Module 4 Cost estimation

Question 1

Types of estimates

Answer 1

▪ Conceptual / Parametric Estimate
▪ Feasibility Estimate
▪ Design Estimate
▪ Construction Estimate
▪ Change Order Estimate

Question 2

What 5 parameters include physical measures that describe project characteristics?

Answer 2

1) Size
2) Number of floors
3) Building type
4) Foundation type
5) Exterior closure material

Question 3

What must historical data be adjusted for?

Answer 3

1) Time - Inflation/deflation
2) Location
3) Size
4) Unit cost

Question 4

What are the four sources that publish indices for cost adjustment?

Answer 4

1) RSMeans
2) ENR (Engineering news record)
3) Statistics Canada
4) Hanscomb’s Yardsticks for Costing – Cost Data for the Canadian Construction Industry

Question 5

True or false: The bigger the project the more expensive it is per sf

Answer 5

False. Certain items, such as the kitchen appliances, garage, etc., are independent of the size of the project. Therefore bigger projects tend being cheaper

Question 6

What do the X-axis and Y-axis represent in the cost capacity curve?

Answer 6

cost on the vertical axis (Y-axis)
capacity on the horizontal axis (X-Axis)

Question 7

What documents are needed for detailed estimation?

Answer 7

Finalized drawings and specifications

Question 8

What are the 3 components of direct cost?

Answer 8

1) Labor unit cost for construction
2) Equipment unit cost for construction
3) Material unit cost for construction

Question 9

What are the 2 components of indirect cost?

Answer 9

1) Overhead cost for construction
2) Tax and insurance additives to labour cost