W2-3 Construction Cost and Time Control

CONSTRUCTION COST AND TIME CONTROL
WEEK 2-3:
• Classification Cost Estimate - AACE
• Cost Etimate
• Standard Method Of Measurement
• Quantity Take Off
ASSESSMENT
STUDENT RATING
LEARNING LEARNING ESTIMATE CRITERIA
WEEK FINAL ABILITY LEARNING WEIGHT
MATERIALS METHODS D TIME AND
EXPERIENCE (%)
INDICATORS
2-3 Can understand Volume Calculation  Lecture + 4 x50 mnt  Know and The accuracy in
several volume • Correctly explain Questions can calculate of calculating Evaluation
calculation some rules in and Answers volume with the right I
standards and be volume  Exercise  Large task method
able to calculate calculation calculates direction
the volume for • Perform volume volume
civil engineering calculations
building structures correctly
Classification Cost Estimate
• A purpose of cost estimate classification is to align the estimating process with
project stage-gate scope development and decision making processes.
Primary Secondary Characteristic
• The maturity level of Characteristic
project definition is the MATURITY LEVEL EXPECTED
OF PROJECT ACCURACY RANGE
sole determining (i.e., ESTIMATE
DEFINITION
END USAGE METHODOLOGY
Typical variation in low and
CLASS Typical purpose of Typical estimating method
primary) characteristic of DELIVERABLES estimate high ranges
class. Expressed as % of complete

definition
• The +/- value represents Concept Capacity factored, L: -20% to -50%
typical percentage Class 5 0% to 2% screening parametric models, H: +30% to +100%
judgment, or analogy
variation of actual costs
Class 4 1% to 15% Study or Equipment factored or L: -15% to -30%
from the cost estimate feasibility parametric models H: +20% to +50%
after application of Budget Semi-detailed unit costs L: -10% to -20%
contingency (typically to Class 3 10% to 40% authorization or with assembly level line H: +10% to +30%
control items
achieve a 50% probability
Class 2 30% to 75% Control or Detailed unit cost with L: -5% to -15%
of project overrun versus bid/tender forced detailed take-off H: +5% to +20%
underrun) for given Class 1 65% to 100% Check estimate Detailedunit cost with L: -3% to -10%
scope. or bid/tender detailed take-off H: +3% to +15%
Source: AACE 18R-97

• The estimating accuracy ranges overlap the
estimate classes. There are cases where a Class 5
estimate for a particular project may be as
accurate as a Class 3 estimate for a different
project.
• Table 1 provides ranges of accuracy range
values. This allows application of the specific
circumstances inherent in a project, and an
industry sector, to provide realistic estimate
class accuracy range percentages.
Source: AACE 18R-97


In addition to the degree of project definition, estimate accuracy is also driven by other systemic risks such as:
• Level of non-familiar technology in the project.
• Complexity of the project.
• Quality of reference cost estimating data.
• Quality of assumptions used in preparing the estimate.
• Experience and skill level of the estimator.
• Estimating techniques employed.
• Time and level of effort budgeted to prepare the estimate.
• Unique/remote nature of project locations and the lack of reference data for these locations.
• The accuracy of the composition of the input and output process streams.

