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Project Estimating Overview

Project Estimating Overview. Module: 03.1 – PS&E Revised: January 3, 2020. Purpose:. Illustrate the scope of estimating. Define the types of estimates. Describe the contents of a typical estimate. Begin the description of “how to do” an estimate. Learning Objectives:.

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Project Estimating Overview

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  1. Project Estimating Overview Module: 03.1 – PS&ERevised: January 3, 2020 CVEN-349 Maxwell

  2. Purpose: • Illustrate the scope of estimating. • Define the types of estimates. • Describe the contents of a typical estimate. • Begin the description of “how to do” an estimate. CVEN-349 Maxwell

  3. Learning Objectives: • Students should be able to list the steps in the estimating process. • Students should be able to define the cost elements of a simple construction estimate. • Students should be able compute the value of these cost elements, given appropriate data. CVEN-349 Maxwell

  4. Overview • Types of Estimates • Estimating Process • Cost Components • Estimating Resources • Work Packages • Parametric Estimates CVEN-349 Maxwell

  5. Types of Estimates • Feasibility Estimate(s) • Preliminary or Pre-construction Estimate(s) • Unit Cost Estimate – • Parametric Estimate – • Factor Estimate – • Definitive or detailed estimates: CVEN 473 • Working drawings and estimates: CVEN 405 CVEN-349 Maxwell

  6. AACE Classifications • Order of Magnitude Estimates • Budget Estimates • Definitive Estimates CVEN-349 Maxwell

  7. Definitive Estimating Process • Develop a Work Element Structure • CSI Categories • Site Work • Concrete • Etc. • Schedule the Work Elements • Bar Chart • CPM Diagram • These should be related processes! CVEN-349 Maxwell

  8. Continued • Organize Historical Data • Rationalize and Scale to Job at Hand • Apply Learning Curves • Identify Crew Configurations • Compute Direct Labor, Material, and Equipment Costs • Estimate Indirect and G&A Costs CVEN-349 Maxwell

  9. Continued • Apply Inflation and Factors • Compute Costs • Fine Tune • Publish in Useful Form CVEN-349 Maxwell

  10. In Class Pair Exercise 03.01 • Let’s estimate the “order of magnitude” cost of a parking garage at TAMU. • How many cars or spaces? • Get cost per space from R.S. Means. • Arrive at a range, etc. • Compute estimate. CVEN-349 Maxwell

  11. Definitive Estimate Direct Cost Components • Direct Material Costs (30%-50%) • Direct Labor Costs (40%-60%) • Wage Rates • Productivity • Direct Equipment Costs (20%-30%) Direct Costs: Those costs that are applied directly to the product in question – This is an important concept. CVEN-349 Maxwell

  12. Cont’d – Indirect Costs & Profit • Indirect Job Supervision – Clerical Staff • Other Project Indirects – Office Trailer • Company Indirects – General and Administrative (G&A) Indirect Costs: All costs that are NOT direct. • Profit – Net of Revenue less all Costs, including interest costs on Working Capital. CVEN-349 Maxwell

  13. Resources • R. S. Means, etc. (See Handouts) • Historical Project Data • Productivity Work Standards • Scaling Factors: Location, Inflation, Customer, etc. A lot of the questions I get asked by “call-ins” can be answered from information in one or more of the Means Manuals. CVEN-349 Maxwell

  14. Assessment: • Take a minute to write 1 sentence on the “muddiest” topic for the day. CVEN-349 Maxwell

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