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ESTIMATION > FINAL > Flashcards

FINAL Flashcards

1
Q

What is an estimate?

A

An opinion/conjecture on the approximate costs of construction

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2
Q

Costs estimates aim what?

A

prediction of future expenditures

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3
Q

What is our goal?

A

How to minimise the uncertainty in producing an estimate?

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4
Q

Why is estimation important? (4)

A

For decision making purposes
Client = is it feasible?
Contractor = how much profit? Is it worth it?
Consultant = budget?

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5
Q

Variables that affect estimates (5)

A

Inflation/deflation
Unions/labour > skilled labourers, plentyfull labour
Materials
Street location/pay meters
Schedule

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6
Q

Steps to prepare an estimate (7)

A

Design management (docs)
Understand estimate class (errors?, rough estimate?)
Quantity survey takeoff (no money)
Review work
Assign a price to the take off
Review/adjust of work
Transparency

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7
Q

Cost estimator’s time…

A

85% spend in quantity takeoff
15% spend on assigning a price

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8
Q

How to assign a price to the takeoff?

A

Look at precedents, time, location, inflation, scale … historic data

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9
Q

How good is an estimate?

A

As good as the information gathered

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10
Q

What are the capital costs of a project? (3)

A

Site (insurance, property taxes, survey, demolition)
Hard costs: related to the physical construction of a project
Soft costs: costs that make the project move forward (i.e: consultant fees, permits…)

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11
Q

What are the construction costs of a project?

A

Overhead & profit: G.C markup
Materials: actual materials & tools
Insulation: labour, equipment

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12
Q

What makes capital costs vary? (7)

A

Economic & political
Environmental
Building type & design
Owner characteristics
Program
Construction delivery method
Owner’s schedule & responsibilities

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13
Q

What is a cost planning estimate & what are the classes of estimates that fall under this category?

A

It establishes a budget
Class D & C estimates

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14
Q

What is a cost control estimate & what are the classes of estimates that fall under this category?

A

Stays within the budget
Class A & B estimates

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15
Q

What is a Class A estimate? (type, precision & phase)

A

Type: unit price (masterformat)
Precision -5% to + 10%
Done during contract documents

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16
Q

What is a Class B estimate? (type, precision & phase)

A

Type: elemental (uniformat)
Precision -10% to + 20%
Done during design development

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17
Q

What is a Class C estimate? (type, precision & phase)

A

Type: SF estimate
Precision -20% to + 30%
Done during schematic design

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18
Q

What is a Class D estimate? (type, precision & phase)

A

Type: single unit rate
Precision -30% to + 50%
Done during predesign, least accurate

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19
Q

How to assign numbers?

A

Depending on the type of estimate

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20
Q

What is Single Unit Rate? (2)

A

Depends on cost per functional unit of a project
Functional unit depends on the use of the project

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21
Q

Adjustment factors

A

Location: costs vary depending on location
Time: historical costs must be adjusted for inflation
Size: larger projects will have lower SF costs

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22
Q

Size

A

Economies of scale typically apply (i.e. Costco)

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23
Q

The bigger the building…

A

the more materials costs, labour costs, fixed costs go down

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24
Q

Location

A

Location factor converts construction prices from one location to another

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25
Q

Time

A

Historical cost index provides adjustment for the time factor

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26
Q

Why do we round off?

A

To avoid false precision or false confidence

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27
Q

Residential estimation in based off?

A

Based on square foot costs

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28
Q

How to select the appropriate costs? (6)

A

Class of construction
Type of residence
Occupancy
Exterior wall system
Size of living area
Adjustments / upgrades

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29
Q

Yardsticks is… (3)

A

Simpler
Specific to Canada
Not as lengthy or detailed

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30
Q

How many sections does Yardstick have? (number & name)

A

3 sections
Gross building costs
Composite unit rates (uniformat)
Masterformat (contractors)

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31
Q

Contingency depends on…

A

risk

32
Q

What is value engineering

A

Reducing costs in a project by analysing components & proposing alternatives

33
Q

What is an allowance?

A

Anticipated costs

34
Q

Who came up with the concept of value engineering?

A

General Electric

35
Q

When is cost control the easiest?

A

Pre construction

36
Q

What is the optimism bias?

A

We are programed to be optimistic

37
Q

How do contractors bid on a project?

A

They get all the info & come up w/price using masterformat

38
Q

What are the challenges of using masterformat? (2)

A

Specifications use masterformat divided into 50 divisions
Not suitable to track cost changes during the design phase

39
Q

Masterformat vs Uniformat (8)

A

(M): Organisational system
(U): Organisational system
(M): Arranges construction info for construction contract docs
(U): Arranges construction info based on functional elements
(M): Breaks a building down into very specific components
(U): Breaks a building down into systems & assemblies that perform a specific function
(M): Extremely challenging to use for evaluating design alternatives
(U): Allows for easier comparison of design alternatives

40
Q

What are the advantages of elemental design estimates? (6)

A

Includes labour, materials & subtrade overhead/profit
More easily understood by clients
Costs can be monitored from design to C.D phase
Changes can be easily & quickly evaluated
Cost monitoring is easier throughout design process
No need to unscramble masterformat divisions

41
Q

What is slavery? (3)

A

Human trafficking (movement of people using fraud or deception)
Forced labour (worker is forced to work against their will)
Debt bondage (most common, forced to work to pay a debt

42
Q

What is the problem with slavery in construction?

