Construction Cost Estimating Basics

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Questions and Answers

What may be required after a preliminary estimate in project management?

Increasing wages for labor

Reevaluating contractor performance

Design or scope modifications (correct)

Delay in project start date

Why is it important for contractors to have accurate estimates?

To attract more clients

To prepare competitive and profitable bids (correct)

To ensure compliance with regulations

To minimize resource allocation

Which factor does not directly depend on accurate estimates according to project management principles?

Bidding strategies

Stakeholder satisfaction (correct)

Budget planning

Project schedule

What is a potential outcome of failing to modify the design or scope after a preliminary estimate?

Increase in project costs Signup and view all the answers

In project management, how do scope modifications impact bids?

They can change the competitiveness of bids Signup and view all the answers

What is a key purpose of cost estimating in construction projects?

To provide a budget for the project Signup and view all the answers

Which method is commonly used for cost estimating in construction?

Historical data analysis Signup and view all the answers

In cost estimating, what factor significantly influences the accuracy of estimates?

The level of detail in the project plans Signup and view all the answers

What is a common consequence of poor cost estimating in construction projects?

Delays in project completion Signup and view all the answers

What role do contingencies play in cost estimating?

They account for unexpected expenses Signup and view all the answers

What effect does a site lacking easy access have on project costs?

It increases costs due to maneuvering equipment and materials. Signup and view all the answers

How can poorly located utilities influence overall project expenses?

They add underground work requirements that raise costs. Signup and view all the answers

Which of the following best describes the implications of a site with limited access?

It complicates logistics and can increase costs. Signup and view all the answers

What additional requirement might arise from poorly located utilities?

Potential need for extensive underground work. Signup and view all the answers

Why is easy access to a site important for project cost management?

It facilitates easier maneuvering of equipment and materials. Signup and view all the answers

What is the total labor cost for excavation?

$1500 Signup and view all the answers

What is the unit of measure for the quantity of plain concrete?

Cubic meter Signup and view all the answers

Which item has no associated subcontractor cost?

Plain concrete Signup and view all the answers

How much is the total equipment cost for plain concrete?

$8000 Signup and view all the answers

What is the total cost of labor, materials, and equipment for excavation?

$5000 Signup and view all the answers

What is the primary basis for the unit rate method in estimating initial costs?

Historical unit costs from similar past projects Signup and view all the answers

Which of the following best describes the unit method in operational estimating?

It is a straightforward approach based on similar projects' costs. Signup and view all the answers

What is a potential drawback of using the unit method for estimating costs?

It may not account for unique factors of the current project. Signup and view all the answers

In which scenario would the unit method be least effective for cost estimation?

When there are significant changes in project scope or design. Signup and view all the answers

Why is the unit method considered one of the simplest methods for project cost estimation?

It is based on direct comparisons to similar past projects' costs. Signup and view all the answers

What is the total amount (in units) required for Birke works?

39600 Signup and view all the answers

Which work type has the highest unit quantity requirement listed in the content?

Concrete Signup and view all the answers

What is the unit measure used for Plaster works?

M2 Signup and view all the answers

Which work type does not have a secondary quantity listed?

Plaster works Signup and view all the answers

What is the calculated total for Paintings in the content?

21600 Signup and view all the answers

Study Notes

Course Information

Course Title: Fundamentals of Project Management
Code: CIV280
Lecture No. (9): Cost estimating in construction projects
Lecturer: Dr. Eng. Abdallah Atef Abdou
Affiliation: Assistant professor - Civil Engineering Department – Assiut University

Introduction to Construction Estimating

Construction estimating is the process of calculating all costs for a construction project. This includes both direct costs (materials, worker wages) and indirect costs (equipment depreciation, office salaries).
Professional estimators perform this preconstruction step to ensure projects are completed profitably.
Accurate estimating requires detailed knowledge of construction materials, specifications, techniques, codes, and pricing trends.

Importance of Accurate Estimating

Accurate estimating is crucial for construction project success.
Owners depend on estimates to determine project feasibility within their budget.
Design or scope changes may be necessary after preliminary estimates.
Contractors rely on accurate estimates for competitive and profitable bids.
Underestimating costs can force contractors to cut into their profit margin.
Overestimating costs can lead to bids too high for selection. Estimates must balance owner budgets and contractor profit.

Steps in Construction Estimating

Review the bid package (agreements, bond forms, general conditions, specifications).
Conduct a site visit to understand site conditions (drainage, soil, utilities).
Perform a material takeoff (counting materials needed).
This can be manual or use digital estimating software.
Ask for pricing from suppliers and vendors.
Evaluate labor requirements (needed roles, hours, crew productivity).
Determine insurance and bonding costs (general liability, builder's risk, errors & omissions).
Calculate overhead and indirect costs (office space rent, administrative salaries, software subscriptions).
Account for profit and contingencies (contractor profit/fee, project unanticipated costs).

Types of Cost Estimates

Design Estimates:
Screening estimates (rough, order of magnitude)
Preliminary estimates (conceptual, rougher estimations)
Detailed estimates (definitive)
Engineer's estimates (plans and specifications).
Bid Estimates:
Direct construction cost including supervision, plus markup for overhead and profit.
These are derived from subcontractors' quotes, material takeoffs, and construction procedures
Control Estimates:
Used to monitor the project during construction.
Based on available data to set a budget, projected cost, and estimated cost of completion.

Methods for Calculating Construction Costs

Approximate Methods:
Unit methods (e.g., cost of one student in a school project)
Unit area or volume (space) method (dividing cost by building area or volume)
Element method (dividing project into elements for cost estimation)
Detailed Methods:
Using detailed methods to estimate costs for items in a project, and direct, indirect costs for the project. These methods are required for greater accuracy within the contract negotiated between the owner and contractor. Indirect costs include senior management, site management, profit, risk, and guarantee. This is known as mark up..

Calculating Unit Rate

Step-by-step process for calculating unit-rate costs.
Includes: reviewing drawings, site visits, material takeoffs, estimating labor costs, material cost, subcontractor costs, management/overhead costs, and profit.

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Description

This quiz covers fundamental concepts in construction cost estimating, including the importance of accurate estimates, methods used, and factors influencing project costs. Answer questions related to project management principles and the implications of scope modifications on bids and estimates.