QUANTITY SURVEYING

CONSTRUCTION
ESTIMATING
INTRODUCTION
WHAT IS ESTIMATE?
• is an expression of opinion or the prediction
of the probable future cost of certain
construction activities, usually based on
some data having an acceptable degree of
reliability.

• a preliminary statement of the approximate

cost for certain works.
INTRODUCTION

• to determine the forecast cost required to

complete a project in accordance with the
approved plans, specifications and
construction methods

• use of exact mathematics

• more art than science; therefore all

estimates are not exact
INTRODUCTION
CONSTRUCTION
ESTIMATING
• Black Magic
• Beam Counting
• Guess Work
• Guestimates
WHY ESTIMATE?

• It determines the scope of work.

• To determine the probable cost of the
project as realistic as possible.
• To determine the most probable time to
complete the project.
• For the designer and owner to know if
the project is realizable.
BENEFITS OF GOOD ESTIMATES
• Adequately reflects the intentions all
parties.
• Know that change in design and
construction affect the total cost and
schedule of the project.
• Lead to alternatives and development of
better quality and lower cost.
FACTORS NEEDED FOR
ACCURATE ESTIMATES

1. Information available
FACTORS NEEDED FOR
ACCURATE ESTIMATES

1. Information available
2. Time available
FACTORS NEEDED FOR
ACCURATE ESTIMATES

1. Information available
2. Time available
3. Intended use of the
estimates
PURPOSE OF ESTIMATES

Though the general purpose of estimate

is to determine the COST, there are a lot
of reason that this must be done in
accordance to the interest of the project
stake holders.
PURPOSE OF ESTIMATES

FOR THE OWNER

• To determine Economic Feasibility
• To determine Capital Investment
• To Assist in Financial Arrangement
• Planning and Scheduling
• Basis for ABC
PURPOSE OF ESTIMATES

FOR THE DESIGNER

• Aid in site selection
• Aid in choosing alternative design
• Aid in determining design scheme
PURPOSE OF ESTIMATES

FOR THE CONTRACTOR

• Basis of Bid Price
• Progress Billings
• Planning and Scheduling
AREAS OF ACTIVITIES

1. Planning
2. Financing
3. Tendering
4. Constructing
1. PLANNING:

Planning a contract includes studying

the project resources such as cash,
labor, materials, and equipment.

The project duration, project cost are

determined based on the results of
the estimate.
PLANNING FACILITATES:

1. Timely ordering project resources

2. Project Control
3. Preparation of cash flow analysis
2. FINANCING:

There are several outside sources that

contractors can use to help with its
cash management aside from their
working capital.
The principal sources is the bank loan
or bank draft.
3. TENDERING:
Contractors compete to be awarded the
contract. The more accurate the
estimate, the better the contractor’s
chance of winning the contract and
executing it successfully.
A good tender sum is the lowest possible
and still allows the project to be executed
with reasonable profit margin.
COMPOSITION OF PROJECT COST
Example: Proposal for the provision and installation
of a Dry Ceiling System.
COMPOSITION OF PROJECT COST
4. CONTRACTING:

During construction the contractor's

target is to follow the project cost and
project duration. This means controlling
and programming the expenditures as
well as the physical progress of work.
4. CONTRACTING:

The estimates on materials, labor and

equipment are regularly monitored
and compared to the original cost.
GENERAL ESTIMATING GUIDELINES
GENERAL ESTIMATING GUIDELINES
GENERAL ESTIMATING GUIDELINES
COST ESTIMATING STAGES
COST ESTIMATING STAGES
COST ESTIMATING STAGES
COMPOSITION OF
PROJECT PRICE
1. Direct costs – labor, material and equipment
cost of project construction.
2. Contingency costs – additional costs to
take into account events, such as rain and
other unforeseen expenditures.
3. Margin – sometimes called mark up includes
three components: indirect cost; company-
wide costs; profit.
The total price of a construction project is the sum
of the direct costs, contingency costs and margin.
ESTIMATING DIRECT COSTS
1. Industry or Facility Approach – refers to
specific use for which project is intended.
2. Discipline or Trade Approach – this takes
the point of view of the contractor rather than
the client. The job is broken into disciplines,
or trades, of the workers who will perform the
construction. The estimate is arrived at by
summing the projected cost of each disci-
pline, such as structural steel, concrete, elec-
trical, air conditioning, plumbing and etc.
 TYPES OF ESTIMATES
APPROXIMATE ESTIMATE
• are sufficiently accurate for the
evaluation of design alternatives, or the
presentation of preliminary construction
estimates to the owner, but are not
sufficiently accurate for bid purposes.
• a more liberal view of quantities and
prices may be taken.
PREPARING APPROXIMATE
ESTIMATES
Since there is little information other than the
basic design concept at the start of the project,
the importance of knowing the approximate
cost is still very much needed since this is the
stage in which the economic feasibility of the
project will be made.
PREPARING APPROXIMATE
ESTIMATES

The accuracy of approximate estimate will

depend upon the availability of information
known about the project.

