CVE 581: CONSTRUCTION

ENGINEERING : LECTURE 1 -
Introduction To Estimating Cost,
Time & Materials

OPEYEMI AKINOLA (ENGR.)

Akinola.op@unilorin.edu.ng
2 WELCOME
▪ It is my pleasure and an honour to officially welcome you
great ladies and gentlemen of set 2017/18 final year students
of the department of Civil Engineering of the great University
of Ilorin to CVE 581.

Engr. O. Akinola
3 MY GOAL
▪ My goal is to ensure :

✓Efficient course delivery for students

understanding

✓Resounding success in examinations, &

✓Later in practise

Engr. O. Akinola
4 RULES & ADVICE
Attendance (Class rep)

Punctuality

Assignments & Tests

Mobile phones

Noise making

Respect

Advice – Hard work, Diligence

5 CONTACT

▪ Block 8, Room F 16 (i.e. 8 F 16)

▪ akinola.op@unilorin.edu.ng

▪ 0706-734-6880

▪ No WhatsApp or calls, text permitted

Engr. O. Akinola
6 TOPICS – this semester (CVE 581)
 Introduction to estimating cost, time and materials
 Planning and scheduling
 Critical Path Methods
 PERT (Programme Evaluation & Review Technique)
 Quality management
 Construction methods
 Equipment selection
 Health and safety in Construction
 Economic financial problems in construction and in executing public
works
 INTRODUCTION TO CONTRUCTION ENGINEERING
7
 What is construction engineering about?

 Engineering is the branch of science and technology concerned with the

design, building, and use of engines, machines, and structures.

 Who is an engineer?

 Civil engineering is a professional engineering discipline that deals with the

design, construction, and maintenance of the physical and naturally built
environment, including works like roads, bridges, canals, dams, and
buildings.

 Construction engineering is a professional discipline that deals with the

designing, planning, construction, and management of infrastructures such
as roads, tunnels, bridges, airports, railroads, facilities, buildings, dams,
utilities and other projects.
8 ESTIMATION

What is an estimate?
An educated guess
Examples?
o party, function, transport costs, study, etc.

Construction & daily estimates - difference?

R/ship btw estimate and final cost?
How important are cost estimators?
9 WHAT IS AN ESTIMATE

Summary based on the best information available, of

probable quantities and costs of materials, labour,
equipment, and subcontracts to complete a project,
including taxes, overhead, and profit.
It is the number used to develop the project bid price.
Contractor bears consequences of errors or
omissions.
10 TYPES OF ESTIMATES
Conceptual/Rough Order of Magnitude (ROM) estimates
✓ Typically, no drawings available

✓ Client needs advice

Preliminary estimates
✓ Preliminary set of drawings available

✓ More accurate but not for contract commitment

Detailed estimates
✓ Complete set of plans & specs available
11 TYPES OF ESTIMATES
12 CHARACTERISTICS OF A GOOD ESTIMATOR
Read contract documents well
Is knowledgeable about construction techniques
Is familiar with typical job conditions
Is familiar with construction products
Has good visualization skills
Follows instructions explicitly
Is creative, yet practical
13 CHARACTERISTICS OF A GOOD ESTIMATOR (cont.)
Is detail-oriented and thorough
Can meet deadlines and work under pressure
Is familiar with purchasing
Is familiar with computer applications
Works well with numbers and statistics
Is a perfectionist at the task level
Has very good organization skills
14 ESTIMATING – THE PROCESS
Accuracy & completeness fundamental.

Ultimate goal = estimate ≥ actual cost

 Three main concerns:
✓ How many (quantities)?

✓ How much (pricing)?

✓ How long (productivity)?

Above 3 make up construction estimate.

15 ESTIMATING – THE PROCESS
Quality of estimate affected by parties involved
Preparation for estimation:
✓ Thoroughly review plans & specs (imported or local)

✓ Develop a list of questions and needed clarifications

✓ Attend the prebid meeting

✓ Visit the project site

16 ESTIMATING – THE PROCESS (Site Visit)
 Distance from office  Possible contamination

 Site conditions  Water, electricity, and telephone

service
 Site access
 Obstructions
 Soil data
 Parking and storage
 Groundwater
 Debris disposal
 Security needs
 Local weather patterns
 Traffic considerations
 Local labour and subtrades
 Adjacent structures
 Local regulations
17 ESTIMATING PROCESS
18 BUILDING THE ESTIMATE
19 WORK BREAKDOWN STRUCTURE (WBS)

