ESTIMATING
By
Laith Jacob
INTRODUCTION TO
ESTIMATING
• Estimating is an approximation that defines
the Cost of construction Activity or
activities prior to commencement of work
VS the cost of work during and after
construction, which is the Actual cost.
• Activity Cost in general is basically the cost
of material, labor and equipment.
PROCEDURES AND STEPS
• Advertisement Section 00030
• Purchase of Bidding Documents.
• Site Tour and pre-bid meeting
• Questions and clarifications – addenda
• Meet bid date and time dead line – delivery
of bid.
SECTION 00030
ADVERTISEMENT
• Bid date and time
• Project description
• Bidding documents
• Bid Security
• Any local requirement
• Contract time
BIDDING DOCUMENTS
• Specifications
• Drawings
• Addenda
SITE TOUR AND PRE-BID
MEETING
• Site Accessibility
• Temporary construction roads
• Staging area
• Storage area
• Security
• Site conditions and finishes
QUESTIONS AND
CLARIFICATIONS
• Clarify any existing site condition that we feel
could affect the estimate (underground utilities not
shown on documents, any dewatering and
discharge, construction power and water
needs….etc.
• Any conflict between the drawings and
specifications.
• Ask for any missing detail or specification section.
TYPES OF ESTIMATES
• Conceptual Estimate
• Construction Management Estimate
• GMP (Guaranteed Maximum Price)
Estimate
• Design Build Estimate
• Lump Sum Estimate
• Lump Sum Unit Prices
COST ESTIMATING
• Reading the Front End Documents (Division 0 & 1)
Division 0 “Administrative and Advertisement”
– Instruction to Proposer (Pre-Bid Meeting and Site tour, Questions,
Clarifications & Concerns, Delivery of Bids (time & location and
number of copies)
– Information to Bidders
– Bid Forms
– Bid Bonds
– Bidder Qualification for certain type of projects and broker
Contractors
– Form of Agreement
– General Conditions (Indirect Cost, e.g. Staging area, Access roads,
Construction Building Access, Temporary offices, Daily/Weekly and
Final Clean up, Temporary Power and Water Utilities, Safety…..etc)
– Supplementary Conditions
COST ESTIMATING (CONT.)
Division 1 “General Requirements”
– Administrative Provisions (Scope of work, Alternates,
Coordination…..)
– Progress Meeting
– Construction Schedules and procurement of Equipment
– Submittals
– Quality Control (testing for soil, concrete,
paving……..etc.)
– Construction Facilities and Staging area
– O&M manuals and Training.
COST ESTIMATING (CONT.)
• Understand the Details of the Drawings and
Scopes
• Generate The Scope of Work for each Trade and
coordinate with the project construction schedule.
• Generate General Conditions Cost.
• Take off of different trades and price it, as needed.
• Generate the Bid Day Scope Check Sheets
“Green Sheets”.
• Generate The Posting Sheets.
• Generate Bid day strategy and responsibilities
COST ESTIMATING (CONT.)
• Risk Factors
– Know the Owner
– Type of work
– Location of the project
• Competitive Edge Meetings
– Know your competitors.
– Their weaknesses.
– Educate the market through questions to the
Owner/Designer and Subcontractors.
• Know the Market
COST ESTIMATE AND BID
SUMMARY SHEET
• Direct Cost, Subcontractors bids, self
perform work
• Indirect cost, General Condition (Field cost,
Safety, Permits, Clean up…etc) Insurance,
Bond cost and Overhead & Fee.