Estimates
Types of Cost
Direct Cost all cost elements that can be associated with a specific item of
project work e.g. cost of labor, cost of materials, cost of equipment
Indirect Cost cost that cannot be attributed to a single task of constructionwork e.g. overhead, profit, and bonds.
Profit amount of money, if any that a contractor retains after completing a
project and paying all cost for materials, labor and overhead.
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Basics for Preparation of Estimates
Productivity and Price Resources
Historical production and cost data from similar past work are excellent
resources of when adequate details have been saved and adjustments to
project specifics can be defined.
Development of Specif ic Task
Developed task descriptions must describe the scope and material
requirement.
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Basics for Preparation of Estimates
Unit Cost
Labor Unit Cost cost based on a defined crew that performs the task
at an assigned production rate.
Equipment Unit Cost
Material Unit Cost developed using vendor quotes , historical cost
commercial pricing sources and component calculations.
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Basics for Preparation of Estimates
Cost and Pricing
cost for each task is developed by summing up the direct cost elements
for labor, equipment, materials, supplies and subcontractors.
Indirect cost and other markups associated with each task or work item
should be identified and considered properly.
When using historical pricing, adjustment must be made for location,
work methodology, quantity of work, and other dissimilarities that affect
prices.
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Basics for Preparation of Estimates
Supporting Documents
Should always remain mindful of the documentation necessary to
support the estimates.
Narratives of Contract Cost contains discussion, considerations
and the developed construction plan.Project Narrative
Construction Schedule
Equipment and Material Utilization
Labor Discussion and Utilization
Estimate Backup Data backup documentation
Quotations
Drawing and Sketches
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Reference:
http://pmbook.ce.cmu.edu/05_Cost_Estimation.html
http://www.misronet.com/estimating.htm
Construction Management Fundamentals by Knutson, Schenayder,
Fiori, Mayo
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