Professional Documents
Culture Documents
Presentation On Cost Estimation in A Construction Company
Presentation On Cost Estimation in A Construction Company
Road Map
Introduction Types of Construction Cost Estimates Approaches to Cost Estimation Unit Cost Method of Estimation Other Methods
Introduction
Cost Estimation
Cost estimation is one of the most important steps in project management. What, why, when, how.
Bid Estimates
As a contractor, a bid estimate is submitted to the owner either for competitive bidding or negotiation.
Control Estimates
Budget estimate for financing Budgeted cost after contracting but prior to construction Estimated cost to completion during the progress of construction.
Production function
Q = P(I1,I2,.. In)
Empirical cost inference Unit costs for bill of quantities Allocation of joint costs
Example
Cost estimate using labor, material and equipment rates.
Other Methods
Allocation of joint costs
- Difficult causal relationship b/w element and associated costs - Joint costs are prorated in proportion of basic costs of elements For example : F being overhead associated with different elements Fi = F * yi/y Then total cost can be written as :-
Li = yi + Fi
Unit sf sf . .
Unit price 12 7 . .
Features:
Databases for unit cost items. Databases of expected productivity for different components types, equipments, and process. Version control, Flexible reporting formats, import and export utilities, archive of past projects.
Advantages: Rapid cost estimation and with less efforts. Example : as will be shown
Case study
Raheja builders Estd. in 1952 Uses simple unit cost estimation method Uses simple accounting tools In process of configuring ERP
Thanks
Questions?
Example
Decomposition of a building foundation into design and construction elements.
Price indices in subsequent years show a proportionate changes due to price changes. Percent change in price indices for year t+1-
jt+1=((It+1-It) / It )* (100%)
- Measure price level changes