Cost Estimate Part 1 (Estimate)

MANUAL
CONSTRUCTION
BUILDING ESTIMATE
WITH AID OF MICROSOFT EXCEL & AUTOCAD
P R E S E N T E D B Y:
ENGR. JONATHAN D. CORTEZ

RCE/STRUCTURAL DESIGNER/PROJECT CONSULTANT
DAY ONE
JANUARY 17, 2021
EXPECTATIONS FOR THE TRAINING
❑ To learn professionally.
❑ To be able to create a
précised Bill of Materials
and Quantity.
❑ To learn the field of quantity
surveyor/estimator.
❑ To be able to minimize the
errors in construction
management.
PRINCIPLES
PREDICT THE COST AND PRICE OF THE
COST RESOURCES REQUIRED BY THE SCOPE OF

WORK.
ESTIMATES
W H AT I S C O S T E S T I M AT E ? PROVIDE DESION MAKERS/ ALTERATIVES
FOR THE PROJECT
Cost estimation in project management is the
process of forecasting the cost and other resources
needed to complete a project within a defined scope.
Cost estimation accounts for each element required
for the project and calculates a total amount that PRECISE/DETAILED BASIS OF LIST OF
determines a project’s budget. COST
“ESTIMATE HAS ALWAYS BEEN REGARDED AS A

VALUATION BASED ON OPINION OR ROUGHLY
MADE FROM IMPERFECT OR INCOMPLETE USE FOR CONSTRUCTION PROJECT
DATA; A CALCULATION NOT PROFESSEDLY MANAGEMENT AND TO BE ABLE TO KNOW
EXACT, AN APPRAISEMENT; ALSO A STATEMENT THE PROFITABLE MARGIN
,AS BY A BUILDER, IN REGARD TO THE COST OF
CERTAIN WORK” –MAX FAJARDO
“Cost Estimate is
the Heart and soul
of every project
without it projects
will lead to
“Cost Estimate is disaster”
everywhere even
you don’t notice it”
“A Good Estimate will lead

to greater profit and a wise
guide for each project”
1.PRELIMINARY/ROUGH ESTIMATE
• Preliminary estimates are also called rough or approximate estimates,.

This is because they are not final—they give a ballpark idea of how much
a project will cost.
THREE KEY TYPES • A preliminary estimate is made at the very beginning of a project when
there’s limited information available.
OF ESTIMATES • A preliminary estimate allows a contractor to figure out the budget for a
project and what to charge the client.
• Used to study the feasibility of the project also.
• Used when the design plans is 35% to 50 % complete and is used to
check if the proposed project is on budget.
For example, a roofer is asked by a client to redo the roof of his house. The
roofer did a very similar project three months ago. He uses the estimate from
his old project to make a preliminary estimate for his new project.
• Once more information is available, a business can create a revised

estimate, or detailed estimate, from the preliminary estimate.
2. DETAILED/QUANTIFIED ESTIMATE
• A business can convert a preliminary estimate to a detailed estimate. A

detailed estimate is drawn up when there’s more information available or
the scope of the project is better known.
FOUR KEY TYPES • Detailed estimates include incredibly detailed information on quantities,
costs and rates—in fact, all items necessary to complete the project. All
OF ESTIMATES the line items are added together to reach the final cost.
• It includes a list of quantities for all materials needed to complete a project.
Its purpose is to give the client a complete list of all the quantities required
for the project and what the cost will be for each quantity. It is a key
estimating method in construction.
• They are prepared from a complete or nearly complete set of drawings
and are the most accurate type of estimate.
• Besides these line items, detailed estimates can also include:
• Information on the rates used to calculate costs (see quantity estimate
below)
• Specifications
• Drawings for the areas included in the project (including an index
and key)
• Detailed estimates are often used as a contractor’s budget estimate.
This planning tool helps him know how much cash flow he needs and
whether he requires financing.
3. BID ESTIMATE
• A bid estimate is submitted to a potential client in hopes of winning a

