8 Questions (cost & estimating 2)

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CSMT 442

Lecture 1

Introduction to Estimating 2

What is Estimating in Construction

 The determination of probable construction costs for a project

 Prepared from the contract documents:

 Plans

 Project manual

 It is used to:

 Establish project budget

 Order materials

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Profit Margin

 Provides the general contractor an acceptable rate of return and compensation for the risk associated with the project

Types of Estimates

 Detailed estimate  Determines the quantity and cost of

everything required for the project, including:  Materials

 Labor

 Equipment

 Insurance

 Bonds

 Overhead

 Etc.

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Types of Estimates

 Assembly estimating

 Bid by groups of components (assemblies)

 For example, a light switch would include:

 Single-gang box

 Single-pole switch

 Cover plate

 Two wire nuts

 20 feet of wire

Types of Estimates

 Square-foot estimates

 Bid based on an average cost per square foot

 May be adjusted for:

 Building height

 Building perimeter

 Overall openings

 Etc.

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Types of Estimates

 Parametric estimates

 Bid based upon the statistical relationship between building components

 May include:

 Square footage

 Number of floors

 Length of perimeter

 Percentage of the building that is common space

 Etc.

Types of Estimates

 Model estimating

 Prepares an estimate based upon the answers to a number of questions

 Questions for the slab on grade portion of the building might include:

 What is the thickness of the slab?

 Does the slab have wire mesh?

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Types of Estimates

 Project comparison

 Prepared by comparing the costs of a proposed project to a similar project

 Adjusted for difference between the comparison project and the project being estimated

Estimating Opportunities

 Architectural offices

 Engineering offices

 Subcontractors

 Material suppliers

 Manufacturers’ representatives

 Project management

 Government

 Professional quantity surveyor

 Freelance estimators

 Residential construction

 Computer Software

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Quantity Takeoff Skills  Read and quantify plans

 Knowledge of mathematics (trig., geometry)

 Patience and peaceful

 Does careful, thorough work

 Computer literate with takeoff software

 On-Screen Takeoff (OST)

 Planswift

 BlueBeam

 HeavyBid

 Bid4Build

 CostX

Additional Estimating Skills

 Visualize building from plans

 Foresee problems

 Experienced in the construction process

 Methods of handling materials

 Labor productivity

 Convert labor productivity to costs

 Maintain a cost database

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Additional Estimating Skills

 Computer literate with:

 Spreadsheets

 Estimating software such as OST, WinEst, bluebeam

 Meets bid deadlines

 and be very calm near deadline

 Strong writing and presentation skills

Types of Bids

 Competitive bids

 Awarded based upon:

 Price

 Best value

 Negotiated bids

 Owner and contractor agree upon a price

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Contract Documents

 Invitation to Bid

 Instructions to Bidders

 Bid Form

 Owner-Contractor Agreement

 General Conditions of the Contract

 Supplementary General Conditions

Contract Documents

 Technical Specifications

 Working Drawings

 Addenda

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Bid Information

 Publicly advertized in:

 Newspapers

 Trade journals

 Dodge Reports

 Engineering News Record (ENR)

 Internet

Sources of Information

 Historical data

 Best source

 Construction cost guides

 Averages for a few contractors

 RS Means CostWorks