1. Project Estimating Overview
Module: 03.1 – PS&E Revised: November 10, 2018
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2. Purpose: Illustrate the scope of estimating.
Define the types of estimates.
Describe the contents of a typical estimate.
Begin the description of “how to do” an estimate.
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3. Learning Objectives:
Students should be able to list the steps in the estimating process.
Students should be able to define the cost elements of a simple construction estimate.
Students should be able compute the value of these cost elements, given appropriate data.
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4. Overview Types of Estimates Estimating Process Cost Components
Estimating Resources
Work Packages
Parametric Estimates
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5. Types of Estimates Feasibility Estimate(s)
Preliminary or Pre-construction Estimate(s)
Unit Cost Estimate –
Parametric Estimate –
Factor Estimate –
Definitive or detailed estimates: CVEN 473
Working drawings and estimates: CVEN 405
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6. AACE Classifications Order of Magnitude Estimates Budget Estimates
Definitive Estimates
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7. Definitive Estimating Process
Develop a Work Element Structure
CSI Categories
Site Work
Concrete
Etc.
Schedule the Work Elements
Bar Chart
CPM Diagram
These should be related processes!
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8. Continued Organize Historical Data
Rationalize and Scale to Job at Hand
Apply Learning Curves
Identify Crew Configurations
Compute Direct Labor, Material, and Equipment Costs
Estimate Indirect and G&A Costs
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9. Continued Apply Inflation and Factors Compute Costs Fine Tune
Publish in Useful Form
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10. In Class Pair Exercise 03.01
Let’s estimate the “order of magnitude” cost of a parking garage at TAMU.
How many cars or spaces?
Get cost per space from R.S. Means.
Arrive at a range, etc.
Compute estimate.
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CVEN-349 Maxwell

11. Definitive Estimate Direct Cost Components
Direct Material Costs (30%-50%)
Direct Labor Costs (40%-60%)
Wage Rates
Productivity
Direct Equipment Costs (20%-30%)
Direct Costs: Those costs that are applied directly to the product in question – This is an important concept.
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12. Cont’d – Indirect Costs & Profit
Indirect Job Supervision – Clerical Staff
Other Project Indirects – Office Trailer
Company Indirects – General and Administrative (G&A)
Indirect Costs: All costs that are NOT direct.
Profit – Net of Revenue less all Costs, including interest costs on Working Capital.
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13. Resources R. S. Means, etc. (See Handouts) Historical Project Data
Productivity Work Standards
Scaling Factors: Location, Inflation, Customer, etc.
A lot of the questions I get asked by “call-ins” can be answered from information in one or more of the Means Manuals.
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14. Assessment:
Take a minute to write 1 sentence on the “muddiest” topic for the day.
11/10/2018
CVEN-349 Maxwell