PITA, RAFAEL CHRISTIAN R.

5CE - B

1. Are estimates need to be exact? What is the usual margin of error to be used
in estimating?

According to Designing Building Wiki, the term ‘estimate’ that refers to any
activity that attempts to quantify something. In the construction industry, it is
typically used in relation to the approximate costs of a proposed structure. An
estimate is an attempt to predict the likely expenses associated with a project
as accurately as possible. The degree of detail and the accuracy of estimates will
typically increase as the project progresses, more decisions have been made,
and more information available, however, their true accuracy only becomes
apparent once the project is complete and the actual costs incurred.
There are many types that can be categorized by accuracy, source of data,
and estimating techniques. First is the ballpark estimate or rough idea where a
certain project will have a rough idea about the cost of construction. The
purpose of this estimation is to answer the question to whether pursue or not
with the construction or bidding. Then feasibility estimate has a degree of
accuracy of minus 30 percent to 80 percent. Lastly, definitive estimate where
this estimate only applies when costs are known. This is the most accurate
estimate where it only considers a ± 20 percent.

2. How will you check if your estimates are correct?

When estimating, you must not exceed or fall behind to the margin of error.
Double check the data you computed and the list you created. Don’t hesitate to
call specific subcontractors or consultants to help out on areas that require
another set of eyes.

3. What are the most common estimating mistakes?

Estimating is one of the most difficult jobs in construction. It is also one of

the most important. Profits are typically won or lost based on how accurate your
estimates are and how closely they match up to your final project costs. (M.
Jones, 2019)
One or two mistakes could result in a bad bid, one that you will either lose
because it’s too high or win because it’s so low that you won’t make a profit.
PITA, RAFAEL CHRISTIAN R.
5CE - B
Here’s a look at some the most common construction estimating mistakes and
how to prevent them.
a) Not Conducting a Site Visit - most bidding opportunities provide
prospective bidders with a chance to attend a pre-bid meeting and
visit the jobsite. Often, these are mandatory in order to submit a bid
and with good reason. No two jobsite are identical and unknown site
conditions can cause unexpected, and costly, issues when
construction gets underway.
b) Inaccurate Takeoffs - the takeoffs lay the foundation for the estimates.
It can really screw up your estimates when it is incomplete and
incorrect. Accurate takeoffs help to determine the exact number of
materials needed for the construction and they are also required to
determine the labor and equipment needs.
c) Labor costs - are probably the hardest item to accurately estimate
because they may be some emergencies while constructing or
because of the man hours underestimated. Always keep records of
labor costs, as you can use this historical data for more accurate
estimates on future projects.
d) Materials and Supply Cost – materials and supplies can fluctuate
dramatically from time to time. Locking in prices for your materials is
crucial but don’t forget to make sure that you provide quantities to
your suppliers.
e) Failing to Assess Risks and Creating Contingencies – risks is always
present in construction. Failing to assess risks and build in
contingencies to your estimate will make things go wrong. The bigger
the risk, the more time should be spent on determining ways to
mitigate them and how that could impact the costs.
f) Making Uneducated Guesses – don’t make any uneducated guesses
on estimating.
g) Not Reviewing Your Work – small estimating errors may lead to big
errors. Double check the estimates carefully.
h) Not Reviewing Subcontractor Estimates – sometimes general
contractors have subcontractors to do some work like roofing, MEPFS,
and etc. Be sure to review bid estimates and proposals carefully.

4. What is a quantity surveyor?

PITA, RAFAEL CHRISTIAN R.
5CE - B
A quantity surveyor manages all costs in construction site or project,
from the estimates to the final auditing. He/she is tasked to prepare
tender and contract documents including billing of quantities,
undertake cost analysis for repair and maintenance of equipment, and
handle costs estimates, planning and management.

5. Enumerate some of the estimating softwares that are currently in the market
and be able to compare them with each other. Give at least 3.

a) Buildertrend

Buildertrend is a construction management system for home builders,

remodelers, specialty contractors and general contractors. It combines
project scheduling, project management, financial management, customer
management and service management in a single suite. As a cloud-based
platform, this system can be accessed online with a computer or mobile
device. It provides pre-sale tools including a built-in customer relationship
management (CRM) system, bids and proposals. Project management tools
include scheduling, budgeting, time sheets and more. Customer
management tools include change order and selection management,
warranty requests and payment processing.
PITA, RAFAEL CHRISTIAN R.
5CE - B
b) Esticom

Esticom is a cloud-based construction takeoff and estimating platform

that helps contractors manage construction projects with real-time access to
labor, pricing, plans and material database. Primarily catering to trades such
as electrical, plumbing, structured cabling, fire safety, security and HVAC,
Esticom provides tools to handle operations, purpose-built estimates and
projects. Primary features of Esticom include peer reviews, integrated
quotes, project templates, CRM dashboard, sales pipeline tracking, material
lists, note sharing and project deadline tracker. The solution offers drag-and-
drop functionality with MEP (Mechanical, Electrical, and Plumbing) symbol
database allowing users to directly draw legends from plans. Additionally,
the platform lets businesses create professional proposals which can be
exported to Excel/Microsoft Word and PDF.

c) Sigma Estimates
Sigma is a construction estimating software for commercial and
residential contractors. Whether you are a small subcontractor, general
contractor or large engineering firm, this estimating solution will work for
you. It provides methods for estimating Material, Labor and Equipment with
flexibility and automation in markups and pricing. Some of the key features
included are use of historical data, built-in validation and analysis, custom
templates and libraries, and full integrations to solutions like PlanSwift
Takeoff, Revit or Autodesk 3D BIM. The interface is intuitive and user friendly
PITA, RAFAEL CHRISTIAN R.
5CE - B
with drag and drop functionality and has complete pricing databases
available from RS Means and BNi.

REFERENCES:
Roseke, B. (2019, January 25). 11 Types of Estimates. Retrieved April 26, 2020,
from https://www.projectengineer.net/11-types-of-estimates/
Jones, K. (2019, May 17). 8 Common Construction Estimating Mistakes. Retrieved
April 26, 2020, from https://www.constructconnect.com/blog/8-common-
construction-estimating-mistakes
Estimate. (2020, March 13). Retrieved from
https://www.designingbuildings.co.uk/wiki/Estimate