Construction Cost EstimatingClass #1: Course Introduction

Class #2: The Estimating Process

Prof. Ralph V. Locurcio, PE

Syllabus handout… Course admin &

grading… Textbooks About your instructor… Course objectives … Estimating introduction Assignment for next

class…

Texts: RSMeans Student Edition Construction Estimating using Excel

References: Walker’s Builder’s Cost Estimating Manual Estimating Construction Costs, Peurifoy &

Oberlender, Kerzner, Project Management

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

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

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

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

Need for a projectIs recognized

Owner appointsProject Manager

Project Manager develops project

program: scope & cost parameters

Project is entered into an annual

capital program

Designer prepares concept design & preliminary cost

estimate

Owner orders bid documents

Project Manager advertises for

construction bids

Contractors assemble team,

prepare & submit bid

Bids opened & reviewed by owner

(with designer)

Builder’s credentials &

bonding approved

Owner approves program

Project Manager advertises for

designer

Owner hires designer

Owner authorizes final

design

Owner selectsbuilder

Contract Signed

Notice to

Proceed

Resident Engineeroversees

construction

Project phase(s)completed

All work completed final inspection

made

Progresspayment

Final paymentOwner accepts

facility

Designer completes plans &

specifications

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)

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.

Read text – Chapter 1 – on my website

Garden Shed Project - handout Bill of materials Complete bid price; all labor & materials Signed bid documents

Slides are on my web site My web site:

www.my.fit.edu/~locurcio

Contact info for me…Prof. Ralph Locurcio, PELINK – Room 233

Office Hours: Wed + FriEmail: locurcio@fit.edu Web: http://my.fit.edu/~locurcio