costruction

2. Discuss why we need to differentiate between direct and indirect overheads in construction?

Discussion Responses

SJ

Are computers tools changing the way construction estimating has been done in the past?

Computers are definitely changing the way estimating is done. In the old days, estimators would have to break out pages of paper and calculations, along with books of updated cost data, and estimate by hand. Through the use of new technology such as computer programs and spreadsheets, data can be implemented and automatically calculated based upon projected hours, materials, and so forth. Computers can reduce the amount of errors, increase speed of estimation, and provide the estimating team the ability to make easy changes that translate to the bottom line price in the process.

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2.       Discuss why we need to differentiate  between direct and indirect overheads in construction?      

You need to be able to differentiate the costs because one applies to company overhead NOT related to the project site, while the other refers to overhead that directly affects the job and site. For instance, indirect overhead includes staff salaries, travel expenses, and office supplies at the headquarters or regional office. Direct overhead costs would be classified as project superintendent salaries, temporary office facilities on the site, temporary utilities, and sanitation facilities for workers. All the direct overhead is site related, while indirect covers all the home office aspects.

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BH

Are computers tools changing the way construction estimating has been done in the past?

1. Absolutely they are. If someone said they weren't then I would call that person crazy. Everything now is just point and click and enter a formula and move on. Building Information Modeling is another advancement that details the evolution of technology in construction. Even though it's been at least a thought since the 1970's, more advances in technology have led to more advances in BIM. Alternatively, the new computer tools also might cause for more errors, or errors that are new to estimating. Like the lecture says, a computer can become a crutch and can sort of sideways influence laziness. Drag and drop or copy and paste, etc.

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Discuss why we need to differentiate  between direct and indirect overheads in construction?      

2. The need to differentiate between direct and indirect costs is because indirect costs can grossly outweigh direct costs. Think of the two as an iceberg floating in the ocean. The top portion of the iceberg that we can see only represents about 10-20% and what is left is what we cannot see. That would be a good way to think of direct and indirect costs. Direct costs include: windows & doors, foundation concrete, steel, light fixtures, subs and other labor, etc. While indirect costs represent: temp. power to a jobsite, jobsite trailer, reportings and schedule, clean up, etc. 

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VA

Are computers tools changing the way construction estimating has been done in the past?

Yes, technology has made construction sites safer and workers more efficient. It has allowed an increase in productivity, improved collaboration, and tackles more complex projects. Today, new technologies in construction are being developed at a breakneck pace. Smart devices and wearable construction technology, as well as sensors and on-site cameras can be tied in to construction management software and give a much clearer picture of building progress and real-time status reporting.

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