Estimating & Value Engineering: Engr. Timothy Daniel Dj. Felicia

Estimating & Value Engineering CE155 ENGR. TIMOTHY DANIEL DJ. FELICIA

MODULE 1: INTRODUCTION TO ESTIMATING & THE ESTIMATING PROCESS

INTRODUCTION TO ESTIMATING • DEFINITION • PURPOSES OF ESTIMATES • TYPES OF ESTIMATES • ROLE OF AN ESTIMATOR

WHAT IS ESTIMATING? • ESTIMATION (OR ESTIMATING) IS THE

PROCESS OF FINDING AN ESTIMATE, OR APPROXIMATION, WHICH IS A VALUE THAT IS USABLE FOR SOME PURPOSE EVEN IF INPUT DATA MAY BE INCOMPLETE, UNCERTAIN, OR UNSTABLE.

WHAT IS ESTIMATING? • In construction, it is an approximation of cost of a project to the contractor.

• A process of calculating costs of a

construction project based on a design proposal and using comparisons with similar projects to establish budgets prior to final pricing.

purposes of estimates Estimates are used for a number of different purposes in construction:

• Determining the feasibility of a project • Calculating an approximate price of a project • Providing value analysis • Calculating & establishing bid prices • Determining project budgets in cost control

types of estimates • DETAILED ESTIMATES • SQUARE-FOOT ESTIMATES • PARAMETRIC ESTIMATES • PROJECT COMPARISON ESTIMATES

types of estimates DETAILED ESTIMATES •

Determination of the quantities and costs of everything that is required to complete the project.

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This includes materials, labor, equipment, insurance, bonds and overhead, as well as an estimate of the profit.

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To perform this type of estimate, the contractor must have a complete set of contract documents.

SQUARE FOOT/APPROXIMATE ESTIMATES

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Prepared by multiplying square footage of a building by a cost per square foot and then adjusting the price to compensate for differences in the building heights, length of the building perimeter, and other building components.

SAMPLE SQUARE FOOT/APPROXIMATE ESTIMATES

types of estimates PARAMETRIC ESTIMATES • PARAMETRIC ESTIMATES USE EQUATIONS THAT EXPRESS THE STATISTICAL RELATIONSHIP BETWEEN BUILDING PARAMETERS AND THE COST OF THE BUILDING.

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THE BUILDING PARAMETERS USED IN THE EQUATION MAY INCLUDE THE GROSS SQUARE FOOTAGE, NUMBER OF FLOORS, LENGTH OF PERIMETER, PERCENTAGE OF BUILDING THAT IS COMMON SPACE AND SO FORTH.

PROJECT COMPARISON ESTIMATES • PREPARED BY COMPARING THE COST OF A PROPOSED PROJECT TO A COMPLETED PROJECT.

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WHEN PREPARING AN ESTIMATE USING THIS METHOD, THE ESTIMATOR STARTS WITH THE COSTS OF A COMPARABLE PROJECT AND THEN MAKES ADJUSTMENTS FOR DIFFERENCES IN THE PROJECT.

ROLE OF AN ESTIMATOR To be an estimator, an individual needs to go a step further. He or she must:

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Be able, from looking at the drawing, to visualize the project through its various phases of construction. Have enough construction experience to possess a good knowledge of job conditions, including methods of handling materials on the job, the most economical methods of construction and labor productivity. Have sufficient knowledge of labor operations and productivity to thus convert them into costs of a project. Be able to keep a database of information on costs of all kinds. Be computer literate and know how to manipulate and build various databases. Be able to meet bid deadlines and still remain calm. Have good writing and presentation skills.

Role of the Estimator in the traditional Construction Process

THE ESTIMATING PROCESS

Detailed estimating process

THE ESTIMATING PROCESS

SIMPLIFIED ESTIMATING PROCESS

references • “Estimating for residential construction: 2nd edition” by david J. Pratt

• “Estimating and tendering for construction work: 3rd edition” by martin brook

• “Estimating in Building Construction: 7th edition” by frank r. dagostino & steven J. peterson