building construction estimating is the determination of probable - rather than bidding each of the individual components of the

construction costs of any given projects. many items influence & project, the estimator bids the components in groups known
contribute to the cost of a project. each item must be analyzed, as assemblies
quantified & priced. - the installation of the components of an assembly may be
working drawings – usually contain information relative to the design, limited to a single trade or may be installed by many different
location, dimensions & construction of the project trades
- it is also useful for conceptual & preliminary estimates
4. square foot estimates
project manual – is a written supplement to the drawings & includes
- are prepared by multiplying the square footage of a building
information pertaining to materials & workmanship, as well as
by a cost per square foot & then adjusting the price to
information about the bidding process
compensate for differences in the building heights, length of
variables for estimating the ultimate cost of a project: the building perimeter, & other building components
5. parametric estimates
1. direct costs – are the material, labor, equipment or - use equations that express the statistical relationship
subcontracted items that are permanently & physically between building parameters & the cost of the building
- the building parameters used in the equation may include the
integrated into the building
2. indirect costs – are also referred to as general conditions or gross square footage, number of floors, length of perimeter,
project overhead costs in building construction percentage of the building that is common space, & so forth
- this type is useful for preparing conceptual estimates based
the complexity of an estimate requires the ff: on assumptions of key building parameters or estimates
based upon early designs
1. organization 6. model estimates
2. estimator’s best judgment - uses computer models to prepare an estimate based on a
3. complete specialty contractor’s bid number of questions answered by the estimator
4. accurate quantity takeoffs - it is similar to assembly estimating, but it requires less input
5. accurate records of completed projects from the estimator
7. project comparison estimates
delivery system of projects - are prepared by comparing the cost of a proposed project to a
completed project
1. design-bid-build (DDB) delivery system – it is necessary for
contractors to submit a competitive cost estimate for the estimating opportunities
project
2. design-build (DB) delivery system – the contractor acts as 1. architectural offices
both the designer & the general contractor 2. engineering offices
3. construction-manager (CM) delivery system – the contractor 3. general contractors
is involved in the design process, providing expertise in 4. estimating with quantities provided
construction methods & costs, as well as managing the 5. subcontractors
6. material suppliers
construction process
7. manufacturers’ representative
8. project management
types of estimates
9. government
10. professional quantity surveyors
1. conceptual estimate
11. freelance estimators
- at the conceptual stage of the project, the contractor prepares
12. residential construction
a cost estimate based on the project’s concept 13. computer software
- when performing a conceptual estimate, typically, drawings
are not available or they are very limited, often a vague verbal the estimator
or written description of the project scope which may be
accompanied by a few sketches - the estimator who can visualize the project & accurately
- when preparing this type of estimate, the contractor makes determine its cost will become one of the most important
assumptions about virtually every aspect of the project persons in any construction company
- it is used early in the design process to check to see if the - is responsible for including everything contained in the
drawings & the project manual in the submitted bid
owner’s wants are in line with their budget & is often used as
a starting point to begin contract negotiations to be able to do quantity takeoffs, the estimator must:
2. detailed estimate
- includes determination of the quantities & costs of everything 1. be able to read & quantify plans
that is required to complete the project 2. have knowledge of mathematics & a keen understanding of
- this includes materials, labor, equipment, insurance, bonds & geometry
overhead, as well as profit 3. have the patience & ability to do careful, thorough work
- to perform this type of estimate, the contractor must have a 4. be computer literate & use computer takeoff programs such
complete set of contract documents as on-screen takeoff or paydirt
- the detailed estimate must establish the estimated quantities
& costs of the materials, the time required for & costs of labor,
the equipment required & its cost, the items required for
overhead & the cost of each item, & the percentage of profit to be an estimator, an individual needs to go a step further & must:
desired considering the investment, the time to complete &
1. be able, from looking at the drawings, to visualize the project
the complexity of the project
through its various phases of construction.
2. have enough construction experience to possess a good
3. assembly estimating
knowledge of job conditions, including methods of handling
 materials on the job, the most economical methods of 7. material substitution
construction, & labor productivity. 8. soil conditions
3. have sufficient knowledge of labor operations & productivity to 9. signs
thus convert them into costs on a project. 10. cleaning
4. be able to keep a database of information on costs of all 11. shop drawings
kinds, including those of labor, material, project overhead & 12. surveys
equipment, as well as knowledge of the availability of all the 4. working drawings – are the actual plans (drawings) from
required items. which the project is to be built. they contain the dimensions &
5. be computer literate & know how to manipulate & build
locations of building elements & materials required, &
various databases & use spreadsheet programs & other
delineate how they fit together.
estimating software.
5. specifications – are written instructions concerning project
6. be able to meet bid deadlines & still remain calm. even in the
requirements that describe the quality of materials to be used
rush of last-minute phone calls & the competitive feeling that
& their performance.
seems to electrify the atmosphere just before the bids are
6. addenda – is a drawing or information that modifies the basic
due, estimators must “ keep their cool.”
7. have good writing & presentation skills. with more bids being contract documents after they have been issued to the bidder,
awarded to the best bid, rather than the lowest bid, being able but prior to the taking of the bids. tThey may provide
to communicate what your company has to offer, what is clarification, correction, or changes in the other documents.
included in the bid, & selling your services is very important. it
bidding information
is also important to communicate to the project
superintendent what is included in the bid, how the estimator 1. description of the nature, extent & location of the project
planned to construct the project, & any potential pitfalls. 2. owner
3. availability of bidding documents
quantity surveying
4. bond requirements
surveyors work in a variety of different settings including people's 5. time, manner & place that the bids will be received
homes, the sea bed, roads and motorways, collectables and large
construction sites. they are also responsible for the protection of the contract system
environment in which they are working.
contracts may be awarded either by a single contract for the entire
quantity surveying is primarily centered on construction and the project or by separate contracts for the various phases required for the
management of the costs and budgets of large projects. from the completion of the project.
moment a plan is drawn until a large construction project has been
types of agreement
completed, a quantity surveyor is likely to be involved in a legal,
technical and financial capacity. the functions of a quantity surveyor are 1. lump-sum agreement (stipulated sum, fixed price)
broadly concerned with the control of the cost on construction projects, 2. unit-price agreement
the management and maintenance of the budget, valuations and any 3. cost-plus-fee agreement
legal matters arising through the course of the project. they are required
to make sure that the project remains profitable and efficient. agreement provisions