CLASS 5 ESTIMATE
Description: Estimating Methodology:
Class 5 estimates are generally prepared based on very limited information, Class 5 estimates generally use stochastic estimating methods such as
and subsequently have wide accuracy ranges. As such, some companies cost/capacity curves and factors, scale of operations factors, Lang factors,
and organizations have elected to determine that due to the inherent Hand factors, Chilton factors, Peters- Timmerhaus factors, Guthrie
inaccuracies, such estimates cannot be classified in a conventional and factors, and other parametric and modeling techniques.
systematic manner. Class 5 estimates, due to the requirements of end use,
may be prepared within a very limited amount of time and with little Expected Accuracy Range:
effort expended—sometimes requiring less than an hour to prepare. Typical accuracy ranges for Class 5 estimates are
Often, little more than proposed plant type, location, and capacity are -20% to -50% on the low side, and +30% to +100% on the high side,
known at the time of estimate preparation. depending on the technological complexity of the project, appropriate
reference information and other risks ( after inclusion of an appropriate
Maturity Level of Project Definition Deliverables: contingency determination). Ranges could exceed those shown if there are
Key deliverable and target status: Block flow diagram agreed by key unusual risks.
stakeholders. 0% to 2% of full project definition.
Alternate Estimate Names, Terms, Expressions, Synonyms: Ratio,
End Usage: ballpark, blue sky, seat-of-pants, ROM, idea study, prospect estimate,
Class 5 estimates are prepared for any number of strategic business concession license estimate, guesstimate, rule-of-thumb.
planning purposes, such as but not limited to market studies, assessment
of initial viability, evaluation of alternate schemes, project screening,
project location studies, evaluation of resource needs and budgeting,
long-range capital planning, etc. Source: AACE 18R-97

CLASS 4 ESTIMATE
Class 4 estimates are generally prepared based on limited information and Class 4 estimates generally use stochastic estimating methods such as
subsequently have fairly wide accuracy ranges. They are typically used for equipment factors, Lang factors, Hand factors, Chilton factors, Peters-
project screening, determination of feasibility, concept evaluation, and Timmerhaus factors, Guthrie factors, the Miller method, gross unit
preliminary budget approval. Typically, engineering is from 1% to 15% costs/ratios, and other parametric and modeling techniques.
complete, and would comprise at a minimum the following: plant capacity,
block schematics, indicated layout, process flow diagrams (PFDs) for main Expected Accuracy Range:
process systems, and preliminary engineered process and utility equipment Typical accuracy ranges for Class 4 estimates are
lists. -15% to -30% on the low side, and +20% to +50% on the high side,
depending on the technological complexity of the project, appropriate
Maturity Level of Project Definition Deliverables: reference information, and other risks (after inclusion of an appropriate
Key deliverable and target status: Process flow diagrams (PFDs) issued for contingency determination). Ranges could exceed those shown if there are
design. 1% to 15% of full project definition. unusual risks.
End Usage: Alternate Estimate Names, Terms, Expressions, Synonyms: Screening, top-
Class 4 estimates are prepared for a number of purposes, such as but not down, feasibility (pre-feasibility for metals processes), authorization,
limited to, detailed strategic planning, business development, project factored, pre-design, pre-study.
screening at more developed stages, alternative scheme analysis,
confirmation of economic and/or technical feasibility, and preliminary
budget approval or approval to proceed to next stage. Source: AACE 18R-97

CLASS 3 ESTIMATE
Class 3 estimates are generally prepared to form the basis for budget authorization, Class 3 estimates generally involve more deterministic estimating methods than
appropriation, and/or funding. As such, they typically form the initial control stochastic methods. They usually involve predominant use of unit cost line items,
estimate against which all actual costs and resources will be monitored. Typically, although these may be at an assembly level of detail rather than individual
engineering is from 10% to 40% complete, and would comprise at a minimum the components. Factoring and other stochastic methods may be used to estimate less-
following: process flow diagrams, utility flow diagrams, preliminary piping and significant areas of the project.
instrument diagrams, plot plan, developed layout drawings, and essentially
complete engineered process and utility equipment lists. Expected Accuracy Range:
Typical accuracy ranges for Class 3 estimates are
Maturity Level of Project Definition Deliverables: -10% to -20% on the low side, and +10% to +30% on the high side, depending on
Key deliverable and target status: Piping and instrumentation diagrams (P&IDs) the technological complexity of the project, appropriate reference information, and
issued for design. 10% to 40% of full project definition. other risks (after inclusion of an appropriate contingency determination). Ranges
could exceed those shown if there are unusual risks.
End Usage:
Class 3 estimates are typically prepared to support full project funding requests, and Alternate Estimate Names, Terms, Expressions, Synonyms: Budget, scope,
become the first of the project phase control estimates against which all actual costs sanction, semi-detailed, authorization, preliminary control, concept study,
and resources will be monitored for variations to the budget. They are used as the feasibility (for metals processes) development, basic engineering phase estimate,
project budget until replaced by more detailed estimates. In many owner target estimate.
organizations, a Class 3 estimate is often the last estimate required and could very
well form the only basis for cost/schedule control.
Source: AACE 18R-97


