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Mechanical
Estimation
Course
Prepared by: Mahmoud Ibrahim
engmiams@gmail.com

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Preface
Thanks for All Engineers Who Makes
our World Better

Estimation is a Skill for Life

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LEC 01
What is meant by Estimation Engineer?

Estimation engineer is the person who has the tools & experience to get accurate budget of a
project from starting date up to handling over the project to client.

Contracting Company Departments:

1/ Tender Department
2/ Procurement Department
3/ Quantity Survey Department
4/ Technical Office Department
5/ Planning Department
6/ Cost Control Department
7/ Execution Department
‫ﻗﺳﻡ ﺍﻟﻌﻁﺎءﺍﺕ‬
‫ﻗﺳﻡ ﺍﻟﻣﺷﺗﺭﻳﺎﺕ‬
‫ﻗﺳﻡ ﺣﺻﺭ ﺍﻟﻛﻣﻳﺎﺕ‬
‫ﻗﺳﻡ ﺍﻟﻣﻛﺗﺏ ﺍﻟﻔﻧﻲ‬
‫ﻗﺳﻡ ﺍﻟﺗﺧﻁﻳﻁ‬
‫ﻗﺳﻡ ﻣﺭﺍﻗﺑﺔ ﺍﻟﺗﻛﺎﻟﻳﻑ‬
(‫ﻗﺳﻡ ﺍﻟﺗﻧﻔﻳﺫ )ﻣﻬﻧﺩﺳﻲ ﺍﻟﻣﻭﺍﻗﻊ‬

Estimation Engineer Must be …

1/ Full Awareness of All Mechanical Trades and Good Awareness of Other Trades Such as
(Elec., Civil, Arch.).
2/ Good Relations with All Suppliers.
3/ Good Relations with All Sub Contractors.
4/ Full Awareness of All Basic Mechanical Design (At least By Rule of thumbs).
5/ Smart Negotiator with the Clients or with the Suppliers.
6/ Has His Organization Quotations Charts (To Accelerate Estimation Process in Fast Track
Biding).
7/ Full Awareness of All Quantity Surveying Ways.
8/ Keep His Company Secrets.

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After This Course You Will Know?

1/ Project Phases. ‫ﻣﺭﺍﺣﻝ ﺍﻟﻣﺷﺭﻭﻉ‬
2/ Bid Types. ‫ﺃﻧﻭﺍﻉ ﺍﻟﻣﻧﺎﻗﺻﺎﺕ‬
3/ Contract Types. ‫ﺍﻧﻭﺍﻉ ﺍﻟﻌﻘﻭﺩ‬
4/ Cost Analysis for (Hvac, Plumbing, Fire Fighting) Works. ‫ﺗﺳﻌﻳﺭ ﻭﺗﻔﺻﻳﻝ ﻛﻝ ﺑﻧﺩ ﻣﻥ ﺑﻧﻭﺩ ﺍﻻﻋﻣﺎﻝ‬
‫ﺍﻟﻣﻳﻛﺎﻧﻳﻛﻳﺔ‬
5/ Cost Types >> Direct Cost & Indirect Cost (‫ ﺗﻛﻠﻔﺔ ﻏﻳﺭ ﻣﺑﺎﺷﺭﺓ‬/ ‫ﺃﻧﻭﺍﻉ ﺍﻟﺗﻛﻠﻔﺔ )ﺗﻛﻠﻔﺔ ﻣﺑﺎﺷﺭﺓ‬
6/ How to Prepare Technical & Financial Offer. ‫ﻛﻳﻔﻳﺔ ﺗﺟﻬﻳﺯ ﻋﺭﺽ ﻓﻧﻲ ﻭﻣﺎﻟﻲ‬
7/ All Custom & Taxes Short Cuts. ‫ﺟﻣﻳﻊ ﺗﻌﺭﻳﻔﺎﺕ ﺍﻟﺟﻣﺎﺭﻙ ﻭﺍﻟﺿﺭﺍﺋﺏ‬
8/ How to Negotiate With the Client & the Consultant. ‫ﻛﻳﻑ ﺗﺗﻔﺎﻭﺽ ﻣﻊ ﺍﻟﻌﻣﻳﻝ ﺍﻭ ﺍﻻﺳﺗﺷﺎﺭﻱ‬
9/ Value Engineering. ‫ﺗﺟﻬﻳﺯ ﺑﻧﻭﺩ ﺑﺩﻳﻠﺔ ﺫﺍﺕ ﻣﻭﺍﺻﻔﺎﺕ ﻣﺗﻛﺎﻓﺋﺔ ﻟﺗﻘﻠﻳﻝ ﺍﻟﻣﻳﺯﺍﻧﻳﺔ ﻋﻠﻰ ﺍﻟﻌﻣﻳﻝ‬

……………………………………………………………………….

