COSTESTIMATION

COST
ESTIMATION
• Approximation of the cost of a program, project, or operation.
• The product of the cost estimating process.
• Has a single total value and may have identifiable component values.
• Often needed to support evaluations of project feasibility or funding
requirements in support of planning.
• Often used to establish a budget as the cost constraint for a project or
operation.
• A problem with a cost overrun can be avoided with a credible,
reliable, and accurate cost estimate.
COST ESTIMATING
COST ESTIMATE
METHODS
METHODS
• The method used for most definitive estimates is to fully define
and understand the scope, take off or quantify the scope, and
apply costing to the scope, which can then be summed to a total
cost.
• Application of best practices helps ensure a high – quality
estimate. “Certain best practices should be followed if accurate
and credible cost estimates to be developed. These best
practices represent an overall process of established, repeatable
methods that result in high-quality cost estimates that are
comprehensive and accurate and that can be easily and clearly
traced, replicated, and updated.”
TYPES OF COST
ESTIMATE
The required level of accuracy coupled with the amount of
information about the project that is available will dictate the type
of estimate that can be prepared. The different estimating methods
are discussed below.

DETAILED ESTIMATE ASSEMBLY ESTIMATE

PARAMETRIC ESTIMATES SQUARE-FOOT ESTIMATES

MODEL ESTIMATE PROJECT COMPARISON ESTIMATE

TYPES OF COST
ESTIMATE
DETAILED ESTIMATE
The detailed estimate includes determination of the quantities
and costs of everything that is required to complete the project. This
includes materials, labor, equipment, insurance, bonds, and
overhead, as well as an estimate of the profit.
DETAILED
ESTIMATE
METHODS OF DETAILED CONSTRUCTION ESTIMATION PREPARATION
• Details of Measurements and Calculation of Quantities
The complete work is divided into various items of work
such as earthwork concreting, brickwork, reinforced concrete,
plastering etc. The details of measurements are taken from
drawings and entered in perspective columns of prescribed
proforma.
The quantities are calculated by multiplying the values
that are in numbers column to Depth column as shown:
DETAILED
ESTIMATE
METHODS OF DETAILED CONSTRUCTION ESTIMATION PREPARATION
Details of Measurement Form
DETAILED
ESTIMATE
METHODS OF DETAILED CONSTRUCTION ESTIMATION PREPARATION
• Abstract of Estimated Cost
The cost of each item is worked out from the quantities
that already computed in the detailed measurement form at
workable rate. But the total cost is worked out in the
prescribed form is known as abstract of estimated form. 4% of
estimated Cost is allowed for Petty Supervision, contingencies
and unforeseen items.
DETAILED
ESTIMATE
METHODS OF DETAILED CONSTRUCTION ESTIMATION PREPARATION
• Abstract of Estimated Cost
SOURCE:
https://www.academia.edu/8983121/PROJECT_TWO_STOREY_RESIDENCE_SUBJECT_BILLS_OF_MATERIALS_and_COST_ESTIMATE_UNIT_U
NIT_COST_MATERIAL_COST_LABOR_COST_TOTAl_COST
DETAILED
ESTIMATE
MASONRY
• CONCRETE HALLOW BLOCKS (CHB)
Concrete Hollow Blocks are classified as bearing and non-
bearing blocks.
Load Bearing Blocks – thickness ranging from 15 cm to 20 cm
Non-Bearing Blocks – thickness ranging from 7.5 cm to 10 cm
(intended for wall, partitions, fences, or dividers)
DETAILED
ESTIMATE
MASONRY
In computing the required materials for the hollow block works,
the estimator has to consider the following items:
1. Quantity of the concrete hollow blocks.
2. Quantity of the cement and sand for block laying mortar.
3. Quantity of the cement and sand for mortar to fill the hollow cell
of every block.
4. The cement and sand required for plastering one or two sides of
the block.
5. The materials for CHB footing and concrete post as required.
6. The steel reinforcements and tie wars to be treated separately in
the next Chapter.
SAMPLE PROBLEM
1.1
From the figure, determine the number of 10
x 20 x 40 cm. concrete hollow blocks and the
required materials for:

a) Mortar for block laying

b) Mortar for plastering and
c) Footing, using “B” mixture
SAMPLE PROBLEM
1.1
SOLUTION:
A. Concrete Hollow Blocks
Divide the height of the fence by the height of one block.

