ESTIMATE Definition: a Prediction of the Cost of a building or scheme in order to give a reasonable indication to the developer of the capital amount required should he/she decide to proceed with the development. Why does a need exist for buildings to be erected? A need arises mainly because of the, sometimes unique, function of a building Aad the developer has identified the possiblity to eam a tavern retum should he provide such a building. Methods of Estimating 1. Accommodation Limited to buildings where the units of accommodation could be measured, such 88 a church (number of chairs) and hostels (number of beds). 2. Area/ Volume The volume method only differs from the area method because the volume dimension is taken into account, Certain types of buildings such as churches and towers, are better expressed in the volume method. The area method is used quite extensively in South Africa, 3. Storey Enclosure Method This is an attempt to exclude certain unclear factors by enclosing part or the Whole of the structure, Developed in England after the Second World War. 4. Elemental Method ‘The building is divided into elements and components in an attempt to increase the accuracy and reliability of the estimate (using more detail), 5. Ordinary Quantities Probably the most accurate but hardly a method of estimating.4, ACCOMMODATION METHOD Because of the overall inclusive nature of the unit of measurement, itis not very trustworthy, but useful to execute a general order estimate even before the building has been designed or any plans drawn. Itis used to compare the cost of similar buildings (hospitals, hostels, theatres) if certain standards and specifications are similar, by using the only useful unit at the early stages of a proposed project, the “cost per bed” Unfortunately the unit cost is very difficult to establish or in certain cases not possible at all due to the lack of reliable data (previously built projects of similar nature) and also dependent on a lot of fluctuating factors. Unit of accommodation could also be referred to as a unit of usage. This method is also influenced by the use and size of the building for example: The cost per chair ina church will differ substantially if the size of the building differs even if all other factors are the same. The addition of a gallery or a tower could also influence this unit cost significantly. The cost per bed in a hospital could be influenced by the aesthetics of the wards or in cases where single bedrooms or double bed rooms are being used. Care must be taken not to compare a state of the art heart transplant facility hospital with a day care hospital (clinic). The following are indication of reasonable average costs / prices during 2006 for a normal range of buildings, and exclude the extreme situations. (a) Churches of # 500 chairs — R 11 500 // chair (b) Theaters (Inc. stage and all other facilities) - R 120 000 / seat (©) Complete Hospitals — R 280 000 / bed (Excluding housing for nurses) (4) Schools - R 5 800 / seat (Excluding hostels but including halls) (©) Hostels - R 6 500 / bed (f) Houses ~ R 4 200 /m?2. AREA/ VOLUME METHOD Measurements Please note that rates could only be compared if the same method of measuring is used. The methods used in South Africa are: Area: Measure the area of every covered floor over the external walls or lines of the Vertical structure. That is exclusive of the normal roof overhangs or roof trusses, Measure round comers as square, but round buildings as net. Small projections such as pillars, chimneys, staircases, etc. are not to be calculated but considered to be included. Cc Example: Volume For a single storey building, use the area calculated as indicated before and multiply it with the following heights (from the bottom level of the normal footing): (2) _ Pitched Roofs - up to half of the height of the roof (b) Lean to roofs - the same as (a) (c) Pitch Roof with rooms in the attic - up to the ceiling of the rooms in the attic. Please note that the areas of the rooms in the attic, must be added to the area as calculated above, but not in this method as itis already included in the volume, (d) Flat roofs ~ 1 meter above the roof. The height of the roof is taken as the lowest horizontal level of the underside of the roof covering and not the varying top levels of the covering, oO ‘The difference between carports and lean-to roofs is small and not necessarily important. The carport is in fact half of the pitched roof, while the lean-to roof is the same as the flat roof. The lean-to roof usually has an sloped ceiling while the carport has no ceiling or a horizontal ceiling. The height is determined in the first place in order to establish the actual volume of a building, but is also used to compare the volume of buildings with different types of roofs per cubic meter. That is the reason why a flat roof is measured ‘one meter above roof height, This difference is only applicable to single storey buildings, but in the case of multi storey buildings the roofs are normally flat and an additional height of one 7meter on every roof is allowed. Special care must be taken not to calculate the volume of each floor from the foundation level, but from the floor level below the floor measured. The easiest method is to measure each floor net from floor to floor and then add one meter to the top as well as the height from under the lowest floor to the foundation height. Deep foundations In cases where the foundations are very deep, itis advisable to use the average depth. Items that must be shown separately. In order to keep the pricing of the area or volumes simple, some items must not be included in the calculation of the rate. These items could be classified in the following main groups: The cost of items within the boundaries of the building, which could require special consideration. Examples of such items are shop fronts, lifts, air-conditioning and expensive finishes such as stonewalls, marble, panels, etc. Comparison of a shop situated at a corer with two shop fronts and one of exactly the same area with only one street front would be dealt with differently. Items seemingly inexpensive in relation to the area should be ignored such as a name board that could be very expensive if evaluated on its own but will have a very small impact on the