thanks liang notes Flashcards
List the 6 types of estimation?
For owners:
Conceptual
Alternative Design Estimates
Owners Engineer’s Estimate
For contractors:
Contractors Bid Estimate
Alternative Construction Methods
Changes/Claims
What is a conceptual estimate?
Feasibility Study - Hires A/E to provide order of magnitude estimate of cost
What is an alternative design estimate?
Architect/Engineer shows different designs giving owner more options
Perform a Quantity Take-off (QTO)
Rely on bid abstracts for cost info
What is an Owner’s Engineer’s Estimate?
Engineer gives owner a cost to compare when evaluating bids
Performs another QTO
What is a Contractor’s Bid Estimate?
QTO (very detailed)
Based on in-house cost database
Consider construction methods
What is an Alternative Construction Methods?
Contractor has been awarded the job
Detailed review on how he priced job
Finds better ways to approach project
Eg. better construction methods?
Trying to maximize profits
Changes/Claims
Need to be priced
When owner wants to make a big change that’s not part of the scope, contractor can make a claim for that
What is a direct cost?
Any cost that can be associated with a discrete, physical part of a construction project
What is an indirect cost?
Any cost that cannot be associated with a discrete, physical part of a construction project
What are permanent materials (PM)?
Any material that falls within the neat lines of the drawing
LOW RISK
What are Expendable Material (EM)?
Any material that falls outside the neat lines of the drawing + temporary structures like falsework and framework
HIGH RISK
What are labourers (L)?
Related to productivity
Difficult to estimate
HIGHEST RISK
What are subcontractors (S)?
Covered by performance bond
LOW RISK
What are Equipment Operating Expense (EOE)?
FOG (Fuel, Oil, Grease)
Tires
Small repair parts
3rd part overhaul
MID RISK
What are Repair and Service Labour (RL)?
Direct costs
HIGH RISK
What are Rental, Depreciation, and Writeoff (R)?
In-house equipped division -> Rent equipment to that own project
Rent/Lease
Operated + Maintained (HIGH RISK) -> Renting equipment and an operator
MID RISK
What are the 7 horizontal cost types? PEE-RSLL
- Permanent Materials
- Expendable Materials
- Equipment Operations
- Rentals
- Sub Contractors
- Labour
- Labour Service
What are the two bid formats we consider in CM2?
Lump Sum Bid -> Only shows final price of bid
Schedule-of-bid-items Bid -> Calculate each individual item
What makes up the rows in the Bid Formats table…?
Directed Costs
Fixed Costs
——->Indirect Costs
——————->Salaried Payroll
——————->Time-related overhead
——————->Non-time-related overhead
——————->Insurance and Taxes
——————->Construction plant in & out
——->Escalation
——————->Labour
——————->Material
——————->Equipment
——->Interest
——->Contingency
——->Markup
Bond (Premium)
What makes up the columns in the Bid Formats table…?
Labor
PM
EM
Subs
EOE
RL
Rent
What are the three kinds of shifts when considering labour premium?
Regular - 8AM to 4:30PM - 8 hours worked - 8 hours paid
Swing - 4:30PM to 12:30AM - 7.5 hours worked - 8 hours paid
Night - 12:30AM to 8AM - 7 hours worked - 8 hours paid
What is the Shift Differential Equation? What is it use for?
(Hrs paid - Hrs worked)/Hrs worked
This is used to find the pay premium amount, by multiplying it with the total dollar value labour cost
What are the types of Overtime?
1.5/1.5/2
1.5 applies to weekdays and saturdays
2.0 applies to sundays and holidays
2.0/2.0/3.0
2.0 applies to weekdays and saturdays
3.0 applies to sundays and holidays
