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    This document discusses overhead and contingencies in building construction cost estimating. It defines home office overhead as expenses related to operating a construction company that cannot be charged to a specific project. Job overhead refers to indirect field costs of a project, including temporary facilities, site supervision salaries, and utilities. The document provides examples of overhead cost categories and methods for allocating home office overhead costs. It also discusses using schedules and precedence diagrams to determine job overhead duration and contingencies as funds set aside for unknown costs or price changes.

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    CCEC Lec06 Overhead Ch. 6

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    This document discusses overhead and contingencies in building construction cost estimating. It defines home office overhead as expenses related to operating a construction company that cannot be charged to a specific project. Job overhead refers to indirect field costs of a project, including temporary facilities, site supervision salaries, and utilities. The document provides examples of overhead cost categories and methods for allocating home office overhead costs. It also discusses using schedules and precedence diagrams to determine job overhead duration and contingencies as funds set aside for unknown costs or price changes.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    77 views15 pages

    Estimating Overhead Contingencies

    Uploaded by

    asd123456789asdcom
    This document discusses overhead and contingencies in building construction cost estimating. It defines home office overhead as expenses related to operating a construction company that cannot be charged to a specific project. Job overhead refers to indirect field costs of a project, including temporary facilities, site supervision salaries, and utilities. The document provides examples of overhead cost categories and methods for allocating home office overhead costs. It also discusses using schedules and precedence diagrams to determine job overhead duration and contingencies as funds set aside for unknown costs or price changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 15

    Estimating in Building Construction

    Chapter 6 Overhead and Contingencies

    Dr. Rafiq Muhammad Choudhry


    Head, Department of Construction Engineering and Management-NIT School of Civil and Environmental Engineering (SCEE) National University of Sciences and Technology (NUST) Sector H-12, Islamabad

    Overhead

    Home Office Overhead

    Items that cannot be readily charged to any one project, but represent the cost of operating the construction company Overhead expenses resulting in executing a specific project

    Job Overhead Cost

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Home Office Overhead

    Also known as:


    General overhead Indirect overhead cost

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Home Office Overhead


    Rent Office utilities Office supplies Postage Insurance on office Taxes on office Office equipment

    Salaries

    Executives Accountants Estimators Purchasing dept. Store keepers Secretaries

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Home Office Overhead

    Advertizing Books & magazines Legal fees Design costs Donations Travel Vehicles for office staff

    Club and association dues Depreciation

    Office equipment

    See Fig 6.1 Home office overhead and cost allocation

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Example 6.1

    Home Office Cost Allocation:


    Anticipated home office costs for fiscal year = $690,580 Anticipated sales volume for fiscal year = $9,500,000 Home office cost allocation = 690,580/9,500,00 = 7.3%

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Job Overhead

    Also known as:


    Project overhead Direct overhead Indirect field costs

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Job Overhead Includes

    Salaries

    Temporary office

    Superintendent Assistant superintendent Timekeeper Foremen Security See Fig 6.2 Field staff plan and estimate

    Rent Utilities
    Buildings Barricades (& lights) Enclosures (fence, temporary doors/windows, protection for equipment)
    8

    Temporary

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Job Overhead Includes

    Temporary utilities

    Power Lights Heat Phone Water

    Sanitary facilities

    Photographs Surveys Cleanup Winter conditions Protection of property

    Toilets

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Schedule

    Needed to determine job overhead See Fig 6.3 Office Building Process

    List all activities Assign durations Sequence the activities Calculate start and finish dates See Fig. 6.4 Activity Lest

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    10

    Precedence Diagram
    Figure 6.5

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    11

    Contingencies

    For items overlooked or left out A sum of money or percentage Often used as an excuse for poor estimating practices Rational use for contingencies is for price escalation

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    12

    Checklist

    Estimate of Labor

    Number of weeks on the project x Weekly rate Persons to be relocated x cost per person Quantity required x productivity rate Quantity required x unit cost Duration required x Monthly cost
    13

    Estimate of Material

    Estimate of Equipment

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    Read Chapter 1, 9

    Book

    Aggarwal, A. and Upadhyay, A.K. (2008). Civil Estimating, Costing and Valuation. S.K.Kataria & Sons. New Delhi.

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    14

    Thank You

    Dr. Rafiq Muhammad Choudhry Head, Department of Construction Engineering and Management, NIT SCEE, NUST

    15

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