Estimation,

Ar. Khenneth C. Chia

FEU-IARFA Costing &
Specification
Is Cost Estimating an Art or a Science?
▪Before answering this question, let us first define what is an Art ? And what is a
Science ?
▪ An art is the process of arranging elements in a manner that affects senses and
emotions. It involves imagination and creativity.
▪ A science is the systematic approach to gathering knowledge and data based on
laws and theories.

Cost estimating involves calculating cost as well as visualization of

how the project will be built, therefore, cost estimating is a blend of
both art and science.
Understanding Terms Specification

Estimation
Estimating is the technique of calculating or
Computing the various quantities and the Project
expected Expenditure to be incurred on a
particular work or project.
In case the funds available are less than the Estimation Costing
estimated cost the work is done in part or by
reducing it or specifications are altered, the Drawings:
following requirement are necessary for
preparing an estimate.
If the drawings are not clear and
a ) Drawings like plan, elevation and sections of without complete dimensions the
important points.
preparation of estimation become
b) Detailed specifications about workmanship & very difficult. So, it is very
properties of materials etc. essential before preparing an
c) Rates of all materials estimate.
Understanding Terms Specification

Specification-
A specification is a detailed description of the
dimensions, construction, workmanship, materials Project
etc., of work done or to be done on a project,
prepared by an architect, engineer or designer.
Estimation Costing

Rates:
For preparing the estimate the unit rates of each item of work are required.
1. For arriving at the unit rates of each item.
2. The rates of various materials to be used in the construction.
3. The cost of transport materials.
4. The wages of labour, skilled or unskilled of masons, carpenters, Mazdoor,
Understanding Terms Specification

Contract- “An agreement enforceable by law is a

Contract.”
“Every promise and every set of promises, forming
Project
the consideration for each other, is an
Agreement.”
“The agreement must create legal obligations Estimation Costing
between the parties is an Enforceable
A Contract is an undertaking by a firm or a person
to do any work under certain terms and conditions.

BoQ means a bill of quantity is a document prepared by a cost estimator to calculate

the exact costing of project work by multiplying item work by their rate. It is the
most important document for tendering and contracting. Bill of quantity gives
an idea about the cost of a project that is tendering firm willing to offer.
Specifications
• Architects and Interior designers Objectives of Specification
specify items used in the design and Specifications define the quality of materials
construction of an exterior/ interior
environment. and workmanship. Hence, the correct rates
of the specific material can be identified.
•Specifications describe the quality of
materials and their construction or The information and the instructions in
installation. specifications will serve as a guide to the
contractor as well as the supervising staff
•They include information that cannot
be communicated graphically in the during execution of work.
drawings. States the information the architect/
Contract designer wants to convey to fulfil the design
Document requirements.
• Describes and limits the
responsibilities of the owner and the
Drawings Specifications contractor.
Specifications Types of Specification

Brief Detailed
Specifications Specifications

Standard
General Provisions Technical Provisions
Specifications

Spec. for material and

workmanship

Spec. for performance

Spec. for proprietary

commodities
Spec. for material and workmanship- Stress is put on quality of material and workmanship.
1.Material
a)Physical Properties (Strength & Hardness)
Technical Provisions

b)Chemical Composition of material

c)Electrical, thermal & Acoustical properties
d)Appearance of the material
e)Information regarding protection required during transport, handling and storage of materials
f)A clear statement regarding inspection and procedure of test of material. Also, the place of inspection and
test should be clearly specified in the specifications, i.e. factory, site, lab.
2.Workmanship
a)Detailed description of the construction method for each item should be written.
b)Instruction regarding the protection of finished work as well as the adjacent property should also be
specified.
Spec. for performance- Based on overall performance of the final product and are written
for equipment and machinery such as pumps, motors etc. It includes
• General Description- regarding shape and size of the equipment
• Design and Installation-
• Guarantee- period of guarantee, supply of spare parts for specific duration etc.
Spec. for proprietary commodities- Details of products that are standardized and patented.
So it is important to know the quality of product beforehand*.
Depending upon the method to be used in describing a material or a method of
installation, the specifications can be classified as
Classification of
Specification