CLASS 2 ESTIMATE
Class 2 estimates are generally prepared to form a detailed contractor control Class 2 estimates generally involve a high degree of deterministic estimating
baseline (and update the owner control baseline) against which all project work is methods. Class 2 estimates are prepared in great detail, and often involve tens of
monitored in terms of cost and progress control. For contractors, this class of thousands of unit cost line items. For those areas of the project still undefined, an
estimate is often used as the bid estimate to establish contract value. Typically, assumed level of detail takeoff (forced detail) may be developed to use as line
engineering is from 30% to 75% complete, and would comprise at a minimum the items in the estimate instead of relying on factoring methods.
following: process flow diagrams, utility flow diagrams, piping and instrument
diagrams, heat and material balances, final plot plan, final layout drawings, Expected Accuracy Range:
complete engineered process and utility equipment lists, single line diagrams for Typical accuracy ranges for Class 2 estimates are
electrical, electrical equipment and motor schedules, vendor quotations, detailed -5% to -15% on the low side, and +5% to +20% on the high side, depending on
project execution plans, resourcing and work force plans, etc. the technological complexity of the project, appropriate reference information,
and other risks (after inclusion of an appropriate contingency determination).
Maturity Level of Project Definition Deliverables: Ranges could exceed those shown if there are unusual risks.
Key deliverable and target status: All specifications and datasheets complete
including for instrumentation. 30% to 75% of full project definition. Alternate Estimate Names, Terms, Expressions, Synonyms: Detailed control,
forced detail, execution phase, master control, engineering, bid, tender, change
End Usage: order estimate.
Class 2 estimates are typically prepared as the detailed contractor control baseline
(and update the owner control baseline) against which all actual costs and
resources will now be monitored for variations to the budget, and form a part of
the change management program.
Source: AACE 18R-97
CLASS 1 ESTIMATE
Class 1 estimates are generally prepared for discrete parts or sections of the total project rather than Class 1 estimates generally involve the highest degree of
generating this level of detail for the entire project. The parts of the project estimated at this level of detail deterministic estimating methods, and require a great amount
will typically be used by subcontractors for bids, or by owners for check estimates. The updated estimate of effort. Class 1 estimates are prepared in great detail, and
is often referred to as the current control estimate and becomes the new baseline for cost/schedule control thus are usually performed on only the most important or
of the project. Class 1 estimates may be prepared for parts of the project to comprise a fair price estimate or critical areas of the project. All items in the estimate are
bid check estimate to compare against a contractor’s bid estimate, or to evaluate/dispute claims. Typically, usually unit cost line items based on actual design quantities.
overall engineering is from 65% to 100% complete (some parts or packages may be complete and others
not), and would comprise virtually all engineering and design documentation of the project, and complete Expected Accuracy Range:
project execution and commissioning plans. Typical accuracy ranges for Class 1 estimates are
-3% to -10% on the low side, and +3% to +15% on the high
Maturity Level of Project Definition Deliverables: side, depending on the technological complexity of the
Key deliverable and target status: All deliverables in the maturity matrix complete. 65% to 100% of full project, appropriate reference information, and other risks
project definition. (after inclusion of an appropriate contingency
determination). Ranges could exceed those shown if there are
End Usage: unusual risks.
Generally, owners and EPC contractors use Class 1 estimates to support their change management process.
They may be used to evaluate bid checking, to support vendor/contractor negotiations, or for claim Alternate Estimate Names, Terms, Expressions, Synonyms:
evaluations and dispute resolution. Full detail, release, fall-out, tender, firm price, bottoms-up,
final, detailed control, forced detail, execution phase, master
Construction contractors may prepare Class 1 estimates to support their bidding and to act as their final control, fair price, definitive, change order estimate.
control baseline against which all actual costs and resources will now be monitored for variations to their
bid. During construction, Class 1 estimates may be prepared to support change management. Source: AACE 18R-97
Table maps the extent and maturity of estimate input information (deliverables) against the five estimate classification
levels
 None (blank): development of the
deliverable has not begun.
 Started (S): work on the
deliverable has begun.
Development is typically limited
to sketches, rough outlines, or
similar levels of early
completion.
 Preliminary (P): work on the
deliverable is advanced. Interim,
cross-functional reviews have
usually been conducted.
Development may be near
completion except for final
reviews and approvals.
 Complete (C): the deliverable has been
reviewed and approved as appropriate.
Source: AACE 18R-97