Divide the total length of the fence by the length of one block

Multiply the result of 1 and 2.

15 x 50 = 750 pcs.
SAMPLE PROBLEM
1.1
SOLUTION:

B. Mortar for Block Laying:

Average thickness @.0125
Find the volume of the mortar (one layer)
V=txwxL
V = .0125 x .10 x 20 m
= .025 cu. m.
Multiply by the number of layers to get the total volume.
Total V = .025 x 15
= .375 cu. m.
Refer to Table 2-1 using Class “B” mixture 40 kg.
Multiply:
Cement: .375 x 12 = 4.5 bags Sand: .375 x 1 = .375 cu. m.
SAMPLE PROBLEM
1.1
SOLUTION:
C. Mortar filler for hollow cell
Find the volume of one cell
V = .05 x .075 x .20 m
= .00075 cu. m.
Volume of 4 cells per block
.05 m .075 m
V = .00075 x 4
= .003 cu. m.
Total volume of cells for 750 CHB
V = .003 x 750 .20 m
= 2.25 cu. m.
Refer to Table 2-1 using Class “B” 40 kg.
Multiply:
Cement: 2.25 x 12 = 27 bags CHB Cell

Sand: 2.25 x 1 = 2.25 cu. m.

SAMPLE PROBLEM
1.1
SOLUTION:
D. Plastering at an average of 16 mm (.016 m) thick
Find the area of the fence (one side)
3.00 x 20 = 60 sq. m.
Find the area of the two sides
60 x 2 = 120 sq. m.
Solve for the volume
V = 120 x .016
= 1.92 cu. m.
Refer to Table 2-1 using Class “B” mixture 40 kg.
Multiply:
Cement: 1.92 x 12 = 23.04 bags
Sand: 1.92 x 1 = 1.92 cu. m.
SAMPLE PROBLEM
1.1
SOLUTION:
E. Footing
Find the volume of the footing
V=txwxL
V = .15 x .40 x 20.00 m
V = 1.20 cu. m.
Refer to Table 2-1 using Class “B” mixture 40 kg.
Multiply:
Cement: 1.20 x 7.5 = 9 bags
Sand: 1.20 x .50 = .60 cu. m.
Gravel: 1.20 x 1 = 1.20 cu. m.
SUMMARY OF
MATRIALS
 CONCRETE HOLLOW BLOCKS 750 pcs
 40 kg CEMENT (4.50+27+23.04+9) 63.54 say 64
bags
 SAND (.375+2.25+1.92+.6) 5.145 cu. m.
GRAVEL 1.20 cu. m.
 Estimates Table (Construction)
(https://www.scribd.com/doc/157404383/Estimates-Table-Construction)
TYPES OF COST
ESTIMATE
ASSEMBLY ESTIMATE
is a simple accurate way to create takeoffs. It also streamlines the
management of material costs, quotes, and ordering because each assembly
includes all the necessary parts and labor to complete a unit of work.

Example:
An interior door assembly might include the door, frame, hinges, trim,
doorknob, shims, and nails, and the quantity of each part necessary to
complete the work. When creating a takeoff, you can insert the interior door
assembly instead of each of the individual parts needed. You only need to
then enter the quantity of interior door assemblies needed in the project.
When you compute the takeoff, Contractor determines the total number of
parts needed to complete the door assemblies.
TYPES OF COST
ESTIMATE
ASSEMBLY ESTIMATE
The components are grouped into assemblies, consisting of
items that would be installed together (but not necessarily by the
same trade), and then the assembly is bid as a single component.

