Week 2: Cost Estimating & Scheduling

Question 1

What ways are there to estimate?

Answer 1

Parametric estimating, first divide a project into units of
work. Then, determine the cost per unit, and then multiply the number of units by the cost per unit to estimate the
total cost.

First Principles is the process of building-up prices, or rates, for an item or piece of work considering all the parts and activities needed to put it together

Question 2

First Principles Estimating factors.

Answer 2

• Waste
• Labour
• Productivity
• Financials
• Overheads
• Contingencies
• Risk
• Profit

Question 3

Equation for labour cost related.

Answer 3

■ Total cost of labour = Σ total work hour (i) * wage rate (i)

■ Total work hours = Σ quantity of work (i) / productivity rate (i)

Question 4

Direct vs. Indirect Costs

Answer 4

■ Direct Costs:
Material
Labour
Equipment
Subcontracted items

■ Indirect Costs:
Project Field Office
Laydown yard
Project Management
Accounting

Question 5

Contingencies

Answer 5

■ Contingency is that amount of money added to an estimate to cover the unforeseen needs of the project, construction difficulties, or estimating accuracy.

Question 6

8 Project Phases

Answer 6

1.Project Establishment
2.Concept Design
3.PreIiminary Design
4.Developed Design
5.Detailed Design
6.Procurement
7.Construction Admin
8.Post Completion

Question 7

WBS stands for…

Answer 7

Work Breakdown Structure

Question 8

Equation needed for float calculation

Answer 8

■ Total Float (TF) = LF - ES - dur
■ Start Float (SF) = LS - ES
■ Finish Float (FNF) = LF - EF

Question 9

Cause of Unbalanced Bidding

Answer 9

■ Mathematically unbalanced:
◦ Bid containing lump sum or unit bid items which do not reflect reasonable actual costs
■ front loading
◦ Get more money at the beginning of the project by
overpricing the work done early in the project
■ Maximise Profit
■Material unbalance