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Intended Learning Outcomes:

At the end of the week, Student should be able
to:

1. Understand the importance and different types

of Project life cycles.

SESSION 3: Estimating and Resource 2. Identify the different risk in estimates

Estimate
Prepared by: Engr. Debbie Lyn Cabacungan 3. Create construction dayworks rates for
materials, labor and equipment
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ESTIMATING DEFINITION: IMPORTANCE OF
EARLY ESTIMATE:
• forecasting the cost of future projects  basis for business unit decisions, including asset
development strategies, screening of potential
• essentially a calculation of the expenses that projects, and committing resources for further
will be incurred while doing various items of project development.
work
  helps
Sole formulate execution strategies and provides
Proprietorship 
 a basis to plan engineering and construction. 
• one of the most important aspects of Partnership
management.  Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 

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CLASSIFICATION OF ESTIMATING DEFINITION:
ESTIMATES

 Sole Proprietorship 
 Partnership 
 Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 
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ESTIMATING DEFINITION: FACTORS IN PREPARING
ESTIMATES:
1.Standardization of the cost estimate preparation
process.

2. Alignment of objectives between the customer and

team.
 Sole Proprietorship 
3. Selection of estimate methodology commensurate
 Partnership 
with the desired level of accuracy.
 4 Corporation 
istorical cost
 4. Collection of projectCompany
Limited Liability data and confirmation of 
 historical cost information
Joint Venture 
 Staff Organization 

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FACTORS IN PREPARING FACTORS IN PREPARING
ESTIMATES: ESTIMATES:
5. Organizing the estimate into the desired format

6. Documentation and communication of estimate

basis, accuracy, etc.

7. Review and checking of estimate

 Sole Proprietorship 
8. Feed-back from project implementation  Partnership 
 Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 
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APPROXIMATE ESTIMATING TECHNIQUES APPROXIMATE ESTIMATING TECHNIQUES
Interpolation Interpolation

 Interpolation is use in the early stage

of the design when information is in
short of supply.

 The unit and square methods are  Sole Proprietorship 

 Partnership 
used for preliminary estimates.  Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 

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APPROXIMATE ESTIMATING TECHNIQUES APPROXIMATE ESTIMATING TECHNIQUES
Unit Method Superficial Method
 single price rate method based upon  is a single price rate method based
the cost per functional unit of the on the cost per square meter of the
building, a functional unit being. building.

Example: All measurements

  Sole Proprietorship are taken from the 
School – cost/pupil ;  internal face of external walls.
Partnership 
Hospitals – cost/bed  Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 
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APPROXIMATE ESTIMATING TECHNIQUES APPROXIMATE ESTIMATING TECHNIQUES
Approximate Method Builder’s Quantity
 the most reliable and accurate  the most reliable and accurate
method of estimating, provided that method of estimating, provided that
there is sufficient information to work there is sufficient information to work
on. on.
 Sole Proprietorship 
 Partnership 
 Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 

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APPROXIMATE ESTIMATING TECHNIQUES CONTINGENCY
Elemental Cost Planning
 Costs are related to elements of the
buildings such as Contingency is the amount of money
- Substructure that must be added to the base estimate
- Superstructure to account for risk and uncertainty.
- Internal Finishes  Sole Proprietorship 
- Fittings  Partnership 
- Preliminaries and  Corporation 
Contingencies  Limited Liability Company 
 Joint Venture 
 Staff Organization 
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TYPES OF RISK IN ESTIMATES TYPES OF RISK IN ESTIMATES
Design and Development
 Design and development  the risks associated with design development,
 changes in estimating data
 Construction risk  third party risks such as
 Employer’s change risk - planning requirements,
 Employer’s other’s risk - legal agreements,
 Sole- covenants,
Proprietorship 
 - environmental issues and
Partnership 
 - pressure groups),
Corporation 
 statutory requirements,
 Limited Liability Company 
 procurement methodology and
 Joint Venture
 delays in tendering. 
 Staff Organization 

