Arlegui,Quiapo, Manila

Quantification and Costing of Works with

Digital Measurement
QS 002
CE41S1C

Assignment No. 2

Rate

Submitted by: Submitted to:

Gutierrez, Honey Lyn A. Engr. Michael Luis C. Arcon

1910207

Date Submitted:
November 25, 2022
ANALOGOUS ESTIMATING

Definition From the word itself ‘analogous’ which mean ‘equivalent or similar’,
Analogous estimates pertains to estimating technique where data from the
previous projects are used to predict the cost of the recent project similar to
that past project. Furthermore, this technique is can also be used in
estimating the duration of the current project.

Example • Building a Fence

Supposed that a contractor is going to build a fence that is 50ft long.

On his previous project he has done a same work but with 100ft perimeter
length and cost PHP200,000. Thus, since the current work is half as long
as the previous, the contractor could estimate that the 50ft long fence is
roughly equals to PHP100,000.

PARAMETRIC ESTIMATING

Definition Like analogous estimates, parametric estimates also use historical data
in calculating the probable cost of a certain project. However, in this
technique, statistical data makes it more accurate. It also uses the
relationship between variables –unit cost and number of units, to create an
estimate.

Example • Setting Posts

Considered that a contractor will set posts in their project. Before

execution, he/she first checks the available data of the unit price of a
single post in every local hardware store. The data suggest that the price
is roughly PHP4,200/post. Since there were 10 posts in the project, that
equates to PHP42,000 in setting up the entire post in the project.

• Concrete Works

For instance, you are a contractor and desire to estimate the cost of
concrete works (including the materials, labor, and equipment) on your
recent project. Taking the cost of concrete per cubic meter from your
previous projects and then multiplying it by the number of concrete works
on your current project, will give you the total estimated cost for your
project.
BOTTOM-UP ESTIMATING

Definition In situations when a precise project scope of work is provided, bottom-

up estimating is the method of choice. In this method, you estimate the cost
of each work item, roll it up to the WBS (Work Breakdown Structure) level,
and then put them all together to calculate the cost.

You may track spending and control costs using the estimate provided
by this approach, which is clear and well-organized.

Example • School Building Project

To define the estimated cost of a school building using bottom-up

estimation, divide first the project into its unique five-phase as shown in
Figure 1.

Figure 1. Graphical representation of breaking down the project into granular levels of work .
Adopted from the Bottom-Up Estimation Technique in Project Management by Usmani (2022).

In this example, site preparation, resource acquisition, building, site

cleanup, and turning over the building to the project sponsor are the five
stages of the project. These five phases will also be divided into work
packages and activity levels.

When you reach the activity level, you will assess the available
resources, calculate the cost, and estimate how long each job will take. After
that, sum together all these figures to determine the overall cost and time
required for the project.
THREE-POINT ESTIMATE

Definition A three-point estimate is a straightforward but efficient way to calculate

the price or duration of activities because it accounts for the three aspects of
project management –optimistic, most likely, and pessimistic. The most used
method for the three-point estimate is the PERT (Project Evaluation Review
Technology) which is given by the formula

O+4M+P
E=
6

where E, O, M, and P refer to three-point estimates, optimistic, most likely,

and pessimistic respectively.

Example • Estimating the duration of concrete curing on site

For instance, a Project Manager estimates that the setting of concrete

duration is the following:

7 days optimistically
14 days most likely
28 days pessimistically

The three-point estimate of the work duration can be calculated as

7 +4 (14)+ 28
E= = 15.17days
6

Therefore, it can be concluded that the estimated duration for the

concrete to be cured is 15 days.

RESERVE ANALYSIS

Definition The reverse analysis is an estimating technique were risks that cannot
be mitigated are converted into ‘reserves’ to materialize and can be
considered in approximating the cost and duration of the project.
Contingency reserve and management reserve are two types of reserves
applied in this method.

