CONSTRUCTION

ESTIMATING I
BCT 1770
CHAPTER 1
ESTIMATING PROCEDURES

MICHAEL KNOTEK

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ESTIMATING PROCEDURES
The Estimator
Part of the estimators role is to work in cooperation with the architect and engineer and to maintain a good rapport with
them.
This rapport carries on throughout the estimating process as well as after the contract and through the period of
construction
Able to read plans and measure them accurately
Possess a good knowledge of math
Able to visualize
Possess an intimate knowledge of job conditions, the most practical methods of handling materials and labor on
the job and the most economical methods of construction
Know how and be able to assemble materials into workable units
Possess an intimate knowledge of labor performances and operations and be able to convert them into costs in
dollars and cents
Have at least an average amount of common sense

Preparation of the Estimate

A good estimator constantly follows a well-organized program of procedures. W hen all the procedures are followed, the
chances of making errors are minimized.
A good procedural guideline should be similar to the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Study legal documents and specifications

Study the plans thoroughly before starting the quantity survey
Mark the plans, sections and details that pertain to the estimate
Do the quantity survey (take-off) making sure to mark all areas covered
Always double-check the survey. This is especially important if there is
interference during the survey
Obtain material costs; extend those costs
Add taxes where applicable
Determine labor costs through the productivity process or from historical data
Determine equipment requirements and costs
Add overhead and profit
Include bonding costs, if any
Double-check all math and prepare to tender the bid

Quantity Survey
W hen doing the quantity survey, the estimator should think in terms of actual field procedures
By picturing these procedures, the estimator can develop an organized estimate that will be easily understood by all
interested parties.

Take-Off should be in Construction Sequence

Site preparation
Excavation
Concrete
W all footings
Foundation walls
Slab
Steps
Columns
Beams
Etc.

Forms
The estimating procedures should definitely include completion of forms for a paper0trail audit
The estimator needs to compile information in an orderly manner so that those who need to see the estimate can
readily understand it.
FORMS AID IN THIS PROCESS

Take-Off Sheet

Pricing Sheet

Summary Cost Sheet

Quality of the Take-Off

Accuracy
Take-offs must be complete and accurate
Get in the habit of working carefully - It is easier to prevent an error in the first place than it is to catch the mistake
after its happened.
The estimate is not complete until every number has been checked and verified

Organization
Very important to have good organization and established procedures
An estimate should follow a logical order - makes it less likely that you will omit some major cost
your s ystem may be different, that doesnt matter. W hat does matter is that you follow the same logical procedure
on every estimate
INCLUDE ALL CALCULATIONS

Neatness
Its nearly impossible to change an estimate or review an estimate that is illegible
Every estimator needs good cost records
This estimate file will become the most valuable and most used set of documents in your office
The time required to shingle a roof, the man-hours needed to frame 100 lf. of partitions should be recorded and
filed for ready reference

Worksheet Example
Install face bricks to cover a 20 X 8 wall area
To lay 1,000 bricks with a 3/8 cross joint and back joint, 14 cu.ft. of masonry mortar is required
14 cu.ft. of masonry mortar is composed of 4 2/3 sacks of masonry cement and 14 cu.ft. of sand
Material quotations:

Labor quote:

Face brick
Masonry cement
Sand
Mason
Laborer

$75.00 per 1,000 bricks

$1.65 per sack
$5.25 per cy.
360 bricks per 8 our day
@ $10.00 per hr.
- $6.00 per hour

NOTE: 6.55 bricks per square foot

Take-Off Sheet for Example

Take-Off Rules
1.

Takeoff items comprise two components:

A.
Dimensions that define the size or quantity of the item in accordance with the
required units of measurement of that item; and
B.
A description that classifies the item in terms of the requirements of the standard
method of measurement
2. Dimensions are entered onto the takeoff in this order: length, width and depth (or height)
3. Dimensions are written in feet to two decimal places, thus 5 10 would be written into
dimension column as 5.83
1 inch = 0.08 feet
7 inches = 0.58 feet
2 inches = 0.17 feet
8 inches = 0.67 feet
3 inches = 0.25 feet
9 inches = 0.75 feet
4 inches = 0.33 feet
10 inches = 0.83 feet
5 inches = 0.42 feet
11 inches = 0.92 feet
6 inches = 0.50 feet
12 inches = 1.00 feet
4. If a dimension does not come directly from a bid drawing, evidence, in the form of side calculations showing how
it was determined, should be included on the takeoff even for the simplest calculation.
5. Dimensions are rounded to the nearest whole inch. However, to avoid compounding rounding errors, fractions of
an inch are not rounded in side calculations until the end result of the calculation is obtained
6. Dimensions figured on the bid drawings, or calculated from figured dimensions, are used preference to scaled
dimensions. The estimator should scale drawings to obtain dimensions only as a last resort because drawings are
not always accurately drawn to scale.
7. Deductions listed with the dimensions are written in red or enclosed in brackets <> and noted as deductions.
8. Throughout the takeoff, headings are inserted to indicate such things as the trade being taken off, the location of
the work under consideration, and the phase in which the work is classified. Side notes are also recommended to
explain what is being measured, especially when the work is complex or unusual. All of these headings and
notations help provide an audit trail.
9. It is recommended that the estimator make use of highlighter pens to check off items of work as the takeoff
progresses.
10. Takeoff descriptions contain sufficient information for the estimator to later price the work involved.
11. Generally, when describing a takeoff item, the estimator does not mention in the description or measure
separately any of the following items because they will be dealt with in the pricing the takeoff items:

