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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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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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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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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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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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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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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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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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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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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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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