Construction Cost
Estimation
Michael Mincic
Civil Engineering Technology
Department
22 February 2007
Civil Engineering
Technology at CSU-Pueblo
• Bachelor of Science
CET
– Four year degree
accredited by the
Accreditation Board for
Engineering and
Technology TAC(ABET)
Outline
1.
2.
3.
4.
Construction Cost Estimating
Bid Documents
The Estimation Process
Cost of Construction Labor & Equipment
Construction Cost
Estimating
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Estimating is not an exact science!
Construction knowledge
Common sense
Good judgment
Lots of Luck!!!
Types of estimates
• The construction process players
– The Owner
– The Designer
– The Contractor
• Approximate Estimates
• Detailed Estimates
Organization of
Estimates
• See Steps for
preparing a detailed
estimate (pg. 8, Table
1.2)
• CSI Format
– Building Construction
– 16 major divisions
• WBS Format
– Heavy Engineering
Awareness of Estimation
Items
• Quantity Take-Off
• Labor and Equipment
crews
• Checklist of
Operations
• Bid Documents
• Addenda & Change
Orders
• Overhead
• Material Taxes
• Labor Costs
• Workmen’s
Compensation
Insurance
• Labor Burden
• Bonds
• Insurance
Bid Documents & Contract
Documents
• Bid Document
– Before Agreement
• Contract Document
– After Agreement
• Architect
– building type
• Engineer
– Heavy/Industrial
Bid Documents
• Contract
Requirements
• Arrangement of
Contract Documents
– Business/legal matters
– Technical matters
• Building Construction
Specs
• Heavy/Highway
Specs
Bid Documents
• Requirements
• Bid Solicitation
• Instructions to Bidders
– Time of completion
– Obligation of Bidder
• Information Available to Bidders
• Bid Forms
– Lump sum
– Unit price
Drawings
• Heavy/Highway
– Plan, profile,
earthwork, cross
section, details,
schedules, etc.
• Building Construction
Drawings
– Civil
– Architectural
– Structural
Decision to Bid
• Assess the desire to Bid
– Do we want to bid this project?
– Do we have the skills to complete this project?
– Do we have the available labor to complete this
project?
– Do we have the necessary equipment to complete
this project?
– Do we have experience with similar projects?
– How busy are we?
– Can we bond for the additional work with the existing
projects?
Additional Decisions to
Bid
• Geographic Location
• Complexity of the
Project
• Owner’s Reputation
• Designer’s
Reputation
• Do we want to
expand?
Sources of Labor Rates
• Union Wage
– Predetermined by
contractor’s union
• Open-Shop
– Agreed upon by the
employer and
employee
• Prevailing rate
– Dependant on the
local area
• The Cost of Labor
Employee Costs
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Social Security Tax
Unemployment Compensation Tax
Worker’s Compensation Insurance
Public Liability & Property Damage
Insurance
• Fringe Benefits