Estimation Process -Step 1

• 1st Step - Work Breakdown Structure (WBS)

– A product oriented family tree showing the subdivision of

hardware, services and data required to produce the end
product.

– Breaks tasks down into successively finer levels of detail

– Continues unitl all meaningful tasks or work packages have

been indentified.
Step 1- Work Breakdown Stucture
Cycle Time = Time required to complete a task.

Production Rate
• Given a production rate of 4 labour hrs per ton, how many
labour hours would it take to complete 25 tons?
– 4 labour hrs per ton x 25 tons = 100 labour hrs.
• If we hire 5 workers how many work days will it take to
complete the 25 tons?
– 5 workers will give you 40 labour hrs (5 x8=40) in a day.
– 100 hrs / 40 hrs = 2.5 days therefore 3 work days.
Production rate can be expressed in two ways:

1. Hrs per quantity e.g. 4 labour hrs per ton

2. Quantity per hr e.g. 0.25 tons per labour hr

• Consider one man laying tiles
• P.R. = 5 labour hrs per m2
• How long will it take him to complete 40m2?

• How much work can he complete in 8 hrs?

 Production Rate =

= 0.04 Equipment hrs per m2

Division Description Self Perform Sub-contract Vendor
3 Concrete x
formwork
Concrete Steel x
reinforcing
Concrete x
Casting
Concrete x x
Finishing
4 Concrete x x
Masonry Work
Stonework x x
5 Guard Rails x x
 Overhead Calculations Amount (USD) Total
Salaries CM/ PM 8000 x 5 months 40,000
Superintendents 7000 x 5 months 35,000
Site Engineer 4500 x 5 months 22,500 $97,500

Utilities Electricity 150 x 5 months 750

Telephone 200 x 5months 1000
Utility Installation Lump sum 1200 $2950

Facilities 800 x 5 months 4000 $4000

Travel Expense 5000 5000

Water 50 x 4 x 5 1000
Scaffolding 800 800
Trash Removal 100 x 5 months 500 $7300

Surveying 5000 5000

Insurance 1000 1000
Fence 1500 1500
Cleaning 800 800 $8300
$120,050
Item Description Self Perform Sub-contract
1 Unclassified x
Excavation

2 Excavation x

3 Backfill x

4 Concrete footings x

5 Concrete abutment x

6 Deck slab x

7 Steel reinforcing x

8 Guardrail x
 Calculation Details
Labour Cost
Cost Code Work Type Quantity Unit Calculations Equipment Cost Material Cost Total Cost
Direct Indirect

Labour
# of workers hourly rate Total $/hr
labourers 3 25 75
operator 1 40 40
foreman 1 45 45
160
Unclassified
A 1000 m3 $ 4,000.00 $ 1,600.00 $ 1,500.00 $ - $ 7,100.00
Excavation P.R. = 40m3/hr
No of hrs = 1000/40 = 25hrs
Direct Labour Cost = 25hrs x 160$/hr = $4000
Equipment
# hourly rate
Loader 1 60
No of hrs = 25hrs
Equipment Cost = 25hrs x 60 = $1500
Labour
# of workers hourly rate Total $/hr
labourers 4 25 100
operator 1 40 40
foreman 1 45 45
185
Structural
B 100 m3 P.R. = 10m3/hr $1,850 $ 740.00 $ 1,000.00 $ - $ 3,590.00
Excavation
No of hrs = 100m3 / 10 = 10hrs
Direct Labour Cost = 10hrs x 185 = $1850

Equipment
# hourly rate
Loader 1 100
Equipment Cost = 100 x 10 = $1000
 Calculation Details
Labour
# of workers rate per m3 Total $/m3
labourers 1 $ 5.00 5

5
C Backfilling 200 m3 $ 1,000.00 $ 400.00 $ 800.00 $ - $ 2,200.00

Direct Labour Cost = 200m3 x 5$/m3 = $1000

Equipment
# rate per m3
Backhoe 1 $ 4.00
Equipment Cost = 200m3 x $4/m3 = $800
Labour
# of workers rate per m2 Total $/m2
Skilled labourer 1 15 15
Labourer 1 5 5