Example:
The cost per linear foot for an 8-foot-high interior wall (consisting
of track, metal studs, insulation, drywall, and paint) may be
determined. Then all 8-foot-high interior walls may be bid by the
linear foot rather than by bidding the track, metal studs, drywall,
insulation, and paint separately.
TYPES OF COST
ESTIMATE
ASSEMBLY ESTIMATE
To create an assembly, the estimator determines the
quantity of materials needed for one unit of the assembly, linear
foot of wall in the case of the interior wall. From these
quantities, the cost for materials, equipment, and labor to
construct one unit of the assembly is then determined. This cost
is then used to bid the assembly by multiplying the quantity of
the assembly by the unit cost of the assembly.
ASSEMBLY
ESTIMATE
WALL ASSEMBLY UNIT COST

• SAMPLE PROBLEM 2.1

Determine the quantities of materials needed and the costs for
an 8-foot-high interior partition wall assembly. The wall
consists of track and metal studs, insulation, ½” drywall on
both sides, and paint. The studs are 16” on center. Openings in
the partition will be handled as a separate assembly.
ASSEMBLY
ESTIMATE
WALL ASSEMBLY UNIT COST
• SAMPLE PROBLEM 2.1
Solution:

Length of track = 2 x 1’ = 2’
Number of studs = 1’/16” = 12”/16” = 0 .75 each
Area of insulation = 8’ x 1’ x 15”/16” = 7 .5 sq. ft.
Area of drywall = 2 sides x 8’ x 1’ = 16 sq. ft.
Area of paint = 2 sides x 8’ x 1’ = 16 sq. ft.
ASSEMBLY
ESTIMATE
WALL ASSEMBLY UNIT COST
• SAMPLE PROBLEM 2.1
The costs are as follows:

Track ($) = 2’ x $1.80/ft. = $ 3.60

Studs ($) = 0.75 each x $9.52/each = $ 7.14
Insulation ($) = 7.5 sq. ft. x $0.81/sq. ft. = $ 6.08
Drywall ($) = 16 sq. ft. x $1.62/ sq. ft. = $ 25.92
Paint ($) = 16 sq. ft. x $0.61/ sq. ft. = $ 9.76

Total cost ($/ft) = $ 52 .50

ASSEMBLY
ESTIMATE
ASSEMBLY ESTIMATING USING INTERIOR WALL ASSEMBLY
• SAMPLE PROBLEM 2.2
Determine the cost of 251’ of an 8-foot-high interior wall using the
unit cost from Example 1.

Solution:

Cost ($) = 251’ X $52.50 = $13,177

ASSEMBLY
ESTIMATE
In Square Foot Costs, RS Means publishes cost data for a
number of assemblies that can be used to prepare an assembly
estimate for an entire building. The costs for a steel joist and deck
roof that bears on the exterior walls and steel columns are shown.
The cost estimate is prepared by determining the costs for each
assembly and then by adding these costs together.
ASSEMBLY
ESTIMATE
ASSEMBLY
ESTIMATE
ASSEMBLY ESTIMATING USING RS MEANS
• SAMPLE PROBLEM 2.3
Determine the costs for 50’ X 100’ warehouse excluding site work. The costs for
each assembly are as follows:

Footings (24” X 12”) = 300’ X $30.95/ft. = $9,285

Spread footings (4’6”X 4’6”) = 3 X $273/each = $819
Floor slab (6” reinforced) = 5,000 sq. ft. X $6.14/sq. ft. = $30,700
Block walls (8” X 8” X 16”) = 25’ X 300’ X $8.14/sq. ft. = $61,050
Steel columns (wide flanged) = 75’ X $25.45/ft. = $1,909
Joist, deck, and beams = 5,000 sq. ft. X $5.27/sq. ft. = $26,350
Exterior doors (3’ X 6’8”) = 4 X $1,425/door = $5,700
Overhead doors (12’ X 12’) = 8 X $3,575/door = $28,600
ASSEMBLY
ESTIMATE
ASSEMBLY ESTIMATING USING RS MEANS
• SAMPLE PROBLEM 2.3
Roof insulation(3”) = 5,000 sq. ft. X $1.37/sq. ft. = $6,850
Roofing = 5,000 sq. ft. X $2.40/sq. ft. = $12,000
Skylights (4’ X 4’) = 32 X 16 sq. ft. X $24/sq. ft. = $12,288
Roof hatch (2’6”X 3”) = 1 X $777/hatch = $777
Bathroom (toilet and sink) = 1 X $2,400/bathroom = $2,400
Fire sprinklers (ordinary hazard) = 5,000 sq. ft. X $3.18/sq. ft. = $15,900
Electrical service (200 A) = 1 X $2,725/each = $2,725
Lighting (HID) = 5,000 sq. ft. X $4 .46/sq. ft. = $22,300

