6 Levels of Estimate

Question 1

What is the 1st Level (Conceptual Project Feasability Studies Esimating)

Answer 1

Gives an idea of how much this project costs

Gives Feasbilitity Estimate

Owner comes up with the scope. Architect and Engineer comes up with an estimate based on this given scope

Question 2

2nd Level of Estimate

Answer 2

2. Evaluate Alternative Designs

Architect and Engineer use past experience to come up with cost from similar projects

Relies on past project’s bid abstracts

Unit prices - rough quantification of units

Question 3

3rd level of estimate

Answer 3

3. Aim to 80-90% completion for design

Owner wants to know the idea of the bid cost.
- gives a baseline bids from contractors

Owner can get a cost estimator to get a better accurate number.

Owner’s ENGINEER estimation is based on

• quantity take off
• past bid abstracts
• does not consider construction methods

Question 4

4th level of estimation

Answer 4

Contractor’s Bid Estimate

• Most detailed estimate
• owner receives the most information in drawing package
• document is based on the contractor’s quantity take off + construction method
  (know what crews, and materials to work with)
• dependent on contractor’s cost records
• contractors DO NOT SHARE how they get these prices

Question 5

5th level of estimation

Answer 5

alternative construction methods

• another cost methods for consturction only
• identify different ways to get this project done on a cheaper level
• wishes to maximize the profit goal
• contractor only

Question 6

6th level

Answer 6

Change Order / Claims

Any changes will be delivered to the owner

Question 7

Which levels are only done by contractors?

Answer 7

5 and 6. The alternative construction method and the change to order

Question 8

Which of the levels are only seen by owner and arch?

Answer 8

1,2,3

Conceptual Feasbility Studies

Evaluate the alternative design

Design 80-90% completion