This is the part where experience and

number of similar projects made will come in.
PREPARING APPROXIMATE
ESTIMATES
One good example of approximate estimate is
called the Broad scope estimates. This is a function
of the costs of similar projects done previously.
Mathematically this is done by
A + 4 B + C
UC = ESTIMATING
6 CONSTRUCTION
A = Min. cost of previous project COST:
PEURIFO AND
B = Ave. cost of previous project OBERLENDER 6th Ed.
C = Max. cost of previous project P68
PREPARING APPROXIMATE
ESTIMATES
Ex.
A rough estimate of a 2-storey commercial
building is needed by a prospective client during
an exploratory meeting with an architect. After
describing initially the requirements of the client
the architect mentally notes the costs of similar
projects that he made before.
A+4B+C
UC =
6
PREPARING APPROXIMATE
ESTIMATES
PROJECT COST
1 Php 5,645,956.00
2 Php 4,376,467.00
3 Php 8,325,325.00
4 Php 6,345,214.00
5 Php 7,349,219.00
From the given we have
A = 4,376,467.00
B = 6,408,436.20 C = 8,325,325.00
PREPARING APPROXIMATE
ESTIMATES
A+ 4 B+C
Using the equation UC =
6
We have
4,376,467.00+(4)6,402436.20+8,325,325.00
UC=
6
UC= 6,389,256.13
PREPARING APPROXIMATE
ESTIMATES
Ex.
The material cost of a two storey building in
2014 was 6,500,000.00 as agreed upon by
the contractor and the client. In 2017, the
same contractor was asked by another client
for the estimated cost of a similar project to
be done. What will be the rough estimate
using the construction price index.
PREPARING APPROXIMATE
ESTIMATES
From the Philippine Statics Authority
CPI (2014) = 227.30 CPI – Construction Price Index
CPI (2017) = 232.30
CPI current n
Using the equation: = (1 + i)
CPI past
232.30 3
= (1 + i)
227.30
PREPARING APPROXIMATE
ESTIMATES
232.30 3
3 = √( 1+ i ) 3
√ 227.30
1.007279=(1+i)
Estimated cost 2017 = 6,500,000,00 (1.007279) 3

Estimated cost 2017= 6,642,976,20

The value may not seem much since the index used
is the overall item. It would be better if the price
index for EACH materials will be used in making the
rough estimate.
TYPES OF ESTIMATES
APPROXIMATE ESTIMATE
1. Feasibility Estimates- can be made quickly,
inexpensive, and not very accurate.
2. Order-of –Magnitude Estimates – more
detailed than the feasibility estimate,
inexpensive, generally prepared after about
1% of the design has been completed.
3. Preliminary Estimates- generally made by
the designer after 5% to 10% of the design
has been completed.
 TYPES OF ESTIMATES
DETAILED ESTIMATE
• Sometimes called final or definitive estimate.

• It is prepared by determining the cost of

materials, labor, equipment, overhead, profit,
and VAT in detail per items of work based on
the approved design/construction plans,
specifications and construction methods.
TYPES OF ESTIMATES
DETAILED ESTIMATE
The objective is usually to determine the
smallest quantity and the keenest price for
the various items of work in the project.
Usually prepared by the owner, contractor,
sub-contractors and suppliers prior to
bidding or on negotiating to do the work.
TYPES OF ESTIMATES
DETAILED ESTIMATE
4. Baseline Estimates – these are final
preliminary estimates. Generally made after
about 10% to 50% of the design has been
completed.
5. Definitive Estimates – this type of estimate
represent the end of the designer’s res-
ponsibility for cost estimates. Generally
made after 30% to 100% of the design has
been completed.
TYPES OF ESTIMATES
DETAILED ESTIMATE
6. Fixed-price Estimates – estimates prepared
by the general contractor. It is made after 70%
to 100% of the design has been completed.
7. Claims and Changes Estimates – these are
prepared when a difference arises between
actual construction and the project as
specified in the original contract. This type of
estimate should identify the changes clearly
and concisely.
END
PREPARING DETAILED
ESTIMATES
THE PROCESS FOR PREPARING DETAILED
ESTIMATES ARE AS FOLLOWS
END
ESTIMATING METHODS
• Defining the project component to which cost can be
applied.
 ESTIMATING METHODS
• Assigning unit cost in order to arrive at a component
cost
MATERIAL LABOR
DESCRIPTION QTY UNIT TOTAL
U-PRICE AMOUNT U-PRICE AMOUNT
ESTIMATING METHODS
Estimating by
User Units
Methods
ESTIMATING METHODS
Estimating by User Units Methods
ESTIMATING METHODS
Estimating by Square Meter Method
ESTIMATING METHODS
Estimating by Square Meter Method
ESTIMATING METHODS
Estimating by Square Meter Method
ESTIMATING METHODS
Estimating by Square Meter Method
ESTIMATING METHODS
Estimating by Cubic Meter Method
ESTIMATING METHODS
Estimating by
Cubic Meter
Method
ESTIMATING METHODS
Estimating by
Parametric
Method
ESTIMATING METHODS
Estimating by
Modular Costs
Method
ESTIMATING METHODS
Estimating by Combined Method
ESTIMATING METHODS
Estimating by Combined Method
BIDDING
BIDDING
Sample
Bid Tender
Estimates by Quantity
Take-off Method
Estimates by Quantity
Take-off Method
THE QUANTITY TAKE-OFF ( Quantity Survey)
Estimates by Quantity
Take-off Method
Three Basic Rules for taking off quantities:
Estimates by Quantity
Take-off Method
ORDER OF THE QUANTITY TAKE-OFF
Estimates by Quantity
Take-off Method
ORDER OF THE QUANTITY TAKE-OFF
Estimates of Repair
and Remodelling
Estimates of Repair
and Remodelling
Estimates of Repair
and Remodelling
Estimates of Repair
and Remodelling

END
 THANK YOU FOR
YOUR ATTENTION!

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