A

the material procurement

43
Q

What are the documents comprising the contract?

A

Specs
Drawings
CCDC doc 2

44
Q

What is the order of importance of the documents? (8)

A

Agreement between owner & contractor
Definitions
Supplementary conditions
General conditions
Division 01 of the specs
Technical specs
Material & finishing schedules
Drawings

45
Q

What are the contents of general conditions? (6)

A

Price & payments
Changes
Time
Roles & work of parties
Suspension / termination
Claims / disputes

46
Q

General requirements are…

A

Division 01

47
Q

General conditions… (4)

A

Are found in the contract
Agreements that govern the contract
Particular aspects related to roles, rights, duties of parties
Are static, generally speaking (similar from project to project)

48
Q

General requirements… (4)

A

Found in the specs
Agreements that concern the specs
Specific aspects related to a specific project
Varies depending on a particular project

49
Q

What are the direct costs?

A

Costs at construction site
- not directly associated with the installation of construction materials

50
Q

What are indirect costs?

A

Contractor’s office expenses ( hydro-bills, employees, rent…)
These costs depend on how much he makes & spends

51
Q

How much should a contractor charge in indirect overhead?

A

(Company overhead costs per year / Total project construction costs per year) x 100

52
Q

What is a fixed price percentage basis profit?

A

A fixed percent is added to the final estimated cost, after all materials, labour, equipment & general requirements costs.

53
Q

What is a risk percentage basis profit?

A

Direct link between level of profit & level of risk. This occurs when pricing is unpredictable (sudden fluctuations in price of equipment, etc.). This does not take into account the riskiness of the project/

54
Q

What is a risk cost plus basis profit?

A

No fixed price at the start of the project. The client is billed as expenses are incurred over the course of the works, and a percent is added for profit.

55
Q

What is a time & material basis profit?

A

No fixed price at the start of the project. The client is billed as expenses are incurred over the course of the works. Then a fixed, hourly fee is added to cover the contractor’s time (fee includes profit).

56
Q

What is the purpose of a public-private-partnership? (2)

A
  • Private company send the bulk & absorbs the deficit
  • They own the building
57
Q

What is the advantage & disadvantage for the government of a ppp?

A

They don’t own the building

58
Q

What is LCC?

A

Life Cycle Costing
Total cost overall cost including initial, service, maintenance, operating, disposal costs (useful life)

59
Q

What is the payback period?

A

Time it takes to get back the money initially invested

60
Q

What is the LCA?

A

Life Cycle Assessment
It evaluates the potential environmental, social & cost impacts of a product, by considering the stages of life.

61
Q

Why the LCA?

A

To compare the potential impacts of different impacts of different systems. (We’re not only concerned about costs)

62
Q

What are the sustainability issues studied with LCA?

A

Climate change
Effects on biodiversity
Use of mineral & fossil ressources…

63
Q

What is the difference between LCC & LCA?

A

LCC: a cost exercise throughout the life cycle
LCA: environmental effects throughout the life cycle

64
Q

What does the wage depend on?

A

Wage depends on hazards, skills & knowledge & how much time is sacrificed

65
Q

What are the methods compensation for determining fees? (3)

A
  1. Lump sum (fixed fee)
  2. Time Basis
  3. Percentage based fee
66
Q

What is lump sum fee? (2)

A
  • Amount is negotiated at start with the client for professional services.
  • Appropriate when the mandate is clear
67
Q

What is Time based fee? (2)

A
  • Charged at a daily or hourly rate
  • Appropriate when it’s hard to determine in advance the exact scope of work
68
Q

What is percentage based fee?

A

Links the consultant’s fee to a percentage of the project’s construction costs

69
Q

Percentage based fees are … & typically result in…

A

Mandatory
A lump sum

70
Q

Percentage based fees depend on? (2)

A

The complexity of the project & the construction cost (fees go down as costs go up)

71
Q

What variable can affect fees? (5)

A
  1. Delivery method
  2. Schedule
  3. Approvals
  4. Renovations
  5. Phasing
72
Q

What is depreciation?

A

The loss of the value of an asset over time

73
Q

Why depreciation?

A

An asset is purchased once & is used over a few years. If we expense it on the first year, it overstates the value of it

73
Q

How does depreciation occur? (6)

A
  • Wear & tear
  • Physical decay (rust)
  • Accidental
  • Maintenance / neglect
  • Functional
  • Obsolescence
74
Q

How to calculate depreciation? (3)

A
  1. Initial cost (EXCLUDES LAND COST!!)
  2. Useful life (in years)
  3. Salvage value
75
Q

What are the methods of calculating depreciation? (2)

A
  1. Straight line
  2. Declining balance

ESTIMATION (1 decks)

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