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67 terms

Construction Estimating 67


Terms in this set (...)

Construction estimating is more an art than a science
Truly, its both, it will never be a science. Estimators rely on their, intuition, past experience, judgment and sometimes guesses.
Statements or drawings that modify the basic contract documents after the latter have been issued to the bidders, but prior to the taking of bids.
Drawings made during the progress of construction, or subsequent thereto, illustrating how various elements of the project were actually installed.
As-built drawings
Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal, plans and specifications) of a project
Name 10 step process to bid
1. Review scope
2. Quantity takeoff
3. Price materials
4. Price labor
5. Price equipment
6. Obtain specialty contractor's bid
7. Obtain supplier's bid
8. Calculate taxes, bonds, insurance, and overhead
9. Contingency
10. Profit
Describe the composition of the Construction Cost Index (CCI).
Common labor and material portions
Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
Five basic skills everyone should master
Finding and bidding the type of work that's appropriate for your company, Making accurate cost estimates, Using pricing strategies that reduces your risk of loss, Anticipating the bids of your competition, Tracking overhead so you know the actual cost of doing business
Order of Magnitude Estimate:
A gross unit such as the number of hospital beds is used.
Assemblies Estimate:
The estimator uses more detailed information such as the bay size, square feet of partition wall, number of plumbing fixtures, or square feet of carpet.
A work order, usually prepared by the architect and signed by the owner or the owner's agent, authorizing a change in the scope of the work and a change in the cost of the project.
Change Order
A document stating the procedures to be followed by bidders.
Instruction to bidders
A surety bond guaranteeing that a bidder will sign a contract, if offered, in accordance with their proposal.
Bid Bond
Working drawings, specifications, general conditions, supplementary general conditions, the owner-contractor agreement, and all addenda (if issued).
Contract Documents
A good database of past project experiences is essential to preparing a quick and accurate estimate.
Where the project will be constructed does not have a major influence in the preparation of an estimate.
Name the types of Estimates
Order of Magnitude Estimate, Square foot and cubic foot estimate, Assemblies(Systems estimate), Detailed Estimate
What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Published cost standards seldom represent 100% of the project under consideration. The location factor ,The time factor
Explain firm price contracting estimates.
Lump-Sum Estimate
Unit Price Estimate
Describe factors affecting the accuracy of detail cost estimating.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
A common error made by GCs in their dealings with subcontractors is to hand them a single technical specifications section relating to their trade, without copies of either the General Requirements or the General and Supplementary General Conditions of the Contract.
Describe the CSI MasterFormat and how it is used.
The CSI format is a numbering system which divides the major areas involved in the construction project into 50 divisions (0 to 49).
The format allows the contractor to develop a tracking system for all types of information.
What types of information are provided in the Invitation to Bid?
Generally, the advertisement describes the location, extent, and nature of the work. It will designate the authority under which the project originated. Concerning the bid, it will give the place where bidding documents are available and list the time, manner, and place where bids will be received. It will also list bond requirements and start and completion dates of work.
The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
On certain projects the owner may accept proposals only from contractors who are invited to bid.
What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation, Competitive Bidding
What are some of the factors a contractor considers when making a decision to bid?
Internal Factor, External Factor, Project Related-Factor
Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?
1. Better understanding of the work to be subcontracted, 2. Establishment of fair cost estimate for evaluating subcontractor's bid, 3. Checking of a subcontractor's scope of work, and 4. Determination of time duration that can be assigned to a subcontractor.
What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period. Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.
What unit of time is used to measure labor?
The Labor Hour
What does the labor hour represent?
The amount of work that can be done in an hour
Why do many contractors hesitate to bid just before the expiration of a union contract?
There may be hesitation to bid a project just before the expiration of a union agreement due to the uncertainty of the outcomes of the negotiations. There is the possibility of a strike or dramatic increases in the prevailing wage rate.
The assembly of components to form the completed portion of a job.
An agreed-to sum chargeable against the contractor as reimbursement for damages suffered by the owner because of contractor's failure to fulfill contractual obligations
Liquidated Damages
A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
How do climatic conditions influence the amount of work actually completed in an hour?
Both extreme hot and cold will tend to slow down the pace of work.
Estimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
The location where material can be stored in relationship to the construction project affects productivity.
The most reliable productivity rates come from historical data
Explain why using overtime is not recommended for most construction projects.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Under what conditions are wage premiums applied
Overtime work, shift work, hazardous work conditions, or unusually strenuous work.
What is the best source for productivity data?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
List the factors affecting labor productivity
External factors: market conditions and climatic conditions; beyond the control of the contractors. Internal factors: work conditions and management conditions
A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Punch List
Closely spaced beams supporting a floor or ceiling. They may be wood, steel, or concrete.
A bathroom sink
What are the advantages to a small contractor of renting equipment instead of owning?
1. The contractor can get the most suitable piece of equipment. 2. The equipment is most likely newer and in a better state of repair. 3. The rental company handles maintenance. 4. The contractor does not tie up their capital.
The equipment used on construction projects can be divided into three categories: Owned, leased, and rented.
Operation costs include:
a. Tires and other wear items b. Fuel, lubricants, and filters c. Repair reserves d. All of the above
Describe and provide examples of specific use equipment and general use equipment.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units;
Describe and provide examples of specific use equipment and general use equipment.
Kept on the site over a longer period of time, throughout almost the entire construction phase. Cranes; Air compressors; Floodlights and light towers Forklifts; Pumps
Name three common methods of procuring equipment.
Renting, Leasing, Buying
What is depreciation?
The loss in value of equipment that the contractor owns. The loss is a result of age, wear and tear, and obsolescence
What are some of the costs that must be included in equipment operating costs?
Operating costs include everything required to operate each piece of equipment. Fuel, Grease and Oil, Electricity and Tire
What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
Where would information be found on whether a bid bond was required and, if so, its amount?
Bid bond requirements are stated in the advertisement of Bidders. They are usually amplified in the specifications.
How are the various surety bonds that may be required on a specific project obtained?
Surety bonds can only be obtained through companies who specialize in issuing surety bonds. The contractor will have to request the surety company to provide the bonds.
The substructure that supports a building or other structure.
An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
How does insurance differ from a surety bond?
With insurance an insurance company assumes the financial liability for a specified loss. The surety guarantees the performance of a contractor. The surety company will try to recover any losses from the contractor.
What is the bid bond and how does it protect the owner?
The bid bond ensures that if a contractor is awarded the bid with the time specified, the contractor will enter into the contract and provide all other specified bonds. If the contractor fails to do so without justification, the bond shall be forfeited to the owner.
What is the performance bond?
The performance bond guarantees the owner that, within limits, the contractor will perform all work in accordance with the contract documents, and that the owner will receive the project built in substantial agreement with the documents.
What is the payment bond?
The payment bond (labor and material bond) guarantees the payment of all bills incurred by the contractor for labor and materials incurred or supplied on the project.
What is the maintenance bond?
The maintenance bond guarantees the owner that the GC agrees to correct all defects of workmanship and materials for a specified period (one to three years) following occupancy by the owner.