CE 325

QUANTITY SURVEYING
Prepared by:
Engr. Conrado V. Baleña
PART ONE
INTRODUCTION TO ESTIMATING
Chapter 1 The Art of Estimating
Chapter 2 Overview of the Estimating and Bidding Process
Chapter 3 Introduction to Excel
Chapter 1: The Art of Estimating

Estimating is the
process of determining
the expected quantities
and costs of the
materials, labor, and
equipment for a
construction project.
Chapter 1: The Art of Estimating

Goal:
To project, as accurately as possible, the estimated costs for a construction project, as well
as the required amount of materials, labor, and equipment necessary to complete the work.

Role:
To provide accurate estimates needed for a company to be successful in the bidding process
while maintaining a reasonable profit margin.
▪ If the estimates are too high, the company may starve to death because of the lack of work.

▪ If the estimates are too low, the company may lose money and go bankrupt.

The estimator is constantly

walking a fine line between
bidding too low and too high.
1.1 The Estimator

The Estimator is the person responsible

for preparing the cost estimates.
Large companies
- estimating department with one or more
full-time estimators. They are charged with
preparing all of the company’s estimates.
Smaller companies
- the project managers or the company’s
owner may be responsible for preparing the
estimates.
 Skills of A Good Estimator

1. Must have a sound understanding of the construction methods, materials, and the
capacities of skilled labor.
2. Possess the basic skills needed to determine the quantities of materials, labor, and
equipment necessary to complete a project.
3. Good communicator (both verbally and in written form)
4. Must possess strong computer skills.
5. Must be detail-oriented.
6. Can prepare takeoffs and make decisions under pressure.
7. Desires constant improvement.
 Role of the Estimator
in the Traditional
Construction Process

Source:

David Pratt - Fundamentals of Construction Estimating

(2011)
1.2 Types of Estimates

1. Conceptual estimate

2. Preliminary estimate

3. Final or detailed estimates

Conceptual Estimates

The conceptual estimate

is an estimate prepared
while the project is still in a
conceptual state.
The conceptual estimate is
used to study the
feasibility of a project or to
compare two potential
design alternatives (for
example, a concrete
structure versus a steel
structure or three stories
versus four stories).
Example: Rough Estimate
 What is a Rough Cost Estimate?
▪ A Rough Cost Estimate is an initial
estimate that uses prior experience
and other non-project data to
estimate the cost of a project.
▪ A Ball Park Figure is projecting a
probable cost of a project by means
of per square meter method
– Ballpark figure is the most commonly
used conceptual estimate method.
– This is typically done for small and
medium construction projects
CLASSIFICATION COST MARGIN per SQ.M.

A 25,000.00 to 65,000.00

B 18,000.00 to 24,000.00

C 15,000.00 to 17,000.00

D 14,000.00 Below

The amount can vary from one contractor to

the other. The contractor must have a
precise idea on what is covered for each
classification.
Preliminary Estimates

A preliminary estimate
is the approximate cost of
the project that is
calculated at the
conceptual stage of the
project.
It forecasts the total
budgeted cost of the
specific construction
project.
• New construction Projects
• Demolition works
preliminary estimate An estimate prepared in the early stages of a project when little detail is
• Renovation works known about the specific design of the project.

Source:
D. Pratt - Fundamentals of Construction Estimating-Cengage (2011)
Final or Detailed Estimates

The Final or Detailed

estimates are used to prepare
bids and change orders, order
materials, and establish budgets
for construction projects.
They are prepared from a
complete or nearly completed set
of drawings and are the most
accurate type of estimate.
A detailed estimate can be
analyzed in terms of six distinct
procedures:
1. Quantity Takeoff
2. Recap Quantities
3. Pricing the Recap
4. Pricing Subcontractor’s Work
5. Pricing General Expenses
6. Summary and Bid
Final or Detailed Estimates

▪ Stage 1. Quantity Takeoff—The work to be performed by the

contractor is measured in accordance with standard rules of
measurement.
▪ Stage 2. Recap Quantities—The quantities of work taken off are
sorted and listed to comply with the CSI MasterFormat or other
standard to facilitate the process of pricing.
▪ Stage 3. Pricing the Recap—Prices for the required labor, equipment,
and materials are entered against the quantities to determine the
estimated cost of the contractor’s work.
Final or Detailed Estimates

▪ Stage 4. Pricing Subcontractor’s Work—Prices are obtained from

competing subtrades who quote to perform the work of their trade,
then, usually, the lowest bid from each trade is entered into the
estimate.
▪ Stage 5. Pricing General Expenses—The costs of the anticipated
project overheads are calculated and added to the estimate.
▪ Stage 6. Summary and Bid—All the estimated prices are
summarized, the contractor’s mark- up is added, and the tender
documents are completed. The bid can then be submitted and,
finally, the bid results recorded and analyzed.
1.3 Bid Package

• Estimates are prepared from bid packages.