20
Footings
D formwork 80 m2 $ 1,600.00 $ 640.00 $ - $ 560.00 $ 2,800.00
placement
Direct Labour Cost = 80m2 x 20$/m2 = $1600

Materials
rate per m2
formwork (historical data) 7
Material Cost = 80m2 x $7/m2 = $560
 Calculation Details
Labour
# rate per m2 Total $/m3
Labourer 1 3 3

3
Footings Direct Labour Cost = 80m2 x $3/hr = $240
E formwork 80 m2 $ 240.00 $ 96.00 $ - $ - $ 336.00
strip

Labour
# of workers hourly rate Total $/hr
labourers 3 25 75
operator 1 40 40
foreman 1 45 45
mason 1 30 30
oiler 1 20 20
210

P.R. = 10m3/hr
Concrete No of hrs = 50m3 / 10 = 5hrs
F 50 m3 $ 1,050.00 $ 420.00 $ 50.00 $ 5,000.00 $ 6,520.00
footings Direct Labour Cost = 5hrs x $210/hr = $1050

Equipment
# hourly rate Total $/hr
Vibrators 2 5 10
Equipment Cost = 5hrs x 10 = $50

Materials
rate per m3
Concrete ready mixed 100
Material Cost = 50m3 x 100 = $5000
 Recap Sheet
Project A Recap Sheet

Item # Description Unit Qty Labour Cost Equipment Cost Material Cost Subcontract Total Cost Bid Total Unit Price
Unclassified
1 m3 1000 $ 5,600.00 $ 1,500.00 - $ 7,100.00 $ 17,721.33 $ 17.72
Excavation
2 Excavation m3 100 $ 2,590.00 $ 1,000.00 - $ 3,590.00 $ 8,960.51 $ 89.61
3 Backfill m3 200 $ 1,400.00 $ 800.00 - $ 2,200.00 $ 5,491.12 $ 27.46
Footings
4 m3 80 $ 2,240.00 $ - $ 560.00 $ 2,800.00 $ 6,988.70 $ 87.36
Formwork
Footings
5 Formwork m3 80 $ 336.00 $ - $ - $ 336.00 $ 838.64 $ 10.48
Stripping
Concrete
6 m3 50 $ 1,470.00 $ 50.00 $ 5,000.00 $ 6,520.00 $ 16,273.68 $ 325.47
Footings
Steel
7 ton 20 - - - $ 50,000.00 $ 50,000.00 $124,798.13 $ 6,239.91
Reinforcing
8 Guard Rail m 200 - - - $ 8,000.00 $ 8,000.00 $ 19,967.70 $ 99.84
$ 13,636.00 $ 3,350.00 $ 5,560.00 $ 58,000.00 $ 80,546.00 $201,039.80

Direct $ 80,546.00 Job Overheads $ 74,100.00

Direct +
Indirect + $201,039.80
markup
Total / Direct 2.5 Subtotal $ 154,646.00

Profit (20%) $ 30,929.20

Contingency (10%) $ 15,464.60
Total $ 201,039.80
 Submit Bid Price to Owner
Project A
Item # Description Unit Qty Unit Price Total Cost
Unclassified
1 m3 1000 $ 17.72 $ 17,721.33
Excavation
Structural
2 m3 100 $ 89.61 $ 8,960.51
Excavation
3 Backfill m3 200 $ 27.46 $ 5,491.12
Footings
4 m3 80 $ 87.36 $ 6,988.70
Formwork
Footings
5 Formwork m3 80 $ 10.48 $ 838.64
Stripping
Concrete
6 m3 50 $ 325.47 $ 16,273.68
Footings
Steel
7 ton 20 $ 6,239.91 $ 124,798.13
Reinforcing
8 Guard Rail m 200 $ 99.84 $ 19,967.70
$201,039.80