Cost Estimation

1 An Introduction and definitions.

Cost Estimation Methodologies

Cost Estimation 2 Select the most appropriate cost estimating methodology (or combination of methodologies)

for the data available to develop a high-quality cost estimate.

Basic Course Cost Estimation Life cycle

3 Passes through the duration of work and projects with accurate changes and difficulties affecting

decision-making. It is very important that are given very high attention during all stages of project life

Cost Estimation Processes

4 From here we will learn about the processes and procedures of cost estimation, and we

will deepen into those processes using regular systematic steps.

Applied Example
5 Simple Example explain how you an apply cost estimation processes
Chapter 05

Cost Estimation
Applied Example
 Topics
5.4.1. Data Normalization.
1

5.4.2. Set wastage percentages.

2
SUBTITLE TEXT HERE
5.4.3. Fill with Quantity & Material takeoff.
3

5.4.4. Calculate and provide final

estimate. 4

Eng. Ahmed Said

Extracted data
• RC type I/ordinary cement and Grade 32 N/mm2 from
specs minimum 320kg/m3 cement content
• By drawing slab at Height 4.2 meter with average area
5100m2/floor (4 basement + GF + 26 floors).
• From historical data for similar projects and sanity
check reinforcing 132 kg/m3.
• Total area=148614 m2 (Drawing)
Normalizing data Material

Start scope definition 
tasks

Concrete Curing
Concrete, type I, 320Kg/m3  Curing material
cement content . 
Quote it from suppliers All information and rate from 
suppliers and data sheets.
Price from company database 
or procurement dept.

Rebar Other
Steel reinforcement  Nail and tie wire and form 
work material. 
Quantity must be quick  All information and rate from 
calculated and checked. suppliers and data sheets.
Price from company database  Price from company database 
or procurement dept. or procurement dept.
Formwork study with PM.
Normalizing data Labor & equipment

Start scope definition 
tasks
Formwork Masons
Carpenter and helpers.  Curing and pouring concrete

Their rate of production from: Their rate of production from:
• company records or company records or
• estimator experience. estimator experience.
• Site observations. Site observations.
wages from accountant cost  wages from accountant cost center
center

Steel fixers Equipment
Cutting & assembly Crane & Vibrator

Their rate of production from: All information and rate from 
company records or site records and historical 
estimator experience.
Site observations. data.
wages from accountant cost  Cost of operating by 
center specialist.
 TOP 6 support TASKS
Project Manager PLAN
ACTION PLAN
01 Workmanship crews job is managed • Columns Rebar
• Columns Formwork.

6 DAYS
02 Form and Slip form ready • Concrete pouring
• Formwork for slab
03 Concrete is reserved • In the same time Bending and cutting
rebar for slab.
04 Continuous inspection and improve

Equipment and tools ready

12 DAYS
05

• Complete formwork for slab

06 Delay not allowed (24hrs. Work) • Rebar uploading and fix in place.

15 DAYS

• Fixing rebar and assembly.

• Stiffening formwork.
• Pouring concrete
Material consumption and cost
Nail Galv. Rebar tie Curing
Consumption compound

• 9 pcs/m2 • 1 roll cover 25 m2 for • 1-liter cover 0.2m2 –

• Total used = slab. 0.25m2.
• 9 x 148614 • Roll Weight = 8Kg • 200-liter drum cost=
• Roll price = 35 SR
=1,337,526 pcs 165.
• Slab thickness =
• Each bucket 1000. • 1-liter cost = 0.825
• Consumption
• Bucket price = 10 SR. • 1 m2 cost = 3.3SR
• 5944
• Cost = 1338 x 10 = • 1 labor cover 1200m2
• Another source =
13380 SR
6kg/ton =6033 (same)
Material, Labor and Equipment rates and cost

Floor timeline Form work Equipment

• 15 day/floor • Cost of formwork • Crane Daily cost

• Crane = 552/day.
• 26+1+4 = 31 floor from previous • Vibrator = 3.4/hr.
slab projects and historical • Pouring 22m3/hr
data records = 21/m2 • Vibrator = 0.2/m3
• Total workdays = 465 • Bending machine =8/hr
• Miscellaneous like • Product. 3ton/hr
= 500 days. forming opening, • Cost = 8/3=2.7/ton
sleeves and level • Cutting Machine = 6.5/hr
• Product. 5 ton/hr
bars. • Cost =
6.5/5=1.3/ton
Material, Labor and Equipment rates and cost

Testing Miscellaneous Labor

• 31 floor slab = 1410m3/floor • Miscellaneous like  • Historical data & Records

• 6 cylinder/ 100m3 forming opening,  • Carpenter slab production 
• 6 x 14 = 85 cylinder/slab. sleeves and level bars. rate  average = 6 m2/day.
• 3rd party contract • Steel fixer: 
• Concrete strength 
30SR/cylinder. (1skilled+helper)
• Technician 150SR/day • Cut & Bend = 0.25t/day
• Slump and  • Assembly = 0.4 t/day.
temperature 150/day • Average = 0.35 t/day. 
 5.4.1. Data Nor malization.

Eng. Ahmed Said 12

 Concrete
Unit price with pump = 240/m3 for quantity more than 50 m3

Pump
Up to 9th floor included - After = 15 SR/m3

Steel Bar
2450 SR/Ton.

Material Quotations
 Skilled Non-Skilled Working Days
3000 2500 2000 1500 1000 ‫األساسي‬ Days/Year 364 Day
(‫رسوم العمالة )لم تضاف‬ Weeks/Year (Fridays) 52 week
Iqama 650 650 650 650 650 650 ‫مصروفات اإلقامة‬ 2 Week EID Vacation 14 Day
National Day 1
Labor License 2500 2500 2500 2500 2500 2500 ‫كارت العمل‬
Ramadan Time (28x2/8) 7 Days
Midical Insurance 1000 1000 1000 1000 1000 1000 ‫تأمين الطبي‬
Visa For 2 years 2300 1150 1150 1150 1150 1150 ‫نسبة تحمل التأشيرة‬
Ticket For 2 years 3000 1500 1500 1500 1500 1500 ‫تذاكر السفر‬ Working Days/year 290 Day
Housing & Trans. 3000 3000 3000 3000 3000 3000 ‫سكن و انتقاالت‬
Vacation For 2 years 2100 1750 1400 1050 700 ‫األجازة‬ Working Days/month 24.16 Day
Indemnity 1500 1250 1000 750 500 ‫حصة نھاية الخدمة‬
OH 10% 1245 1245 1245 1245 1245 1245 ‫نسبة من المصاريف اإلدارية‬ Working Hours/year 2320.00 hour
Total Annual fees ‫اجمالي‬ 13695 14645.0 14045.0 13445.0 12845.0 12245.0
Total Monthly fees ‫اجمالي‬ 1220.4 1170.4 1120.4 1070.4 1020.4 Working Hours/Month 193.33 hour
Total Monthly 4220.4 3670.4 3120.4 2570.4 2020.4
Total Daily 162.3 141.2 120.0 98.9 77.7
Total Daily 160 140 120 100 80

14
 5.4.2. Deter mine wastage percentages.

Eng. Ahmed Said 15

 5.4.3. Fill with Quantity & Material
t a ke o f f.

Eng. Ahmed Said 16

 5.4.4. Calculate and pr ovide final
estimate.

Eng. Ahmed Said 17

 Why Advanced course?

• Direct cost
• Indirect cost

In Advanced Course you • Material

will learn about • Labor
• Equipment
• Subcontractors