rate per square or cubic meter. Factors that could influence the rate per square or cubic meter must be considered individually (will be discussed later). The cost of items outside the boundaries of the building, which could require special consideration. These items include paving, boundary walls, fencing, bulk excavations, sewer tanks, walls on roofs, etc. Service connections to the buildings are also not included in the calculations, except where it is regarded as part of the structure, Sometimes the cost of certain items that would normally fall within the area or volume, is excluded from the rate per area or volume but added separately because it could be required by the client for personal reasons. Areas identified should be selected because of the availability of data,Dividing or categorizing areas or volumes. Itis necessary to divide a building with non-homogeneous uses into smaller elements of homogeneous use. For example, the reception area and washing area or offices and retail area in a office park must be kept separately purely because of the probable different finishes. Care must be taken not to overdo this for example a house should not be divided into bathrooms, kitchen and the rest of the building because available date would have taken care of it. Outbuildings, ‘swimming pools and patios could be kept separate from the rest of the house. Pricing (Determining the rates) aoae a Where the measurements in this process are a factual process and definite, the determining of rates is not that clear and precise. This is the most difficult aspect of preparing estimates and it requires a certain skill and knowledge. The determination of the square and cubic meter rates is affected by the following aspects: (a) Consideration of individual factors that may influence the rates (b) Records of similar buildings (c) Sound judgment Factoi cing the rates: While considering every factor, assume that the other factors are the same and equal. 1. Shape Compare O Analyse the cost of one linear metre of brickwork The difference between “cheap rooms” and ‘expensive rooms" in the same building Large house R/m? cheaper than small house but more expensive in total. The volume of a building with a pitched roof in comparison to a flat roof will differ. Height per floor The rate per square meter will increase if the height increases, but the price per cubic meter will decrease. The height can vary at 2 different places: Under ground Above ground Height of the building A higher building will require a stronger foundation design and structure as well as equipment and items such as lifts. It does not necessarily mean that a double storey will cost more than a single storey building, as other aspects such as the type of roof, windows, finishes, complexity and so forth, must be 10taken into account. Structure This aspect is easy to forget. A building with the same height can differ in terms of span of certain items such as trusses, soil type, foundation design, complexity on plan, loads on walls and foundations, etc. For example, if a certain area is required for parking, the positioning of columns will be important to accommodate the required open area — this could impact on the cost of the structure. High buildings and buildings at the coast will require stabilization against the wind. Fullness on Plan This is a vital element that is very difficult to determine. Luckily, the same sort of building does not differ substantially, flats for example. Equipment and services Discuss. Mate Is and fir Discuss. Repetition and the use of standard materials The high repetition of purpose made items such as windows could compare favourably with the cost of standard made windows. A very high repetition of a certain house plan, in the case of low cost housing, Could bring down the cost substantially. The price per item (doors of windows) if repeated in say 1000 houses would be lower. To use the same size and shape columns throughout a building could be much cheaper than different sizes and shapes. However, care must be taken to keep the balance between aesthetic design and financial considerations. Local Conditions Building costs differs in different areas because of: Availability of material and labour : Bricks etc. are not manufactured in all areas and have to be transported - Availability of skilled workers C- Availability of equipment - Availability of electricity * Difference in prices that are very difficult to explain > every area / region has a different price index Market conditions in different regions are different Site The, shape oft the ste, difcut access, narrow access roads, lack of lnk d °S, confined site that is build up on all sides suppor willbe an issue), the need to close off areas, high tne oe ground water table, etc. can have serious financial implications. Size of the contract The size of the contract would influence the overheads. A large contract will enable the contractor to order and buy bulk, This should bring the unit price down. The influence of this factor must be considered with sound judgment as it would be a basic mistake to compare small buildings with bigger buildings or a block of flats with a single house. It must also be realized that a bigger construction firm that will be able to build a bigger building would have a different overhead structure than that of a small contractor. ‘Time for completion This factor will be vital when a building must be erected in an unreasonable short period. For example a very short time would mean that the overheads are proportionally higher. One must remember that the economic rate of construction will differ from company to company. Basis on which contract was placed The tender amount of a contract priced under open tender conditions could differ from the same one priced under negotiated conditions or cost plus conditions. It would be advisable to qualify the estimate with a statement that this estimate was calculated as an open tender. Market conditions The cost of building differs from time to time as a result of the changes in prices of material and labour as well as the oversupply or scarcity of building work. Supply and demand must be taken into account as well as the time value of money. It is however, very difficult to predict future changes in building costs as not all the relevant influences are known (changes in interest rates, strikes, war, etc). ‘An estimate must be qualified in terms of all these aspects especially if a long time period are envisaged between the time of preparing an estimate and the actual construction.3. STOREY ENCLOSURE METHOD. The areas of the different floors, roofs and external walls are calculated and then every area will be multiplied by a certain factor. This adjusted area is known as the storey enclosure area. The following general guidelines are applicable: |. 