Approximate

Estimating
Techniques
Lara Tookey

2
Course Learning Outcomes

1 2 3 4
Examine cost planning Apply preliminary Demonstrate the Prepare Bills of
principles to make cost estimating methods to application of Quantities for
related decisions. prepare construction measurement principles construction works
cost estimates. and Standard Methods
of Measurement for
measuring construction
works.

3
 COST CONTROL
Pre-contract cost control Post-contract
cost control
COST PLANNING
Cost limit / Analysis to Cost
Indicative Outline Cost Detailed Cost Analysis of
Plan Plan check Cost Monitoring /
cost Final
Plan against Forecasting /
First Account
Cost priced SoQ Financial
estimate Checks Statements

Outline Detail Production Project Site Feed-

Inception Feasibility Scheme Design SoQ Tender Completion
Proposals Design Information Planning Operations back

BRIEFING SKETCH PLANS WORKING DRAWINGS SITE OPERATIONS

4
 Calculate a functional unit
estimate.

Topic
Learning Calculate a superficial method
objectives: estimate.

Contrast the functional and

superficial methods.
 Cost
planning
during
the design
and
construction
phases
6
Ashworth Fig 15.1 p.306
Design stage Estimate type Example

Cost per bed

Unit Cost per pupil
Cost per workstation
Brief stage

Sketch design Space Cost per m2 gross floor area

Element Cost of element per m2

Gross floor area

Detailed
design Features Approximate Quantities

SMM Items Bill of Quantities

7
 [The output if you are a Client / Developer]

BoQ /
Elemental
Estimate
etc.

Tender /
Bid

[The output if you are a Contractor]

Estimating
[Process of]
What information do we need?

Project
Scope
Specifications

Architects
drawings Feasibility

Unit Engineers
Rates drawings
Estimating (Cost Forecasting) Methods

Single Rate Detailed

• Functional • Elemental method
• Square metre (superficial) • Approximate Quantities

• All methods depend on data obtained directly/indirectly from other

contracts.
• ALWAYS be prepared to make allowances for differences in date,
market conditions, locality, contract conditions and size of the project.
• Rule of thumb: the less information available = simpler cost
calculation = less accurate resultant cost
10
Cost
estimating All cost estimating relies on historical
data – you need to have access to cost
information from previous projects, or

methods from projects completed elsewhere.

available at Need past cost information to be able

Early Stages to predict future project cost.

of Design
11
 Functional Unit Method

Land acquisition

Initiation Feasibility

Design Construction Commission Close out

We are somewhere here in the estimating the process

 COST CONTROL
Pre-contract cost control Post-contract
cost control
COST PLANNING
Cost limit / Analysis to Cost
Indicative Outline Cost Detailed Cost Analysis of
Plan Plan check Cost Monitoring /
cost Final
Plan against Forecasting /
First Account
Cost priced SoQ Financial
estimate Checks Statements

Outline Detail Production Project Site Feed-

Inception Feasibility Scheme Design SoQ Tender Completion
Proposals Design Information Planning Operations back

BRIEFING SKETCH PLANS WORKING DRAWINGS SITE OPERATIONS

 • Used at VERY early stage of estimating when Client only has a general
idea of the project
• Number of beds, seats, or people etc.

• Method
• Obtain unit rate of completed building of the same type [R]
• Make adjustments for differences in site conditions; design; construction
methods; quality of materials [R1]
• Determine number of units [Q]
• Multiply the proposed number of units by the unit rate

𝐼𝑛𝑑𝑒𝑥 𝑝𝑟𝑒𝑠𝑒𝑛𝑡
𝑇𝑜𝑡𝑎𝑙 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝐶𝑜𝑠𝑡 = 𝑄 𝑥 𝑅1 𝑥 + 𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝑤𝑜𝑟𝑘𝑠 + 𝑃𝑖𝑙𝑖𝑛𝑔 + 𝑂𝑡ℎ𝑒𝑟𝑠 𝑎𝑠 𝑎𝑝𝑝𝑟𝑜𝑝𝑟𝑖𝑎𝑡𝑒
𝐼𝑛𝑑𝑒𝑥 𝑝𝑎𝑠𝑡

Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS
 • Hospital of 340 beds
• Cost per bed is $140,000

Functional • Total estimated cost of new project is therefore

= 340 x 140,000
unit method = 47,600,000

• Not updated for historical rates or other costs

• This will be discussed in more detail later
Usually used were little or no serious design work has been carried out.
Very rough guide to preliminary project cost.
Very simple calculation, uses cost information from previous projects.
Adjustments made for inflation, changes in specification, etc
Used to set initial cost limits/targets.
Used for comparing cost effectiveness of different schemes.
Main problem is establishing a realistic cost per unit.
Meaningless in assessing cost of a particular design proposal.
16
School
• Assume that the current cost for single storey timber frame school is $1,200,000
[120 students].
• You are asked to develop an estimate for a school for 90 students.

