Chapter 5 Cost Estimating and Bidding BCN 4708 Fall 2008

Estimating and Bidding Estimating process Estimating process Determine labor, material and equipment needs Determine labor, material and equipment needs How much subcontracting? How much subcontracting? Assign prices to quantities Assign prices to quantities Add in: indirect costs, overhead and profit Add in: indirect costs, overhead and profit ASPE ASPE AACE AACE

Estimating and Bidding Lump-sum Estimates Lump-sum Estimates Unit-price Estimates Unit-price Estimates Approximate Estimates p.79 Approximate Estimates p.79 Cost-per Function Cost-per Function Area Cost Estimate Area Cost Estimate Volumetric Cost Estimate Volumetric Cost Estimate Modular Takeoff Estimate Modular Takeoff Estimate Partial Takeoff Estimate Partial Takeoff Estimate Panel Unit Cost Estimate Panel Unit Cost Estimate Parameter Cost Estimate Parameter Cost Estimate

Estimating and Bidding Bidding Procedures Bidding Procedures Private Private Public Public Advertisement for Bids Advertisement for Bids Private Private Public Public Reporting services Reporting services

Estimating and Bidding Decision to Bid Decision to Bid Set-Asides Set-Asides Qualification Qualification Deposits Deposits Availability of Plans and Specs Availability of Plans and Specs Bidding Period Bidding Period Instruction to Bidders Instruction to Bidders Preliminary conditions Preliminary conditions Jobsite Visit Jobsite Visit Bid invitations Bid invitations

Estimating and Bidding Quantity Surveys / Takeoffs Quantity Surveys / Takeoffs Architect / engineer Architect / engineer Contractor Contractor Professional Quantity Surveyors Professional Quantity Surveyors Cost Summaries fig 5.4 / 5.5 Cost Summaries fig 5.4 / 5.5 Material costs Material costs Direct labor cost Direct labor cost Indirect labor costs Indirect labor costs

Estimating and Bidding Equipment Costs Equipment Costs Equipment Expense Equipment Expense Equipment Rates Equipment Rates Ownership and Operating Costs Ownership and Operating Costs A = C(n+1) + S(n-1) / 2n A = C(n+1) + S(n-1) / 2n Equipment production rates Equipment production rates

Estimating and Bidding Subcontractor bids Subcontractor bids Bid Depositories Bid Depositories Allowances Allowances Overhead Overhead General Overhead General Overhead Project Time Schedule Project Time Schedule Markup 5 – 20 Markup 5 – 20

Estimating and Bidding Lump-sum Recap Sheet Lump-sum Recap Sheet Bid Changes Bid Changes Change sheet Change sheet Unit price recap sheet Unit price recap sheet Factor Factor Contract Bond Contract Bond Surety Surety Performance or payment bond Performance or payment bond Addenda Addenda

Estimating and Bidding Scope Bidding Scope Bidding Computer-Based Estimating Computer-Based Estimating Range estimating Range estimating