Table maps the extent and maturity of estimate input information (deliverables) against the five estimate classification
levels
 None (blank): development of the deliverable
has not begun.
 Started (S): work on the deliverable
has begun. Development is typically
limited to sketches, rough outlines, or
similar levels of early completion.
 Preliminary (P): work on the
deliverable is advanced. Interim,
cross-functional reviews have usually
been conducted. Development may
be near completion except for final
reviews and approvals.
 Complete (C): the deliverable has been
reviewed and approved as appropriate.
Source: AACE 18R-97

Cost Estimate
RAB calculation flow
Quantity Material Prices Unit Price Cost Budget

Estimating and Wages Analysis Plan (RAB)
Standard Method Principles of Measurement International (POMI)

Of Measurement
Standard Method Of Measurement For Civil Work (SMM)
Civil Engineering Standard Method Of Measurement (CESMM)
New Rules of Measurement (NRM)

Standard Method Of Measurement Perinciples of Measurement Internasional (POMI)
Standard Method Of Measurement Principles of Measurement International (POMI)
Standard Method Of Measurement Standard Method Of Measurement For Civil Work
Standard Method Of Measurement New Rules of Measurement (NRM)
Standard Method Of New Rules of Measurement

Measurement (NRM)
Quantity Take Off
Until comparatively recently, the person preparing the Bill of Quantities—the ‘taker-off’— had a limited choice of how to
convert the information on the drawings into a Bill of Quantities.
Taking Off Squaring Abstracting

measuring from the drawings calculating and totaling the collecting the totals from the dimension
and entering the dimensions lengths, areas and volumes of paper on to an abstract to produce a final
on to specially ruled the dimensions total for each individual description
dimension paper
• a system of allocating only one item to each dimension sheet Billing

it removes the need for abstracting.
reproducing the items from the
• a system of writing full descriptions on the abstract sheets in
abstract on to bill paper in draft
bill order (a skill possessed by an experienced worker up)
form ready for typing.
and typing the bill direct from the abstract.
Source: Spain, 2005

Quantity Take Off
• Cut and- shuffle method. This comprises the writing of item

descriptions and dimensions on to sensitised paper to produce two
copies. When the taking off and squaring is complete the copies are
split or ‘cut’ and one copy ‘shuffled’ into bill order with all sheets for
the same item pinned together and their totals collected to produce a
final quantity.
• Other systems have come into use where the taker-off enters
dimensions into a computer (sometimes by using a digitiser) which will
then perform the squaring, abstracting, billing and printing
functions.
Source: Spain, 2005

