Cost Estimating Flashcards
prepares cost estimates, the needed quantity of materials, labor, and equipment, and the time to complete a job
Construction Estimator
to determine a probable cost of any given project before construction begins
estimating
why is estimating important?
It helps companies prepare accurate costs prior to construction which can predict the best result for success
when does a company lose work?
When the bids are too high
When does a company lose money?
When the bids are too low
what does the cost estimate represent? (3)
- ) a prediction based on the information known at the given time
- ) an approximation of the monetary resources needed to complete project activities
- ) a quantitative assessment of the likely costs for resources required to complete the activity
How to measure the cost estimate accuracy?
(estimate - actual cost)/actual cost
types of estimates (5)
Conceptual planning,feasibility, engineering & design, construction, and change orders
When are historical unit prices used?
When the details of adequate design information cannot be reasonably assumed
a labeling system that arranges project components into divisions with a number of subdivisions
Work Breakdown Structure
process of using various factors to develop an estimate with limited information
Programmatic estimates
Factors that contribute to programmatic estimating
size, square feet, building type, foundation type
How does historical data help estimates?
Must be adjusted for location, time, size and contingency in order to use it correctly
Chart of costs of materials that helps predict future costs based on the past
index
list of materials varying in 20 major US cities and 2 cities in canada
Engineering News Record Construction Cost Index
