Chapter 5 Cost Estimating Chapter 5 Cost Estimating and Biddingand Bidding

BCN 4708 Fall 2008BCN 4708 Fall 2008

Estimating and BiddingEstimating and Bidding

Estimating processEstimating processDetermine labor, material and equipment Determine labor, material and equipment

needsneedsHow much subcontracting?How much subcontracting?Assign prices to quantitiesAssign prices to quantitiesAdd in: indirect costs, overhead and profitAdd in: indirect costs, overhead and profit

ASPEASPEAACEAACE

Estimating and BiddingEstimating and Bidding

Lump-sum EstimatesLump-sum Estimates Unit-price EstimatesUnit-price Estimates Approximate Estimates p.79Approximate Estimates p.79

Cost-per FunctionCost-per Function Area Cost EstimateArea Cost Estimate Volumetric Cost EstimateVolumetric Cost Estimate Modular Takeoff EstimateModular Takeoff Estimate Partial Takeoff EstimatePartial Takeoff Estimate Panel Unit Cost EstimatePanel Unit Cost Estimate Parameter Cost EstimateParameter Cost Estimate

Estimating and BiddingEstimating and Bidding

Bidding ProceduresBidding ProceduresPrivate Private PublicPublic

Advertisement for BidsAdvertisement for BidsPrivate Private PublicPublicReporting servicesReporting services

Estimating and BiddingEstimating and Bidding Decision to BidDecision to Bid Set-AsidesSet-Asides QualificationQualification DepositsDeposits Availability of Plans and SpecsAvailability of Plans and Specs Bidding PeriodBidding Period Instruction to BiddersInstruction to Bidders Preliminary conditionsPreliminary conditions Jobsite VisitJobsite Visit Bid invitationsBid invitations

Estimating and BiddingEstimating and Bidding

Quantity Surveys / TakeoffsQuantity Surveys / TakeoffsArchitect / engineerArchitect / engineerContractorContractor

Professional Quantity SurveyorsProfessional Quantity SurveyorsCost Summaries fig 5.4 / 5.5Cost Summaries fig 5.4 / 5.5Material costsMaterial costsDirect labor costDirect labor cost Indirect labor costsIndirect labor costs

Estimating and BiddingEstimating and Bidding

Equipment CostsEquipment CostsEquipment ExpenseEquipment ExpenseEquipment RatesEquipment RatesOwnership and Operating CostsOwnership and Operating Costs

A = C(n+1) + S(n-1) / 2nA = C(n+1) + S(n-1) / 2nEquipment production ratesEquipment production rates

Estimating and BiddingEstimating and Bidding

Subcontractor bidsSubcontractor bidsBid DepositoriesBid DepositoriesAllowancesAllowancesOverheadOverhead

General OverheadGeneral OverheadProject Time ScheduleProject Time ScheduleMarkup 5 – 20Markup 5 – 20

Estimating and BiddingEstimating and BiddingLump-sum Recap SheetLump-sum Recap SheetBid ChangesBid Changes

Change sheetChange sheetUnit price recap sheetUnit price recap sheet

FactorFactorContract BondContract Bond

Surety Surety Performance or payment bondPerformance or payment bond

AddendaAddenda

Estimating and BiddingEstimating and Bidding

Scope BiddingScope BiddingComputer-Based EstimatingComputer-Based EstimatingRange estimatingRange estimating