construction cost estimating class #2: the estimating process prof. ralph v. locurcio, pe
TRANSCRIPT
![Page 1: Construction Cost Estimating Class #2: The Estimating Process Prof. Ralph V. Locurcio, PE](https://reader036.vdocument.in/reader036/viewer/2022081504/56649ec55503460f94bd04cd/html5/thumbnails/1.jpg)
Construction Cost EstimatingClass #2: The Estimating Process
Prof. Ralph V. Locurcio, PE
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Decision to bid Form the estimating team Estimate work plan
Type of estimate Estimating Procedures Documentation
Risk & contingency analysis Review & check the estimate Finalize the estimate
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KickoffMeeting
WorkPlan
EstablishStandards
UpdateDatabase
PrepareEstimate
DocumentEstimate
ReviewEstimate
Adjust Estimate?
SubmitBid
ProjectExecution
ProjectCompletion
Yes
No
Revise
Lessons Learned
Feedback to improve data base
Reality C
heck
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Type of estimate required Deliverables by subcontractors Budget for the estimate Staffing Schedule Methodology Controls & reviews Presentation format & production
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Conceptual estimate – for project planning Decision based on units 70% Accurate Adjustments for time & location
Detailed estimate – for bidding Material take-off Equipment & cycle time Labor & productivity Admin+overhead+logistics+profit 95% Accurate = class standard
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Read the plans, specs & contract Conduct a site investigation Decide on construction method Prepare schedule Material quantity takeoffs Plan for equipment Plan for subcontracts Estimate costs of labor & materials Assess risks Determine contingency
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Industry standard for estimating Easy to format per bid instructions May be used as template for future
bids Avoids mistakes in calculations Saves time Summarizes costs Provides analytical tool Standard for homework in this class
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Physical characteristics Sub-surface conditions Site logistics for construction
layout Condition of roads & bridges Storage space for lay-down Security requirements Operational requirements
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Contract terms & conditions Payment & penalties Scope and quantities Complexity of construction Completeness of plans Quality of materials required
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Basic approach & teaming Work breakdown structure Skills of work crews Decision on work to be
subcontracted Timing of individual activities Phasing of crews & subs on site Procurement of equipment Flow of materials & laydown Cash flow projection
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Based on contract provisions Sequence of work Operational constraints Site constraints Weather & safety factors Lead time for materials Availability of subcontractors
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Study plans & specs Bid instructions, format &
alternates Systematic breakdown of units Follow sequence of construction Categorize materials & labor Check for duplicates & omissions Document all work Review & check for errors
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Materials, labor, equipment Subcontractor bids Contact suppliers Market factors apply Establish and update cost data
base
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Mobilization Field office Insurance Bonds Taxes & permits Cleanup Demobilization
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Complexity of plans & specs Terms of contract & penalties Experience with owner Timing of project Market factors for labor & materials Weather & safety Other uncertainties effecting
execution Probability of occurrence of each
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Percentage of base estimate Determine high cost risk factors Expected net risk based on
probability Aggregate total project risk Add cost to cover risk
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KickoffMeeting
WorkPlan
EstablishStandards
UpdateDatabase
PrepareEstimate
DocumentEstimate
ReviewEstimate
Adjust Estimate?
SubmitBid
ProjectExecution
ProjectCompletion
Yes
No
Revise
Lessons Learned
Feedback to improve data base
Re
ality Ch
eck
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Slides are on my web site My web site:
www.my.fit.edu/~locurcio
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Contact info for me…Prof. Ralph Locurcio, PELINK – Room 233
Office Hours: Mon + Wed + FriEmail: [email protected] Web: http://my.fit.edu/~locurcio