Construction Cost Estimation

Michael MincicCivil Engineering Technology

Department22 February 2007

Civil Engineering Technology at CSU-Pueblo

• Bachelor of Science CET– Four year degree

accredited by the Accreditation Board for Engineering and Technology TAC-(ABET)

Outline

1. Construction Cost Estimating

2. Bid Documents

3. The Estimation Process

4. Cost of Construction Labor & Equipment

Construction Cost Estimating

• Estimating is not an exact science!• Construction knowledge• Common sense• Good judgment• Lots of Luck!!!

Types of estimates

• The construction process players– The Owner– The Designer– The Contractor

• Approximate Estimates

• Detailed Estimates

Organization of Estimates

• See Steps for preparing a detailed estimate (pg. 8, Table 1.2)

• CSI Format– Building Construction– 16 major divisions

• WBS Format– Heavy Engineering

Awareness of Estimation Items

• Quantity Take-Off• Labor and Equipment

crews• Checklist of

Operations• Bid Documents• Addenda & Change

Orders• Overhead

• Material Taxes• Labor Costs• Workmen’s

Compensation Insurance

• Labor Burden• Bonds• Insurance

Bid Documents & Contract Documents

• Bid Document– Before Agreement

• Contract Document– After Agreement

• Architect– building type

• Engineer– Heavy/Industrial

Bid Documents

• Contract Requirements

• Arrangement of Contract Documents– Business/legal matters– Technical matters

• Building Construction Specs

• Heavy/Highway Specs

Bid Documents

• Requirements• Bid Solicitation• Instructions to Bidders

– Time of completion– Obligation of Bidder

• Information Available to Bidders• Bid Forms

– Lump sum– Unit price

Drawings

• Heavy/Highway– Plan, profile,

earthwork, cross section, details, schedules, etc.

• Building Construction Drawings– Civil– Architectural– Structural

Decision to Bid

• Assess the desire to Bid– Do we want to bid this project?– Do we have the skills to complete this project?– Do we have the available labor to complete this

project?– Do we have the necessary equipment to complete

this project?– Do we have experience with similar projects?– How busy are we?– Can we bond for the additional work with the existing

projects?

Additional Decisions to Bid

• Geographic Location• Complexity of the

Project• Owner’s Reputation• Designer’s Reputation• Do we want to

expand?

Sources of Labor Rates

• Union Wage– Predetermined by

contractor’s union

• Open-Shop– Agreed upon by the

employer and employee

• Prevailing rate– Dependant on the local

area

• The Cost of Labor

Employee Costs

• Social Security Tax

• Unemployment Compensation Tax

• Worker’s Compensation Insurance

• Public Liability & Property Damage Insurance

• Fringe Benefits