Project Estimating Overview Module: 03.1 – PS&E Revised: November 10, 2018 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

Overview Types of Estimates Estimating Process Cost Components Estimating Resources Work Packages Parametric Estimates 11/10/2018 CVEN-349 Maxwell

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 11/10/2018 CVEN-349 Maxwell

AACE Classifications Order of Magnitude Estimates Budget Estimates Definitive Estimates 11/10/2018 CVEN-349 Maxwell

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! 11/10/2018 CVEN-349 Maxwell

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 11/10/2018 CVEN-349 Maxwell

Continued Apply Inflation and Factors Compute Costs Fine Tune Publish in Useful Form 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

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. 11/10/2018 CVEN-349 Maxwell

Assessment: Take a minute to write 1 sentence on the “muddiest” topic for the day. 11/10/2018 CVEN-349 Maxwell