Construction Cost Estimation Quiz

Preliminary Cost Estimates

• Approximate estimates of construction costs are made during planning and design phases when projects are still not fully defined.
• Project costs are refined continuously during the design phase after each design change to stay within the owner's budget.

Final Cost Estimate (Contractor's Estimate)

• Completed once working drawings and specifications are finalized.
• Detailed estimates depend on comprehensive surveys of work quantities needed for construction.
• Accuracy hinges on factors like cost data quality, contractor's past experience, project uncertainties, and estimator expertise.

Highway Bridge Estimate Components

• Bid forms are required, both blank and completed.
• Quantity surveys identify necessary materials and labor.
• Pre-bid meetings review project scopes with management.
• Field supervision requires a chart with titles, names, and experience.
• Construction method studies finalize approaches and timelines.
• General time schedules outline the project master plan.
• Equipment decisions include identification of type and source and summary sheets for costs.
• Labor costs are categorized into direct and indirect expenses.

Labor Costs

• Estimators must conduct thorough job analyses and access historical unit costs and production rates.
• Direct labor costs calculated from production quantities and rates, while indirect labor covers additional expenses like payroll taxes and benefits.

Equipment Cost Estimating

• Equipment involves all contractor's tools and machinery used for construction projects.
• Significant portion of costs arise from equipment—especially for engineering projects as opposed to buildings.
• Major equipment requires detailed study regarding size, type, and operational needs; decisions on ownership, leasing, or renting are crucial.
• Operating costs encompass maintenance and usage expenses, excluding operator wages.

Basis for Equipment Cost Estimating

• Equipment expenses include ownership/lease/rental costs (often monthly) and operational costs based on project work quantities.
• A total equipment charge may be calculated per unit time.
• Mobilization and demobilization costs are tracked separately but included in the bid.

Subcontractor Bids

• Estimators solicit bids from subcontractors for specialized work through detailed drawings and specifications.
• Evaluation of subcontractor bids is critical, with quality and understanding of work being as important as cost.
• Unsolicited proposals may be considered against prime contractor estimates for cost advantages.

Overhead

• Overhead constitutes indirect expenses that cannot be allocated to specific work items.
• Project overhead includes job and field overhead, with small projects typically seeing overhead charged as a percentage of direct costs.