GROUP 10

BSCE_3M

COST
ESTIMATION
(Continuation)

10 JANUARY 2023
 OUR TEAM

Hannah Jean H. Sumaylo Michael B. Uayan

Geraciel B. Suson Genesis Azalea F. Vibal

CONTRACTOR’S RISKS
WHEN THE ESTIMATOR IS
CONSIDERING THE AMOUNT OF PROFIT
TO ADD TO A BID, THE AMOUNT OF
RISK FOR THE CONTRACTOR MUST
ALSO BE ASSESSED.

RISK OF THE CONTRACTOR: LOSING

MONEY IN THE PROCESS OF A
BUILDING PROJECT (OR WHEN THE
ACTUAL COST OF CONSTRUCTION
EXCEEDS THE ESTIMATED COST).

ONLY WHERE THE OWNER CHANGES

THE SCOPE OF THE WORK OF THE
CONTRACT WILL THE CONTRACT PRICE
CHANGE. ELSE, EXTRA COSTS WILL
HAVE TO BE PAID BY THE
CONTRACTOR.

CONTRACTOR’S RISKS
UNDER A LUMP SUM
CONTRACT, THE GENERAL
REASONS FOR ACTUAL COSTS
EXCEEDING THE ESTIMATES
INCLUDE:

✓TAKEOFF QUANTITIES ARE

TOO LOW
✓ACTUAL PRODUCTIVITY DOES
NOT MEET ANTICIPATED
PRODUCTIVITY
✓SUBCONTRACTORS OR
MATERIAL SUPPLIERS FAIL TO
MEET OBLIGATIONS
DETAILED UNIT PRICE
ANALYSIS

Standard Pay Item List for

Infrastructure Projects by DPWH

To ensure uniformity in the preparation

of the Design Plans and Quantities,
Programs of Works (POW) and
Approved Budget for the Contract (ABC)
for infrastructure project nationwide...
https://www.dpwh.gov.ph/dpwh/sites/default/files/issuances/DO_143_s2017.pdf
https://www.dpwh.gov.ph/dpwh/sites/default/files/issuances/DO_143_s2017.pdf
TOTAL = P4,760,902.15
Divided by 23,032 cu.m.

Unit Cost = P206.71 per cu.m.

https://www.dpwh.gov.ph/DPWH/sites/default/files/webform/pow/POW%2017J00050.pdf
https://www.youtube.com/watch?v=IepIoo_Kv84&feature=youtu.be
LIFE-CYCLE COST ANALYSIS (LCCA)
LCCA: method for assessing the total cost of
facility ownership (acquiring, owning, and
disposing)
Building-related costs may include:
Initial Costs: Purchase, Acquisition,
Construction Costs
Operation, Maintenance, and Repair Costs
Replacement Costs
Residual Values: Resale or Salvage
Values or Disposal Costs
Finance Charges: Loan Interest Payments
Non-Monetary Benefits or Costs

LCCA is utilized to estimate the overall costs of project alternatives and to select the
design that ensures the lowest overall cost of ownership consistent with its quality and
function. This should be performed early in the design process while there is still a
chance to refine the design to ensure a reduction in life-cycle costs.
 AS A CAREER
Cost Estimator estimates the time, money,
materials, and labor needed to manufacture a
product, construct a building, or provide a
service.

calculate total costs of building major projects

such as shopping center, sports arena, or the
cost of one element, such as a building
foundation.

Besides accounting for raw materials and labor

costs, estimators factor in bad weather, shipping
delays, and other variables that affect a project's
costs and timeline.
 AS A CAREER
typically work for engineering or construction
firms, and frequently collaborate with teams of
engineers and architects as well as with clients
and contractors.

A bachelor's degree is generally required.

Despite that, highly experienced construction
workers may qualify without degree.

strong math and analytical skills, and detail

orientation are essential.
THANK YOU