Types of Construction Cost Estimates

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Questions and Answers

What is the first type of design estimate prepared during the pre-design phase?

Order of magnitude estimate (correct)

Preliminary estimate

Detailed estimate

Engineer's estimate

Which estimate is prepared after a contract agreement is signed and serves as a baseline for controlling actual costs?

Control estimate (correct)

Preliminary estimate

Bid estimate

Engineer’s estimate

What method is used to measure the materials and labor needed to complete a project?

Quantity take-off (correct)

Budget forecast

Cost analysis

Resource allocation

Which type of estimation is based on data points such as direct costs and subcontractor quotes?

Bid estimate Signup and view all the answers

What does the labor rate encompass besides the basic hourly rate?

Basic hourly rate, benefits, and payroll burdens Signup and view all the answers

What is the purpose of a preliminary estimate during the design process?

To provide a rough cost approximation based on a schematic design Signup and view all the answers

What is a labor hour defined as?

The output of one person working for one hour Signup and view all the answers

During which phase are control estimates prepared?

After contract signing but before construction Signup and view all the answers

What financial aspects must contractors consider when estimating equipment costs?

Associated costs like depreciation and maintenance Signup and view all the answers

What is crucial for estimators to determine regarding labor requirements?

The productivity of the crew based on historical data Signup and view all the answers

What do capital costs primarily encompass when establishing a facility?

Costs associated with acquiring land and construction Signup and view all the answers

What does the loaded labor rate include?

Wages, taxes, and health insurance Signup and view all the answers

Which of the following is NOT considered an operating cost?

Architect fees during design Signup and view all the answers

Why is it important for estimators to calculate the loaded labor rate?

To reflect the actual costs of employing labor over the project's duration Signup and view all the answers

Why might construction budgets be larger than initial cost estimates?

Variable weather affecting timelines Signup and view all the answers

Which of the following costs should be included in project estimates related to labor?

Insurance, retirement contributions, and union dues Signup and view all the answers

What documents are typically included in the bid package?

Owner-contractor agreements and construction specifications Signup and view all the answers

Which of the following is NOT typically a part of the standard estimating process followed by estimators?

Contact the owner for feedback Signup and view all the answers

What should owners consider during the design phase to manage operations and maintenance costs?

Choosing designs that minimize long-term costs even if construction costs increase Signup and view all the answers

What is the role of insurance and bonding in construction projects?

To mitigate risk for both owners and contractors Signup and view all the answers

How do specialty contractors typically approach the bid package?

They focus only on relevant documents for their work Signup and view all the answers

What potential issue can arise from starting construction without finalizing a project’s design?

Unpredictable cost increases due to changes in design Signup and view all the answers

Which factor is NOT typically considered in the labor estimation process?

The size of the contractor's office Signup and view all the answers

What is the first step in the estimating process as described?

Get an overview of the project Signup and view all the answers

Which of the following is an example of a capital cost?

Cost of construction materials Signup and view all the answers

What must contractors accurately assess to understand the financial burden of a project?

Direct, indirect, and overhead costs Signup and view all the answers

Which of these factors can lead to variances in construction budgets?

Seasonal weather events Signup and view all the answers

What aspect is essential for the estimator to ensure before starting the estimation?

That all drawings and specifications are present Signup and view all the answers

What is a common misconception regarding estimating construction costs?

All construction costs can be accurately predicted Signup and view all the answers

In what manner do estimators identify unusual aspects of a project?

By paying special attention to nonstandard items Signup and view all the answers

What is the purpose of reviewing structural drawings during the estimating process?

To understand the material and equipment needs Signup and view all the answers

After reviewing the documents, what do estimators do next?

Subdivide the project into work packages Signup and view all the answers

What is the minimum length range for tie wire used in reinforcement joints?

0.25m to 0.40m Signup and view all the answers

In calculating the number of bars for a footing, which formula is used?

No. of bars = {(L or W – concrete cover for both sides) ÷ spacing} + 1 Signup and view all the answers

How is the length of one cut bar determined in the computation of steel quantity?

Length of bar = (L or W – concrete cover for both sides) + 2*bend length Signup and view all the answers

In calculating the total number of cut bars needed, which step follows after dividing the number of cut bars by the commercial length?

Use the result as-is to find required bars. Signup and view all the answers

When referring to deformed bars, which detail is always important to mention?

The bar diameter and its commercial length Signup and view all the answers

Study Notes

Estimate Types

Preliminary Estimate: Prepared during the pre-design phase, it's the first type of estimate.
Definitive Estimate: Prepared after a contract agreement, it serves as a baseline for controlling actual costs.
Detailed Estimate: Based on data points such as direct costs and subcontractor quotes.

Estimating Methods

Quantity Take-Off: Used to measure the materials and labor needed for project completion.

Labor Costs

Labor Rate: Encompasses the basic hourly rate plus benefits and overhead.
Labor Hour: Defined as the time spent performing a specific task.
Loaded Labor Rate: Includes the basic hourly rate, benefits, and overhead.

Cost Considerations

Operating Costs: Include expenses related to day-to-day business operations.
Capital Costs: Primarily encompass expenses for acquiring a fixed asset, such as land, machinery, or buildings.
Equipment Costs: Contractors must consider depreciation, maintenance costs, operating expenses, and financing when estimating these.

Estimating Process

Control Estimates: Prepared during the construction phase to monitor and control project costs.
Pre-Construction Budgeting: Used to understand the financial burden of a project.

Construction Budget Considerations

Design phase: Owners should consider operations and maintenance costs.
Insurance and Bonding: Ensure adequate coverage and financial protection for construction projects.
Specialty Contractors: Their approach to bid packages often involves subcontracting specific tasks.
Finalizing Design: Starting construction without a finalized design can lead to issues and cost overruns.

Estimating Principles

Unusual Project Aspects: Estimators identify these by analyzing plans, specifications, and site conditions.
Structural Drawings: Reviewed to understand the project's structural elements.
Document Review: This is the first step in the estimating process, followed by quantity take-off.

Cost Calculation

Capital Cost Example: The cost of a new piece of heavy machinery.
Variances: Factors such as unexpected site conditions, changes in material prices, and labor shortages.
Accuracy: Ensured by estimators to understand the financial burden of a project.

Labor Estimation

Labor Requirements: Crucial for estimators to determine for efficient project completion.
Factors: Include labor skills, productivity, and the project's location.

Steel Quantity Computation

Tie Wire Length: Minimum range is typically 12 inches to 18 inches.
Number of Bars in a Footing: Calculated using the formula: (length of footing / bar spacing) + 1.
Cut Bar Length: Determined by subtracting lap length and end hooks from the overall bar length.
Commercial Length: Following calculation of the number of cut bars, they are divided by the commercial length (typically 20 or 60 feet).
Deformed Bars: Specifications such as size, grade, and shape are always crucial to note.

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Description

This quiz covers various types of construction cost estimates, focusing on design, bid, and control estimates. Understand how these estimates are prepared and their importance in the construction process. Test your knowledge of key terms and concepts used in estimating construction costs.