types of bids 1. scope of the work

2. time of completion
1. competitive bidding 3. contract sum
2. negotiated bidding 4. progress payments
5. retained percentage
contract documents
6. schedule of values
1. agreement – is the document that formalizes the construction 7. work in place & stored materials
contract, & it is the basic contract. it incorporates by reference 8. acceptance & final payment
all of the other documents & makes them part of the contract.
bonds – are written documents that describe the conditions &
it also states the contract sum & time allowed to construct the
obligations relating to the agreement. it is not a financial loan or
project.
insurance policy, but serves as an endorsement of the contractor. it
2. general conditions – define the rights, responsibilities, &
guarantees that the contract documents will be complied with, & all
relations of all parties to the construction contract.
costs relative to the project will be paid.
3. supplementary general conditions (special conditions) – are
used to amend or supplement portions of the general bid bond – ensures that if a contractor is awarded the bid within the
conditions because conditions vary by locality & project. items time specified, the contractor will enter into the contract & provide all
that may be covered by this section include insurance, bonds the specified bonds
& safety requirements.
performance bonds – guarantees the owner that the contractor will
- also included may be comments concerning the ff: perform all work in accordance with the contract documents & that the
1. pumping & shoring owner will receive the project built in substantial agreement with the
2. dust control documents
3. temporary offices
4. temporary enclosures labor & material bond (payment bond) – guarantees the payment of the
5. temporary utilities contractor’s bill for labor & materials used or supplied on the project
6. temporary water
the estimate
steps in working up a detailed estimate
1. carefully check the drawings & the project manual to be sure
that you have everything, including all the addenda. check all
sources to ensure that you have received all of the drawings.
2. scan the drawings to get a feel for the project. at this step, it is
important that the estimator understands the project.
3. review the floor plans
4. begin to examine the wall sections for a general consideration
of materials, assemblies & makeup of the building.
5. Review the structural drawings.
6. Review the mechanical drawings, paying particular attention
to how they will affect the general construction, underground
work requirements, outlet work requirements & other items of
this sort.
7. The submitted bid is based on the drawings & the project
manual. Read & study the project manual thoroughly. Take
notes on unusual items contained in the project manual.
8. Visit the site after making a preliminary examination of the
drawings & the project manual.
9. Check carefully through the general conditions, making a list
of all items contained in the project manual that will affect the
cost of the project.
10. The estimator may now begin the takeoff of the quantities
required. Each item must be accounted for, & the estimate
itself must be as thorough & complete as possible.
11. Work carefully. Double-check all figures.

common errors in estimating

1. Misplaced decimal point
2. Errors in addition, subtraction, multiplication & division
3. Omission of items such as materials, labor, equipment or
overhead
4. Errors in estimating the length of time required to complete
the project
5. Errors in estimating construction waste
6. Errors in estimating quantities of materials
7. Errors in transferring numbers from one sheet to another
8. Adding a line to a spreadsheet & not checking to make sure
that the new line is included in the total
9. Errors in setting up formulas, items, assemblies, markups &
so forth in estimating software
10. Using typical rates & costs without adjusting them for
individual project conditions

computers in estimating

benefits of computerized estimating

1. Can reduce calculation errors, which gives the estimator a
more accurate cost for the project
2. Increases the speed at which the estimate is prepared by
performing the math that the estimator would have to do
3. Allow the estimator to track where the quantities came from
4. Allows the estimator to quickly change a price & get an
instantaneous change in the project’s cost

work breakdown structure