• The bid package defines the scope of work for the

construction project.

• Bid packages range from a sketch on the back of a

napkin to a well-developed set of plans and
specifications consisting of hundreds of sheets of
drawings and a multivolume project manual.

• A well-developed bid package includes a set of plans

and a project manual.
▪ The plans graphically show building dimensions and where different materials are
used.
▪ The process of converting the building dimensions and details into estimated
quantities is known as the quantity takeoff. The estimator will prepare the bid
from the quantity takeoff.
▪ Typically, the plans are organized as follows:
1. civil plans,
2. architectural plans,
3. structural plans,
4. mechanical and plumbing plans, and
5. electrical plans.
Project Manual means
the volume usually
assembled for the Work
which may include the
bidding requirements,
sample forms, and other
Contract Documents.
Typical Project Manual Inclusions

▪ Invitation to Bid ▪ General Conditions

▪ Bid Instruction ▪ Special Conditions
▪ Bid Documents ▪ Technical Specifications
▪ Bonds ▪ Other Inclusions
▪ Contract ▪ Included by Reference
 Invitation to Bid

▪ The purpose of the invitation to bid is to invite bidders to bid on the

project and give a bidder enough information to decide whether he or
she wants to bid on the project.

▪ Public agencies are required to invite all qualified bidders to bid on

the work. This is typically done by posting invitation to bid in a few
predetermined locations (local library or the public agency’s office)
and by printing it in the local newspaper.
 Bid Instructions

▪ Bid instructions are instructions that must be followed to prepare a

complete bid.

▪ The goal of the bid instructions is to help the bidders provide a

complete bid with all the necessary documents (for example, bid
bond and schedule of values).

▪ Bidders may be disqualified for not following these instructions, which

may result in a bidder losing the job even though he/she was the low
bidder.
 Bid Documents

▪ Public agencies and owners typically use standard forms for the
submission of the bid. These forms may include bid forms, bid-bond
forms, a schedule of values, and contractor certifications.

▪ The schedule of values breaks the bid into smaller portions and is
used to determine and evaluate the amount of the progress
payments.

▪ Estimator should read these documents carefully and comply fully

with their requirements. Bidders can be disqualified for not
submitting all of the required bid documents.
Statuario White Marble
Sample Bid
Documents for
government
projects
 Bonds

▪ Bonds include the bid bond, the payment bond, and the performance bond. Bonds are
issued by sureties. Bid bonds are provided by the contractor at the time of the bid.
• The bid bond guarantees that the contractor—should he or she be the low bidder— will sign the contract
and provide the payment and performance bonds. The payment and performance bonds are provided when
the contract for the work is signed.
• The payment bond guarantees that the vendors, subcontractors, and labor will be paid for the work they
perform on the project. In the event that the vendors, subcontractors, and labor are not paid on the project,
the surety will step in and make the necessary payments. Example MBR Project
• The performance bond guarantees that the contractor will complete the construction project. In the event
that the contractor fails to complete the project, the surety will step in and complete the project.

• Providing payment and performance bonds can increase the costs of the project by 1%
to 2%.
Uploaded by:
SanMig Bakunawa, Sep 15, 2015
 Contracts

▪ Public agencies and owners often use standard contracts.

▪ A contract is an agreement between two entities or individuals,

which serves as legal protection for both parties involved in a
potential business deal.

▪ Estimators should read the contract carefully and include any costs
associated with meeting the terms of the contract in their bid.
 Common Types of Construction Contracts

▪ Stipulated Sum Contract (Lump Sum or Fixed Price)

– used if the scope and schedule of the project are appropriately defined to allow
the contractor to fully estimate project costs.

▪ Unit Price Contract

– a type of contract based on estimated quantities of items and unit prices (rates:
hourly rates, rate per unit work volume, etc.).

