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Estimating and Tendering for Construction Work This page intentionallyleft blank .

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ESTIMATING AND TENDERING FOR CONSTRUCTION WORK Third edition Martin Brook BEng(Tech) FCIOB AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO .

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2002. England W1T 4LP. Oxford OX2 8DP 200 Wheeler Road.com . Jordan Hill. UK: phone: (44) 1865 843830.You may also complete your request on-line via the Elsevier homepage (http://www. MA 01803 First published 1993 Second edition 1998 Reprinted 1999. 90 Tottenham Court Road. London. 2001.Elsevier Butterworth-Heinemann Linacre House. Burlington. e-mail: permissions@elsevier. Elsevier Ltd. Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd. by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 5864 9 Printed and bound in Great Britain For information on all Elsevier Butterworth-Heinemann publications visit our website at http://books.elsevier.com). Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford.co.uk.elsevier. 2003 Third edition 2004 Copyright © 2004. fax: (44) 1865 853333. All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright.

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Contents Preface ix Acknowledgements xii List of figures xiii Abbreviations used in the text xvi 1 Organization of the estimating function 1 2 Procurement paths 10 Introduction 10 Clients’ needs 11 Contractor involvement 12 Partnering 13 Apportionment of risk 14 Traditional method 16 Design and build 17 Management contracting 19 Construction management 21 Private finance initiative 22 3 Forms of contract 34 Introduction 34 Essentials of a valid construction contract 34 Standard forms of contract 36 Sub-contract forms 38 Comparison of forms 43 Selection of contract forms 44 4 Tender documentation .

46 Introduction 46 Coordinated project information 47 CPI and the estimator 55 Documents used as the basis of a tender 58 Formal tender documents 61v .

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5 Estimating methods 66 Introduction 66 Single-rate approximate estimating 70 Multiple-rate approximate estimating 71 Approximate quantities 73 Analytical estimating 78 Operational estimating 82 6 Contractor selection and decision to tender 85 Introduction 85 Competition and negotiation 86 Abuse of tendering procedures 90 Decision to tender 92 Inspection of tender documents 95 Competition legislation 96 7 Project appreciation 100 Introduction 100 Estimate timetable 100 Pricing strategy 103 Schedules 103 The estimating team 103 Visits to consultants and site 107 8 Enquiries to suppliers and sub-contractors 109 Introduction 109 Enquiries for materials 111 Enquiries to sub-contractors .

113 9 Tender planning and method statements 117 Introduction 117 The role of the planning engineer 117 Method statements 118 Tender programmes 119 10 Resource costs – labour. materials and plant 125 Introduction 125 Labour rates 125 Material rates 128 Plant rates 130 11 Unit rate pricing 132 Introduction 132 Contents vi .

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Components of a rate 132 Method of measurement 134 Pricing notes 134 Model rate and pricing examples 135 12 Sub-contractors and nominated suppliers 176 Introduction 176 Domestic sub-contractors 176 Nominated sub-contractors 183 Nominated suppliers 184 13 Fluctuations 185 Introduction 185 Standard fluctuations clauses 186 Calculation of non-recoverable increases 188 14 Provisional sums and dayworks 192 Introduction 192 Provisional sums for undefined work 192 Provisional sums for defined work 192 Dayworks 193 Overheads and profit 196 15 Project overheads 199 Introduction 199 Pricing project overheads 199 Pricing the preliminaries bill 202 Example of project overheads 216 16 Cashflow forecasts 217 .

Introduction 217 Cashflow calculations 217 Example of a contractor’s cashflow forecast 219 17 Completing the estimate and final tender review 227 Completing the estimate 227 Estimator’s report 229 Comments on Estimate Analysis form 229 Comments on Tender Summary form 234 Risks and opportunities 235 Overheads and profit 237 18 Tender submission and results 240 Introduction 240 Contents vii .

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Completion of priced bills 241 Tender presentation 243 Vetting of tenders 245 Post-tender negotiations and award 246 Tendering performance and analysis of results 247 Bidding strategy 251 19 Action with the successful tender 254 Introduction 254 Information transfer 254 Feedback 256 20 Computer-aided estimating 260 Introduction 260 Aims of computer-aided estimating 261 Software 262 Electronic exchange of information 263 Reverse auctions 265 Computer-aided estimating packages 267 General purpose software 271 Hardware 280 Networking 283 Implementation 285 The future 286 Further reading 291 Index 295 Contents .

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