Embedded Files
http://www.mass.gov/anf/docs/dcam/dlforms/cem-feb06.pdf
Estimating Formats
The two most commonly used Unit Price formats are CSI MasterFormat 2004™, which
provides a 31-division master list of numbers and titles for arranging products and
activities; and ASTM UNIFORMAT II™, which hierarchically groups building
elements into 12 “systems based” levels. MasterFormat™ is widely used within the
design and construction industry, and is the usual format for construction specifications
and most private-sector project-based cost estimating activity. Government and other
large institutions also utilize UNIFORMAT II™ for building systems research and
building economics analysis, in addition to cost estimating.
Estimate Components
Back-up detailed estimating data may be in any format. As long as the items or work
are properly grouped by level 3 account numbers, estimating detail work-ups below
level 3 need not be identified by UNIFORMAT account numbers. To ensure that all
components of an estimate are allowed for, the following points need to be considered.
Regardless of format or type, every estimate can be rolled up to provide Total
Project Cost (TPC).
Standard contracts consider only ECC (Estimated Construction Cost) with
additional “soft costs” added separately as margins or actual estimated amounts.
Projects delivered using an RFP, Design-Build, or CM At Risk, have some or all of
the “soft costs” built into the estimate, mingling ECC and soft cost components.
Cost Estimators are required to ensure that all project estimate components and
contingency markups are included or specifically noted as being allowed for by
others. To ensure that all cost components making up the ECC and TCP are
allowed for, DCAM recommends estimates be prepared by specialist cost
estimating or consulting firms.
2.2 TPC Components
2.2.1 Construction Costs
• Elemental: Sections A through G plus General Conditions
• CSI: Sections 1 through 49 plus General Conditions
• Insurances, Escalation, Contractors, Overhead and Profit
6
Cost Estimating Manual OPDC
2.2.2 Non-construction Costs (“Soft” or “Budget” Costs)
• Feasibility Study with supporting studies and reports
• Design Fees and Specialist Consultants
• Site acquisition
• Permits, Certifications and legal fees
• Community allowances, utility or other relocations
• Project administration and overhead (which may include CM fees)
• FFE (furniture, fixtures and equipment)
• Commissioning, relocation and startup costs
• Financing and insurance costs through to startup
• Development fees
2.2.3 Planning the Work
It is important to thoroughly understand the project scope of work and the
biddability and constructability aspects of the project being estimated. The Cost
Estimator must thoroughly review drawings, specifications and other references
to formulate a construction sequence and duration. A site visit for all Consultants
is recommended to relate the physical characteristics of the project to the
available design parameters and details. Developing a construction sequence as
soon as possible is necessary for creating a formalized sequence, to be used
throughout the entire cost estimating process as a checklist of construction
requirements.
2.2.4 Quantities
The Cost Estimator is responsible for the accuracy of quantity take-offs from
drawings and specifications prepared by the Architect or other Consultants.
• The quantity take-off is an important part of the estimate and should be based
on all available design data. All quantities should be shown in standard units
of measure.
• The detail in which the quantities are prepared for each task is dependent on
the Development Phase of the design. Quantity calculations and unit buildups
beyond design detail may be necessary to determine a reasonable price to
complete the overall scope of work for the Cost Estimate. Project notes may
be added to explain the basis for the quantity calculations, or allowances that
have been determined by cost estimating judgment and will be updated as the
design progresses.
7
Cost Estimating Manual OPDC
2.2.5 Unit Pricing
As a general rule, approximately 80 percent of the direct costs of a project are
represented by only 20 percent of the estimated work items. Therefore the
greatest estimating efforts are concentrated on these elements. The unit rates for
each of these items are carefully analyzed and developed as the summation of all
direct and indirect costs that will likely be incurred by an experienced and wellequipped
Contractor.
When cost data is based on previously completed projects, the Cost Estimator
must use judgment to adjust for project conditions to include overhead and price
level data adjustments for inflation.
For small and easily identified work noted in the drawings and included in the
estimate, lump sum bid items may be used. The cost of the lump sum item should
be based on cost data related to the item’s total direct and indirect costs.
2.2.6 Bid Schedule
The bid schedule is part of the procurement package and is included with the
solicitation for bids. The estimate must show the unit prices, quantities, extension
of unit prices, lump sum items, and costs consistent with the schedule provided
with the Bid Documents.
2.2.7 Construction Schedule
The Designer and Consultant Team will prepare a construction schedule to
support the estimate that is consistent with the plans and specifications for
completion of the work. It may be in the form of a GANTT chart or a PERT
diagram, but it must identify the sequence and duration of the tasks upon which
the Cost Estimate is developed.
2.2.8 Estimate Notes
“Notes” are any explanations necessary to support the development of cost for
individual items in the Cost Estimate. This descriptive information covers areas
such as manufacturers quotes, overtime requirements, and material availability.
These should be entered as notes to the appropriate detail level of the Cost
Estimate.
