CM 230 Estimating 1

What is Estimating?

• Process of determining the expected quantities and cost of the materials, labor, and equipment for a construction project.

What is the Work or Scope of Work?

• “The construction and services required by the contract documents…and includes all other labor, materials, equipment and services provided or to be provided by the contractor to fulfill the contractor’s obligations

What role does estimating play in the success of a construction company/

• If bids are too low, company will lose money.

• If bids are too high, company will lose work.

What are Wrong Quantities?

• Waste Materials

• Delay Construction

• Increase Construction Costs

What is the roll of an Estimator?

• Preparing cost estimates

• Estimating the needed quantity of materials, labor, and equipment on the job.

• Estimating the time, it will take to complete the job.

Who is an estiamtor?

• Person with the job title of estimator

  • Anyone who orders materials, labor, or equipment.

What skills are required to be a good estimator?

• Sound understanding of the construction methods, materials, and the capacities of skilled labor.

• Ability to read blueprints.

• Knowledge to determine the needed quantities for projects.

• Strong mathematic skills.

• Good communication skills, both verbally and in written form.

• Strong computer skills

• Detailed oriented

• The confidence to quickly prepare takeoffs and make decisions under pressure.

• A desire for constant improvement

What are 3 types of Estimates?

1. Conceptual

2. Preliminary

3. Final or Detailed

What is Conceptual Estimate?

• Least accurate

• Based on description of the project or very limited drawings

• Used to study the feasibility of a project or comparison of design alternatives.

What is Preliminary Estimate?

• Used to establish a budget.

• Performed when drawings are partially complete (35% - 50%)

• More accurate than conceptual estimate

What is Final or Detailed Estimate?

• Most accurate, drawings are 100%

• Used to prepare:

  • Bids

  • Change Orders

  • Order Materials

  • Establish a Budget

What role does the bid package play in estimating?

• Estimates are prepared from bid packages

• Bid package defines the scope of work for the construction project.

What is a Bid Package?

• Invitation to bid

• Bid Instructions

• Bid Documents

• Bonds Forms

• Contract

• General and Special Conditions

• Technical Specifications

• Other inclusions

• Included by Reference

• Addenda

What are some types of Bonds?

1. Bid Bond

2. Performance Bond

3. Payment Bond

What is a Bid Bond?

• Guarantee if the contractor is awarded the bid.

What is a Performance Bond?

• Guarantees the contractor will perform all work in accordance to the contract documents.

What is a Payment Bond?

• Guarantees the contractor will pay its subcontractors and material suppliers.

What are some types of Insurance?

• General Liability

  • Vehicles, personal property,

• Worker’s Compensation

  • Covers employees injured or killed on jobsite

• Builder’s Risk

  • Protects projects under construction

What are some types of Contract Awards?

• Single Prime

• Multiple Prime

• Construction Management

• Contract Agreements

  • Most are AIA Contracts

What is Single Prime Contract Awards?

• General Contractor has a contract with Owner and Subcontractors

What is Multiple Prime Contract Awards?

• General Contractor, Electrical Contractor, and Mechanical Contractor have a contract with Owner.

• GC markup EC and MC

• Comes in cheaper $

What is Construction Management Contract Awards?

• CM has contract with Owner

• CM has no-risk

• Owner has all the contracts with the subcontractors.

• CM is hired only for management

Construction Manager at Risk Contract Awards?

• CM at risk has contract with Subcontractors and Owner

What are some types of Contracts?

• Lump Sum

• Unit Price

• Cost-plus-fixed-fee

What is a Lump Sum Contract?

• Contractor agrees to perform work for a specified amount.

• 1 big number and you build the project

What is a Unit Price Contract?

• Based on quantities of work

• Common in heavy construction (Civil and Road construction)

• Still have to include travel, dumping, and leveling.

What is a Cost-Plus-Fixed-fee Contract?

• Contractor is reimbursed for actual costs plus a fixed fee.

• Could be 5-10%

• Similar in CM at Risk Projects.

What are some Estimating Tools?

• Architect’s & Engineer’s scale

• Plan Measurer

• Digitizer (don’t use)

• Takeoff packages/software

• Calculator & Paper forms

• Quantity Survey Sheets

• Spreadsheets

• Estimating Software

Why do we use Spreadsheets for Estimating?

• Inexpensive

• Accessible

• Easily adapted to the styles and estimating procedures of the company

• Easily performs the mundane calculations.

Why do we use Estimating Packages for Estimating?

• Automates many takeoff functions which decrease the time it takes to prepare an estimate.

• Includes a Database

• Can takeoff assembles

• Takeoffs are easily manipulated and printed in different formats.

Chapter 2: The Estimating Process

What are the Stages of the Estimating Process?

• Planning the bid

• Pre-bid-day activities

• Bid-day activities

• Post-bid activities

5 Types of Sections to Plan

1. Civil

2. Archetural

3. Mechanical

4. Electrical

5. Structural

What happens while Planning the Bid?

• Scope of Work

• Scheduling the Bid

• Assigning Tasks

What happens during Pre-Bid Day Activities?

• Assigning Tasks

  • Order Bond

  • Request Subcontractor Quotes

  • Quantity Takeoff

    • Material, Labor, Equipment Pricing

  • Project Overhead

  • Prepare Bid Documents

What happens during Bid-Day Activities?

• Material, Labor, and Equipment Pricing

  • Combine Pricing

    • Review Bid for Errors

      • Add Markups

        • Submit Bid

• Request Subcontractor Quotes

  • Subcontractor Selection

    • Combine Pricing

      • Reviewed for Errors

        • Add Markups

          • Submit Bid

What happens during Post-Bid Activities?

• Submitted

  • Review Bid

    • Project Buyout

      • Close-Out Audit