Restricted Closed
Open Specifications
Specifications Specifications

Lays down minimum Material is described and Material or product is

standards of materials choice is of contractor to designated mentioning
which can be fulfilled by choose between two or catalogue no,
the manufacturers. more manufacturers or manufacturer etc.
Suitable for basic distributers. Approved
materials such as list of products is
cement, sand etc. specified.
What is an Estimate?
Costs of construction work are classified as:
1. Materials costs.
2. Labor costs.
3. Equipment costs.
4. Overhead (general and job) costs.
5. Profit.

Data on all of these costs are required to develop or prepare

an estimate.
The true value of the project will not be
known until the project has been
completed and all costs have been
recorded.
What is the
Purpose of
Therefore, the estimator does not establish Estimating?
the cost of a project; he simply establishes
the amount which the contractor will
receive for constructing the project.
What is the Role of the Estimator?
The estimator’s job is to prepare estimates of building project costs.

▪The success of a contractor’s business depends on the accuracy of these estimates.

▪The estimator’s success will be based on his previous experience and knowledge of
the construction industry.
▪A contractor or estimator lacking this experience may over, or under-estimates his
project costs.

All cost data is acquired from experience.

If an estimator does not have cost data from his own experience, he must use cost data from price books
and handbooks.
Role of
Estimator
What the Estimator Must Know (Skills)?
He must have a thorough knowledge of the building trades.
▪This includes types of construction and methods of construction.

He must be able to read building plans and notes, and understand the specifications.
▪If he finds any discrepancies between the plans and specifications, he will bring them
to the attention of the architect or owner for solution.
▪When all the questions are answered and problems are solved, he can then prepare
and finish the cost estimate.
What the Estimator Must Know?
He must keep up with the development of new construction products and materials.
▪To keep current, he should frequently visit trade shows and subscribe to building
magazines.

He has to possess some basic mathematical ability.

He has to have at his fingertips reference materials, books, tables, and tabulating
equipments to speed up his job.
▪In time he will acquire reference materials in the form of material catalogs,
brochures, and manufacturer specification sheets for the product he uses.
The Components of an Estimate
Most estimates are made up of the following five parts:

1. Materials: The estimator makes a take-off of all the different materials required on
the project from the plans and specifications.
2. Labor: The estimator estimates the hours needed to do the required work and then
multiply by the appropriate wage.
3. Equipment: The cost of equipment includes ownership or rental fees, moving to
the job site, erecting, dismantling and operating
Possible Sources of Errors in Estimates
Making no provisions to have estimates checked.
Insufficient allowance for overhead.
Omission of profit.
Need for Estimate
1. It help to work out the approximate cost of the project in order to decide its feasibility with respect
to the cost and to ensure the financial resources, it the proposal is approved.
2. Requirements of controlled materials, such as cement and steel can be estimated for making
applications to the controlling authorities.
3. It is used for framing the tenders for the works and to check contractor's work during and after the
site execution for the purpose of making payments to the contractor.
4. From quantities of different items of work calculated in detailed estimation, resources are allocated
to different activities of the project and ultimately their durations and whole planning and
scheduling of the project is carried out.
SITE CONDITIONS AFFECTING THE
OVERALL COST
1. Each type of work requires a different method of construction. Construction may be
of an ordinary house or office and it may also be of a Dam, Tunnel, Multistory building,
Airport, Bridge, or a Road, already in operation. Each of these works requires totally
different construction techniques, type of machinery, and formwork.
2. Quality of labour and labour output varies in different localities.
3. Weather conditions greatly affect the output and, hence, the overall cost.
4. Ground conditions vary and change the method of construction. For example,
excavation may be dry, wet, hard, soft, shallow or deep requiring different efforts.