▪ Cost-Plus Contract
– an agreement to reimburse a company for expenses incurred plus a specific
amount of profit, usually stated as a percentage of the contract’s full price.
 General Conditions

▪ Public agencies and owners often use standard general conditions.

General conditions affect the cost to complete the work.

▪ The general conditions identify the relationships among the owner,

design professionals, and the contractor and addresses provisions
that are common to the entire project; for example, how changes in
the scope of work are to be processed or the need for cleanup.

▪ Estimators should read the general conditions carefully and include

any costs associated with the general conditions in their bid.
 Special Conditions

▪ Special conditions of Contract means any additional conditions of

contract agreed between the Parties. Like the general conditions, the
special conditions affect the cost to complete the work.

▪ Special conditions are additions or amendments to the contract, done

as a way to prevent the contract terms from being heavily skewed in
favor of one party over the other.

▪ Estimators should read the special conditions carefully and include

any costs associated with the special conditions in their bid.
 Technical Specifications

▪ Technical specifications identify the quality of materials, installation procedures,

and workmanship to be used on the project. The specifications also specify the
submittal and testing requirements for individual building components.

▪ Estimators must read these carefully and understand their implications. Bidding
the wrong specification can lead to losing the bid unnecessarily or winning a bid
that you do not have sufficient funds to complete.

▪ The specifications are typically organized according to the MasterFormat.

MasterFormat® is a standard for organizing specifications and other written information
for commercial and institutional building projects in the U.S. and Canada.
The purpose of this format is to assist the user in organizing information into distinct
groups when creating contract documents, and to assist the user searching for specific
information in consistent locations.
MasterFormat® - Current Divisions
(August 2020)
 Other Inclusions

▪ Other documents, such as a soils report and environmental

inspections, may be included in the project manual.

▪ The soils report describes the soil conditions and the water table at
the construction site, which greatly affect the excavation costs.

▪ Estimators should take this information into account when preparing

an estimate for a project.
 Included by Reference

▪ Other documents may be included in the specifications by reference.

Documents included by reference are not physically attached to the
project manual but are treated as if they were.

▪ Documents that are often included by reference include standard

agency specifications and other readily available standards (E.g.
American Society for Testing and Materials (ASTM) and American
National Standard Institute (ASNI)

▪ Estimators need to understand the implication of these standards

because they affect how the work is performed or are used to
determine compliance with a specification.
1.4 Estimating Tools

The estimator has a number of tools at his or her disposal to help

prepare the estimate. They range from simple paper forms to
powerful estimating computer programs. An estimator’s tools
include the following:

▪ Architect’s and Engineer’s Scales: Plans are prepared at a

reduced scale. Architect’s and engineer’s scales allow the estimator
to measure dimensions from the plans.

▪ Plan Measurer: A plan measurer or wheel measures the length

of a line by rolling the wheel of the measurer along the item to be
measured. A plan measurer has the advantage of being able to
follow curved lines more easily than an architect’s or engineer’s
scale.
▪ Digitizer: A digitizer consists of an
electronic mat and stylus or puck. The
digitizer can measure distances and
areas. The digitizer may operate as a
stand-alone tool or be connected to a
software package.
▪ Takeoff Packages The digitizer is
being replaced by takeoff packages,
such as On Center Software’s On-
Screen Takeoff and Trimble’s Paydirt
that allows the user to determine the
length, perimeter, area, and volume
quick and easy.
▪ Calculator and Paper Forms: In the days before computers, most estimates were
prepared by using paper estimating forms and calculators. Some estimates are still prepared
in this way, particularly estimates that are prepared in the field; however, with modern
laptop computers and portable printers, even paper estimates in the field are being replaced
by computerized estimates.
▪ Spreadsheets: With the increased use of computers in the construction industry and
spreadsheet programs such as Excel, many companies have converted their estimating
forms into computer spreadsheets. Spreadsheets have the advantage of automating the
calculations and allowing the estimator to see the effects of minor changes in seconds.

▪ Estimating Software: Estimating software packages, such as Timberline Precision

Estimating, combines the advantages of a computer spreadsheet with a database. This
automates the estimating even further. Estimating software has the additional advantage of
being capable of taking off assemblies as a single item.
1.5 Computerized Estimating

▪ Nothing has revolutionized estimating as much as the advent of

computers along with spreadsheets, estimating software, and
takeoff packages.
– If used correctly, computers can reduce the time needed to prepare an estimate
and decrease the errors in the estimate.
– If used improperly, they can increase the number of errors in an estimate and
decrease the usefulness of the estimate.