Quantity Take Off
Dimension Paper
the paper is vertically separated into two parts by a double line each with four columns.
• Column A is the ‘timesing’ and ‘dotting on’ column where multiplication and addition of the dimensions can
be recorded
• Column B is the dimension column and receives the measurements taken off from the drawings. the
horizontal line which determines whether the dimension is intended as a linear, superficial or cubic
measurement
• Column C is the squaring column where the result of the addition, subtraction or multiplication of the entries
in the dimension column is recorded.
• Column D is the description column where the item being measured is described.
Source: Spain, 2005

Quantity Take Off
Dimension Paper
Source: Spain, 2005

Quantity Take Off
Dimension Paper
Sum Volume
Source: Spain, 2005

Quantity Take Off

Dimension Paper
Deductions are sometimes necessary

where it is easier to take an overall
measurement and deduct the parts not
required
Source: Spain, 2005

Quantity Take Off

Dimension Paper
• Column D also contains annotations giving the

location of the dimensions and waste
calculations which show the build up of the
figures entered in the dimension column.
• It may be considered desirable to insert the
appropriate CESMM 3 code in the description
column
Source: Spain, 2005

Quantity Take Off

Dimension Paper
• Column D also contains annotations giving the

location of the dimensions and waste
calculations which show the build up of the
figures entered in the dimension column.
• It may be considered desirable to insert the
appropriate CESMM 3 code in the description
column
• Quite often two item descriptions share the
same measurement and this is indicated by
linking the descriptions with an ampersand.
Source: Spain, 2005

Quantity Take Off
Abstracting
• The skill of preparing an abstract lies in the
ability of the worker-up to arrange the items
abstracted from the dimension sheets in bill order.
• The figures on the left-hand side are the column
numbers of the dimension sheets and the first
item has been stroked through to indicate that it
has been transferred to the draft bill.
Source: Spain, 2005

Quantity Take Off
Source: Spain, 2005

Quantity Take Off
Source: Spain, 2005

Quantity Take Off
Source: Cunningham, 2014

Quantity Take Off
Source: Cunningham, 2014

Quantity
Take Off
Source: Elbeltagi
Quantity
Take Off
Source: Elbeltagi
Quantity
Take Off
Source: Elbeltagi
Quantity
Take Off
Source: Elbeltagi
Quantity
Take Off
Source: Elbeltagi
Quantity
Take Off
Quantity
Take Off
Quantity
Take Off Consider the following figure, it is required to prepare a
quantity take-off for the following types of work to be
included on the bill of quantities:
a. Excavation.
b. Backfilling
c. Plain concrete footing
d. Reinforced concrete footings and smells and column
necks till the ground level.
e. Insulation.
Source: Elbeltagi

W2-3 Construction Cost and Time Control

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

W2-3 Construction Cost and Time Control

Uploaded by

Copyright:

Available Formats

CONSTRUCTION COST AND TIME CONTROL

class. Expressed as % of complete

Classification Cost Estimate

Source: AACE 18R-97

Classification Cost Estimate

Classification Cost Estimate

Classification Cost Estimate

Classification Cost Estimate

Source: AACE 18R-97

Classification Cost Estimate

Source: AACE 18R-97

Source: AACE 18R-97

Quantity Material Prices Unit Price Cost Budget

Standard Method Principles of Measurement International (POMI)

Civil Engineering Standard Method Of Measurement (CESMM)

New Rules of Measurement (NRM)

Standard Method Of New Rules of Measurement

Taking Off Squaring Abstracting

• a system of allocating only one item to each dimension sheet Billing

Source: Spain, 2005

• Cut and- shuffle method. This comprises the writing of item

Source: Spain, 2005

Source: Spain, 2005

Source: Spain, 2005

Source: Spain, 2005

Quantity Take Off

Deductions are sometimes necessary

Source: Spain, 2005

Quantity Take Off

• Column D also contains annotations giving the

Source: Spain, 2005

Quantity Take Off

• Column D also contains annotations giving the

Source: Spain, 2005

Source: Spain, 2005

Source: Spain, 2005

Source: Spain, 2005

Source: Cunningham, 2014

Source: Cunningham, 2014

You might also like