‘213123, 1:21 PM 2.2 INTRODUCTION OF ESTIMATES: CEM 303-CE41S2 - Construction Cost Engineering 2.2 INTRODUCTION OF ESTIMATES Preliminary Cost Estimate Introduction to the Topic: Hello Future Engineers! In every construction project, budgets are used to anticipate all costs and expenses of the building process. There are two main parts of the budget - quantity and cost. Let's, discuss! Intended Learning Outcomes: At the end of the session the students should be able to: 4. Lear and understand the different types of Estimates; 2. Acknowledge the purpose of Preliminary estimates. QUANTITY SURVEYING hntps:tip.instructure,comicoursesi¢6527/pages!2-dot2-itroduction-t-etimates ?module_em_a=4532618 wr127928, 1:21 PM 22 INTRODUCTION OF ESTIMATES: CEM 303-CE4182- Constucton Cost Engineering This is originated from the combination of two words - Quantity means “number or amount of material" and Surveying means “act of looking carefully at something" Quantity Surveying is the estimation of the quantity of materials for a certain construction project such as the volume of concrete, weight of steel, and other amounts of building materials. This estimation will be used to determine the total project cost. QUANTITY SURVEYOR Quantity Surveyor is the "cost manager’ of a construction project. A quantity surveyor job is not limited to the creation of a bill of materials and budget preparation, but also performs other vital roles in a construction project such as contract procurement, tender evaluation, and value engineering. The main objective of a quantity surveyor is to ensure the efficient and effective utilization of resources (materials, manpower, money). Types of Estimate Acost estimate is predicted expenditure of a project which is generally prepared before the project is taken up. It is prepared in different types based on the requirement of project. The construction cost estimates can be prepared either in a detailed manner by taking into consideration item by item or can be calculated approximately without going much into the details Based on these criteria's, there are mainly 8 cost estimates followed in construction: . Preliminary Cost Estimate Plinth Area Cost Estimate . Cube Rate Cost Estimate Approximate Quantity Method Cost Estimate . Detailed Cost Estimate Revised Cost Estimate . Supplementary Cost Estimate Annual Repair Cost Estimate SPNOAEYNS Preliminary Cost Estimate The preliminary cost estimate is also called an abstract cost estimate or approximate cost estimate or budget estimate. This estimate is generally prepared in initial stages to know the approximate cost of the project. By this estimate, the competent sanctioning authority can decide the financial position and policy for the administration section. ntps:hipnstructure.com/courses/46527 pages!2-dot-2-ntroducton-o-estimates?module_tem _j6°4532818 2‘aa, 11:21 Pm 22 INTRODUCTION OF ESTIMATES: CEM 303-CE4182- Constucton Cost Engineering Preliminary estimates are prepared with reference to the cost of similar type projects in a practical manner. In this estimate, the approximate cost of each important item of work is displayed individually to know the necessity and utility of each item of work. The items of work include the cost of lands, cost of roads, electrification, water supply costs, cost of each building, etc. Plinth Area Cost Estimate Plinth area cost estimate is prepared on the basis of plinth area of building which is the area covered by external dimensions of building at the floor level and plinth area rate of building which is the cost of similar building with specifications in that locality, Plinth area estimate is obtained by multiplying plinth area of building with plinth area rate. For ‘example if we require plinth area estimate of 100 sq.m in a particular locality and plinth area rate of a building in same locality is 2000 per sq.m then plinth area estimate is 100 X 2000 = 200000. Open areas, courtyards, etc. are not included in the plinth area. If the building is multi-storied, the plinth area estimate is prepared separately for each floor level. Cube Rate Cost Estimate Cube rate cost estimate of a building is obtained by multiplying plinth area with the height of building Height of building should be considered from floor level to the top of the roof level. It is more suitable for multi storied buildings. This method of estimation is accurate than plinth area method. The rate per cubic meter is taken into consideration based on the costs of similar type of buildings situated in that location. Foundation, plinth and parapet above the roof level are not considered in this type of estimate Approximate Quantity Method Cost Estimate In approximate quantity method cost estimate, the total wall length of the structure is measured, and this length is multiplied by the rate per running meter which gives the cost of the building. The rate per running meter is calculated separately for the foundation and superstructure. In case of foundation, rate per running meter is decided by considering quantities such as excavation cost, brick work cost up to plinth. While in case of superstructure quantities like brickwork for wall, wood works, floor finishing etc, are considered for deciding rate per running meter. Detailed Cost Estimate nitps:hipnstructure.comicourses/46527 pages!2-dot-2-ntroducton-o-estimates?module_tem _l6=4532818, a7‘aa, 11:21 Pm 22 INTRODUCTION OF ESTIMATES: CEM 303-CE4182- Constucton Cost Engineering Detailed cost estimate is prepared when competent administrative authority approved the preliminary estimates. This is very accurate type of estimate. Quantities of items of work are measured and the cost of each item of work is calculated separately. The rates of different items are provided according to the current workable rates and total estimated cost is calculated. 