Fundamentals of Construction Estimating Chapter 1

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Questions and Answers

What is the primary purpose of conceptual estimates in the construction process?

They provide detailed design specifications for projects.

They serve as the final budget for the completed project.

They are used primarily for post-construction analysis.

They evaluate project feasibility based on initial cost projections. (correct)

Which project delivery system utilizes conceptual, preliminary, and detailed estimates in construction?

Public-Private Partnership system

Cost-Plus delivery system

Fixed-Price delivery system

Design-Bid-Build system (correct)

In which estimating context is knowledge of Occupational Safety and Health Administration standards particularly crucial?

Conceptual estimating for project feasibility

Preliminary estimate preparation for budgets

Cost planning process for design stage

Detailed estimating procedure for compliance (correct)

What is NOT a function served by estimating within the construction industry?

Accuracy in design specifications during bidding Signup and view all the answers

When is a detailed estimating procedure most likely utilized?

Prior to approving estimated costs for bidding Signup and view all the answers

What is the primary objective of construction management delivery systems?

To facilitate overlap between project stages for earlier completion Signup and view all the answers

Which type of contract is defined by a stipulated sum for a defined scope of work?

Lump-sum contract Signup and view all the answers

During which stage is the detailed estimation process initiated?

Pricing the recap after quantity takeoff Signup and view all the answers

Which of the following factors is least influential in preparing construction estimates?

Environmental impact studies Signup and view all the answers

What are the primary stages involved in detailed estimates?

Quantity takeoff, recap quantities, summary and bid Signup and view all the answers

How does a cost-plus contract determine the final price of a project?

It bases the final price on preliminary estimates after work begins Signup and view all the answers

Which of the following is not a purpose served by estimating in construction?

Labor negotiation tactics Signup and view all the answers

What can result from failure to comply with Occupational Safety and Health Administration safety standards?

Fines or imprisonment Signup and view all the answers

Which estimating technique serves to forecast costs accurately throughout the project lifecycle?

Detailed estimates Signup and view all the answers

Study Notes

Fundamentals of Construction Estimating

The book is titled "Fundamentals of Construction Estimating", 4th Edition
The author is David J. Pratt
Copyright is 2019 Cengage Learning, Inc.

Chapter 1 Introduction

This chapter introduces the concept of construction estimating
The objectives of this chapter are to list and describe the functions of estimating in construction; briefly describe cost planning; describe project delivery systems; explain how estimates are used with each system; identify estimating types needed for lump-sum, unit-price, and cost-plus contracts; and outline the estimating procedure.
Objectives also include recognizing the role of Occupational Safety and Health Administration; safety standards; and their impact on construction costs.

Goals of the Book

The goal is to present a method for consistently creating accurate cost estimates in construction.
Estimates should be completed in minimal time
Easy to integrate with the latest construction technology
Intended to represent accepted standards or a fundamental/core methodology

What is an Estimate?

An estimate is the probable total cost for a future activity
This applies to all industries and government agencies
Used in budget preparation for future expenditures
Used to anticipate the cost of something
The basic approach for construction estimates includes identifying/measuring work items to be completed and assessing likely costs

Role of the Estimator

Estimator tasks change during project phases (program, schematic, design development, contract documents, contractor selection, and construction).
Estimators prepare conceptual estimates at the early planning stages of projects to begin to predict final project costs.
Estimators prepare preliminary estimates during different project phases to create cost plans, and to confirm accuracy of cost plan budgets
Estimators must prepare final pre-bid estimates (used to anticipate contractor bids) in the contract documentation phase

Conceptual Estimates

Created based on the owner's initial understanding of the project with limited design details.
Used to determine project feasibility and if the potential project value justifies the cost.
Value should reflect development benefits, including project delivery and future use.

Preliminary Estimates and Cost Planning

Prepared as the project design details develop
Used to assess if the design conforms to the budget.
Used to assess possible alternative design cost information.
Implies value analysis to determine justification for design improvements.
Estimates are subdivided into elements (major components of the project design)
Budgets are established and maintained for each element

Preparing Construction Estimates

Preliminary estimating techniques
Detailed estimating techniques are key aspects
Influential factors include project type, delivery systems, and nature of contracts

Types of Projects and Estimating Methods

Lists different types of projects; residential, commercial, industrial, institutional, and civil engineering
Presents different estimating methods used with each project type. (bill of materials, quantity takeoff, schedule-based)

Project Delivery Systems

Traditional (design-build): Project is fully designed before work begins.
Construction management: Overlap between stages; earlier project completion is a goal
Design-build: Single organization oversees design and construction

Estimating for Different Types of Contracts

Lump-sum contracts include a predefined scope of work and contract price
Cost-plus contracts begin work before the full design is complete. Final price is based on initial preliminary estimates. Total construction costs can be uncertain.
Unit-price contracts depend upon pricing schedules. Work is broken down into items. Quantities are estimated. Work completed is measured, and the Contractor is paid a unit price for what was done.
Detailed estimates follow stages: quantity takeoff, recap quantities, pricing, subcontractor work, general expenses and final bid summary

Estimating and Construction Safety

Occupational Safety and Health Administration (OSHA) safety standards are vital for construction.
Failure to comply with these standards may result in fines or imprisonment.
Poor construction safety on the work site impacts construction costs
Direct and indirect costs are present when safety standards are not followed.

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Description

Explore the introductory concepts of construction estimating with this quiz based on Chapter 1 of 'Fundamentals of Construction Estimating'. The chapter covers key functions, types of estimates, project delivery systems, and the significance of safety standards in construction costs. Test your knowledge and reinforce your understanding of these essential principles.