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The Steps involved in cost estimating are;

**1. Materials Estimates: This is the quantity take off step that was already discussed in
**

an earlier section

**2. Calculate Material Costs: So here you just need to multiply the quantity by the cost
**

per unit.

**3. Equipment Estimates: To figure out this section you might have to understand
**

equipment production rates to calculate the amount of time you will need the

equipment. These estimates are in a different study section that I will later show

you. So for now let assume they will give you the equipment production rate to do

the jobs and the cost of the equipment. You may have to multiply a efficiency

factor to increase or decrease the production rate if it is given.

**4. Calculate Equipment Costs: Multiple the equipment cost/day by the number of
**

days required to do the work.

**5. Personnel Estimates: The exam question will give you crew size, the cost/hr for
**

each crew member, and the production rate of the crew or members.

**6. Calculate Personnel Costs: Using the above information multiple number of hours
**

to do the job by the cost per hour to do the job.

7. Sum up all the costs

8. Multiply the overhead and Profit to the total cost

9. Congratulations…You have the total project cost now.

**• Doing cost estimates in the real world you will have to use equipment tables,
**

average work rates, labor cost rates, call vendors for equipment costs, etc.

However, lucky for you in the PE exam all the costs and work rates will be given so

it makes things so much easier, and all you need is to use a little engineering

judgment.

**• The easiest way to explain cost estimates is just to do practice problems which are
**

the same difficulty as the exam.

078 cubic feet. A work day is 8 hours per day. The Foreman gets paid $60/hr and the laborer get paid $30/hr.8days x 8hr/days = 30. 3-Laborers.4 hrs = I always round up in estimates to 31 hrs Step 4: Total cost for the personnel: = 31 hours x $150 / hours = $4650 . If the crew has to place concrete for 3. Yards per day. Find the total cost of the personnel involved in concreting? Cost Estimating Solution Step 1: Convert the CF to CY: 3078CF/27(CF/CY) = 114 Cys Step 2: Find the cost of the crew per hour = (1x60) + (3x30) = $150 Step 3: Find the number of hours required for the crew to work = 114/30 = 3. The crew is able to concrete 30 cu.Cost Estimating Practice Problem The following is the concreting crew size: 1-Foreman.8 day 8 hours in a day 3.

The contractor has to rent the truck at $500 per day. and travels at an average speed of 40 mph. The truck driver makes $50/hr and works 8 hours per day. The soil has a swell factor of 18% and shrinkage factor of 15%.5 ft. The contractor is going to use a dump truck that can carry 12 CY. What is the cost of backfilling the trench. . The cost of soil is $20 per CY bank volume basis. Loading time for the truck is 30 minutes and unloading time is 5 minutes.Problem 2: A contractor need to backfill and compact a trench that has the dimensions that are 150 x 50 x 1. The borrow pit is located 45 miles from the construction site.

. Sum all the costs = $6950 + $9000 + 9.4 LCY 2. Total time required = 2.83 hrs .125 + 1. 578 LCY/12CY = 48.5ft = 11.125 + 30/60 + 5/60 = 2. 5. Calculate Personnel Costs: $50/hr x 139hr = $6950 7.18 = 578. . Time for one trip = Loading time + unloading time + Travel Time (to and from) .800 3. LCY = 490 BCY x 1. How much soil is needed? . the truck can carry 12 CY.800 = $25. BCY = 416.16 Trucks – round up to 49 Trips . Calculate Material Costs: $20/BCY x 490 BCY = $9.3 18 days 4.8 hrs round up 139 hrs .15) = 490 BCY . Equipment Estimates: You know the cost of one truck is $500/day. Materials Estimates: .4 LCY need to be transports. Total days = 139/8 = 17.125 hrs . Calculate Equipment Costs: Multiple the equipment cost/day by the number of days required to do the work. 578. .Solution Problem #2 1.67CCY/(1-.67 CCY .750 The problem didn’t call for overhead and profit so don’t worry about it.18 days x $500/day = $9000 you might be able to get money back for half day however the problem doesn’t talk about that so I would not make that assumption. Travel time = Distance/Velocity = 45 mile/40miles/hr = 1.83 hrs x 49 trips = 138. So to calculate the equipment costs you need to figure out how long you need the truck.250CF = 416. . Personnel Estimates: Given at $50/hr 6. Travel time = 1. The volume to be fill is 150ft x 50ft x 1.

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