Solution:
• The first step is to separate the cost per student =

• Apply the unit cost to the new school =

• Not updated for historical rates or other costs (will discuss historical rates later)
 Superficial rate per square metre of floor area
2 2
(Rate/m ) [aka Cost per m GFA]
Land acquisition

Initiation Feasibility

Design Construction Commission Close out

We are somewhere here in the estimating the process

 COST CONTROL
Pre-contract cost control Post-contract
cost control
COST PLANNING
Cost limit / Analysis to Cost
Indicative Outline Cost Detailed Cost Analysis of
Plan Plan check Cost Monitoring /
cost Final
Plan against Forecasting /
First Account
Cost priced SoQ Financial
estimate Checks Statements

Outline Detail Production Project Site Feed-

Inception Feasibility Scheme Design SoQ Tender Completion
Proposals Design Information Planning Operations back

BRIEFING SKETCH PLANS WORKING DRAWINGS SITE OPERATIONS

 Which
GROSS
FLOOR
AREA (GFA)
definition
NZIQS GFA

“The area used for the calculation of elemental costs is the gross floor area, measured over
all the exterior walls of the building, over partitions, columns, interior structural or party
walls, stair wells, lift wells, ducts, enclosed roof top structures and basement service area.
All exposed areas such as balconies, terraces, open floor areas and the like are excluded…
(description continues)…”

Source: NZIQS Elemental analysis of Costs of Building Projects

 CITY OF AUCKLAND GFA

“Gross floor area (GFA) is the sum of the gross of the several floors of all buildings
on a site measured from the exterior faces of the exterior walls, or from the centre
lines of walls separating two buildings or, in the absence of walls, from the exterior
edge of the floor….”
Source: City of Auckland – District plan central area section 4
The document then goes on to include voids, basement space, elevator shafts,
interior >2.0m, interior balconies, car parking spaces permitted
The document excludes pedestrian circulation space
The document also has specific conditions for Quay Park and the Wynyard Quarter
RICS GIFA
“Gross Internal Floor Area is the area of a building measured to the internal face of the perimeter walls at
each floor level, which includes ,Areas occupied by internal walls and partitions, Columns, piers chimney
breasts, stairwells, lift-wells, other internal projections, vertical ducts, and the like, Atria and entrance
halls with clear height above, measured at base level only, Internal open sided balconies, walkways, and
the like, Structural, raked or stepped floors are treated as a level floor measured horizontally, Horizontal
floors with permanent access below structural, raked or stepped floors Corridors of a permanent essential
nature (e.g. fire corridors, smoke lobbies, etc.), Areas in the roof space intended for use with permanent
access (BCIS), Mezzanine areas intended for use with permanent access, Lift rooms, plant rooms, fuel
stores, tank rooms which are housed in a covered structure of a permanent nature, whether or not above
main roof level, Service accommodation such as toilets, toilet lobbies, bathrooms, showers, changing
rooms, cleaners’ rooms and the like, Projection rooms ,Voids over stairwells and lift shafts on upper floors,
Loading bays, Areas with a headroom of less than 1.5m, Pavement vaults, Garages, Conservatories (BCIS),
And excludes:, Perimeter wall thickness and external projections, External open-sided balconies, covered
ways and fire escapes, Canopies, Voids over or under structural, raked or stepped floors, Greenhouses,
garden stores, fuel stores and the like in residential property, Open ground floors and the like (BCIS)”
 NZIQS AUCKLAND COUNCIL RICS

External walls Yes Yes No

Lifts and voids Yes Yes Upper floors only

Car garages No Yes No

Basement space No Yes No
(outside of service
areas)
Areas >1.5m high Not mentioned Yes No

Internal partitions Yes Yes Yes

External balconies No Depends on cover No

Superficial Method
• More sophisticated than Functional Unit – requires some design work to have been
completed.
• An appropriate $/m2 GFA is calculated using previous project cost information
• The GFA for the new project is then calculated, multiplied by the calculated cost and the
resultant figure is the total estimated cost for the new project.
• Another easy-to-use method, but simplistic in that no allowances are made for plan
shape, storey height, structural form, specification etc.

25
 Building Function Warehouse
Geographical Location Auckland
Building parameters 26m span – Adopt 20m plus
Base project GFA = 1120m2 Current date – 14th April 2014
information –
assumption Rawlinsons sample historical
today is cost database

14th April 2014

Demolition of existing buildings
($50,000)

Exclude all other costs

SOURCE: Rawlinsons
13/14

Geographical
Location

Bld parameters

Indicative
range

1120 m2 x $800.00/m2 = $896,000.00 (base cost)

 Rawlinsons 2013/2014
Preliminary estimate for
Warehouse over 20m clear span 1,120 GFA
$ 800 /m2
Building Sub-total: $ 896,000
warehouse

Demolition:
Allowance for demolition $ 50,000
Preliminary estimate $ 946,000

Exclusions: remember to list them all No preliminaries,

Notes: Basic standard finishes, 1200 high contingencies,
precast blockwork walls with metal cladding builders margins
above