CE 6050

Construction Cost Estimating

Estimating Processes
By

Samer Alsharif Ph.D., PMP

Class Outline
• Construction Cost Estimates Formats
• Construction Design Process
• Budget Estimates for Design Process
• Construction Estimates Development
• Cost Estimating Process

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 Types of Construction Cost Estimate
• Construction Cost Estimate Formats

 Uniformat Cost Estimate

 Known as System Format
 Organized based on the building components/systems

 MasterFormat Cost Estimate (CSI format)

 Organized based on the technical specs used in most
contraction contracts
 50 Divisions (2016 current version) 16 Divisions prior
2004)
Division 00 Procurement and Contracting Requirements
Division 01 General Requirements
Division 02 Exiting Conditions
Division 03 Concrete 3

Construction Design Process

 Design Phase Process
• Programming Design
- Identify the scope of work, type of project, goals and
objectives, gather information, ….
• Schematic Design (30%)
- Identify options, sketches, layout, field surveys, …..
• Design Development (60%)
- Incorporates owner’s comments and requests, materials
selection, develop detailed design,….
• Construction Documents (90% - 100%)
- Finalize design
- Issue final design (specs and drawings)
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 Design Cost Estimate Development
 Cost estimates are developed and updated throughout
the project lifecycle (Design and Construction)

Design Process

Schematic Design Construction

Programming
Design Development Documents

Program SD DD Owner’s
Budget Budget Budget Final Cost
Estimate Estimate Estimate Estimate
Conceptual Conceptual/ Preliminary Detailed
Estimates Preliminary Estimate Estimate
Estimates
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Programming Design Budget Estimates

 Programming Budget Estimate
- Assess financial feasibility of the project
- Typically construction cost estimate developed using
historical cost data for similar projects (adjusted using
cost indices), or square-foot cost
- Typically include;
 Fees
 Permits
 Taxes
 Owner-furnished furniture and equipment
Contingencies

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 Schematic Design Budget Estimates
 Schematic Design Budget Estimate
- Typically construction cost estimate transformed from
square-foot estimate into systems or assemblies
- Systems / assemblies can include;
 Foundations
 Substructure
 Superstructure
 Exterior closure
 Roofing and sheet metal
 MEP work
 Site work
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Schematic Design Budget Estimates

 Schematic Design Budget Estimate
- Construction cost estimates developed using historical
square-foot factors if available, or published cost data (RS
Means)
- Contractor’s indirect cost should be added
- Construction Contingency to cover the unknown should
be added (typically 10% in this stage)
- All owner’s costs should be added
- Estimate narratives should be prepared by the estimator
to identify assumptions and constraints (Estimate Basis)

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 Design Development Budget Estimates
 Design Development Budget Estimate
- Typically construction cost estimate prepared using
systems or assemblies format
- Primary difference is the level of details
- The value for some items are based on quantity take-off
- The estimate may include different design options
- Another option is to employ specialty contractors for
pricing individual elements
- Construction contingency – typically 5%
- All owner’s costs should be added
- Estimate narratives should be prepared by the estimator
to identify assumptions and constraints (Estimate Basis)
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Construction Cost Estimate Development

• Based on the Project Delivery Method….

Negotiated Construction Procurement Process

Preconstruction Services Construction

Preconstruction GMP Change

Services Order
Estimate Estimate

Bid Construction Procurement Process

Bid Construction

Detailed Lump Change

Sum Estimate Order
Estimate
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Estimating Process
Final
Bid
Subs
Quotations

Site G.Cs

Summary Schedule

Subcontractor Estimate

Price Recap

Recapitulation

Quantity Take-Offs (QTO)

Estimating Strategy

Request, Collect, Review Information

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