project. It is based on both a contractor’s prior estimations as well as her
desire to win the project i.e. to provide the best price to hopefully outbid
FOUR KEY TYPES competitors.
• A general contractor may only put a lot of work into this cost estimation
OF ESTIMATES method if she believes her chance of winning the bid is high. Otherwise,
it’s a waste of her time.
• A bid estimate can be drawn up based on plans provided by the client or
on standard industry costs. If the contractor wants more accurate
amounts, she will need to calculate specific labor, material and equipment
costs for the project.
• For example, a landscaper is hired to redo the backyard of a client’s
house. He uses his hourly wage and material costs to arrive at a total for a
bid estimate. The landscaper charges his standard hourly rate (Php 80
per hour) for 25 hours of work. However, he decides to mark up his
material costs less than he usually does to outbid a competitor.
METHODS/TECHNIQUES
IN ESTIMATION
❑KNOWING THE ACTUAL MARKET COST
❑PROJETING FEASIBLE TIMELINE
❑DETAILED ORIENTED ON SCOPE OF WORKS
❑KNOWING ALL THE CONSTRUCTION RISKS
❑ALLOCATING AVAILABLE RESOURCES
❑IMPLEMENTING QUALITY
ACTUAL CONSTRUCTION
CREATING A SAMPLE BOM
CREATING A BOM
❑STEP 1
LIST DOWN ALL THE REQUIRED SCOPE OF
WORKS (BE SPECIFIC AND DETAILED)
(BREAKDWOWN EVERYTHING FROM DIFFERENT
SET OF CATEGORIES)
NOTE: ALSO BE AWARE OF DESIGN PLANS AND

SPECIFICATION BY THE PROJECT
CATEGORIES

❑GENERAL REQUIREMENTS
❑STRUCTURAL WORKS
❑ARCHITECTURAL WORKS
❑PLUMBING WORKS
❑ELECTRICAL WORKS
❑TINSMITHRY/ROOFING WORKS
❑METAL WORKS
❑CABINETRIES/WOOD WORKS
❑AUXILLARY WORKS
1.GENERAL REQUIREMENTS1

❑DESIGN PLANS
❑AS-BUILT PLANS
❑BUILDING PERMITS
❑PROVISION OF TEMPORARY BOARD UP, COVER AND
SIGNAGES
❑TEMPORARY FACILITIES
❑LOT RELOCATION
❑MOBILIZATION/DEMOBILIZATION/SITE CLEARING
❑TERMITES/SOIL POISONING
❑EXCAVATION
❑EMBANKMENT
❑STAKING OUT/LAYOUT
2.STRUCTURAL WORKS

❑CONCRETING
▪ RC FOOTING
▪ RC COLUMNS (GF TO 2F)
▪ TIE BEAMS/WALL FOOTINGS
▪ SLAB ON GRADE
▪ SUSPENDED BEAMS
▪ SUSPENDED SLABS
▪ RC COLUMNS (2F TO RB)
▪ RC ROOFBEAMS
❑MASONRY/ REINFORCEMENT
▪ MASONRY WORKS
▪ (INTERIORWALLS AND EXTERIOR WALLS)
▪ PLASTERING WORKS
▪ STAIRS
❑FORMWORKS
▪ SCAFFOLDINGS
3.ARCHITECTURAL WORKS

❑CEILING WORKS
❑DOORS
❑WINDOW/GLASS WORKS
❑TILE WORKS
❑PAINTING WORKS
OTHER CATEGORIES

❑PLUMBING WORKS
❑ELECTRICAL WORKS
❑TINSMITHRY/ROOFING
WORKS
❑METAL WORKS
❑CABINETRIES/WOOD WORKS
❑AUXILLARY WORKS
CREATING A BOM
❑STEP 2
TRASFER IT TO AN EXCEL SOFTWARE THAT YOU
WILL USE THEN LIST DOWN NECESSARY
MATERIALS FOR EACH CATEGORIES.
MAKE A TABLE WITH HEADERS:

