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 • • • • • 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 • • • • Social Security Tax Unemployment Compensation Tax Worker’s Compensation Insurance Public Liability & Property Damage Insurance • Fringe Benefits