Unique Approach To Teaching Heavy Civil Estimating
Unique Approach To Teaching Heavy Civil Estimating
Unique Approach To Teaching Heavy Civil Estimating
American
c Society for Engineering Education, 2017
Unique Approach to Teaching Heavy Civil Cost Estimating
This paper is an evidence-based practice paper and it is about a unique approach to teaching
heavy civil cost estimating.
Abstract
Construction performance and efforts have always been measured in terms of time and budget,
and a good understanding of the basis for generating time and cost estimate is required of
construction management (CM) students and construction engineering (ConE) students. This is
important because they need such knowledge in order to conceptualize, design, and construct
projects. The need to create time and cost estimate at some point in a project’s lifecycle is a
certainty. Students must be taught how to create an accurate cost estimate, which in part depends
on the quality of knowledge transferred to the students. How can educators evaluate the quality
of the knowledge transferred to students in the area of cost estimating, if they do not have a real
world method to test out the quality of knowledge transferred? The purpose of this paper is to
present a unique approach to teaching heavy civil cost estimating, one that allows students to
prepare bids on state or local transportation projects. This method also provides the basis for
students and educators to assess the quality of the teaching technique in the area of heavy civil
cost estimating.
With this in mind, the authors have developed a unique instructional method for teaching heavy
civil cost estimating. The course is taught in such a way that students bid projects alongside
licensed contractors or bid on recently bid projects. This method provides students with an in-
depth knowledge of cost estimating and all the steps that are akin to the real world cost
estimating practice. The data collected within the last two years from projects that the students
have bid on, show how close students’ bids are to those submitted by licensed contractors. While
the approach of bidding alongside other contractors in a real world scenario has its challenges,
the option of bidding recently bid projects is the recommended method, because it allows for a
wide range of projects to select from, and there is no need try to align with whatever project is
bidding at that time. The significance of these methods is three-fold. First, it offers students the
kinds of exposures that are typically open to professionals in the construction industry, and as
such, the students become practice-ready graduates. Secondly, this method provides a strong
basis for students to evaluate the quality of education that they are receiving. Thirdly, educators
can assess how well they are performing by looking at how closely the students’ bids fall within
those of experienced contractors.
Introduction
Dysert [1] defined an estimate as “a prediction of the probable costs of a project, of a given and
documented scope, to be completed at a defined location and point of time in the future.”
Estimating is the process of determining the quantity of work and cost of all resources (labor,
materials, equipment, and subcontracts) and incidentals required to construct projects.
Projects to be built in the future are estimated in the present, and the estimates are developed to
show how much the projects will cost at some point when they are finally constructed. Such
projection is based on what is known now and how well the future conditions can be predicted.
Therefore, there is no way one can be 100% accurate in predicting and estimating all future
conditions of a project. According to Park and Chapin [2], a cost estimate is not useful if it fails
to make an accurate projection of the cost of doing the work. Dysert [1] agrees that an estimate
could never be 100% accurate. However, the author states that the accuracy of each phase of a
project estimate (based on the scope detail) should reliably predict the costs to deliver the
project. As such, cost estimates should provide sufficient accuracy to support decision making.
Students in the CM and ConE programs are taught to prepare cost estimates for items of work
and in some cases a whole project cost estimate, with sufficient accuracy to support decision
making. But how can educators evaluate the quality of the knowledge transferred to students in
the area of cost estimating, if they do not test it out in the real world?
While it is know that a 100% accurate estimate is not possible, the expectation is that the
estimates prepared by students are accurate enough and within an acceptable range. This paper
presents a unique approach to teaching cost estimation which allows students and educators to
see if the estimates prepared by the students are within a reasonable range of those prepared by
licensed contractors. For the students, this method tests the quality of knowledge gained in the
area of cost estimating, and for the educators, it provides a path to evaluate the course contents,
the student learning outcomes and the areas that need improvements. For contractors, it shows
the level of job readiness.
What follows is a review of how cost estimating is practiced in the real world by practitioners,
how educators organize their course contents to educate students in the area of cost estimating,
and the method that was used by one educator to bring real world cost estimating experience to
his students. In addition, the paper describes how the method has been advanced, and provides
reports that show the range of students’ cost estimates as compared to those of licensed
contractors.