Transportation or any other costs associated with the delivery of the

materials involved.

Unloading materials

Hoisting requirements

Labor setting, fitting or fixing in position

Lapping, cutting, or waste of materials

Stripping formwork

Form oil

Rough hardware

Scaffold and falsework

Take-Off
The estimator should be aware that while all the rules are in place to obtain consistency and objectivity required, there
is always an occasional situation in which the work is not routine and a better result may be obtained if the rules are
relaxed.
For estimators, to continue to be effective, have to preserve a certain flexibility of approach keeping in mind their major
goal of pricing the work of the project as efficiently as possible

Estimating Process is Continuous from the beginning to the end of a project

Setting up the estimate

Bidding for a contract

Bid analysis
Purchasing of subcontract and materials
Evaluation of field applications
Cost analysis

THE ESTIMATE

DIRECT COSTS

SELFPERFORMED
WORK

INDIRECT COSTS

SUBCONTRACTED
WORK

JOB SITE
OVERHEAD

END-OF-BID
ITEMS

PROFIT
LABOR

PERMITS,
INSURANCE,BONDS
MAIN OFFICE
OVERHEAD

MATERIAL

JOB
ORGANIZATION/
SUPERVISION

EQUIPMENT

TEMPORARY
CONSTRUCTION

OTHER

INDIRECT
EQUIPMENT

SALES TAX

SURETY BOND

CONTINGENCY

OTHER

Construction Specifications Institute (CSI)

Sample Residential Checklist
Division 1:
Division 2:
Division 3:
Division 4:
Division 5:

General Requirements Building permits, temporary facilities, insurance, cleanup, close-out

Site W ork Clearing site, site grading, piers and footings, underslab fill, backfilling and grading,
loading, trucking
Concrete Forms, reinforcing steel, concrete: piers and footings, slabs, flatwork, finishing
Masonry Face and common brick, firebrick, mortar, sand, and cement, cleaning and pointing, wall ties
Metals Pipe columns, lintels, gable louvers, soffit and roof vents, brackets, hangars, fireplace damper and
liner

Division 6:

Division 7:

Division 8:
Division 9
Division 12:
Division 15:
Division 16:

W ood and Plastics

Rough carpentry:

(1)
(2)

floor systems: sills, girders, headers, subflooring, ledgers, screeds;

walls: plates, studs, headers, gables, bracing, blocking, firestops,
sheathing, posts, columns, nailers;
(3)
roof systems: ceiling joists, girders, trusses, headers, common
rafters, hip and valley rafters, ridges, collar beams, bracing,
sheathing, lookouts, purlins, and fascia backing;
(4)
stairways: treads, risers, stringers, carriage boards, disappearing
stairs;
(5)
furring: plates, studs, strips and lath;
(6)
rough hardware: nails, anchors, hangers, bolts
Finish carpentry:
posts and beams, siding and paneling, frieze boards, fascia boards, soffits,
drywall, flooring, base and shoe molding, ceiling and crown molding, stair
and balcony railings, nosings,treads, risers, cabinets and shelving, closet
rods, built-in items, hardware, nails, bolts
Thermal and Moisture Protection Floor and perimeter insulation, wall insulation, ceiling insulation,
waterproofing and termite protection, roofing felt, shingles and roofing tiles, fasteners, flashing and sheet
metal, caulking
Doors and W indows Exterior and interior doors, door frames and trim, sidelights, screen doors, windows
and screens, door and window casing, sliding door and track
Finishes Sealers and stains, primers, exterior paint, interior paint, wall coverings, taping, floating and
texturing, floor coverings, tile floor and wainscot, counter surfaces and splashes, finishing woodfloors
Furnishings Fabrics, window treatments, furniture and accessories, rugs and mats, interior plants and
planters
Mechanical - Plumbing rough-in, heating and air conditioning rough-in, finish plumbing, finish heating and
air conditioning
Electrical - Electrical rough-in, electrical finishing

