Republic of the Philippines

Polytechnic University of the Philippines

College of Architecture, Design,
and the Built Environment
Department of Architecture

ARCH 30293
BUILDING TECHNOLOGY 4 – SPECIFICATION WRITING AND
QUANTITY SURVEYING

ESTIMATING PROCESS
Homework No. 2

PANGILINAN, KORYNE E.
BS ARCHITECTURE 3-1

Ar. MAYNARD M. MUHI, MsCM, UAP

Building Technology 4 Instructor

MAY, 14 2022
 Esimating a Construction Project through Detailed Estimate

A construction estimate is a document that outlines all the expenditures associated with a building
project in great detail. A decent construction cost estimate will provide both the construction manager and the
client an understanding of the project's cost so that there are no surprises when it's finished. As a result, it is one
of the most critical aspects of the building project, because a poorly done estimate may result in budget overruns
and potentially even delays, resulting in diminishing profits and unhappy clients. Going through the estimation
process an estimator is needed. The estimator is in charge of putting everything from the drawings and the
project manual in the bid. Because of the intricacy of the drawings and project manual, as well as the possible
financial impact of a mistake, the estimator must study everything carefully and double-check everything.

A detailed estimate, as the name implies, includes information on all aspects of a project, including
materials, labor, equipment, insurance, bonds, and overhead, as well as a profit projection. A comprehensive
estimate will typically contain specifications, drawings, or computations. You'll also have to justify whatever rates
you employ in the estimate. The detailed estimate must establish the estimated quantities and costs of materials,
the time required for and labor costs, the equipment required and its cost, the items required for overhead and
their costs, and the desired percentage of profit, considering the investment, the time to complete, and the
project's complexity. A circumstance in which a detailed estimate is required; A local authority may request a
detailed estimate for a road or sanitation project. When a firm makes a bid, they must give a thorough estimate
for the government body to approve the project, which includes information on the rates used to compute costs
as well as extra project estimates context, such as prospective drawings or renderings.

There are elements to factor in estimating, it generally falls into four main categories: Materials, Labor,
Equipment and Overhead. (1) Materials- Compiling a complete inventory of every type of item related with each
phase of the project, as well as the quantity of materials needed and the projected price of those products at the
time you acquire them, may assist. The final factor, pricing, is the most difficult to forecast owing to cost swings
that are outside one's control. The safe option is to budget for higher-than-normal prices to obtain an accurate
quote. (2) Labor will consume a significant portion of your budget; therefore, any errors here will result in a
significant overestimate of the whole cost. Provide a precise analysis of the projected man-hours for each phase
of the project, and provide some wiggle space in the construction process in case change orders or unforeseen
issues necessitate overtime or extra emergency employees. Don't forget to account for subcontractors. (3)
Equipment might consume a significant portion of your budget or be a little expense. If you already have all the
equipment you'll need and only need to make room in your budget for gasoline and maintenance, this category
will be quite small. (4) Overhead- From your own pay as a construction manager to temporary on-site amenities
to permitting and fees, a construction project will have a lot of other overhead expenditures. It might be difficult to
recall all these charges, so look back at previous projects to see where you spent your money and discuss this
area with your staff so they can spot any additional costs you may have overlooked.
 Construction managers should spend a large amount of time and effort at the start of a project to
thoroughly flesh out all the expenses involved though this process of Construction Estimate.

Reference:

Taylor, D. P. (2020, September 11). How to Estimate a Construction Project. The Blueprint.
https://www.fool.com/the-blueprint/construction-estimate/