Purpose – to organize and identify the work of the project

by breaking each division of work into a work package or bid
package.
work package identifies each step in the process of that
work item
Helps to:
Plan & schedule activities (Time)
Identify costs (labour, etc)
Check quantity (materials)
20 WORK BREAKDOWN STRUCTURE (WBS)
Work Package — Concrete Floor Slab
✓Excavate the footings.
✓Install the edge forms.
✓Install under slab fill.
✓Install vapor barrier.
✓Install the reinforcing.
✓Place anchor bolts.
✓Place the concrete.
✓Finish the concrete.
✓Strip the form work
21 WORK BREAKDOWN STRUCTURE (WBS)
22 ESTIMATING COST, TIME & MATERIALS
What does ‘cost’ mean?
How about ‘price’?
‘Value’?
Are they related? If so, how?
Why is ‘cost’ important in Civil Engineering?
Time – what time?
Materials – why and how do we estimate materials?
23 COST ESTIMATION

Complex process
Many Variable factors
Not an easily acquired skill
Proper study, training &
experience needed for
proficiency
24 KEY FACTORS THAT AFFECT PROJECT COST
Project size
Project complexity
Site location
Time of construction
Quality of work
Market conditions
Management factors
25 CATEGORIES THAT INFLUENCE PROJECT COST
Similar projects Reputation of Engineer
Material costs Regulatory requirements
Wage rates Insurance requirements
Site conditions Size of project
Inflation factor Location of work site
Bid timing Value Engineering
Project schedule Contingency
Quality of plans & specs. Judgment
26 PROJECT COSTS
Involves more than materials & labour. Also involves:
✓Building permits,

✓supervision,

✓portable toilets,

✓scaffolding,

✓bonds,

✓insurance,

✓freight charges, etc.

27 CATEGORIES OF PROJECT COSTS
Direct costs Indirect costs (overhead)
✓Materials ✓Supervision

✓Labour ✓Temporary utilities

✓Equipment ✓Testing and inspections

✓Subcontractors ✓Safety supplies

✓Security fencing
*make up bulk of Estimate* ✓Clean-up etc.

✓Trash & debris removal

28 CONSTRUCTION COST

Expense incurred by a contractor for:

labour, material, equipment, financing, services,
utilities, etc., plus overheads and contractor's profit.
Costs such as that of land, architectural design,
consultant and engineer's fee are not construction
costs.
Project cost involves MORE than construction costs
 BILL OF ENGINEERING MEASUREMENT & EVALUATION
29 BILL OF ENGINEERING MEASUREMENTS AND EVALUATION FOR NSE OFFICE
S/N ITEM DESCRIPTION QUANTITY UNIT RATE AMOUNT
1 Site clearing 200 m2 200 40,000
2 Excavation 150 m3 250 37,500
3 Setting out 950 m 50 47,500
4 Blinding 500 m3 300 150,000
5 Site Inspection 1 PS 250,000 250,000

6 SUB-TOTAL 525,000

7 Contigency 10% 52,500

8 TOTAL 577,500

9 VAT 5% 28,875

10 GRAND TOTAL 606,375

PS Provisional sum
LOT Similar to lump sum. Whether used or not, must be paid
LS Lump sum

VOP Variation of Price (large projects executed over a period of time)

30 CALCULATING QUANTITIES (Materials)
31 COMMON CALCULATING FORMULAS
32 QUANTIFYING MATERIALS
Least risky but must be taken off accurate plans.
33 QUANTIFYING LABOUR & EQUIPMENT
Riskier because of human factors involved.
34 QUANTIFYING GENERAL CONDITIONS
Time is the normal unit of measure for general conditions
Estimator must make educated guess as to how many days,
weeks, months, or years the construction will take to
complete.
35 SUMMARY
 Planning is a critical part of Construction Engineering

 Planning involves ‘Estimation’

 Estimation is an educated guess which is better achieved with experience

 A good estimator pays attention to details available

 Time, Cost, Materials & Labour can be estimated

 Estimate should be greater than actual

36 Review Questions
 What is a construction estimate?

 Name the four primary categories of costs in the construction estimate.

 Identify the four preparation steps taken to start the estimating process.

 What is a fair value estimate?

 What are general conditions?

 What unit of measure is typically employed for pricing general

conditions?

 Identify at least four characteristics exhibited in a quality estimate.

 When will you know the true accuracy of your estimate?

 Suggested Literature
37

 I shall e-mail following to students:

 Construction Management Jumpstart – Barbara J. Jackson

 Extract Chapter 22: Project management with PERT/CPM

 These shall be given to Class Rep. over a flash drive:

 Construction Planning, Equipment & Methods – R. Peurifoy

 Construction Methods and Management – S. W. Nunnaly

❖ Class rep to send me an e-mail with all student’s e-mail addresses.

38 TOPICS – this semester (CVE 581)
 Introduction to estimating cost, time and materials
 Planning and scheduling
 Critical Path Methods
 PERT (Programme Evaluation & Review Technique)
 Quality management
 Construction methods
 Equipment selection
 Health and safety in Construction
 Economic financial problems in construction and in executing public
works
39

FOR LISTENING
40 QUESTIONS?