OJT in Construction Project Management

Faculty Marked Assignment No. 7

Construction Cost Estimating

GROUP CASE STUDY 1: (ELECTRICAL WORKS)

SITUATION:
• One of Utility Company plans to install temporary power supply cables from
existing Electrical Sub-station No. 210 to a temporary firewater pump
located in existing seawater intake area. In view of this, your company (M/s
Al-Makabayan Est.), an electrical contracting company has been requested
to submit a fixed lumpsum bid for the following scope of work:
o Manual excavation for cable trench 0.6 m (W) x 0.8 m (D) x 2 km on
Class A soil. Excavated material will be reused for backfilling. All
excess material will be cleared by others.
o Machine excavation for cable trench 0.6 m (W) x 0.8 m (D) x 3 km
on Class B soil. Excavated material will be reused for backfilling. All
excess material will be cleared by others.
o Supply and install 1-run 5 km 3Cx4/0AWGx1C armored cable,
5000V, ethylene-propylene rubber insulated with interlock armor and
outer PVC jacket.
o Supply and install of (sweet) sand as cable bedding (0.3m).
o Supply and install cable warning tapes and protection tiles over the
underground cables.

ASSUMPTIONS/CONDITIONS:
o Excavation Works:
§ Class A site material was considered “easy digging’, consists
of loose, soft, free running material, the swell factor for this
type of material is 15%.
§ Class B site material, considered “medium digging”, consists
of harder materials that can be excavated without ripping or
blasting. Class B material breaks up with bulkiness causing
some voids in the dipper of bucket of excavators. The swell
factor for this type of material is 25%.
§ Manual Excavation Productivity:
• 0.6 Hour/CY (Class A)
• 0.8 Hour/CY (Class B)
• 1.0 Hour/CY (Class C)
§ Structural excavation using CASE 580 Loader-Backhoe
• Bucket Width, 12” = 5.46 CY/HR
• Bucket Width, 18” = 10.22 CY/HR
• Bucket Width, 24” = 15.84 CY/HR
• Bucket Width, 30” = 21.28 CY/HR
• Bucket Width, 36” = 27.39 CY/HR
§ Labor Rates:
• Labour: AED 20.00/HR

CASE STUDY (Electrical & Structural) PAGE 1 OF 5

 OJT in Construction Project Management
Faculty Marked Assignment No. 7
Construction Cost Estimating

• Operator: AED 35.00/HR

• Spotter: AED 25.00/HR
• Civil F/M: AED 40.00/HR
• Electrician: AED 40.00/HR
• Electrical F/M: AED 55.00/HR
§ Equipment Rate:
• CASE 580 Loader-Backhoe = AED 200.00/HR
(excluding Operator)
§ Conversion Factor:
• CY = 0.76 M3
o Backfilling:
§ Sweet Sand (delivered to site by others) = AED 50/m3
o 3Cx4/0AWGx1C armored cable
§ Unit price: USD 984.80/100’
§ Installation productivity: 10 MH/100’
o Cable warning tapes and protection tiles (subcontracted):
§ AED 75.00/LM

YOUR TASK:
• Prepare a detailed fixed lump sum bid estimate
• Estimate project duration, manpower & Equipment requirement
• To obtain fixed lumpsum price, you have been advised by your General
Manager to include the following in your assumptions:
o Add 5% allowance for purchases
o Add 40% on productivity rate since the works to be performed
inside operating plant
o Add 15% on base estimate as contingency
o Add 20% on base estimate as company Profit
o Add 10% on base estimate to cater indirect costs

CASE STUDY (Electrical & Structural) PAGE 2 OF 5

 OJT in Construction Project Management
Faculty Marked Assignment No. 7
Construction Cost Estimating

CASE STUDY 2: (STRUCTURAL WORKS)

SITUATION:
• Your company, a heavy structural fabrication and erection company has
been requested by an EPC contractor to submit a firmed lump sum bid for
the erection of piperacks in an existing Petrochemical Plant located at Abu
Dhabi, UAE.

YOUR TEAM TASK:

• Prepare a detailed costs estimate using your company estimating norms
(see below), generate the required firmed commercial bid and technical bid
(i.e, Work Schedule, Manpower & Equipment Loading Chart).

ASSUMPTIONS:
• EPC Contractor will supply all structural profiles including connection
bolts.
• All equipment including access scaffoldings, hauling and crainages will be
supplied by the EPC Contractor.
• Required manpower, fabrication equipment and tools will be supplied by
your company.
• Painting works will be done by others. Touch-up painting must be
considered but paints are supplied by the EPC Contractor
• BOQ Supplied by the EPC Contractor:
o Area 1 Pipe Rack
§ Heavy Steel 325 Tons
§ Medium Steel 105 Tons
§ Light Steel 50 Tons
§ Gratings 50 m2
o Area 2 Pipe Rack
§ Medium Steel 250 Tons
§ Ladders with Cage 35 Tons
§ Checkered Plate 25 Tons

Notes:
• Your management has advised you to consider the following estimate
add-ons:
1. +10% for Activity Contingency Reserve
2. +10% for Contingency Reserve
3. +10% for Management Reserve

CASE STUDY (Electrical & Structural) PAGE 3 OF 5

 OJT in Construction Project Management
Faculty Marked Assignment No. 7
Construction Cost Estimating

CASE STUDY (Electrical & Structural) PAGE 4 OF 5

 OJT in Construction Project Management
Faculty Marked Assignment No. 7
Construction Cost Estimating

Work Trade: Hourly Rate (AED)

General Foreman 50.00
Foreman 35:00
Iron worker/ Welder 28.00
Ironworker Apprentice 18.00
Labor/Utilityman 20.00
Operator 25.00

CASE STUDY (Electrical & Structural) PAGE 5 OF 5