Estimation

Ch.1 Introduction
12/10/2017
Estimation

Estimation is a process of calculating the quantities and costs of the various items
required for the work and expenditures likely to be incurred in the construction of a
proposed work and therefore to determine the final cost and the time required for
the construction before starting the work or taken up.

Purpose of estimation:

1. To determine the necessary amount of money required by the owner to

complete the proposed work.

2. To determine quantities of materials required in order to program their timely

procurement.

3. To calculate the number of different categories of workers those are to be

employed to complete the work within the scheduled time of completion.

4. To assess the requirements (tools, equipment) required to complete the work

according to a given program.

5. To fix the completion period from the size of works involved in the estimate.

6. To draw up a construction schedule and program and also to arrange the

funds required according to the program.

7. To invite tenders and prepare bills of quantities.

* Usually the estimating cost must be more than the actual cost.

Estimating Accuracy

Estimating accuracy increases during the life of the project as more knowledge is
gained about the project.

Information Available (%)

100

50

Accuracy (%)
50 100
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Ch.1 Introduction
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Importance of accurate estimates

1. Inaccurate time estimates can result in inefficient use of resources and late
delivery.
2. Inaccurate cost estimates can result in insufficient budget being allocated, or
excess budget being set aside for the project when it could be used for other
projects.
3. If the cost or benefits estimates are inaccurate this can lead to incorrect
decisions about proceeding with the project being made.

Quantity Surveyor (ESTIMATOR):

An Engineer who has a good knowledge and experience about the construction
processes and usually the estimator does not give a fixed number of
estimation, but gives a number between two edged may exceed one of theme
the final cost.

The duties of the Estimator are as following:

1. Preparing the process of the estimation.

2. Establishing the prices and costs of all materials including their
transportation, rent of equipment, service costs.
3. Preparing the process of execution of the project.
4. Calculating the final time of the execution of the project.
5. To calculate the final cost of the works after completion.

Client (OWNER):

Client can be one of the following:

1. A person or organization, who built the project, expends money and get
benefits from the project.

2. An organization built a project but doesn't get any benefits from the project
like service projects like (government offices, roads, etc.)

Types of estimation:

1. Approximate estimation.

2. Detailed estimation.

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Ch.1 Introduction
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Approximate estimation (QUICK ESTIMATIOM):

 This type of estimation is simple, quick and rough.

 The Estimator will estimate the cost of the project roughly; depending on the
entire area or volume of the building and the unit rate of previous buildings
have the same conditions.

 The area or volume of the building is multiplied by the cost of one unit of
measurement

Methods of Approximate Estimation:

1- Area Method

2- Cubic Method

Detailed estimation (ITEMIZING ESTIMATION):

 This type of estimation is done after preparing all required plans, details,
specifications, prices of materials, fees of workers, equipment, additional
fees and expenditures, profits.

 The project works are divided into many activities, scheduled and the
quantity and rate of each activity (ITEM) is tabulated and finally the total cost
(AMOUNT) of the building will be calculated.

Average fees:

There are many types of fees (wages) of workers, equipment, etc.

1- Ordinary fees

Daily fees : Like fees of workers

Weekly fees : Like fees of workers, builders, etc.

Monthly fees : Like salary of the employers, engineers, etc.

Hours fees : Like fees of equipment,

2- Additional fees

When the works require preparing at two or more stages, therefore, the owner must
spend an over times for the workers and equipment.

The amount of worker and equipment fees will be more than the ordinary fees.

Daily fees
Additional fees of one working hour =
Number of working hours per day

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Ch.1 Introduction
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Working days = 8 working hours

The additional hour fees may increase at the holidays or when the working hours
exceeds the limits.

Factors affect the cost of any engineering works

1. Site of the works and special conditions of the site.

2. Existence of skilled workers.

3. General economic conditions (Supply and demand).

4. Holidays and vacation days.

5. Weather conditions.

6. Preparation works.

7. Additional and continuous expenses (salary, site office, etc.)

8. Availability of materials and equipment.

9. Time assigned or required for execution.

Profit:

Profit = {is an amount that is given to the contractor during the execution
periodically – [cost expended to the executed items + (salary, insurance, taxes...)]}

The profit depends on the following factors.

1. Condition of the work (weather, politic…)

2. Skills and experience of the Estimator.

3. Skills of the contractors and their efficiencies.

4. Size of the project.

5. Number of contractors enters the competition (tenders).

6. General economic conditions of the site.

** The profit usually ranges between 10-15 % and may reach 20% or more in
some times