2.2.9 Project Narrative
The narrative defines the parameters upon which the Cost Estimate has been
prepared to support the project scope and schedule. It describes the project
requirements that must be performed in sufficient detail to give a clear
understanding of the scope of work including length, width, height, and slope of
primary features the following: special problems that will be encountered in
performing the work; site conditions affecting the work, and the reasons for
unusually high or low allowances.
Project Narratives are expected to follow the Uniformat II code structure through
each Design Phase estimate. Initially, very broad level narratives are provided,
increasing in detail as the design is developed. A partial sample of an early stage
Uniformat structured Narrative is shown in Appendix A4.
At Construction Documentation and Design Development, the Project Narrative
is replaced by the specification that is typically structured in detailed CSI format.
8
Cost Estimating Manual OPDC
2.2.10 Filed Sub-Bid Work
• MGL 149 requires that specific trades be performed by filed sub-bids be
procured by DCAM independently from the General Contractor bid.
• The list of trades determined by MGL 149 is shown in Appendix C. For a
detailed cross-reference of the work to be included against the CSI item
classification, see the DCAM Standard Specification document.
• Where a CSI bid is required at Design Development or Construction
Document Phase, the work to be performed under filed sub-bids shall be
identified separately in the estimate.
• The successful low bid amount for each filed sub-bid Contractor is included
as a direct lump sum cost to the General Contractor. This amount includes
the Subcontractor’s costs for direct labor, materials and supplies, equipment,
second tier subcontracts, and charges for overhead and profit.
• The General Contractor is deemed to add his margins for General
Conditions, Overhead and Profit, and any other loadings to the filed sub-bid
contract amounts.
• The Cost Estimator may utilize quotes for the expected filed sub-bid work in
preparing the estimate or to verify the reasonableness of independently
estimated subcontract work. Subcontractor quotes will be treated as
proprietary information and should only be revealed to those who have a
need to know.
2.2.11 Estimating Contingencies
To develop appropriate contingency allowances, the Estimator must identify the
uncertainty associated with an item of work or task, forecast the risk/cost
relationship, and assign a value to this task that will limit the cost risk to an
acceptable degree of confidence. Consideration must be given to the details
available at each stage of planning, design, or construction for which a Cost
Estimate is being prepared.
The following estimating contingency loadings represent an initial guide for the
ECC at each phase. The Cost Estimator and Designers must assess the
appropriate percentages for each project.
Project Phase Restoration New Construction
Study Phase 20% 15%
Schematic Design Phase 15% 10%
Design Development Phase 10% 5%
Construction Documents Phase 0% 0%
9
Cost Estimating Manual OPDC
The table provides a guide for estimating contingency development and is not
intended to restrict or limit contingencies to these values. If the overall estimating
contingency value developed through a detailed analysis as described above
exceeds these guidelines, the Designer and DCAM Project Manager should
consider further investigation of existing conditions and sufficient development
of the design to reduce the uncertainty level.
2.2.12 Overhead
Overhead costs are those costs that cannot be attributed to a single task of
construction work. Costs that can be applied to a particular item or work should
be considered a direct cost to that item and not be included in overhead costs.
The overhead costs are customarily divided into two categories:
• General Conditions, including all Job Overhead, General Site Costs and Field
Office Overhead. When estimating items costed over the entire duration of
construction, the Cost Estimator should utilize the job schedule.
• OH&P (Home Office Overhead), covering Overhead, Administrative costs,
and Profit. OH&P expenses are those incurred by the Contractor in the
overall management of business.
The Cost Estimator must be sure that costs are not duplicated between the two
categories. Specific considerations must be evaluated for each project. The Cost
Estimator must use considerable care and judgment in estimating overhead costs.
For the source of pricing, the Cost Estimator must rely on judgment, historical
data, and current labor market conditions to establish overhead costs.
The application of a previously determined overhead rate may be used for early
design stages, but it is not an accurate or reliable method of forecasting costs.
Overhead will vary from project to project and may even vary from month to
month within any given project. Job overhead items for the General Contractor
should be estimated in detail for all activities at Construction Documents Phase.
Detailing of overhead costs for subcontract work is recommended when the
impact of these costs is significant.
2.2.13 Profit
Profit is shown as a percentage loading and provides the Contractor with an
incentive to perform the work as efficiently as possible. The Cost Estimator must
use previous historical data to provide a suitable industry profit loading, modified
by an in-depth understanding of marketing conditions likely to impact the current
project.
Job Overhead Activities (Structuring Estimates Insert)
Job overhead costs are those costs at the project site that occur specifically as a
result of a particular project. Some examples of job overhead costs are:
1. Job supervision and office personnel
2. Engineering and shop drawings
3. Site security
4. Temporary facilities, project office
5. Temporary utilities
6. Preparatory work and laboratory testing
7. Transportation vehicles
8. Supplies and maintenance facilities
9. Temporary protections and OSHA requirements
10. Telephone and communications
11. Permits and licenses
12. Insurance (project coverage)
13. Schedules & reports
14. Quality control
15. Cleanup
16. Taxes
17. Equipment costs not chargeable to a specific task
Page updated
Report abuse