Chapter 4Various Method of EstimatingParvesh Ferag 0320760Lee Pei Gie 0315653Khoo Xin Yee 0316180Gan Jet Foong 0315998Yong Seen Yee 0315883

DK Quantity Surveying Consultancy

Project : 3 stars hotel in Subang Jaya

Estimating method : Cost Data

Person-in-charge for preliminary estimate : Steven ( Trainee )

Where can he findCOST DATA

?

What is Cost Data ?It is a book that has a unit price section and a reference section.

Unit price section includes:

Unit prices for materials

Labour Equipment Total unit price including overhead

and profit

Q: Where can he find cost data?

Some of the sources of cost data

1.Price Book 2

.Quotation 3.Supplier

Catalog 4.Priced

bills of Quantities

Q: Where can he find cost data?

RecommendationWith everyday fluctuation in prices, I would advise Steven, to use either priced bills of quantities or quotation from suppliers so as to get a recent price adjustments.

Q: Where can he find cost data?

What are theCONSIDERATIO

NSwhen using cost data?

SIZE OF PROJECTSometimes, smaller-sized projects tend to cost more per unit than larger one of similar type.

Q: What are the considerations when using cost data?

1. Separate rates are provided for different size of projects.

CHOICE OFWORK METHODa three-man or a four-man crew? How will the

brickwork be constructed?

Will there be central mortar mixing or individual mixers for each crew?Will trestles or

proper standing scaffolding be used?

Q: What are the considerations when using cost data?

Steven should involve in the project at early stage and concerning about construction method that might be used.

Addition for overheads and profitDepend on many variables , such as:1. Company policy2. Market condition

Q: What are the considerations when using cost data?

Have a list of contractors that might be interested to tender.

Steven should update himself about the current construction prices like labour prices, material prices, machineries prices and overhead costs.

Material PricesMaterial

• Unloading- By hand- Machine- Supplier delivery vehicles• Storage• Delivery and Haulage

Q: What are the considerations when using cost data?

Labour Cost

• Wages and fringe benefits are to be added into payroll.

• The hourly rate can also involve with combination of skilled, unskilled and supervisory staffs where a mix of different labours and staffs to carry out the

works.

• Overtime or public holidays is to be considered in determining the built up of the hourly labour rates.

The labor rate is the cost per hour for the craftsmen on the project. To determine any craft

rate, Steven starts with the basic wages and fringe benefits.

Q: What are the considerations when using cost data?

CommonMistakes

made in estimating

Underestimating Labour Cost

Difficult to estimate labour cost

-An hourly rate per employee

Factors To be considered- Experience

- Knowledge and education- Whether subcontractors will be

needed

Q: Common mistakes made in estimating

Last-Minute Changes

1. Forgotten lines item

2. Formula errors

These errors can quickly turn a profitable project into a loss

Q: Common mistakes made in estimating

Focusing on strengths alone and ignoring

weaknessesHave depths of expertise in

certain areas

Moderate proficiency in others area

Q: Common mistakes made in estimating

How to prevent the MISTAKE

01Be sure to include detailed labour information.

02Using accurate cost-estimation systems.

03Good checklist, detailed plans & specifications

Q: Common mistakes made in estimating

Thank You