▪ Estimating software packages are powerful computer software

applications that have been developed specifically for estimating.
– E.g. building construction and for heavy and highway construction that involves
large amounts of earthwork.
Dangerous Mistakes Estimators Make When Using
Estimating Packages

1. To turn the thinking over to the computer so the estimator

becomes simply a means of entering data into the software
package.
– Computer spreadsheets and formulas in estimating packages are developed for
a limited number of circumstances based on a set of assumptions made by the
writer of the spreadsheet or formula.
– Whenever the estimator uses the spreadsheet or formula on a situation that is
outside the conditions anticipated by the developer, the estimator may get an
inaccurate estimate from the spreadsheet or formula.
– To protect against this, the estimator must have an understanding of the limits
and design of the spreadsheet or formula and must make sure the spreadsheet’s
or formula’s response is reasonable.
Dangerous Mistakes Estimators Make When Using
Estimating Packages

2. The second mistake is to create a new spreadsheet or formula and

use it without properly testing it.
– After creating a spreadsheet or formula, the developer should test the
spreadsheet or formula to make sure it is working properly, not only on
the situation that it was developed for, but on other conceivable
situations.
– The developer should try to make the spreadsheet or formula mess up
and then build in ways to prevent other users from making the same
mistakes by building in error-checking procedures.
1.6 Conclusion

▪ Successful estimates are the lifeblood of a construction company. Winning

bids while maintaining a good profit margin is necessary for a construction
company to succeed.
▪ Accurate quantities and costs are needed for strong cost controls. To be a
good estimator, a person must study and practice sound principles of
estimating.
▪ Computers have greatly changed the way estimators prepare estimates.
Computers and software packages, if used properly, can increase the
productivity of the estimator while decreasing errors.
▪ Estimating software includes spreadsheet packages such as Excel,
estimating software such as Timberline, and takeoff packages, such as On-
Screen Takeoff.
Chapter 2:
Overview of the Estimating
and Bidding Process
Estimating and Bidding Process

▪ Once the bid package is complete, a detailed estimate is needed to

establish a budget for the project and, in the case of competitive bidding,
selection of the contractor.

▪ Preparing a preliminary estimate during the design process or preparing an

estimate for a change order follows a similar process.

▪ Preparing an estimate for a competitive bid project is divided into four

phases:
– planning the bid,
– pre–bid-day activities,
– bid-day activities, and
– post-bid activities
2.1 Planning the Bid

Planning the bid consists of identifying the scope of work for the project, preparing a
schedule for the bidding process, and assigning tasks to members of the estimating
team.
▪ Scope of Work: During the planning stage the estimator needs to identify the general scope of work
covered by the bid package. Often, this is done by reviewing the bid package and identifying which of
the company’s cost codes are needed for the project and what pricing needs to be obtained to complete
the estimate.

▪ Scheduling the Bid: Once the scope of the project has been determined, the estimator must
schedule the tasks necessary to complete the bid such that the bid is completed in time to be
submitted. If there is insufficient time to complete the bid, the estimator must get additional
help, eliminate some of the estimating steps, or decide not to bid on the project.

▪ Assigning Tasks: If the estimating team consists of more than one person, once the scope of
work has been identified and a schedule prepared for the bid package, the estimator must
delegate the bidding tasks to other members of the team and communicate the deadlines for the
completion of these tasks to the team members.
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond
2. Request Subcontractor Quotes
3. Quantity Takeoff
4. Materials Pricing
5. Labor Pricing
6. Equipment Pricing
7. Project Overhead
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond One of the first activities that should be
done is to order a bid bond from the
2. Request Subcontractor Quotes surety company.
3. Quantity Takeoff This gives the surety time to prepare the
4. Materials Pricing bid bond, obtain the necessary signatures
on the bond, and mail it to the
5. Labor Pricing contractor.
6. Equipment Pricing The estimator also finds out early in the
bidding process if there will be any
7. Project Overhead problem getting the bond before
8. Prepare Bid Documents spending a lot of time preparing the
estimate.
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond Starting this process early is important
because subcontractors need to find the
2. Request Subcontractor Quotes time to look at the plans and project
3. Quantity Takeoff manual and prepare their estimate.

