1/17/20

BUILDING TECHNOLOGY 4 (BT-4)

SPECIFICATION
WRITING &
ESTIMATING
Prepared by:
Ar. REYNALDO C. VENTURA, JR.
MSCM, UAP, Int’l Assoc. AIA, PEM, ACP

Special Topic:
Construction
Estimate &
Productivity
by:
Ar. REYNALDO C. VENTURA, JR.
MSCM, UAP, Int’l Assoc. AIA, PEM, ACP

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The 6 Stages of a Project

on Estimating:

“The same work under the same

conditions will be estimated differently
by ten different estimators or by one
estimator ten times”

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What Cost Estimates Really Means?

• “Opinion of Probable Costs” .

• Estimates are like a hypothesis

(educated guesses)

Construction Cost Estimating

• is the process of forecasting the cost

of building a physical structure.
• A good cost estimate prevents the
builder from losing money and helps
the customer avoid overpaying.

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PURPOSE OF AN ESTIMATE

✣To know in advance the

expected cost in varying degree
of accuracy, at different phases
of the project.

PURPOSE OF AN ESTIMATE
According to Owner

1. Making investment decision in the

conceptual stage.
2. Negotiate and finalize the contract at
the implementation phase.
3. To implement cost control measures.

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PURPOSE OF AN ESTIMATE
According to Contractor

1. Determine project cost and profit.

2. To Implement cost control measure.
3. To develop data base for that can be
used for future project.

PURPOSE OF AN ESTIMATE
According to Architect/Engineer

1. Provide the owner with probable

estimate.
2. Evaluate alternatives.

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Types of Estimates
Analogous Estimating - Uses historical
information and expert judgment.
Parametric Estimating - Uses a
statistical relationship between
relevant historical data and other
variables (example: square meters in
construction).
Bottom-up Estimating - The detailed
cost is then summarized or “rolled up”
to higher levels for subsequent
reporting and tracking purposes.

KINDS OF ESTIMATES
1. Preliminary
2. Unit price
3. Assembly or Conceptual Cost
4. Detailed estimate
Accuracy
within

20% Preliminary

15% Unit Price

10% Assembly

5% Detailed

Time

5min 1hour 1day 3 weeks

✣ Each phase of a project life cycle requires a different type of

estimate--each estimate requires different types of information.

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KINDS OF ESTIMATES
1. Preliminary Estimate
Ø A cost prediction based solely on
size and/or capacity of a proposed
project.
Ø Prepare before any design is
completed.
Ø Rely on broad data from already
executed similar project

KINDS OF ESTIMATES
1. Preliminary Estimate
ADVANTAGE
✣ Allows a quick determination of
the feasibility of a project
✣ A quick screening on alternatives,
etc. (e.g., should it be a concrete
building or a steel building !).

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KINDS OF ESTIMATES
1. Preliminary Estimate
EXAMPLE:
• Parking Garage
$15.0/sq. ft or $4500/parking
space
• High School
$80 to 110/sq. ft or $40,000/
student seat
• Medical Centers
$90 to 130/sq. ft

KINDS OF ESTIMATES
2. Unit Price Estimate
Ø Unit prices are obtained from
data on projects already
performed.
Ø Cost of labor, material, and
equipment for all units of work
are added together and divided
by the number of units involved

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KINDS OF ESTIMATES
2. Unit Price Estimate
EXAMPLE:
____________________________________________________
Work Item Estimated
Quantity Unit Price Total
____________________________________________________
Site Preparation 50,000 sq. yd $ 7 $ 350,000
Earth Excavation 100,000 cu.yd. $ 12 $ 1,200,000
Paving 50,000 sq.yd. $ 8 $ 400,000
Total bid price $ 1,950,000
____________________________________________________

KINDS OF ESTIMATES
3. Assembly or Conceptual Estimate
Ø Performed when conceptual
design decisions are being made.
Ø Work package concept can be
used to determine the element or
assembly to be studied
Ø Need a breakdown of cost of a
completed project into its
functional elements to find the
relationship between element
cost and project cost

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KINDS OF ESTIMATES
3. Assembly or Conceptual Estimate
EXAMPLE:

Elemental Estimate Analysis

Gross floor Area = 250,000 ft2

KINDS OF ESTIMATES
4. Detailed (Definitive) Estimate
Ø Prepared after drawings and
specification are completed.
Ø Requires a complete quantity
takeoff based on drawing and the
complete set of contract
documents
Ø Need information on labor rate
"productivity", material cost, cost
of renting or purchasing
equipment

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KINDS OF ESTIMATES
4. Detailed (Definitive) Estimate
EXAMPLE:

Estimating Theory

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Law of the average

Ø If one square is 0.5 unit, estimate

the area of Ellipse.

Law of the average

Ø Ellipse Area
= (π) (short radius) (long radius)
= (π) (3) (5)
= 11.78 units

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Law of the average

• The principle of obtaining accurate

estimate is to breaking it down into
a small elements.

• Whole square can be compared to a

firm price proposal where parts of
elements (e.g., labor, equipments,
materials, OH, etc) must be
approximated.

Law of the average

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Law of the average

Note:
1 sq. unit =
0.25 sq. units

CALCULATED
ELLIPSE
= 11.78 UNITS

Law of the average

“A very significant factor that allows

contractors to produce reliable
construction estimates, but only works
when the estimate for each element is
based on reality and not on mere
assumptions”

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Estimating & Tendering

Ø Estimating:
the technical process of predicting
costs of construction
Ø Tendering :
a separate and subsequent
commercial function based on the
estimate

Why Detailed Estimating is Important?

A contractor must produce detailed
estimate or he cannot:
Ø Compete in a highly competitive
endeavor
Ø Complete the project on time
Ø Stay in business

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Detailed Estimates = Management Tool

• Source of initial project schedule
• Information for procuring materials & to
let subcontracts
• Input for planning (labor, supervision,
equipment & finances)
• Other project management needs (e.g,
project controls & productivity analysis)

Quality/ Accuracy of Cost Estimation

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Estimating Team

Lead Estimator
• Experience in construction scheduling
• Ability to read & interpret plans
• Understanding of specifications
• Familiar with construction techniques
• Knowledge of circumstances &
conditions affecting costs
• Ability to determine costs of
construction
• Ability to perform mathematics
manually

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Other attribute of Estimator

• Detailed oriented
• Able to work with people
• Organize well
• Able to work with deadlines
• Thrives under pressure- stays calm
when stressed
• Can scan a large volume of
specifications & recognize special &
important items

Estimator Salary (Philippines)

Source: https://www.payscale.com/research/PH/Job=Cost_Estimator/Salary

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Estimator Salary (Other Country)

Source: https://www.glassdoor.com/Salaries/construction-estimator-salary-SRCH_KO0,22.htm

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