Cost Estimating in the Real World – Standard of Practice
Over the years several professionals have developed fundamental principles that have guided the
way practitioners estimate the cost of projects. Principles are fundamental truths that explain
relationships between two or more sets of variables and define actions or steps required to attain
some desired objectives. In the construction environment, those desired objectives involve
meeting time, budget, scope, and quality.
Carr [3] provided seven fundamental principles that should guide good estimating practices: 1)
the need to produce realistic estimates; 2) the use of the appropriate level of detail for each stage
of project development; 3) making sure to provide a complete estimate of all work items,
incidentals, and their costs; 4) documentation of the project scope, estimate basis, project
conditions, methods of construction, assumptions, and calculations; 5) inclusion of all direct and
indirect costs; 6) including all fixed, and variable costs; 7) accounting for uncertainty with the
appropriate level of contingency.
The American Society of Professional Estimators (ASPE) technical papers retrieved from
http://www.aspenational.org/page/TechnicalPapers on “how to estimate the cost of..” provide a
standard framework of how professional estimators go about preparing the price of an item of
work, or for a whole project. After reviewing over 30 of these technical papers, a theme emerges:
scope definition, scope breakdown using MasterFormat divisions and subdivisions as a guide,
definition of unit of measurements, consideration of various known factors and cost drivers,
consideration of risk factors, quantity takeoff, resources (labor, material, equipment, subcontract)
needs, and pricing out all associated resources and efforts needed to complete the work. In
addition, the format includes a section for ratios and analysis, which is used for testing out the
accuracy of the bid against known benchmarks.
On state DOT projects, the estimates developed by the agencies are based on several standard
practices. They start with a clear definition of the scope of work, as defined in the plans and
specifications. Then the associated bid items are scoped, and the corresponding quantities are
taken off. Typically the estimates are developed at the unit price/bid item level by collecting and
analyzing past bids on similar work items and averaging-out the numbers to arrive at the new
price. The other option is the cost-method which requires a deep-dive on major cost drivers such
as earthwork and structural work and to estimate the work at the element/component level based
on applicable tasks and their production rates. Schexnayder et al. [5], looked at various state
DOTs and found that they typically use three estimating methods which include historical bid
price estimating, detailed estimating, and a combination of both methods.
Irrespective of the directions an estimator might take to prepare an estimate, the fundamental
principles and steps are the same, and figure 1 below encapsulates the key activities that show
the process of cost estimating and bidding.
Obtain Bid Documents
Pre-Bid Activities
Review the Plans/Specs and Contract
Request Material Quotes for Unique Materials Evaluate and Estimate Project Related Risks
Select Applicable Past Cost and Production Rates Determine Direct Cost
Generate Appropriate Labor Rates Determine Home Office Indirect Cost (G&A)
Submit Bid
Figure 2 – Range of student bids on Project No. 1 as compared to those of licensed contractors
For select bid items, the table below shows the range of bid prices from contractors as compared
to those from the student teams
Table 1 – Range of students bids on select bid items for Project No. 1 as compared to those of
licensed contractors
In the spring of 2016, there were 32 students in the class grouped into five teams. The project
that the student teams bid on was a gravity wall project with an engineer’s estimate of
$1, 259,814.52.
The project involved the construction of gravity wall with moment slab concrete barrier,
guardrail, asphalt concrete pavement, drain pipe installation, pavement markings, traffic control,
and other work all in accordance with the contract plans, contract provisions, and standard
specifications.
Because of the size of this project, and the short amount of time left for students to prepare the
bid, some of the bid items were plugged. This means that on a few bit items, the item unit price
were preloaded for the students, allowing them to focus on the major bid items.
The chart below shows the range of student team bid prices as compared to the engineer’s
estimate and those of licensed contractors that bid on the project.
Range of Student Team Bids
$2,000,000.00 $1,778,650.00
$1,760,554.50 $1,697,087.33
$1,800,000.00
$1,463,632.00 $1,564,744.91
$1,600,000.00 $1,442,428.00
$1,417,774.00 $1,330,909.51
$1,400,000.00 $1,259,814.52
$1,200,000.00 $1,243,285.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$-
Engineer's Contractor Contractor Contractor Contractor Student Student Student Student Student
Estimate 1 2 3 4 Team 1 Team 2 Team 3 Team 4 Team 5
Figure 3 – Range of student bid on Project No. 2 as compared to those of licensed contractors
For select bid items, the table below shows the range of bid prices from contractors as compared
to those from the student teams
Table 2 – Range of student bids for select bid items on Project No. 2 as compared to those of
licensed contractors