REQUISITES IN ESTIMATING

Policies governing Estimating

 Based on experience or Manuals
 Ask
 Approved Budget for the Contract – Latest DO -
o Direct Cost
o Indirect Cost – Depends upon the Direct Cost
 Overhead Contingencies and Miscellaneous
 Profit
 VAT – 5%
 Labor Rates as prescribed and approved by the DOLE
 Prices of Materials
 Equipment Rental Rates – based on ACEL Rates
o You may have your own rental rates
 Production Output
 Per Item of Work
o Item No
o Item Description
o Unit
o Quantity (In-Place Quantities)
o Production Output
o Direct Cost : Sum of
 Materials
 Equipment Needed
  Required Labor Rates
o Indirect Cost
 OCM = Direct Cost * Rate based on the table
 Profit = Direct Cost * Rate based on the Table
 Total Indirect Cost = OCM + Profit
o VAT = 5% * (Direct Cost + Indirect Cost)
o Total Cost = Total Direct Cost + Total Indirect Cost +
VAT
o Unit Cost = Total Cost/Quantity
o Total Item Cost = Unit Cost * Quantity

HOW TO ESTIMATE PER ITEM

1. Prepare worksheet for:

 Summary of Labor Rates
o Foreman
o Skilled Labor
o Unskilled Labor
 Summary of Prices of Materials to be Used
o Arranged per item requirement or alphabetically
 Equipment Rental Rates
o Equipment per equipment use or alphabetically
2. Based on the Estimation Manual
DIRECT COST
 Production Output
 Labor Requirement
o Compute for Hours = Item Quantity/Production
Output*Hour Factor
o Total Labor Cost
 Equipment Requirement
o Compute for Hours = Item Quantity/Production
Output*Hour Factor
o Total Equipment Cost
 Material (good for one unit)
o Compute for Quantity of Materials
 Material Quantity = Material Factor * Item Quantity
 Total Materials Cost
TOTAL DIRECT COST = Labor + Equipment + Material

OCM = TOTAL DIRECT COST * RATE OF OCM

PROFIT = TOTAL DIRECT COST + RATE OF PROFIT
TOTAL INDIRECT COST = OCM + PROFIT

VAT = 5% (TOTAL DIRECT COST + TOTAL INDIRECT COST)

TOTAL COST = DIRECT COST+INDIRECT COST + VAT

UNIT COST = TOTAL COST/QUANTITY
TOTAL COST (BOQ) = UNIT COST * QUANTITY
 FOR MULTIPLICATION – ROUND-OFF TO 2 DECIMAL PLACES
= ROUND(CELL,2)

TIPS:

 CELL ADDRESSES:
 ABSOLUTE ADDRESS (WITH DOLLAR SIGN) VS. RELATIVE
ADDRESS (WITHOUT DOLLAR)
 DECIDE WHAT TO USE
o NO CHANGE WHEN MOVING OR COPYING TO ANOTHER
CELL ADDRESS- USE ABSOLUTE – LOCKING
o CHANGE WITH MOVEMENT – USE RELATIVE ADDRESS

 LINKING CELLS

 INSERT COPIED CELLS

 ROUND-OFF TO 2 DECIMAL PLACES: =ROUND(CELL,2)

 USE OF FORMULA

o IF FUNCTION – TO DETERMINE WHAT ROWS TO HIDE

 o DATA FILTER - TO HIDE/UNHIDE ROWS

 INSERTING ROWS IN BETWEEN SUBJECT TO SUM

 PAGE-LAY OUT, PAGE BREAKS, PRINT AREA

 PAGE LAYOUT-PRINT TITLES –for repeating titles (office

logo)

BILL OF QUANTITIES
 INPUT UNIT COST