(ITEM NO., SCOPE OF WORKS, UNIT, UNIT PRICE
AND AMOUNT.
EXAMPLE
CREATING A BOM
❑STEP 3
TRY INPUTTING ALL THE INITIAL DATAS FOR
COST THAT YOU ALREADY HAVE AND KNOW.
EXAMPLE
CREATING A BOM
❑STEP 4
ON A SEPARATE SCRATCH PAPERS PROCEED
WITH THE PROJECT ESTIMATES IN EACH
CATEGORIES
YOU MAY ALSO START TO GET A QUOTE FROM

DIFFERENT SUPPLIERS MAINLY THE
FOLLOWING:
HARDWARES
GRAVEL AND SAND
ROOF SUPPLIER
DOORS AND WINDOWS
CONCRETE BATCHING PLANTS
CREATING A BOM
❑STEP 5
ONCE DONE WITH ALL THE GATHERED DATAS.
INPUT THEM ONE BY ONE IN THE EXCEL FILE
AND CAREFULLY CHECK IT ALSO.
EXAMPLE
CREATING A BOM
❑STEP 6
“MARKING UP”
INDICATING OTHER COSTS RELATED IN
CONSTRUCTION MAINLY THE FOLLOWING.
MATERIAL COST
❑FROM THE BREAKDOWN OF MATERIALS MARK
THE NUMBER OF MATERIAL ITEMS INTO 5% TO
10% TO BE ABLE TO CONSIDER THE WASTAGE
FACTOR.
EXAMPLE:
TOTAL PLYWOOD : 10
X .10
TOTAL PLYWOOD : = 11 NO. OF PLYWOODS
LABOR COST
❑WITH THE DIRECT COST IT IS ESTIMATED INTO
35% TO 50%.
EXAMPLE:
TOTAL DIRECT COST : PHP 1,000,000
X .35
TOTAL LABOR COST = PHP 350,000
VATS/TAXES
❑WITH THE TOTAL OF DIRECT COST INTO 12%
AND ALSO IT WILL ALWAYS DEPENDS ON
OTHER SITUATIONS.
EXAMPLE:
TOTAL MATERIAL COST : PHP 1,000,000
X .12
VATS/TAXES COST = PHP 120,000
MISCELLANEOUS/CONTINGENCY
❑WITH THE TOTAL OF DIRECT COST AND
INDIRECT COST INTO 3%-10%.
EXAMPLE:
TOTAL D + I COST : PHP 1,000,000
X .05
OVERHEAD/PROFIT
❑WITH THE TOTAL OF DIRECT COST AND
INDIRECT COST INTO 5%-30%
❑CAN BE ALSO COMPUTED WITH THE OTHER
COST ASSOCIATED FOR ADMIN.
EXAMPLE:
TOTAL D + I COST : PHP 1,000,000
X .05
CREATING A BOM
❑Last Step
“Indicate at the final amount:
The ff:
❖ Discounted Cost(if any)
❖ Exclusions
❖ Total working or calendar days.
EXAMPLE
ADDITIONAL INFORMATION
(GOOD BUILDING CONSTRUCTION)
INTRODUCTION TO THE
SAMPLE PLANS
ACTUAL SITE
INTERIORS
Dining Area
Kitchen Area
Master Bedroom
Bedroom 1
Bedroom 2
Bathroom
ACTUAL SET OF PLANS
THE END

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MANUAL

ENGR. JONATHAN D. CORTEZ

PREDICT THE COST AND PRICE OF THE

COST RESOURCES REQUIRED BY THE SCOPE OF

“ESTIMATE HAS ALWAYS BEEN REGARDED AS A

“A Good Estimate will lead

• Preliminary estimates are also called rough or approximate estimates,.

• Once more information is available, a business can create a revised

• A business can convert a preliminary estimate to a detailed estimate. A

• A bid estimate is submitted to a potential client in hopes of winning a

NOTE: ALSO BE AWARE OF DESIGN PLANS AND

CREATING A SAMPLE BOM

CREATING A SAMPLE BOM

CREATING A SAMPLE BOM

CREATING A SAMPLE BOM

CREATING A SAMPLE BOM

MAKE A TABLE WITH HEADERS:

YOU MAY ALSO START TO GET A QUOTE FROM

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