Example • Excavation for foundation work

Estimates for a small building project indicate that excavation for

foundation work will cost around PHP300,000. However, the geological
location of the project may cause you to run into large rocks, which would
drive up the price to PHP3750,000 immediately. Your management reserve
will cover the extra PHP75,000 to anticipate additional incurred costs
because of the potential risk.
COST OF QUALITY

Definition Cost of Quality (COQ) is an estimation technique used to identify how

much of its resources are allocated to operations that avoid poor quality,
evaluate the quality of the firm's goods and services, and are caused by both
internal and external failures. The Cost of Quality can be represented by the
basic equation below:

CoQ = CoGQ + CoPQ

where CoGQ and CoPQ refer to the Cost of Good Quality and the Cost
of Poor Quality respectively. The CoGQ includes the prevention costs and
appraisal costs. Whereas CoPQ includes the internal and external failure
costs.

Example • Pre-cast construction works

Supposed that a construction project, says a bridge project, required

pre-cast concrete works. In the fabrication and transportation of the pre-cast
materials, several factors might affect the quality of the material. Thus,
additional expenses in added in maintaining its quality.

For instance, the pre-cast concrete works cost PHP1,500,000. The

quality checks and inspection incur PHP50,000. It pays another PHP50,000
for appraisal costs. In addition, it pays PHP20,000 for maintenance on
finished items and maintains a provision of PHP15,000 for warranty costs
and product returns.

With this, the CoQ will be calculated as:

CoGQ = Quality Checks + Appraisal Cost

CoGQ = PHP50,000 + PHP50,000 = PHP100,000

CoPQ = Internal Failure Cost + External Failure Cost

CoPQ = PHP20,000 + PHP15,000 = PHP35,000

CoQ = PHP100,000 + PHP35,000 = PHP135,000

Getting the cost of quality in the total cost of pre-cast concrete works:

CoQ% = PHP135,000/1,500,000 = 9%

Therefore, 9% of the price of the pre-cast concrete work is the Cost of

Quality which is equivalent to PHP135,000.
DYNAMIC TOOLS

Definition The use of dynamic tools such as software is an estimation technique

that is now thriving in the construction industry. In most cases, this kind of
software aids contractors in calculating the costs of supplies, machinery, and
labor for various large projects, such as constructing buildings or developing
infrastructure that involves many variables.

Example • Cubicost 5D Bim Software in creating quantity take-offs of the whole

structure

Figure 2. Cubicost Demonstration by Glodon International.

The Cubicost is a BIM Quantification software developed by Glodon that

allows Quantity Surveyors to prepare take-offs with just a click. The software
covers all the considerations in terms of Architecture, Structural, and MEP.

Some of the samples of quantification work using Cubicost are present

in the video located at the links below:

• BIM Quantification - Cubicost TAS & TRB - YouTube

• Cubicost 5D BIM Experience Workshop - Take-off In One-step (TIO) -
YouTube
References:

Glodon International. (2020) BIM Quantification - Cubicost TAS & TRB [Video]. Retrieved from
https://www.youtube.com/watch?v=iEWd4l8nDRs

Nigam, R. & Vaidaj, D. (n.d.). Cost of Quality (Definition, Formula) | How & Why to Measure?.
Wallstreetmojo. https://www.wallstreetmojo.com/cost-of-quality/#h-example-of-cost-of-
quality

Project Planning Three Point Estimation | Project Evaluation Review | Leopard Project Controls.
(n.d.) Consultleopard. https://consultleopard.com/three-point-estimation-in-project-
planning/

Reserve Analysis - Contingency Reserve and Management Reserve | PMC Lounge. (n.d.)
Pmclounge. https://www.pmclounge.com/reserve-analysis-contingency-reserve-and-
management-reserve/

Roseke, B. (2022). Analogous Estimating. Projectengineer.

https://www.projectengineer.net/analogous-estimating/

Usmani, F. (2022). Bottom-Up Estimation Technique in Project Management. Pmstudycircle.

https://pmstudycircle.com/bottom-up-estimation/

Usmani, F. (2022). Cost Estimation Tools in Project Management. Pmstudycircle.

https://pmstudycircle.com/cost-estimation-tools/

Honor Pledge:

“I affirm that I have not given or received any unauthorized help in this assignment and that all
work shall be my own.”

HONEY LYN A. GUTIERREZ