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5.

0 THE PRELIMINARY
ESTIMATING METHODS

DCC20073 – CONTRACT AND


ESTIMATING
By
Zainordin Firdaus Zulkefli
5.0 THE PRELIMINARY ESTIMAING METHODS

5.1 Understand the preliminary estimating methods.


5.1.1 Describe definition and importance of preliminary
estimating methods.
5.1.2 Identify types of the preliminary estimating
methods:
a. Unit Valuation Method
b. Floor Area Method
c. Cubic Content Method
5.1.3 Explain advantages and disadvantages of the
preliminary estimating methods from 5.1.2.
5.2 Apply the calculation of estimating method.
5.1.1 Describe definition and importance of preliminary estimating methods.

Definition
• Technique to forecast the possible cost
incurred for a certain building or construction
project via a systematic calculation employing
certain method, prepare at early stage of the
project.
5.1.1 Describe definition and importance of preliminary estimating methods.

Importance
• The purpose is to provide an introductory cost of project.
– Insight into the cost of project before detailed plans are drawn
up.
• Usually performed as part of the project feasibility analysis.
– To evaluate the economic feasibility of proceeding with the
project.
• The benefits:
– Increasing awareness of probable costs, in order to gain early
financial commitment.
– To determine costs for budget control.
– To inform the architects and engineers of the cost of the project
and the commitments require.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method


• The simplest and quickest method by counting the
number of units which are going to be
accommodated in a building.
• Example:
– the number of occupants, or
– main furniture objects used by an individual
• Uses this rough estimate in the
planning/consultation stage when there are no
sketch designs or drawings.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)


• Best used in buildings where a large percentage of room
space is occupied by identical units of furniture or units
used by individuals, for example:
– Beds in a hospital / hostel – cost per bed

– Seats in a stadium / a movie theatre – cost per seat


– Desks in a classroom – cost per desk
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)


– Computers or cubicles in an internet
cafe – cost per cubicle

– Parking Bays in a low-rise or


basement park – cost per bay or car

– Shelves in a supermarket – cost per


metre of shelving
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)

Total Estimated Cost of Building Project


= Number of Units x Cost per Unit

• The cost per unit is obtained from past


projects.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)


• Example:
Estimate the total cost to build a mosque to house a
congregation of 500 individuals.
Lets say that the cost from previous project is
RM1,400.00/congregation.
Total cost:
= number of accommodation X cost/congregation
= 500 individuals X RM1,400.00/congregation
= RM 700,000.00
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)


• Advantages:
– It can be done quickly where a rough figure is
required instantly.
– The estimate can be done even if there are no
drawings or specifications.
– Useful for buildings where standard-sized units
(desks / beds) occupy most of the space.
– Little information is required from client (i.e.
number of units), but getting a lot of information
from the client will be helpful for the estimator.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

a. Unit Valuation Method (cont’d)

• Disadvantages:
– It’s not a reliable method (rough figure).

– Large deviation from the accurate value.

– It is not based on drawings or specifications.


5.2 Apply the calculation of estimating method.

Exercise 1
NGO will build a house for 1500 widows who
are affected by natural disaster. Estimate the total
cost to build houses. From a suitable cost data.
The cost is RM 7,500 for a house.
5.2 Apply the calculation of estimating method.

Exercise 1 - answer
• NGO will build a house for 1500 widows who
are affected by natural disaster. Estimate the
total cost to build houses. From a suitable cost
data. The cost is RM 7,500 for a house.
Total Cost:
= standard units of accommodation X cost/unit
= 1500 units X RM 7,500/unit
= RM 11,250,000.00
5.2 Apply the calculation of estimating method.

Exercise 2
Assume that the current cost for a 120-pupil
school constructed of wood frame for a city is
RM 1,200,000. We are asked to develop an
estimate for a 90-pupil school.
5.2 Apply the calculation of estimating method.

Exercise 2 - answer
• Assume that the current cost for a 120-pupil school
constructed of wood frame for a city is RM 1,200,000.
We are asked to develop an estimate for a 90-pupil
school.
The first step is to separate the per-pupil cost
= RM 1,200,000 ÷ 120 pupils
= RM 10,000/pupil
Apply the unit cost to the new school
= RM 10,000/pupil X 90 pupils
= RM 900,000
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method


• It is the first estimate that will be prepared when initial
sketch drawings are produced by the architect.
• It involves measuring the internal gross floor area of a
building and multiplying by the cost per m2, to get the
total cost of building.
• The internal gross floor area is measured within the
external walls (i.e. floor area enclosed by external
walls) without adjustments for partition walls,
staircases or lifts.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method (cont’d)


• Example:
– A simple rectangular single storey plan (20m x 5m) with 230mm external brick
walls and no open space.
– The building rate is RM 8,000 per m2.

First Step: Calculate the inside length of external walls (measured from inside face):
• 20.00 m – (0.23 x 2) m = 19.54 m
• 5.00 m – (0.23 x 2) m = 4.54 m

5m
Total Estimated Cost of Building Project

= Internal Gross Floor Area x Cost per m2 20m

Total Cost = (19.54 x 4.54) m2 x RM 8,000


Total Cost = 88.71 m2 x RM 8,000
Total Cost = RM 709,680.00
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method (cont’d)


Building with Open Spaces

For a building with open spaces (e.g. enclosed


courtyards, areas under roof lights, veranda, porch,
patio etc.), you will need to adjust the internal gross
floor area by deducting the area of the open space.

example
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method (cont’d)


Multi-storey Buildings

When estimating or measuring buildings with


multiple storeys or floors, the concept is the same.
You have to adjust the internal gross floor area of
each floor for open spaces such as balconies and
decks.

example
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method (cont’d)

• Advantages:
– It relies on architect’s sketch drawings.