3 to 5 % of estimated cost is added to this for contingencies as miscellaneous expenditure, The detailed Estimated should consist following details and documents. + Report + General Specifications + Detailed Specifications + Drawings/plans — layout plans, elevation, sectional views, detailed drawings etc. + Designs and calculations — In case of buildings design of foundations, beams, slab ete. + Schedule of rates Revised Cost Estimate Revised cost estimate is a detailed estimate and it is prepared when the original sanctioned estimate value is exceeded by 5% or more, The increase may be due to sudden increase in cost of materials, cost of transportation etc. The reason behind the revision of estimate should be mentioned on the last page of revised estimate. Supplementary Cost Estimate Supplementary cost estimate is a detailed estimate and it is prepared freshly when there is a requirement of additional works during the progress of original work, The estimate sheet should consists of cost of original estimate as well as the total cost of work including supplementary cost of work for which sanction is required Annual Repair Cost Estimate The annual repair cost estimate is also called as annual maintenance estimate which is prepared to know the maintenance costs of the building which will keep the structure in safe condition. Whitewashing, painting, minor repairs, etc. are taken into consideration while preparing annual repair estimate for a building. nitps:hipnstructure.comicourses/46527 pages!2-dot-2-ntroducton-o-estimates?module_tem _l6=4532818, anPurpose of Preliminary Estimate You can get a preliminary estimate at the concept stage of your construction project, during the initial design phase. The purpose is to provide you with an introductory cost of your project. Yours can be done prior to the availability of detailed drawings. We are highly skilled in estimating at this, stage of a project. Count on our state of the art systems to make your bids as accurate and timely as possible. Your preliminary estimate will give you insight into the cost of your project before detailed plans are drawn up. You will be provided with a cost that you can present with confidence to your client, based on our 30 years of estimating experience, using calculations determined on the latest software. You can expect to receive a projected cost that is as accurate as possible based on the information you provide, We can use a building information model (BIM) to determine many factors of the preconstruction plan just by using our point and click measuring system. Your bill of materials will be based on a variety of measurements: + The square footage of each area + The square footage of your total project + The linear footage of each structure As the concept changes, the BIM can also be changed and the new model can be viewed by all parties. The bill of materials for your proposed project can be imported onto an Excel spread sheet to be sent out for pricing. These prices can be used to further ensure accuracy. Of course, the more information you provide, the greater the accuracy of the estimate. The benefits of your having a preliminary estimate made include: - Increasing awareness of probable costs, in order to gain early financial commitment -To determine costs for budget control ~To inform the architects and engineers of the cost of the project and the commitments you require The information in the preliminary estimate will include: - The date of the estimate and the expected tender date - The drawings and brief specification details - The expected variation from the estimate to the actual construction costs - The more information provided, the narrower the variation will be. nitps:hipnstructure.comicourses/46527 pages!2-dot-2-ntroducton-o-estimates?module_tem _l6=4532818, 87127928, 1:21 PM 2.2 INTRODUCTION OF ESTIMATES: CEM 303-CE41S2 - Construction Cost Engineering preliminary estimate is often based on templates and information from past projects. This is why you will benefit from an experienced estimating team like ours. We can draw upon the history of comparable projects. These may be based on factors that can include project type, geographical region and methods of construction. Very often, they are based on building type multiplied by the square foot cost. For example, a school is estimated at so much per square foot multiplied by the total square footage of the particular project. The same may be applied to office buildings of a few floors. High rise projects may be calculated by a floor cost x the number of floors. With the advantage of a highly experienced estimation team, the calculation of costs for your estimate can help you to avoid strain on your builder/client relationship. There is no substitute, in any stage of the estimating process, for a seasoned professional providing the most precise projection possible. Let us show you how we can lead you from concept to completion with the latest technology available in the industry today. END OF DISCUSSION-—— Reference: Fajardo, Max (2000). Simplified Estimates. 5138 Merchandising Other Reference: Pellicer, Eugenio (2014). Construction management. West Sussex, United Kingdom: John Wiley & Sons Godwin, William (2013). Intemational construction contracts: a handbook with commentary on the FIDIC design-build forms. West Sussex, United Kingdom: Wiley-Blackwell Ritz, George J. (2013). Total construction project management. New York, New York: McGraw-Hill Education Proprietary Clause Property of the Technological Institute of the Philippines (T.I.P.). No part of the materials made and uploaded in this learning management system by T.I.P. may be copied, photographed, printed, reproduced, shared, transmitted, translated, nitps:hipnstructure.comicourses46527 pages!2-dot-2-ntroducton-o-estimates?module_tem._|6=4532818 8712923, 1:21 PM 2.2 INTRODUCTION OF ESTIMATES: CEM 303-CE41S2 - Construction Cost Engineering jor reduced to any electronic medium or machine-readable form, in whole or in part, without prior consent of T.I.P. “Many are the plans in a person's heart, but it is the lord's purpose that prevails.’ -Proverbs 19:21 CLICK "NEXT" FOR THE NEXT MODULE. RETURN TO HOME PAGE? CLICK BELOW. Home Page (Construction Methods and Project Management) (http: instructure.com/courses/13359) nitps:hipnstructure.com/courses!46527 pages!2-dot-2-ntroducton-o-estimates?module_tem _|6=4532818,