ARC 415 Estimation, Cost Planning and Control Flashcards

Vocabulary flashcards covering estimation types, project stages, estimating methods, and factors influencing construction costs from the ARC 415 lecture notes.

Estimation

The calculation of the value, number, quantity, or extent of something, focusing primarily on cost, quantity, and time.

Preliminary Estimate

Initial crude estimate made at the earliest possible stage of a project when no designs are available, used for provisional planning of capital expenditure projects.

Appraisal Estimate

A comparable estimate evaluating alternative project schemes, including economic and financial feasibility, to assist in selecting the scheme to pursue.

Proposal Estimate

An estimate produced for a selected project scheme using conceptual designs and specifications to convince the client to proceed.

Approved Estimate

A modified version of the proposal estimate adjusted to reflect client views and serve as the official basis for the project.

Pre-tender Estimate

A refinement of the approved estimate based on definitive design work and tender documents, reflecting the total capital cost approved by the client.

Post-contract Estimate

A further refined estimate reflecting the price of the project and the distribution of money across contracts, accounting for variations and measured preferences.

Achieved Cost

An accurate record of the actual final cost of a completed project used to review performance and provide historical data for future projects.

Global Technique

An estimating method that relies on historical data from similar projects (e.g., cost per square meter) combined with inflation indices and price level trends.

Factorial Technique

An estimating method widely used in processing and power plants where major plant items are priced using current budget prices via the formula $C = K Q^n$.

Man Hours Technique

An estimating technique suitable for design work and labor-intensive construction where total estimated man hours are multiplied by current labor rates and added to material and equipment costs.

Unit Rate Technique

An estimating technique used when a detailed Bill of Quantities is unavailable, involving the selection of resource output rates to calculate unit rates.

Operational Technique

An estimating technique based on calculating total work volume, total elapsed time, and required resources for specific operations, commonly used in plant-dominated works like excavation.

Future Value Formula (Estimation)

The formula $FV = PV \times (1 + i)^n$ used to calculate current project costs by adjusting historical costs ($PV$) for an inflation rate ($i$) over $n$ years.