Construction Engineering Management Project Costing

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

o Performanceo Prescription

• Addenda (Q & A)

Estimating Process• Estimate construction costs• Types of estimates

Lump sumUnit priceTime and Material (T&M)Cost price – Guaranteed Maximum price

• Quantity takeoff

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.

Break work into individual work packages

Calculate quantities for each work item (adjust for waste)

Select construct methods to be used

Assign resource group to be used (crew composition, equipment, subcontractors)

Estimate production rate

Calculate crew cost

Calculate total work item costMet

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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!!!

General Conditions

Overhead & Profit

Cost Adjustment for Locale

San Antonio building cost = Canton building costSan Antonio index Canton building index

$1,500,000 = Canton building cost 55.0 154.1

Canton building cost = 154.1 x $1,500,000 55.0

Canton building cost = $4,202,277

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