British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

Unit

: Tender Estimation

Unit No.

: 21556B

Level

: H2

Learning Hours

: 60

DESCRIPTION OF UNIT
This unit aims to develop the knowledge and skills required to estimate the price of
construction projects in a very detailed and precise manner. This unit enables the learner to
prepare quotations with a large quantity of products and services. This unit offers standard
pricing techniques that include different items and types in pricing: raw materials, labour,
sub-contractor, compound products (recipes), sections and standard sub-sections, and so
on.
This unit allows to easily configure the compound products (recipes), following standard
procedures (methods). The defined teaching method in this unit can be adjusted according
to the specific needs of the project, simply and instantly, allowing them to create an
estimate with realistic and precise costs.

SUMMARY OF LEARNING OUTCOME

1. Demonstrate a basic knowledge of tender estimating process
2. Prepare standard rates for labour, construction plant and materials
3. Build up unit rates for trade work items.
4. Demonstrate ability to costing of preliminaries / overhead costs of the contractor
5. Describe the procedure followed in preparation of a quotation.

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British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

CONTENTS
1. Tender estimating process
Introduction, Sources and nature of information for cost estimating, Tender
planning, Tender adjudication, Overheads and profit, Costing / consideration of
preliminaries.

2. Standard rates for labour, construction plant and materials

Resource cost; cost of labour, material and plant
3. Build up unit rates
Unit Rate Estimating; net / gross pricing, estimating unit rates for items of work in a
building for the main trades; Excavation and Earth work, Concrete work, Masonry,
Finishes, Wood work, Metal work, Structural Steel, Standard Rates, Work Studies
and Building up of Norms, Waste and Waste Allowances, Pricing day works,
Introduction to operational estimating.

4. Costing of preliminaries / overhead costs

Pricing Preliminaries and Overheads, Introduction to attendance charges.

5. Procedure followed in preparation of a quotation

Commercial terms and essential data required for preparation of a quotation, Request
for the supply of materials or sub contract services, Costs related to transport and
delivery, Different forms of discount given on orders

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British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

ASSESSMENT CRITERIA
Outcomes

Assessment criteria: To achieve each

outcome a student must demonstrate the

1.

2.

Demonstrate a basic
knowledge of tender estimating
process.

Prepare standard rates for

labour, construction plant and
materials

3.

Build up unit rates for trade

work items.

4.

Demonstrate ability to
costing of preliminaries /
overhead costs of the contractor

5.

Describe the procedure

followed in preparation of a
quotation.

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ability to
1.1 Describe the tender pricing process.
1.2 Identify the factors that need to be considered
in pricing a tender.
1.3 Identify the sources and nature of information
for tender estimating.
2.1 Identify the factors affecting labour, material
and plant rates.
2.2 Compute All in Labour Rates, All in Material
Rates and All in Plant Rates.

3.1 Identify the factors that need to be considered

in building up unit rates.
3.2 Develop unit rates that reflect the current local
market prices for measured work items in a
BOQ.
3.3 Compute the price for day work items.

4.1 Discuss Preliminary / overhead costs in a

Bill of Quantities
4.2 Calculate the cost of site facilities to be
provided by the contractor.
4.1 Prepare letters of enquiries for supply of
materials and subcontract services
4.2 Discuss different forms of discount given on
orders.

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British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

DELIVERY
The knowledge of tender estimating is a core competency for quantity surveyors. For
construction contractors, tender estimating is vital for successful procurement of projects.
This unit provides the basic knowledge and skills needed for developing unit rates and
pricing non-unit based items in a project, while providing them the basic knowledge of
tender estimating process together with factors affecting pricing. Ability to gather necessary
market prices and obtaining quotations from suppliers/sub contractors is an essential
feature in the tender estimating process. In addition to lectures, developing the skill of
collecting price information/quotations from the market is encouraged.
All the teaching materials must be checked and approved by the Quality Management Team
before they are issued to the students. Students will receive related notes from the lecturer
at the beginning of the topics. At theory sessions students will receive sets of course
material related to the topics discussed by the lecturer. Lecturer will guide the students for
discussions and project works during their studio sessions. Studio sessions will lead them to
gain good and expanded knowledge in this subject.
Usually the unit is delivered using lectures and studio sessions. Lectures will be 2 hour per
day and 2 days per week (2 X 2 Hr) and 2 hour tutorial session per week.

ASSESSMENT
The assessment of this unit will be based on a comprehensive assignment where the
students are expected to demonstrate a basic knowledge in terms of Learning Outcomes 1
and 5 and a good understanding and application of Learning Outcomes 2, 3 and 4 as these
will be beneficial for students as beginners in practice. Learning Outcomes 1 and 5
therefore, can be in the form of Class room assessments, integrated to the main
assignment.

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British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

To pass this unit, the learners evidence for assessment needs to demonstrate that all the
learning outcomes for the unit have been met. These criteria for grading describe the level
of achievement required to earn Merit and Distinction.

To achieve a merit grade the evidence

To achieve a distinction grade the

must show that the learner is able to

evidence must show that the learner is

able to
M1. Identify and apply strategies to find D1. Use critical reflection to evaluate own
appropriate solutions
work and justify valid conclusions
M2. Select/ design and apply appropriate D2. Take responsibility for managing and
methods/ techniques
organizing activities
M3. Present and communicate appropriate D3. Demonstrate
findings

convergent/

lateral/

creative thinking

LINKS
This unit is complementary to the unit, Pre-contract Management delivered at the same
semester. Tendering and cost information is looked at in different perspectives in these two
units. A sound knowledge and understanding of materials and their properties is essential in
unit rate estimating. Therefore, completion of Construction Materials unit will be essential
for the study of this unit. Basic knowledge in method statement preparation is also
important in developing the unit rates, making the completion of the two Technology units;
Building Technology and Advanced Construction Technology in the first two semesters, a
necessity. The knowledge and skills gained in this unit will be essential for successful
performance of post contract management in practice.
This unit is provides the essential basic knowledge and skills required for undertaking the
following module:
Post- contract Management

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British College of Applied Studies (BCAS)

BTEC HND in Quantity Surveying and Construction Economics

RESOURCES
Learners should have access to a wide range of library resources, including text books,
publications by government and associated bodies, internet and other associated
documents.

READING LIST
Adrian, J.J.A. (1982) Construction Estimating, 2nd ed. Champaign, IL: Stipes Publishing.
Buchan, Fleming & Kelly (1991). Estimating for builders and quantity surveyors.
Butterworth-Heinemann.
Brook, M. (2004). Estimating & tendering for construction work.

London: Butterworth-

Heinemann.
Geddes, S., (1985). Estimating for building and civil engineering works, 8th ed. London:
Butterworth.
Mudd, D.R. (1984) Estimating and Tendering for Construction Work. London: Butterworth
Chartered Institute of Building. (1998). Code of Estimating Practice. Ascot: CIOB.

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