Fundamentals of Construction Estimating Chapter 1

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.

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.