2004 tea conference, mobile, al ingredients for a cost-based estimate $ $ $ $ $ $
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2004 TEA Conference, Mobile,
AL
Ingredients for a Cost-based Estimate
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2004 TEA Conference, Mobile,
AL
Today’s Topics Components of Cost Based
Estimates Results Panel Discussion
2004 TEA Conference, Mobile,
AL
Components Labor Material Equipment Time Overhead & Profit
2004 TEA Conference, Mobile,
AL
Labor
Actual Contractor Payrolls Department of Labor and
Industry prevailing wages. Include fringe benefits, FICA,
Unemployment insurance, Liability insurance, work comp, general overhead, and profit.
2004 TEA Conference, Mobile,
AL
Labor We set up crews for each
task of an operation. Milling – we have a crew
for the actual milling (2 bit workers, 2 op-eng, and a crew for the hauling (2 drivers). We will change quantity as necessary.
2004 TEA Conference, Mobile,
AL
Material Contact suppliers or
manufacturers. Inquire about quantity discounts. Include shipping, taxes, royalties.
2004 TEA Conference, Mobile,
AL
Material Milling – it would seem that there
are no materials, however, the milling bits get worn, so we include bits in our material.
2004 TEA Conference, Mobile,
AL
Equipment Blue Book rental rates for
equipment, we use rates for 5 year old equipment.
Regional adjustment applies.
2004 TEA Conference, Mobile,
AL
Equipment Milling – To go along with the
milling crew, we have the milling machine. Trucks to go along with the trucking task.
2004 TEA Conference, Mobile,
AL
Time Impact on Estimate Resources Experience
“Time = Money”
2004 TEA Conference, Mobile,
AL
Time - Impacts
Superpave Asphalt Example:Production Rate Price1600 tons/day $35.671200 tons/day $38.53 800 tons/day $44.09
2004 TEA Conference, Mobile,
AL
Time - Resources DOT Construction Offices Industry Trade Groups Associated General Contractors Equipment Manuals RS Means
2004 TEA Conference, Mobile,
AL
Time - Experience Keep track of past jobs Practice makes perfect Look at jobs in terms of Days
2004 TEA Conference, Mobile,
AL
Overhead & Profit Overhead Items
Management Offices and Storage Office Staff Estimating HR Items
$Generally varies from 5-20% depending on Company size and amount of work under contract
2004 TEA Conference, Mobile,
AL
Overhead & Profit Profit
Ask Contractors (Be Selective) RS Means Be Consistent
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Generally varies from 3-10%P&O in Items or Mobilization?
2004 TEA Conference, Mobile,
AL
Results
Why do Cost Based Estimating? Provides the highest quality estimate possible. Red flags possible quantity errors, unworkable
staging, plan and contract errors and discrepancies.
Best benchmark possible. Guarantees fewer projects outside awardable
ranges. Credibility and confidence for upper management
decision making. Forms the foundation for bid collusion detection.
2004 TEA Conference, Mobile,
AL
Panel Discussion George Bradfield, Georgia DOT Jennifer Carlson, Minnesota, DOT Travis Koestner, Missouri DOT