L1 Flashcards
INTRO
ESTIMATE?
- An opinion or conjecture
- based on the approximate costs of construction
Cost estimating aims at
__________ expenditures
for a certain project or scope.
- predicting future
TRUE OR FALSE? the initial estimate
rarely matches the final
construction costs on a project
TRUE
ONE OF OUR MAIN GOALS BECOMES:
HOW DO WE ______ THE UNCERTAINTY
IN PRODUCING AN ESTIMATE?
MINIMIZE
Common denominator in
establishing an estimate?
DECISION-MAKING(PROTECTION)
3 IMPORTANT PEOPLE INVOLVED IN AN ESTIMATION?
CLIENT= $ feasible
CONTRACTOR = $ profit
CONSULTANT = $ design
VARIABLES THAT AFFECT ESTIMATES?
- TIME (HISTORICAL BACKHROUND) : GREAT DEPRESSION 1930 INCREASES PRICE OF CONSTRUCTION
- LABOUR + UNIONS (SKILLED WORKERS) DEMANDS MORE $$
- CHEAP LABOURS (REFUGEES) = LESS $$$
- TIME CRUNCH
- UNDER BUDGET = AHEAD OF SCHEDULE
7 STEPS TO PREPARE
AN ESTIMATE
(D.U.Q.B.A.R.R)
- DESIGN MANAGEMENT
- UNDERSTAND THE ESTIMATE CLASS
- QUANTITY SURVEY (a.k.a. TAKEOFF)
- REVIEW YOUR WORK
- ASSIGN A PRICE TO THE TAKEOFF
- REVIEW AND ADJUST YOUR WORK
- BE TRANSPARENT
How good is an estimate?
AS GOOD AS THE INFORMATION IT IS BASED ON
WHAT’S THE TIME BREAK DOWN WHEN ESTIMATING?
85% TAKEOFF AND 15%ASSIGNING PRICE TO THE TAKE OFF
AMONG 7 STEPS TO PREPARE
AN ESTIMATE, WHICH 2 STEPS ARE THE MOST IMPORTANT?
- QUANTITY SURVEY (a.k.a. TAKEOFF)
- ASSIGN A PRICE TO THE TAKEOFF
HOW TO ASSIGN A PRICE TO THE TAKEOFF ?
LOOK AT HISTORIC DATA!
3 FACTORS THAT AFFECTS ESTIMATION (PRICE) OF A HOUSE/BLDG.
- SCALE (SIZE) BIG+$$ OR SMALL -$
2.TIME (WCH YEAR WAS IT BUILD) SAME YR? LAST YEAR? THIS YEAR? - LOCATION (ALBERTA$ VS. TORONTO$$$$)
CONSTRUCTION & SCHEDULE OVERRUNS ARE THE _______ IN CONSTRUCTION SECTOR.
NORM
TRUE OR FALSE? MOST PROJECTS SUCCEED TO COMPLETE PROJECTS WITHIN EXPECTED BUDGET? MEANING THEY DID NOT EXCEED THE BUDGET OF COMPLETING THE BLDG PROJECT MEANING FINISHED WITHIN GIVEN BUDGET
TRUE