4. Materials Pricing The contractor should try to get bids on

the high-dollar items first because these
5. Labor Pricing items carry the most risk should the
contactor have to bid these items himself
6. Equipment Pricing or herself.
7. Project Overhead
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond The quantity takeoff is necessary to
2. Request Subcontractor Quotes prepare material, labor, and equipment
costs (unless the vendors are doing the
3. Quantity Takeoff quantity takeoff for their work) for the
estimate.
4. Materials Pricing
If time allows, the estimator should
5. Labor Pricing prepare quantity takeoffs for
6. Equipment Pricing subcontractor work where there is a
concern that the subcontractor’s bid may
7. Project Overhead not be received in time to complete the
bid.
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond Estimators often send their quantity
2. Request Subcontractor Quotes takeoffs to vendors and request that the
vendors provide pricing for the materials
3. Quantity Takeoff identified in the quantity takeoff.

4. Materials Pricing This requires the quantity takeoff to be

completed in time to send the list of
5. Labor Pricing needed materials to the vendors, have
6. Equipment Pricing the vendors price the materials, receive a
quote from the vendors, and incorporate
7. Project Overhead the pricing into the estimate..
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond
2. Request Subcontractor Quotes
3. Quantity Takeoff Once the quantity takeoff has been
4. Materials Pricing completed, the estimator can determine
which crews are to be used on the in-
5. Labor Pricing house work, the associated productivity
rates for the work, hourly crew costs, and
6. Equipment Pricing the cost of the labor to perform the in-
house work.
7. Project Overhead
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond
2. Request Subcontractor Quotes
3. Quantity Takeoff Once the quantity takeoff has been
4. Materials Pricing completed, the estimator can determine
the equipment needs of the project and
5. Labor Pricing determine the cost of the equipment.
6. Equipment Pricing This may include obtaining rental pricing
or pricing company-owned equipment.
7. Project Overhead
8. Prepare Bid Documents
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond Before the bid day, the estimator should
prepare an estimate for project
2. Request Subcontractor Quotes overhead.
3. Quantity Takeoff Project overhead includes all costs that
are associated with the project but
4. Materials Pricing cannot be identified with a specific
5. Labor Pricing component of the project’s construction.

6. Equipment Pricing The project overhead should be prepared

by preparing a quantity takeoff for the
7. Project Overhead project overhead and putting costs to the
quantities just as is done with material
8. Prepare Bid Documents estimates.
2.2 Pre-Bid Day Activities

The pre–bid-day activities are activities or tasks that should be

completed before the day of the bid.
1. Order Bond
2. Request Subcontractor Quotes
3. Quantity Takeoff Finally, the bid documents need to be
prepared and the appropriate signatures
4. Materials Pricing need to be obtained.
5. Labor Pricing Any incomplete items that must be filled
6. Equipment Pricing in on the day of the bid, such as the bid
price and the prices for the schedule of
7. Project Overhead values, should be
marked with Post-Its to minimize the
8. Prepare Bid Documents possibility of forgetting to fill in a blank
on the day of the bid.
2.3 Bid-Day Activities

The bid-day activities are activities or tasks that are performed

predominantly on the day of the bid, although some of these activities
may be started before the bid day.
Bid-day activities include selecting subcontractors;
1. Subcontractor Selection
2. Combing Pricing
3. Add Markups
4. Review Bid for Errors
5. Submit Bid
2.3 Bid-Day Activities

1. Subcontractor Selection
– When receiving bids from a subcontractor, it is important for the estimator to
verify that the subcontractor has included the entire scope of work for the items
that the subcontractor is bidding.
– Any items that are missing must be added to the estimate for it to be complete
and to avoid having an incomplete estimate.
– Selection may be made based on completeness of the scope of work, price, and
past experience with the subcontractor.
2.3 Bid-Day Activities

2. Combining Pricing
– As the pricing becomes available, the estimator should add the pricing to the
bid.
– The pricing includes pricing for labor, materials, equipment, subcontractor,
and overhead.
– The estimator should exercise caution to be sure that all items necessary to
complete the bid are included in the bid and none of the items have been
included twice.
– Combining the pricing should begin before bid day and often continues right up
until the bid is submitted.
2.3 Bid-Day Activities

