Cost Estimation Methods Flashcards
A structured approach used to predict the total expense of a project. It involves analyzing data, past records, and project specifications to determine the expected cost of materials, labor, equipment, and other factors.
Cost Estimation
Is the amount of money required to cover one square meter of a particular materials construction project, land, or any other measurable area
Cost per Square Meter
Is cost per square meter used for quick budget estimates before detailed designs are available?
Yes
Cost per square meter estimates is suitable for ___________.
Residential, commercial, and infrastructure projects
State at least three of the advantages of Cost per Square Meter Estimate.
• Simple and Standardized Measurement
• Quick Cost Estimation
• Scalability
• Effective for Preliminary Budgeting
• Benchmarking
• Transparency in Costing
State at least three limitations of cost per square meter.
• Lack of Detailed Breakdown
• Not suitable for Complex Projects
• Does Not Reflect Site-Specific Factors
• Market Fluctuations
• Potential for Misleading Comparisons
• Hidden Costs
Cost of a Bare house.
PHP 15,000-24,000/sqm
Usual cost of Standard house
PHP 25,000-29,000/SQM
Usual cost of a Luxury House
P 30,000-39,000/sqm
Usual cost of Iconic house
P 40,000-60,000/sqm
The contractor agrees to complete the project for a predetermined fixed price specified in the contract
Stipulate Sum
One on which payment for the work is to be based on the computed quantities of work performed on specific work item and materials furnished and used by the contractor on the project, each such quantities being multiplied by the contractor’s bid price of the unit
Unit Price
A contract in which the agreed unit price remains constant throughout the project, regardless of changes in material costs, labor rates, or market conditions
Unit Price Flat Rate
A contract which allows the unit price to adjust based on external factors such as inflation, material price changes, or labor cost fluctuations
Unit Price Sliding Rate
An agreement to reimburse a company for expenses plus a specific amount of profit
Cost Plus
What are the fees include in Cost Plus
• Percentage Fee
• Fixed Fee
• Time and Materials
• Guaranteed Maximum
• Convertible
Contractor is paid a percentage of the total project Cost
Percentage Fee
A cost-reimbursement contract that provides payment to the contractor of a negotiated fee that is fixed at the inception of the contract
Fixed Fee
The client agrees to pay fixed rates for labour (on an hourly-basis) akong with the actual cost of materials supplied.
Time and Materials
A monetary value which caps payments to the contractor
Guaranteed Maximum
A type of agreement where the initial contract structure starts as a cost-reimbursable arrangement (where the owner pays the contractor’s actual costs plus a fee) but can later transition to a fixed-price contract at a predetermined point in the project, once the scope and design are sufficiently defined, allowing for a shift in risk allocation between the owner and contractor as the project progresses
Convertible
A hierarchical decomposition of the project scope into smaller, manageable deliverables or tasks, providing clarity and ensuring that all project work is accounted for
Work breakdown structure (WBS)
Often referred to as CSI Master Format. A standard for organizing construction information into a logical and consistent format.
Master Format
