L1: CONSTRUCTION ESTIMATES Flashcards
It is the approximation of the
cost of a program, project, or operation.
Cost Estimates
It is the product of the cost estimating process.
Cost Estimates
It has a single total value and may have identifiable component values
Cost Estimates
It is the process of forecasting the costs of building a structure.
Estimation
Costs and expenses that are
accountable directly for a specific
activity in construction work.
Direct Cost
These are expenses of items that are not allocated directly for specific construction activities.
Indirect Cost
What are the examples of Indirect costs?
- Quality control
- Security costs
- Utilities
- Administrative costs
- Temporary structures
- Legal fees and permits
What are the basic approaches in Construction estimates?
- Production of Function
- Empirical Cost Inference
- Unit Costs for Bill of Quantities
- Allocation of Joint Costs
In microeconomics, the relationship
between the output of a process and the
necessary resources is referred to as?
Production of Function
It requires statistical techniques which relate the cost of constructing or operating a facility
to a few important characteristics or attributes of the system.
Empirical Cost Inference
A unit cost is assigned to each of the facility components or tasks as represented by the bill of quantities.
Unit Costs for Bill of Quantities
Allocations of cost from existing
accounts may be used to develop a
cost function of an operation.
Allocation of Joint Costs
What are the types Construction Cost Estimates?
- Design Estimates
- Bid Estimates
- Control Estimates
In preparing these estimates, the design professional will include expected amounts for
contractors’ overhead and profits.
Design Estimates
Types of cost estimates encountered run parallel with the planning and design.
- Screening estimates or order of magnitude estimates
- Preliminary estimates or conceptual estimates
- Detailed estimates or definitive estimates
- Engineer’s estimates based on plans and
specifications
Usually made before the facility is
designed, and must therefore rely on
the cost data of similar facilities built in
the past
Screening Estimate or Order of Magnitude Estimate
Based on the conceptual design of the facility at the state when the basic technologies for the design are known
Preliminary Estimate or Conceptual Estimate
Made when the scope of work is clearly defined and the detailed design is in progress so that the essential features of the facility are identifiable.
Detailed Estimate or Definitive Estimate
Based on the completed plans and
specifications when they are ready for
the owner to solicit bids from
construction contractors.
Engineer’s Estimate
Often reflect the desire of the contractor to secure the job as well as the estimating tools at its disposal
Bid Estimates
Bid Estimates include?
- Subcontractor quotations
- Quantity takeoffs
- Construction procedures
Refer to the price estimates provided
by subcontractors for specific parts of a
construction project.
Subcontractor Quotations
Crucial process in the construction
industry that involves quantifying
the materials, equipment, and
labor required for a project.
Quantity Takeoffs
The contractor may want to assess the actual cost of construction by considering the actual construction procedures to be used and the
associated costs if the project is deemed to be different from typical designs.
Construction Procedures