Types of Cost Estimates

The estimator may be asked to produce a determination of the cost of a construction project in one of the following
ways:

Feasibility (Conceptual) study

Preliminary Proposal
Construction Proposal

In all cases, the estimator is responsible for an accurate, competitive assessment of the project

Feasibility Study
The study determines whether or not the owner may wish to continue
This initial estimate is calculated on the basis of cost per square foot and/or cost of materials and furnishings
Once it has been developed, it is effectively cast in stone

No matter what happens throughout the life of the project, the costs stated in the budget estimate are what
everyone will quote until the project is completed

If the budget estimate does not accurately represent the work, then one of two things will occur:
Cancel the project
Change the dream into something less expensive and time-consuming

Preliminary Proposal
The owner accepts the results of the feasibility study and determines that the project is worth completing

The architect prepares a set of preliminary drawings

Preliminary plans are then submitted for bid for two reasons
The selected major contractors such as the excavating, concrete, mechanical, and electrical contractors are asked

for assistance in providing more specific information as to the best methods to use for construction. The feedback
from these contractors assists the architect in making a better more complete set of plans
There is a continuing question of cost overruns, which may have occurred as the results of delays in financing,
governmental requirements, and so on.

Construction Proposal
Most estimators work with a set of plans referred to as the construction set.

They are the blueprint by which the project is built unless additional plans, with approvals, are developed during
construction
The estimator produces a detailed analysis of work for the purpose of the bid

The estimator requests estimates from subcontractors that will be needed

The estimator accepts the subcontract bids, analyzes them, determines the best bid from each trade, and final
submits a proposal, using these bids and his/her take-off to determine the total cost of the project

Sample Telephone Bid

A telephone conversation receiving a bid may go like this:
Smith of Hotshot Electrical with a figure for Northside Hospital.
Johnson here. Shoot
All sections 3,4,5 and 6. but not painting, $156,400.
Okay, $156,400. Have you the light on the water tank? (as water tanks are built by specialists, they may have entirely
separate drawings)
Didnt know there was one. W hat is involved?
Navigation light and float valve on two circuits.
OK, well include the light circuit ... let me see ... yes, we have the float valve in the control mans bid.
Excavation and concrete for conduits?
W e dont dig and fill as always (of course, how would you know if you have not done business with him before?) but
well take the concrete.
Safety switches and starters?
W ell install, mechanical man furnished.
Bond?
Included. (He probably would have said no after he got the bid, if he was low. Now youve got a 1% better price than
you otherwise had.)
Temporary wiring? (This may not be in the specs at all; if it is , it is probably in the General Conditions.)

Included to within 100 feet of rooms. (This means he will give an outlet every 200 feet throughout. The other subs can
pull their own extension from there.)
Removal of old wiring? (W recking is also not in trade specifications and need not be done by trades.)
W ell disconnect only. (The general does not usually know what is required to take hot wiring from a building; it may
be something an electrian can do in a few minutes.)
How good is this bid? (If you know the other estimator well, you can tell from his tone, rather than his words, how
much - and how little markup-he has on the job.)
W ere always good. (W hich can mean anything, but probably would mean just the opposite of what he says. that is, it
is just another job, and they are not after it very hard, or they are giving preference to another general.)
The results of the conversation are recorded on a bid sheet

Job Costing
Cost keeping is one of the vital points of the contractors business
Success of the business structure depends on accurate costs therefore, correct estimates can
only be based upon past performances
Important to keep accurate costs in the different classes of work performed.
Keeping costs enables a contractor to estimate the cost of new work with a degree of accuracy,
and upon the accuracy of the estimate depends to a large degree, the success of failure of the
business
Ability of different workmen - some are more competent and able to perform much more work than others
They know from the size of their bank accounts that they have lost money but are unable to tell just where the lost
occurred
They keep guessing, figuring one branch of work a little too high and another a little too low until finally they take a job
with a large amount of work - figured too low - and they not only lose
everything they possess but are placed in debt for years to come
Any cost system should be simple, easy to understand and accurate in furnishing all the desire information regarding the
various classes of work.

Reasons for Failures in Construction

The inability to come up with realistic and profitable estimates resulting in the submission of unsound and unprofitable
bids.
Over-expansion
The Contractor knows his or her office and supervisory staff and how much they can handle.
A successful contractor does not take more work than he or his staff can handle.

REMEMBER
The low man is wrong more often than he is right
The efficient organization is one that can get the work at the right price

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