oe ey Leia e) ae olen ieny Ne a eR KY ESTIMATING GUIDE _ FOR ARCHITECTS 3) > ©. © iW E ah L, HONG, ..fu a 9 Slq™ Few content nou | PR ONAL DEVELOP!Published by i Oe PROFESSIONAL DEVELOPMENT CENTER The United Architects of the Philippines ESTIMATING GUIDE FOR ARCHITECTS By Froilan L. Hong, FUAPCOPYRIGHT 1981 United Architects of the Philippines This document or parts thereof may not be reproduced without written permission from the United Architects of the Philippines, Inc, Published by the Professional Development Center Ast Printing - July 1981 2nd Printing - October 1982 3rd Printing ~ December 1984 ‘4th Printing & Ist revision - August 1984 Sth Printing - August 1989 66th Printing & 2nd revision - September 1990 ‘7th Printing & 3rd revision - August 1991 ‘8th Printing & 4th revision - July 1997ACKNOWLEDGMENT ‘The author is deeply indebted to ARCH. ANGELITA MANGALINDAN, UAP, VP for Documentation of FLHONG Architects & Associates for this fourth and expanded revision. Additional materials have been added in this edition from the first revision we have done with ARCH. ESTHER T. SHERMAN, UAP.WHY ESTIMATE a a ison INTAODUETION Construction Gost Estimate is an approximate computation of the probable costs of 2 Project. The different people involved in the construction process make use of the Construction cost estimates for various purposes:. Cost estimates will help dictate the ‘Scope of work of the project during the Pre-design phase, Design phase, Bidding phase and Construction phase enabling the Owner and the Architect to come up with a realizable project ‘The type of estimate to be prepared as well as the accuracy of an estimate depends upon the following © information availabie o time available ° Intended use of the estimate Estimates related to both the overall budget and to the preliminary allocations of budget to the various systems are periodically prepared. These cost estimates are successfully revised and refined as working drawings for each system are developed. Estimeting is the basis of financial control, planning and procurement of resources throughout the Project. An aucuralu estimate can aiso help the contrantor in a successful tender. ‘An accurate estimate is helpful in four key areas of activity: ° Planning ° Financing © Tendering © Gonstructing * PLANNING : Planning a contract includes studying the project resources such as cash, labour, materials and equipment. The project duration, project cost are determined based on the results of the estimate. Planning facilitates: © timely ordering of project resources © project controi ‘© preparation of cash flow analysis * FINANCING: There are soveral outside sources that contractors can use to help with its cash management aside irom their working capital, The principal source is the bank foan or bankdratt. Whon proparing ioan request, an estimate of the ‘financial ‘equirements at the different stages of the project shall be submitted to the insttutisn lending the roney. ESTIMATING GUIDE FOR ARCHITECTS. p.tINTRODUCTION ‘« TENDERING: Contractors compete to be awarded the contract. The more accurate the estimate, the better the contractor's chances of winning the contract and executing it successfully. A good tender sum is the lowest possible and stil allows the project to be executed with a reasonable profit margin. The tender sum consist of the following components: Example: Proposal for the provision and installation of a Dry Ceiling System ————_ > Matra Cost = PAs0,000 00 {Direct Cost {OC} Labor Gost 135,000.00 (SS costof Equipment =~ _5,000.00 Total Direct Cos! (DC) 500,000.00 Tndirect Cant ((G}|—— Overhead (5% of Dc) = 29,500.00 Profit(15% afc) = ~—-88.500,00 Total Indirect Cost (16) 118,000.00 Total Dc & IC 708,000.00 > Taxes Le VAT (6% of DC +IC) = 42,480.00 TENDER SUM == 750,480.00 © CONSTRUCTING : During construction the contractor's target is to follow the project cost and project duration. This means controlling and programming the expenditures as well as the physical progress of work. The estimates on materials, labor and equipment are regularly monitored and compared to the original cost.. Expenditures and incoming payments are compared with those predicted in the cash flow analysis, which was also based in data from the estimating stage. ~~ ESTIMATING GUIDE FOR ARCHITECTS p.2=o —_ _ESTIMATING METHOD. ‘* Do not round-off quantities until the final summary, Ss GENERAL + Mark