Chapter 5 Conceptual Estimate

Feasability Estimating Estimate based off of size/capacity of proposed project at earliest

stages (Rough Baseline)
o Rank alternatives for investment appraisal
o Economic feasibility
o Double check a detailed estimate
o Initial project estimate

Weighted Average Unit Cost = (A+4B+C)/6 (A = Min, B = Avg, C=Max (Estimated cost =
508,024)

Influences Time, Location, Size, Capacity

Cost Indexes
o Shows change in cost over time by comparing past to present
o Used to determine general construction costs of structures
o CCI vs BCI
CCI looks at labor for cost
BCI looks at material for cost

Can only estimate based on past and present, not future Answer =$ 4,943,816
Example of Future Use treadline using inflation rate based on past years
o Cannot predict future with absolute certainty
o Calculate compound interest rate based on change in 3 yr period
o Other method includes analyzing difference from year to year for 5-10 yrs

Example of changing location

Summary

Cost-Capacity Factor Takes into account changes in size, scope, capacity of projects
o C2 = C1(Q2/Q1)x
C2 = Cost of Facility w/ capacity Q2 C1 = known cost of facility w/ capacity
Q1 x = Cost Capacity factor for this type of work
X Derived from historical records, ranges from 0.55-0.88 (0.6 is standard for
typ)

Combining Cost Index, and Cost-Capacity Factor

Lesson 6 Preliminary Estimate

No clear boundary between preliminary and conceptual

Use RS Means

RS MEANS
o Cubic foot (for unusual floor to floor height), Cost/sq ft
o Project size modifier, different from standard size
o Cost per unit Use when ara/volume unknown but number of units are known
RS MEANS costs
o and column for projects with low and high cost respectively
o Use median column projects with average costs (do not include site work)
when no additional info available

Example 1
Use size factor to get cost
multiplier (Not needed in
actual calculation

(Use

Example 2

Parameter Estimate Related all cost to only a couple of parameters

o Can give good estimate with good historical data
o See slides for example
o Project Cost (sq ft) - 30% - 50% accuracy
o Parameter Estimate (-20% - 20%)

Lesson 7 MasterFormat vs UniFormat

Masterformat (Tells you the What)

o used for materials, methods, or work results
Subcontractors, specifier
o Specifies materials and methods
o Specifies standard format one time

Subs become specialized in certain materials and methods

Numbered from 00-49
Not good in comparison because relative cost of building structural systems are
unknown (where the materials are used)
Uniformat (Tells you the Where)
o Classifies system or preliminary estimating
o used for functional elements of business
Likely to be owner, designer, or GC
o Logical way to analyze building design (foundation, struct system, roofing, exterior
wall system, etc)
o Useful in conceptual design and planning once materials and methods are chosen
o Different function Load capacity, deflection, vibration, fire rating, sound
transmission, height
o Ordered alphabetically A,B,C
o Good in comparison can see breakdown in parts of structure (foundation,
substructure, roofing, etc)
When to use each
o Start out with functions, not materials
o Masterformat used for more detailed estimating
o
o
o

CSI Uniformat (Construction Specifications Institute)

Uniformat II (ASTM)
o Addresses project management from planning to disposal
o AIA and GSA developed in 1973 called Uniformat
o 1993 ASTM developed Uniformat II (which has a 3 rd level in specification) and has 6
categories
o 1995 CSI and CSC revised and made Uniformat
o Currently using CSI Uniformat (2010) or Uniformat II
o RS MEANS is completely different company uses Uniformat II for assemblies

What is Uniformat used for

What does Master format look like?

o Trade, work results based
o Fewer errors, efficient work, owners, designers, contractors, and suppliers are all on
same page
o 15 divisions before 2004, but now 50 divisions (major ones stayed the same)
Last 4 digits are from
RSMEANS

Check slides toward end of video

Uniformat for system/assemblies estimate
Masterformat for Unit Price Estimate
Assemblies estimate
o used in planning stage or design stage from 10-75%
o accuracy is +/- 15%
Unit Price Estimate (detailed estimate)
o Require working dwgs and full specs
o Most accurate, but time-consuming
o Used for bidding
o Accuracy is +/- 5%

Lesson 8 Assembly Estimating

Assembly estimating provides high accuracy

o Do not require complete design
o Deals with functional elements, the where (not materials/methods)
o Facilitates Value Engineering during design phase
o Uses Uniformat Considers materials and methods
o See HW 3 and example in lesson 8

Lesson 9 - Detailed Estimating

Detailed estimating are required to complete project in accordance with CDs and
specifications
Prepared by contractor
Price includes direct costs (materials, labor, equipment, sub work) overhead, profit, and
contingencies
Should be high enough to make profit but low enough to win bid
Tasks
o Determine real cost and time (done by determining production rates for crews)

o Estimator establishes amount of money contractor receives for doing project

Process
o Thorough review of 100% CDs
o Make site visit to observe various factors, storage, control of traffic, security
o Material quantity takeoff (Quantity of material x Unit cost = Material Cost)
o Equipment and labor cost calculations
o Subcontractor Costs
o Indirect Costs (Taxes, bonds, overhead)
o Markup = Contingency + Profit

Elements of Project Cost

o Labor, Equipment, Materials, Subcontractors, Job overheads, contractor risks
o Subs Lump sum price from Subs (included in bid). Transfers risk to subs, problems
include performance and scope of work
o Overheads and Profits
Company Overheads Admin costs, salaries for management
Project overheads Project costs (temporary struct, trailer, electricity, water,
sewage, fence, signs, barricades)
Cad add O&P directly to bidding price or apply to each takeoff item
individually

C D
LH

C Crew
D- Daily output (amount of
work done)
LH Hours to create 1 unit

Labor Basics Major part and critical to accuracy of estimate

o Difficult due to productivity and labor rates
o Pay rates change and productivity fluctuates
Labor Rates
o Base Wage Rate Paycheck rate
Use historical data/cost books
Annual rate surveys
o Labor Burden Other expenses employer has to pay to hire someone
o Shift Differentials Refers to extra work in non-standard hours.
Can be percentage of base rate, or extra dollar amount to normal amount or
extra hours
o Wage Benefits
Example of wage breakdown

Lesson 10 Detailed Estimate 2 Productivity

Productivity How much work a crew can produce (unit/hour)

Applies to both labor and equipment
Calculation
o Determine pay rates
o Apply Productivity to get unit cost/CY
o apply quantity to get cost
Unit of Labor Productivity
o Daily Out put Number of units of work
Performed by a crew
o Labor Hour per unit number of hours to
complete 1 unit of work

Look at examples
o

Determining Labor Productivity

o Historical Data
o Field observations daily production, cycle time rate of progress

Cycle Time

Rate of Progress (For Linear tasks (Roads) and time spend moving, producing, travelling)