3. Add Markups
On the day of the bid, the estimator should finalize the rates for the markups. Markups
are also known as add-ons. Markups include the ff:
• profit markup – is used to provide the owners of the construction company a return
on their investment. Often, the profit markup is adjusted based on the competition
bidding on the project.
• overhead markup – is used to cover the company’s general overhead costs. The
project’s specific overhead should not be included in the overhead markup but
should be bid as part of the project costs.
• building permit costs, bonding costs – are based on the estimated construction
costs, which are not known until the bid is completed. This requires the costs for
these items to be calculated near the completion of the bid.
• sales tax - is treated as a markup and is incorporated into the bid when the material
costs are totaled. For cost control purposes, the sales tax must be added to the
individual cost codes when preparing the budget for the project.
2.3 Bid-Day Activities

4. Review Bid for Errors

– As the bid approaches completion, the bid needs to be reviewed for errors. This
includes making sure that there is pricing for all of the bid items, comparing the
bid to historical costs for similar projects, and having someone else check the
estimate for errors.

5. Submit Bid
– Finally, the price and other bid-day information should be added to the bid
documents, and the bid should be submitted to the contracting office.
– Care must be taken to accurately enter the pricing and make sure all remaining
blanks are filled in. It would be a great waste of time to lose the bid because you
forgot to fill in a blank or you wrote the wrong price on the bid document.
2.4 Post Bid-Day Activities

The post-bid activities are different for jobs for which the contractor is
the low bidder than they are for jobs for which the contractor is not.
Here are some of the activities that may occur after the submission of
the bid.
Bid Review:
• After completing the bid, the estimator should review the bid and the bidding
process to identify any mistakes that were made and try to find ways to avoid
these mistakes in the future.
• One of the characteristics of a successful estimator is that he or she is
committed to continuous improvement. To do this, estimators must learn from
their mistakes and repeat those actions that made them successful.
2.4 Post Bid-Day Activities

Project Buyout:
• If the estimator wins the bid, the estimator must buyout the project. The project
buyout is the process of hiring subcontractors and procuring materials and
equipment for the construction project.
• During the buyout the estimator must prepare contracts for the subcontractor’s
work and purchase orders for the materials used on the project and
communicate this information to the subcontractors, suppliers, and the general
contractor’s project management team (the superintendent, project manager,
and so forth).
• During the buyout process the estimator should identify any errors in the
estimate and identify ways to avoid the errors in the future.
• The estimator should also update the pricing in the pricing database as needed
at this time.
2.4 Post Bid-Day Activities

Close-out Audit:
• The project close-out audit consists of reviewing all activities completed during
the construction process, including the estimating process, after the project is
complete.
• As part of this audit, the estimator should review the actual costs to complete
the project and compare the costs against the original estimate.
• The goal is to find ways to improve the accuracy of the estimate. The estimator
should look at areas where his or her pricing is too high or low so that his or her
future estimates will reflect the actual costs, updating the pricing in the pricing
database as needed.
• For the close-out audit to be useful, the actual costs must be accounted for in
the same cost categories as they were included in the estimate.
• For this to happen a company must have a set of standardized job cost codes
that identifies the job cost and spells out what is included in each cost code.
Sample Job Cost Codes
2.5 Conclusion

▪ There are a number of activities that must be completed to complete the bid.
1. Planning the bid. This includes defining the scope of work, scheduling the
bidding activities, and assigning the activities to the members of the estimating
team.
2. Pre–bid-day activities. These include ordering the bond; requesting
subcontractor quotes; preparing the quantity takeoff; pricing materials,
equipment, and labor; preparing an overhead budget; and preparing the bid
documents.
3. Bid-day activities. These include selecting the subcontractors, combining all of
the prices together into the bid, adding the markups, reviewing the bid for errors,
and submitting the bid.
4. Post-bid activities. These include reviewing the bid and, if one is successful in
winning the bid, buying the project out and performing a project close-out audit
at the end of the project.
Chapter 3: Introduction to Excel

▪ Assignment to be posted in Google Classroom.

 Detail-oriented

▪ Detail-oriented people pay close attention to the specifics of

problems, questions, and projects.
▪ They're often observant, meticulous, and thorough, making them
effective in various positions.
▪ They can identify and correct errors, plan and organize effectively, and
can deliver high-quality work.