Total = $9,285 + $819 + $30,700 + $61,050 + $1,909 + $26,350 + $5,700 + $28,600 + $6,850 +
$12,000 + $12,288 + $777 + $2,400 + $15,900 + $2,725 + $22,300

Total = $239,653 ; Use $240,000

TYPES OF COST
ESTIMATE
SQUARE-FOOT ESTIMATES
• Square footage × Cost per Square foot
• the price is adjusted to compensate for differences in building
components
• Units other than Square footage is used on building size
measurement
SQUARE-FOOT
ESTIMATE
SAMPLE PROBLEM 3.1

Determine the quantities of materials needed and the costs for

an 8-foot-high interior partition wall assembly. The wall
consists of track and metal studs, insulation, ½” drywall on
both sides, and paint. The studs are 16” on center. Openings in
the partition will be handled as a separate assembly.
SQUARE-FOOT
ESTIMATE
SAMPLE PROBLEM 3.1
SOLUTION:
c
SQUARE-FOOT
ESTIMATE
SAMPLE PROBLEM 3.1
SOLUTION:
SQUARE-FOOT
ESTIMATE
SAMPLE PROBLEM 3.1

SOLUTION:
TYPES OF COST
ESTIMATE
PARAMETRIC ESTIMATES

• Use equations that express statistical relationship between

building parameters the cost of the building
• Gross square footage, number of floors, perimeter
PARAMETRIC
ESTIMATE
SAMPLE PROBLEM 4.1
SOLUTION:
Parametric value -
Quantity –
Luxury factor – 1.7
PARAMETRIC
ESTIMATE
SAMPLE PROBLEM 4.1
SOLUTION:
TYPES OF COST
ESTIMATE
MODEL ESTIMATE
Model estimating uses computer models to prepare an
estimate based on a number of questions answered by the estimator.
Model estimating is similar to assembly estimating, but it requires
less input from the estimator.
TYPES OF COST
ESTIMATE
PROJECT COMPARISON ESTIMATE
Project comparison estimates are prepared by comparing the
cost of a proposed project to a completed project. When preparing
an estimate using this method, the estimator starts with the costs of
a comparable project and then makes adjustments for differences in
the project.
TYPES OF COST
ESTIMATE
PROJECT COMPARISON ESTIMATE
When comparing two projects, the estimator needs to consider
the following:
oSize o Type of Structure
o Height Between Floors o Level of Finishes
o Length of Perimeter o Utilization of the Space
o Project Location o Union vs Nonunion Labor
o When the Project was Built o Soil Condition
PROJECT COMPARISON
ESTIMATE
SAMPLE PROBLEM 6.1

Last year your construction company built a 70,000-sf

warehouse for $6,203,595. The owner wants to build another
warehouse of similar size; this time they want to add 1,000 sf
of office space in one corner of the building. It is estimated
that the offices space will cost $100,000 and that costs have
risen 3 percent during the last year. Using this information,
prepare a preliminary estimate for the new warehouse.
PROJECT COMPARISON
ESTIMATE
SAMPLE PROBLEM 6.1

SOLUTION:

COST ($) = $6,203,595 X 1.03 + $100

= $6,489,703 – Use $6,490,000
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GROUP 1 MEMBERS:
ADVINCULA, JEMMAE E.
AUSTRIA, RYAN JAY
BELDAD, JOSE LUIS
CAMO, THEOFILO