2xthe floor area of a basement I. 4 xthe floor area of a floor (not a suspended floor) I. 2xthe floor area of super structure floors IV. 1x the area of internal walls V. 1 xthe area of sheet metal roofs Vi. 2x the area of slate oF concrete roofs Seven-storey office block — no basement Assume: Ground Floor = 1000m? 6 x middle floors = 1000m? Roof = 1000m? External Walls = 5000m? Then: Ground Floor : 1000m? X14 1000m? Middle floors - 1000m? X 2X6 12000m? Roof - t000m? x 2 200m? External Walls = 000m? X 1 500m’ Storey Enclosure Area 20000m? The estimate of the office block per cubic meter in terms of the storey enclosure method is: 20 000 x R1 250 /m® = R 25 000 000 The R 1 250/m? will be obtained from records of similar buildings adjusted and updated ‘The rate used for the storey enclosure method would be compiled the same as always: Tender amount = (contingencies + site works + special funds + plumbing + air-conditioning + electrical + lifts + mechanical equipment) This method allows for aspects such as shape of the building floo"». height of 14storeys and the total height of the building. ELEMENTAL METHOD This is probably the most reliable and accurate method. The total building is divided into elements such as structure, external walls, plumbing, etc. and then each element is divided into different components such as walls, extemal finishes, windows, window sundries and external doors. The method of separating elements and then dividing into components is well defined and constant for all buildings and the estimator can build up his own library of information in order to use for estimates of similar buildings at a later stage. When the cost of an existing building is analysed and the estimate is done for the proposed new building, each element or component is assessed in the unit normally associated with, for example external facades per (_ square meter on elevation, concrete slabs per square meter on plan, concrete strip foundations per meter and plumbing equipment or work per unit or point. In any method of estimating it is necessary to determine and define the method of measuring precisely as well as the level of accuracy required. If an estimate is done in too much detail, we fall back to the list of quantities and thus defies the purpose of quick estimating. The purpose of an estimate is to give relative accurate answers in a short work time. With this in mind, certain standards of measuring have been developed. For example, floors must be measured over internal and external walls, external fagade over concrete slabs, etc. This results in a certain level of over-measuring and this must be adjusted by deducting a small percentage in the pricing.Itis simple to compose the price of a component, for example solid floor finishes (price/m’) Screed R Vinyl Floor finish R R Less adjustment due to over measuring X% R R Add Sundries such as copper strips and “in opening’, etc. +y% R P's&G's+2% R Rate /m? R To determine the price of an element can be more involved, for example: Electrical Installation Obtain the standard rate from the Electrical Consultant. Plumbing This is for water supply, wastage, etc. and referred to as points, These rates are obtained through extensive cost analysis and cost research, Example of the compilation of an elemental rate: Element; External Walls (Total area of the element = 1000m) Walls 600m @ R R Extemal Finishes 600m @ R R Windows 400m @ R R Windows sundries 400m @ R R External Doors. 18 @ R R The rate for the element is therefore R /m on plan The use of the elemental method of estimating at the different stages of development and design, can be illustrated as follows: 1. At the diagrammatic sketch plan design stage — The elemental rate is used because no detail is available at this stage. 16me Atthe detailed sketch plan stage - Make use of component rates 3. ‘At the work drawing stage - Make use of component rates, but for more accuracy, realistic tender values can be used. It should therefore be clear that the elemental estimating method can be applied with increasing accuracy once more and more detail is available and it is possible to conduct a post-mortem analysis in order to allow the estimator to determine where mistakes have been made and to enable him / her to improve this. The elemental estimating method has certain disadvantages 1. If any item is not specified or not shown on the drawing and therefore not measured by the QS, it will not be included in the estimate. This C could be overcome to a certain extend with the allowance of a certain ~ percentage for “price and design development’. 2. Itis better to assume some of the specifications or detail if not specified than no guess at all. 3. It takes longer to prepare an elemental estimate than an estimate based on the area method. 5. ROUGH OR INCLUSIVE ROUNDED OFF JUANTITIES This method uses the essential cost items that need to be measured. The method of measuring is similar to the taking off for a bill of quantities except items of the same or similar measurement will be grouped together. (For example: the floor finish area, will be the same for the surface bed, screed, and ¢- final floor finish, These areas are the same for each item and can be grouped c together). Sundry items of minimum value are not measured, but are added as sundry item percentage. The items are measured, priced, multiplied and added to arrive at the estimated cost. This method has certain disadvantages: 1. Itis tedious and slow 2. Detail information is required, which are normally found on working drawings 3, Itis sometimes difficult to decipher which items must be measured and which must be considered as sundry items (e.g. floor skirting) 4, Great skill and experience is required to calculate the percentage cost of the sundry items. 7