– It relies on the gross floor area of the building


plan.

– Estimates are based on past similar projects.


5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

b. Floor Area Method (cont’d)

• Disadvantages:
– It doesn’t take into account:
• the total perimeter of the walls.

• the floor-to-ceiling height of the building.

• the area and type of wall finishes.


5.2 Apply the calculation of estimating method.

Exercise 3

20m

5m
3m
1.5m

Floor Plan
Veranda
5.2 Apply the calculation of estimating method.

Exercise 3 - answer
• For a building with open spaces (e.g. enclosed courtyards, areas under roof lights,
veranda, porch, patio etc), you will need to adjust the internal gross floor area by
deducting the area of the open space.
• In this case, if the same single storey plan (20m x 5m) has a corner veranda
measuring (3 x 1.5) m, you will need to adjust the gross floor area of the building:

Building Area:
[20.00 – 2(0.23)] x [5.00 – 2(0.23)] = 19.54 x 4.54 = 88.71 m2

Veranda Area:
(3.00 – 0.23) x (1.50 – 0.23) = 2.77 x 1.27 = 3.52 m2

Adjusted Gross Floor Area:


88.71 m2 – 3.52 m2 = 85.19 m2

Total Estimated Cost of Building Project = 85.19 m2 X RM 8,000.00/m2


Total Cost = RM 681,520.00
Next
5.2 Apply the calculation of estimating method.

Exercise 4
Estimate the cost of the building by referring to the plans given if
the construction cost is RM 1,500/m2.

Note: Measurements shown are from the internal faces of the walls
5.2 Apply the calculation of estimating method.

Exercise 4 - answer
Estimate the cost of the building by referring to the plans given if the
construction cost is RM 1,500/m2.
Ground floor area
= (25.00 x 5.00 = 125.00) + (10.00 x 3.00 = 30.00) + (5.00 x 7.00 = 35.00)
= 190.00 m2
First floor area = (25.00 x 5.00 = 125.00) + (10.00 x 3.00 = 30.00)
= 155.00 m2
Total floor area = 190.00 m2 + 155.00 m2
= 345.00 m2
Total cost = total floor area x cost/m2
= 345.00 m2 x RM 1,500.00/m2
= RM 517,500.00
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

c. Cubic Content Method


• A single rate method of estimating based on
the cubic content of a building.
• Aims to overcome the criticism on floor area
method that does not take into account
possible variations of the storey height.
• The total cost of the project will be given by:
Estimate = Volume X Unit Cost (Cost/m3)
{Volume = External plan area X height X Cost (cost/m3)}
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

c. Cubic Content Method (cont’d)


• Example:

An office block with a cubic content of 18,000 m3 has been


estimated to cost RM 415.00/m3.

Estimate = cubic content X rate per cubic metre


Estimate = 18,000 m3 X RM 415.00/m3
Total estimated cost = RM 7,470,000
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

c. Cubic Content Method (cont’d)


• Calculation of volume is subject to rules of measurement:
– Measured from external faces of external walls
– Height of the building is taken from the top of foundation
to:
• pitched roof:
– A point midway between the ceiling and the apex of roof where roof
space is unoccupied
– A point three-quarters from the ceiling to the apex of the roof where
roof space is occupied
• flat roof:
– A point 600mm above the roof structure or parapet wall (which is
higher).
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

c. Cubic Content Method (cont’d)

• Advantages:
– Quick method.

– Simple math process.

– Easy to understand

– Suitable where cubic content of a space or a building


directly influences the cost of an element.
5.1.2 Identify types of the preliminary estimating methods &
5.1.3 Explain advantages and disadvantages

c. Cubic Content Method (cont’d)

• Disadvantages:
– Need higher levels of skill to assess unit rate:
• Do not express the actual cost of different parts of the building.

• Due to large number of variables, difficult to adjust unit cost.

• Doesn’t provide any indication about amount of usable space.

• Fails to take account of variations in plan, shape, storey height/


total number of storeys etc.
5.2 Apply the calculation of estimating method.

Exercise 5
• Estimate the total cost to build a 2-storey
bungalow if the construction cost/m3 of a
similar construction is RM 550.00.
• Estimate the construction cost base on
a) Pitch roof
b) Flat roof
5.2 Apply the calculation of estimating method.

Exercise 5

Note: Measurements are from the external faces of the walls


5.2 Apply the calculation of estimating method.

Exercise 5 - answer
a) Pitch roof building volume
= 20.00m x 10.00m x [1.00 +2(3.50) + ½(1.50)]m
= 20.00m x 10.00m x 8.75m
= 1750 m3

Total building cost = building volume x cost/m3


= 1750 m3 x RM 550.00/m3
= RM 962,500.00

b) Flat roof building volume


= 20.00m x 10.00m x [1.00 +2(3.50) + 0.60]m
= 20.00m x 10.00m x 8.60m
= 1720 m3

Total building cost = building volume x cost/m3


= 1720 m3 x RM 550.00
= RM 946,000.00

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