CHAPTER 1 INTRODUCTION TO CONSTRUCTION COST ENGINEERING
MODULE 1 TYPES OF ESTIMATES
This module provides a discussion on the definition of estimates. Types of estimates
will be enumerated and defined. Examples will also be given so that students will be able to understand the concept of estimating.
Objectives
• To provide knowledge on construction estimates and its types.
1.1 Introduction
Building construction estimating is the determination of probable construction
costs of any given project. Many items influence and contribute to the cost of a project; each item must be analyzed, quantified, and priced. Because the estimate is prepared before the actual construction, much study and thought must be put into the construction documents. The estimator who can visualize the project and accurately determine its cost will become one of the most important persons in any construction company.
Estimation is the scientific way of working out the approximate cost of an
engineering project before execution of the work. An estimate of the cost of a construction job is the probable cost of that job as computed from plans and specifications. For a good estimate, the actual cost of the proposed work after completion should not differ by more than 5 to 10 % from its approximate cost estimate.
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1.2 Types of Estimates
The required level of accuracy coupled with the amount of information about the project that is available will dictate the type of estimate that can be prepared. The different estimating methods are discussed below:
DETAILED ESTIMATE
The detailed estimate includes determination of the quantities and costs of
everything that is required to complete the project. This includes materials, labor, equipment, insurance, bonds, and overhead, as well as an estimate of the profit.
Quantities and costs of the materials, the time required for and costs of labor, the equipment required and its cost, the items required for overhead and the cost of each item, and the percentage of profit desired, considering the investment, the time to complete, and the complexity of the project.
ASSEMBLY ESTIMATING
In assembly estimating, rather than bidding each of the individual components
of the project, the estimator bids the components in groups known as assemblies. The installation of the components of an assembly may be limited to a single trade or may be installed by many different trades.
An example of a simple assembly would be a residential light switch, which
includes a single-gang box, a single-pole switch, cover plate, two wire nuts, and an allowance of 20 feet of NM-B 12 gage wire. The entire assembly would be installed by an electrician. A residential electrical estimate could be prepared using assemblies for the switches, outlets, lights, power panels, and so forth rather than determining the individual components.
An example of a complex assembly would be a metal-stud, gypsum-board
partition wall, which would include bottom track, metal studs, top track, drywall, screws, tape, joint compound, insulation, primer, paint, and other miscellaneous items needed to construct the wall. This assembly would be installed by multiple trades.
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Assembly estimating is also useful for conceptual and preliminary estimates. By
using broad assemblies, an estimate can be prepared quickly for an entire building.
SQUARE FOOT ESTIMATES
Square-foot estimates are prepared by multiplying the 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. In some cases, a unit other than square footage is used to measure the size of the building.
For example, the size of a parking garage may be measured by the number of parking stalls in the garage. The information required to produce a square-foot estimate is much less than is needed to prepare a detailed estimate. For example, a preliminary set of design drawings (a single-line floor plan and key elevations) would have the dimensions that are necessary to prepare a square-foot estimate.
Square-foot estimates are helpful to check whether the project, as designed, is
within the owner’s budget. Like an assembly estimate that uses broad assemblies, care must be exercised while preparing a square-foot estimate to ensure that the projects used to determine the cost per square foot are similar to the proposed project.
PARAMETRIC ESTIMATES
Parametric estimates use equations that express the statistical relationship
between building parameters and the cost of the building. The building parameters used in the equation may include the gross square footage, number of floors, length of perimeter, percentage of the building that is common space, and so forth. For an equation to be usable, the parameters used in the equation must be parameters that can be determined early in the design process; otherwise the equation is useless. Parametric estimates are similar to square-foot estimates; however, the equations used in parametric estimates are more complex and may use log functions, ratios of parameters, and multiplication of parameters.
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PROJECT COMPARISON ESTIMATING
Project comparison estimates are prepared by comparing the cost of a proposed
project to a completed project. 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.
For example, an estimate for the buildings in an apartment project may be
prepared from a project built using the same plans during the previous year in a nearby city. In this example, the prices from the completed project need to be adjusted for inflation, changes in the availability and cost of labor, changes in the plans made to meet city codes, and so forth. In most cases, the site should be estimated using another method because of the many differences in site conditions.
As with other estimating methods that do not prepare a detailed list of materials, care must be taken to ensure that the proposed project is similar to the completed project.
References
Dagostino, Estimating in Building Construction, Prentice Hall, 1993
Fajardo, Simplified Construction Estimate, 2000 Edition
Disclaimer and Fair Use Statement
This module may contain copyrighted material, the use of which may not have been specifically authorized by the copyright owner. The material contained in this module is distributed without profit for educational purposes. This should constitute a ‘fair use’ of any such copyrighted material. If you wish to use any copyrighted material from this module for purposes of your own that go beyond ‘fair use’, you must obtain expressed permission from the copyright owner.
