CM - Cost Estimates (Detailed) Flashcards
For recapping purposes, what happens to the variation of actual costs from the cost estimate as the project definition increases?
Gets closer to the actual project cost.
How is the direct cost evaluated in a detailed cost etimate?
Using a bill of quantities and unit rates.
What is the equation of the total indirect cost?
Total direct cost * Overheads %
What is the equation of the detailed construction cost of a proejct?
(Total direct + indirect cost) * Location adjustment * Inflation factor
What is the typical percentage of the indirect cost to the direct cost?
2.5 - 10 %
What is the typical percentage of the mark-up?
2 - 3 % of the construction cost.
What is the total detailed cost of a project?
Construction cost + contingency cost + mark-up
What is the most time-consuming aspect of a detailed cost estimate?
Using a bill of quantities and unit rates.
What is the equation of an activity cost?
Price of unit quantity of work ( e.g. pounds per meter cubed ) * Quantity of work
What does total direct cost equal?
Cost of activity 1 + 2 ….
What is the step-by-step process for coming up with a detailed cost estimate?
1 - WBS
2 - Record quantities and units associated with each activity
3 - Associate cost with each item
4 - Calculate activity cost
5 - Sum activity costs together
What does a bill of quantities describe?
Material and labour work itemised.
What is the prime cost?
Cost of raw materials for unit quantity of work
What does the material rate equal?
Prime cost + Ancillary material costs (nails, screws, waste, etc)
What is the total rate the sum of?
Labour rate + plant rate + material rate