Project Phases

1/ Owner 2/ Feasibility 3/ Design 4/ Biding For

Idea Study Stage Contractors

5/ Awarding 6/ Receiving 8/ Handling

To 7/ Execution Over
the site
Contractor

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Bidding Types:
1/ public. ‫ﻳﺗﻡ ﺍﻻﻋﻼﻥ ﻋﻧﻬﺎ ﻓﻰ ﺍﻟﺻﺣﻑ‬
2/ Limited. ‫ﻳﺗﻡ ﺩﻋﻭﺓ ﻋﺩﺩ ﻣﻌﻳﻥ ﻣﻥ ﺍﻟﺷﺭﻛﺎﺕ ﻓﻘﻁ‬
3/ Direct Attribution. ‫ﺍﻻﺳﻧﺎﺩ ﺍﻟﻣﺑﺎﺷﺭ ﺩﻭﻥ ﻣﻧﺎﻓﺳﺔ‬

Bidding Phase Contents:

1/ Full Design Drawings. ‫ﺍﻟﻣﺧﻁﻁﺎﺕ ﺍﻟﺗﺻﻣﻳﻣﻳﺔ ﻭﺍﺿﺢ ﻋﻠﻳﻬﺎ ﺑﺷﻛﻝ ﻭﺍﻓﻲ ﺍﻟﻣﻁﻠﻭﺏ ﺗﻧﻔﻳﺫﻩ‬
2/ Technical Specifications. ‫ﺍﻟﻣﻭﺍﺻﻔﺎﺕ ﺍﻟﻔﻧﻳﺔ ﻟﻛﻝ ﺑﻧﺩ ﻣﻥ ﺑﻧﻭﺩ ﺍﻻﻋﻣﺎﻝ‬
3/ Bill of Quantities. ‫ﺟﺩﺍﻭﻝ ﺍﻟﻛﻣﻳﺎﺕ‬
4/ Vendor List. ‫ﻗﺎﺋﻣﺔ ﺑﺎﻟﻣﻭﺭﺩﻳﻥ ﺍﻟﻣﻌﺗﻣﺩﻳﻥ ﻟﻬﺫﺍ ﺍﻟﻣﺷﺭﻭﻉ‬
5/ Contract Draft. ‫ﻧﺳﺧﺔ ﻣﻥ ﺻﻳﻐﺔ ﺍﻟﻌﻘﺩ ﻟﻠﻼﻁﻼﻉ‬
6/ General Conditions. ‫ﻗﺎﺋﻣﺔ ﺑﺎﻻﺷﺗﺭﺍﻁﺎﺕ ﺍﻟﻌﺎﻣﺔ‬
7/ Special Conditions. ‫ﻗﺎﺋﻣﺔ ﺑﺎﻻﺷﺗﺭﺍﻁﺎﺕ ﺍﻟﺧﺎﺻﺔ‬

Contract types:
1- Re measure contract.
2- Lump sum contract.
3- Cost plus contract.
4- Turn key Contract.
5- Design & build contract.

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Cost Estimation Methods:

1/ Approximate Estimation (Trade / Area) .. (Roughly) According to:
A. Project Type C. Time Schedule
B. Project Town D. Same Previous Projects
Warning: this is A High Risk Method.

2/ Detailed Estimation
This Method Which We Will Focus on it. This Way Can Divided to Two Methods
A. Standard ‫ﻟﻠﺷﺭﻛﺎﺕ ﺍﻟﺗﻲ ﺗﻌﺗﻣﺩ ﻋﻠﻰ ﻣﻘﺎﻭﻟﻳﻥ ﺍﻟﺑﺎﻁﻥ‬
B. Man Hour ‫ﻟﻠﺷﺭﻛﺎﺕ ﺍﻟﺗﻲ ﺗﻧﻔﺫ ﻣﺷﺎﺭﻳﻌﻬﺎ ﺗﻧﻔﻳﺫ ﺫﺍﺗﻲ‬
Note: You Must Know This Two Types.
‫ ﺍﻟﻣﻘﺎﻭﻟﻳﻥ ﻣﻥ ﺍﻟﺑﺎﻁﻥ‬+ ‫ﺑﻌﺽ ﺍﻟﺷﺭﻛﺎﺕ ﻓﻰ ﺑﻌﺽ ﺍﻟﻣﺷﺎﺭﻳﻊ ﺗﺣﺗﺎﺝ ﺍﻟﻰ ﺍﻟﺗﻧﻔﻳﺫ ﺍﻟﺫﺍﺗﻲ‬

