1. Construction Engineering Management Project Costing

2. Bid Package/Documents
Notice to Bidders/Invitation to Bidders
Type of project
Size of project
Location of project
Bid due date
Start and completion date
Bonds
Document location
Legal requirements
Bid Form
Alternates
Contract Agreement
General Conditions
Supplementary General Conditions
Drawings and Technical Specifications
Performance
Prescription
Addenda (Q & A)
Bid Package/Documents

3. Estimating Process Estimate construction costs Types of estimates
Lump sum
Unit price
Time and Material (T&M)
Cost price – Guaranteed Maximum price
Quantity takeoff

4. Process of Estimating Break the project into cost centers
Estimate the quantities required for the cost centers (e.g., cubic yards of earth, lineal feet of pipe, etc.)
Price cost the quantities (most take into consideration analysis of production rates based on resources available)
Calculate the total price of each cost center by multiplying the quantities by the unit price.

5. Method of Estimating Break work into individual work packages
Calculate quantities for each work item (adjust for waste)
Select construct methods to be used
Method of Estimating
Assign resource group to be used (crew composition, equipment, subcontractors)
Calculate crew cost
Estimate production rate
Calculate total work item cost

6. Learning Curve
Average time per unit
Number of Units

8. Estimating References
R. S. Means Company, Building Construction Cost Data
MeansCostWorks.com
F. R. Walker’s, The Builders Estimator’s Reference Manual
The Richardson General Construction Estimating Standards
Company Historical records!!!

10. General Conditions

11. Overhead & Profit

12. Cost Adjustment for Locale
San Antonio building cost = Canton building cost
San Antonio index Canton building index
$1,500,000 = Canton building cost
Canton building cost = x $1,500,000
55.0
Canton building cost = $4,202,277

13. Using published cost data, compute the cost to construct a 6 story dormitory consisting of 90,000 SF.
Using rough order of magnitude (cost per SF) data:
(a) What is the cost of this dormitory in Philadelphia, San
Francisco, and Miami?
(b) What would the same project cost in 2000, 2010
and today?
(c) Write a brief narrative discussing your methodology used to compute the costs.
(d) Cite your sources
(e) All reports shall be typed.
LAB PROBLEM