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TYPES OF RISK IN ESTIMATES TYPES OF RISK IN ESTIMATES
Construction Risk Employer’s Change Risk
 -the risks associated with site conditions such as  the risks of employer driven changes such as
- access restrictions/limitations, - changes in scope of works or brief,
- existing buildings, - changes in quality and
- boundaries, - changes in time
- existing occupants and users
 Sole Proprietorship 
 ground conditions,  Partnership 
 existing services and  Corporation 
 delays by statutory undertakers  Limited Liability Company 
 Joint Venture 
 Staff Organization 
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TYPES OF RISK IN ESTIMATES TYPES OF RESOURCES
Employer’s Other Risk
 Early handover
 Postponement  Material Cost
 Acceleration
 Availability of funds
 Labor Cost
 Liquidated damages or premiums on other  Equipment
 Sole Cost
Proprietorship 
contracts due to late provision of accommodation,  Partnership 
 Corporation 
 Unconventional tender action and
 Limited Liability Company 
 Special contract arrangement  Joint Venture 
 Staff Organization 

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FACTORS AFFECTING

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FACTORS AFFECTING
MATERIALS COST
MATERIALS COST

 Availability and cost of Materials

 cost and transport of not locally
available
 Sole Proprietorship 
 distance from the suppliers and  Partnership 
fabrications  Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 

FACTORS AFFECTING FACTORS AFFECTING

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MATERIALS COST MATERIALS COST

 Sole Proprietorship 
 Partnership 
 Corporation 
 Limited Liability Company 
 Joint Venture 
 Staff Organization 

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FACTORS AFFECTING FACTORS AFFECTING
LABOR COST LABOR COST

 wage scales for the locality,

present and future (labor cost per
region)
 fringe benefits (sss, phic, pag-ibig)  Sole Proprietorship 
 Partnership 
 special working rules  Corporation 
 •travel and others  Limited Liability Company 
 Joint Venture 
 Staff Organization 

FACTORS AFFECTING
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FACTORS AFFECTING
LABOR COST LABOR COST

 Sole Proprietorship 
 Partnership 
 Corporation 
 Limited Liability Company 
 Joint Venture 
SSS TABLE 2018
 Staff Organization 

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FACTORS AFFECTING

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FACTORS AFFECTING
LABOR COST EQUIPMENT COST

 cost and transport of plant/

equipment
  costProprietorship
Sole of petroleum product 
 Partnership 

cost of maintenance
 Corporation 
 Limited Liability Company 
 Joint Venture 
PHILHEALTH TABLE 2018
 Staff Organization 
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Construction Equipment Construction Equipment
1) Earthmoving equipment 1) Earthmoving equipment
1.1 Excavators
1.1 Excavators
 Digging of trenches, holes,
1.2 Graders
foundations
1.3 Loaders  Demolition
1.4 Skid loader  Material handling
1.5 Crawler loaders  General grading/landscaping
1.6 Backhoe  Brush cutting with hydraulic
1.7 Bulldozers attachments
 Forestry work
1.8 Trenchers
 Lifting and placing of pipes
1.9 Scrapers  Mining, especially, but not only
1.10 Wheeled loading shovels open-pit mining
 River dredging

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Construction Equipment Construction Equipment
1) Earthmoving equipment
1) Earthmoving equipment
1.2 Graders 1.3 Loaders
 Laying pipe
 used to prepare the base
 Clearing rubble
course to create a wide flat  Moving of Construction waste
surface for the asphalt to be
and other materials
placed on.  Small excavations
 road construction for
construction and maintenance
of dirt roads and gravel roads.
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Construction Equipment Construction Equipment
2) Materials Handling equipment
1) Earthmoving equipment
1.4 Bulldozers
 Push to loosen densely
compacted materials 1.1 Crane
1.2 Conve
1.3 Forklift
1.4 Hoist

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Construction Equipment REFERENCES
3) Other Construction equipment
3.1 Concrete Mixer
3.2 Compactor  Griffiths, J. (2018). Civil Engineering Construction
3.3 Pavers Planning and Management. New York, NY 100017,
3.4 Road rollers USA: Clanrye International.
3.5 Tunnel boring machine
 Timothy J. Kloppenborg, V. A. (2017).
Contemporary Project Management. Boston, MA
02219 USA: Cengage.

 Brook, Martin (2004), Estimating and Tendering in

Construction

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