Cost Types:
1/ Direct Costs: Supply of Materials, Supply of Accessories, Delivery and Labor.
2/ Indirect Costs:
2.1 Salaries
2.2 Office expenses.
2.3 Stores
2.4 Mobilization
2.5 Bank Fees.

Note: Most Of Indirect Costs Estimated By Head Sections.

‫ﺍﻟﺗﻛﻠﻔﺔ ﻏﻳﺭ ﺍﻟﻣﺑﺎﺷﺭﺓ ﻋﺎﺩﺓ ﻣﺎ ﻳﺗﻡ ﺣﺳﺎﺑﻬﺎ ﺑﻭﺍﺳﻁﺔ ﻣﺩﻳﺭ ﻗﺳﻡ ﺍﻟﺗﺳﻌﻳﺭ‬

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How Does Wrong Estimation Happen?

1/ Estimates are done too quickly.
2/ Ignore making Review for all Data Received.
3/ Ignore Send Query to the Consultant about the Missing Data or Conflicts between Tender
Documentations.
4/ Ignore Making Quantity Survey (QS) in All Items for Lump Sum Projects or Lump Sum (L.S)
Items in Remeasure Projects.
5/ Prices Based on Old Quotation or Old Price Lists.
6/ Prices Based on Cheapest Suppliers, Ignoring Vendor List.
7/ Loading Some Items on Another.
8/ Neglect ID Cut sheets, Especially for Plumbing Fixtures.
9/ Neglect Civil or Electrical Coordination Related To Mechanical Works.
10/ Neglect Writing Out of Scope List.
11/ Neglect Project Time Schedule.
12/ Neglect Project Location.

Output from Tender Section

Technical Offer Contents Commercial Offer Contents

1/ Company Profile. 1/ Cover Letter.
2/ Company Registration Papers. 2/ Priced BOQ.
3/ Organization Chart. 3/ Payment Sequence.
4/ Time Schedule (If Required). 4/ List of Considerations ( Out of Scope )
5/ Technical Catalogs. 5/ Additional Fees
6/ Method Statements. (If Required). 6/ Tender Bond

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You Also As a Mechanical Estimation Engineer May Face Some Other

Division to Price, Such As:
1/ Building Management System (BMS).

2/ Elevators, Escalators.

3/ Garbage Chute, Linen Chute.

4/ Irrigation.

5/ Swimming Pools.

6/ Compressed air.

7/ Medical Gases.

8/ Fuel systems.

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Project Delivery Types:

1/ Turn Key.

2/ Fully Finished.

3/ Core and Shell.

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Some Projects Will Come As Core and Shell

What Does Core&Shell Project:
Core and Shell Projects meaning the contractor will Work on first stage of a building's fit out.
For Example:
Risers & Corridors: in Contractor Scope
Site Layout Works: in Contractor Scope (Inspection Chamber, Manholes, Gulley Traps..
Pump Room, Siamese Connection, Chiller Plant).
Electrical Rooms, It Room, Stores: in Contractor Scope.
Roof Drains: in Contractor Scope.
Public Toilets: in Contractor Scope.
Private Toilets: Out of Contractor Scope.
Private FCU’s: Out of Contractor Scope.
Private Sprinklers: Out of Contractor Scope.

What the meaning of (IFT) , (IFC) and Addendum:

- IFT : Issued For Tender
- IFC : Issued For Construction
- Addendum : Renovate The Contract and BOQ with Respect to any Changes Happened
in The Design Phase

The Softwares You Must be Familiar With:

1/ AutoCAD.
2/ Excel.
3/ Word.
4/ PDF’s Viewers (Such as Adobe Acrobat or Nitro ...).
5/ Outlook Emails or Any Other Emails Platforms... (Gmail, Yahoo …)

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The Course Materials Per Each Lecture:

1/ Lecture Video.
2/ Excel Sheet.
3/ PDF.
4/ Offers Updated.
5/ Suppliers List Updated
6/ Some of Project Files (AutoCAD, Pdf)
7/ Photos or Links from Outsource.

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