drawings vith diferent colors as items are taken off ESTIMATING ‘+ Keep similar items together, different items separate, ‘* Identify location and drawing numbers to aid in future checking for completeness, GUIDELINES d s ‘+ Measure or list everything on the drawings or mentioned inthe specifications. + Use indicated cimensions rather than cimensions measured off rectly from drawings. ‘+ It may be necessary to list items not called for to. make the job complete. ‘+ Be alert for notes on plans such as © not to seale © changes in scale throughout the drawings: © reduced size drawings © discrepancies between the specications and the drawings. © Develop a consistent pattern ot performing an estimate, for example: © Start the quantity take-off at the lower floor and move to the next higher floor. © Proceed from the main section of the building to the wings. ‘© Proceed from south to north or vice versa, clockwise, or counterclockwise, © Take-off floor quantities frst, elevations next, then detail drawings. + Ust all gross dimensions that can be elther used again for different quantities, or used 8 a rough check of other quantities for verification (exterior perimeter, gross floor area, individual loor areas, etc.) * Utlize design symmetry or repetition (repetitive floors, repetitive wings, symmetrical design around the centerline, similar room, lay-outs, etc.) NOTE: Extreme caution is needed here so as not to omit or duplicate an area, + Do not convert until the final total is obtained. For instance, when estimating reinforcing bars, take off itemized units according to bar size, then summarize and ‘convert to kilos or tons. * When figuring alternates, itis best to total all items involved in the basic system, then total all items involved in the alternates. Thus you work with positive numbers in all cases. When adds and deducts are used, it is often confusing whether to add or Subtract a portion of an item, especially on a complicated or involved alternate, ESTIMATING GUIDE FOR ARCHITECTS. p.3Estimatin MethodscosT ESTIMATING STAGES ESTIMATING METHODS Pat? ‘The method of cost estimating varies withthe stage of development of the project. » BUDGETARY ESTIMATE This estimate is prepared in response to a demonstraled need, ‘Accordingly, it should best be related to square meter to be built, sumber of people to be served, Lnits to be reproduced, of functions to be accomplished. The best source is prior experience The Architect must build up his own data trom every project that he builds aside from what is available in the industry, ‘© SCHEMATIC DESIGN ESTIMATE At the schematic and design phase the spatial design has been commited to a plan and few elevations. There should be a site pan available, Toa farge degree, this phase liizes squae-meler costs, but parametvic and maduiar costs can become much more practical. It is also possible to segregate certain areas and provide detailed cost-breakdown analyses, © DESIGN DEVELOPMENT ESTIMATE The design development estimate is based upon Arawings which aro an evolution ofthe echematie design drawings. They are often a fll size larger and therefore accurate quanity take-off is possible. The spatial solution forthe buildings ‘has been completed, and so the architectural and structural take-oif is substaniially accurate, At this stage, the mechanical, eletrical, heating and ventilating systems, ae just coming into tosis. The estimating approach is usually combined, since quantity take-off is possible only for ‘architectural and structural and parametric or square-meler costs must be used for the ‘mechanical and electrical systems, ¢ CONTRACT DOCUMENTS ESTIMATE At this stage of project development, a ‘tremendous amount of detail work is in progress. Estimates can be made onquantitytake-off basis for al the areas, The designer wil be doing a quantity survey type estimaie, but once the ‘drawings and specifications have been released to the contractors, one ofthe principal methods (of developing a cost bid is to solicitfirm price quotations from sub-contractors or suppliers. © CONSTRUCTION AND BIDDING ESTIMATE Estimates during the construction are based on realty. The actual cost of work in place can be used as a guideline in estimating extra work or changes in scope. Quantity survey methods are used by contractors in estimating the projected savings in scope which would result from accepted value- incentive programs.