1. Construction Cost Estimating Class #1: Course Introduction Class #2: The Estimating Process Prof. Ralph V. Locurcio, PE

3.  Syllabus handout…  Course admin & grading…  Textbooks  About your instructor…  Course objectives …  Estimating introduction  Assignment for next class…

4.  Texts:  RSMeans Student Edition  Construction Estimating using Excel  References:  Walker’s Builder’s Cost Estimating Manual  Estimating Construction Costs, Peurifoy & Oberlender,  Kerzner, Project Management

5.  Education…  BSE – West Point 1965  MSE, PhD(abd) - Purdue 1972  Resident Engineer Training – 1974  Contracting Officer Training – 1984, 1988  Registered PE: NJ, PA, GA, VA  Construction Experience…  Army Corps of Engineers 1965-1996  3 - Construction Commander, Operations Officer  3 - Public Works Director  2 - Construction Planner & Estimator  2 - Resident Engineer  6 - District Engineer – Philadelphia, Savannah  1 - Commander Kuwait Reconstruction Project  6 - Division Engineer – Pacific, SE United States  Senior VP STV Engineers – Infrastructure Design 1996-2004  Professor of Construction Management 2004-2014

6.  Understand the estimating process  Types of estimates & their use  Reading plans & specifications  Material take-off process by trade  Pricing labor & materials  Constructing & presenting a bid  Experience factors – guest lecturers

7.  It’s an extremely complex process…  Many players, many variables, many unknowns  Design is never perfect  Like manufacturing but…  Teams are variable; not trained on this project  Production site is crude & unprepared  Very large projects – rarely build more than one  Very large risks – owner’s first and last experience  Money drives all aspects of the process  One chance to get it right  Large penalties for error or contract failure  CM goal is to deliver a perfect product

8.  Sets the price for the owner  Sets the fee for the contractor/builder  Contractor pays for mistakes in estimate  Material costs vary by the market  Labor costs vary by the market  Productivity varies by sub-contractor  Labor costs vary by work available in region  Time to bid/estimate is very short  Hidden costs – weather, underground, site, owner

10.  Skills you need:  Reading Plans (Learn on your own)  Estimating Procedures (Class lectures + Excel Text)  Material costs (RSMeans)  Labor Practices, Teams & Productivity (RSMeans)  Equipment Utilization & Cost (RSMeans)  Construction Methods (RSMeans)  Contracting Terms & Methods (not covered)  Patience & Accuracy (Learn on your own)  Common Sense! (Learn on your own)

11. 228. If a builder build a house for someone and complete it, he shall give him a fee of two shekels in money for each sar of surface. 229. If a builder build a house for some one, and does not construct it properly, and the house which he built fall in and kill its owner, then that builder shall be put to death. 230. If it kill the son of the owner the son of that builder shall be put to death. 231. If it kill a slave of the owner, then he shall pay slave for slave to the owner of the house. 232. If it ruin goods, he shall make compensation for all that has been ruined, and inasmuch as he did not construct properly this house which he built and it fell, he shall re-erect the house from his own means. 233. If a builder build a house for someone, even though he has not yet completed it; if then the walls seem toppling, the builder must make the walls solid from his own means.

12.  Read text – Chapter 1 – on my website  Garden Shed Project - handout  Bill of materials  Complete bid price; all labor & materials  Signed bid documents

16.  Slides are on my web site  My web site: www.my.fit.edu/~locurcio

17.  Contact info for me… Prof. Ralph Locurcio, PE LINK – Room 233 Office Hours: Wed + Fri Email: locurcio@fit.edu Web: http://my.fit.edu/~locurcio