CHAPTER II

The Estimating Process

and Preliminary
Procedures
PRESENTED BY:

Saina L. Theng
Shahina Omar
Indirah Adtong
Hairodin Sampayan
Norsid Aminulla
Bai Ali Abas
Muslimin Guiadel
 THE BID ESTIMATING PROCESS

Objectives in preparing bid estimating process.

Preparing Construction Maximizing the productivity of the

cost estimates estimating department

Maximizing the accuracy of the Using the estimating department

estimating process in an effective manner

Fostering a company-wide
cooperative approach
 PROJECTS OUT FOR BID

A crucial factor in the success in the estimating department

and, indeed in the success of the construction company is its
ability to obtain information about projects that are out for
bid or projects that are going to be out for bid in the near
future.
SOURCES OF BID INFORMATION

The primary sources of information regarding bid calls for

public works and for projects in the private sector include
the following:

PUBLIC BIDS
• Advertisements in newspapers and trade journals
• Web pages of government agencies.
• Government notices such as the Pre-Solicitation Notice (Construction
Contract)
• Construction news services (McGraw, Hill Southam, etc.
• Bid information services that are now often web-based, such as BIDS
Inc.
SOURCES OF BID INFORMATION

The primary sources of information regarding bid calls for

public works and for projects in the private sector include
the following:

PRIVATE BIDS
• Invitations from owners or conclusions
• Business contacts
• Business news items
• Architectural and engineering consultants
• Construction news services
• Construction associations and plan service centers
• Bid information services
STEPS IN ESTIMATING PROCESS
• OPEN BIDDING
Public authorities are required to comply with regulations that
control the award of construction contracts. This requirement
usually means that they have to use an open-bid system, that is,
one that allows any and all qualified contractors to submit bids
and be considered for the award of the work.

• CLOSED BIDDING

Private owners, not being so restricted as public bodies, often

directly invite contractors to bid on their construction projects.
This is known as a closed-bid system

• CONSTRUCTION ASSOCIATIONS

Construction groups in major cities have formed associations or

plan service centers where both public and private bodies may
deposit plans and specifications of projects calling for bids.
• PREQUALIFIED BIDS
Another method of addressing the problem of bids from
contractors of questionable capability is to call for bids from
prequalified contractors only.

• CONSTRUCTION NEWS SERVICES

• MARKETING
Marketing policy is often pursued by contractors who offer
construction management services

• THE DECISION TO BIDS

When the economy is weak, the bid decision becomes easy for
contractors who obtain their work by competitive bidding they
submit bids on every project that comes up in their area and even
consider bidding on projects located outside of their usual area of
operations.
Factors to consider in
the Bid Decision

• Type of Project
• Size and (rough estimate of contract value
• Location of the project
• Quality of drawings and specifications
• Reputation of owners and designers
• Specialized Work
• Anticipated construction problems
• Safety Considerations
• Need for the work
• Bonding Capacity
SCHEDULING THE ESTIMATING
PROCESS
• BID RECORDS AND
BID DOCUMENT
Once the decision to bid on a project has been made, a record of
the bis begins.

• OBTAINING BID
DOCUMENTS
On most projects, general contractors request two complete sets of
bid documents for estimating a project.

• REVIEW BID
DOCUMENTS
After a bid documents have been listed on the bid report, the
documents are reviewed to obtain the information necessary to
complete the rest of the bid report.
BID REPORT SAMPLE
 • THE QUERY LIST
During the review and the quantity takeoff process that follows it,
the estimator will uncover details that require clarification by the
designer.

• THE TEAM APPROACH

The nature of estimating process means the estimator usually

works alone on quantity takeoffs and cost estimates, but
contractors agree that the quality of an estimates improves when
the input of managers and experienced field personnel also is
included in it’s preparation.

• SITE VISIT
After the bid documents have been reviewed and the estimator
has obtained a good general idea of the nature of the project, a
visit to the site of the project should be arranged.
SITE VISIT CHECKLIST
• COMPUTER ESTIMATING
SYSTEM

Computer have become an indispensable tool of the estimator, but

for the estimator to use computers effectively he or she must first
have a thorough understanding of the basic concepts of estimating.

• OTHER
TECHNOLOGY In a number of places in the text, we will refer to technological
advances that are being, or could be, employed by estimators to
improve the productivity of the estimating process.
THANK YOU
FOR
LISTENING