Definition of Estimating

 An approximation of costs of the resources to complete the project.

 Cost Estimating provides a basis for project management, business
planning, budget preparation, and cost and schedule control.
 In short, a technique to forecast the possible cost required for a
construction project using systematic calculations by applying certain
methods.
Factors Associated with the Cost Estimate of a Building
 Type
 Shape and size
 The various quality and materials used
 Methods of construction
 Changes in price level, materials, labour, and plant, etc.
Purpose of Estimating
 Everyone involved in the construction field needs to know knowledge of
estimating.
 Client can know how much he needs to finance for a project.
 A better allocation of funds.
 Estimating Department calculates the costs of the project as accurately
as possible.
 To prevent cost and time overrun due to underestimation.
 If estimate > allocated sum, it can be settled by:
o Change design
o Extra funds requested from client
o Postponed or cancelled the project
 If allocated sum > estimate:
o Change design or just accept the estimation.
Importance of the Estimator
 Be able to visualize the project and foresee the problems.
 Enough construction experience.
 Su icient knowledge of labour operations and productivity.
 Keep a database.
Factors Influencing the Selection of Estimating Methods
1. Available Information and Preparation Time
o Limited Time: When time is short, a simple and quick estimating
method is preferred.
o Su icient Information: More available information allows for the
use of a thorough and detailed estimating method.
2. Experience of Estimators
o The professional experience and judgment of estimators play a
crucial role in selecting the most appropriate estimating method.
3. Total and Type of Cost Data Available
o Data Sources: Includes cost data, drawings, and project
specifications.
o The quality and completeness of cost data directly impact the
choice of estimating method.
Estimating Methods
1. Preliminary Estimate
o To produce a forecast of the probable cost of a future project,
before the building has been designed in detail and contract
particulars prepared.
o Methods:
 Unit method
 Cubic method
 Floor area method
 Storey enclosure method
2. Later Stage Estimate
o To provide an indication of the probable costs of construction at an
early stage in the life of a construction project.
o Provides the financial input required to prepare a cash flow curve.
o Provides an assessment of capital cost for a specified piece of
work.
o Methods:
 Approximate Quantities
 Elemental Estimate
Summary of Estimating Methods
Preliminary Estimate

Unit of When It Is
Method Note
Measurement Used

Cost/student Appropriate for projects that have a

Cost/classroom standard unit of accommodation. Inception
Unit
Cost/bed Commonly used to establish the cost feasibility
Cost/chair limit for public sector projects.

Only used to calculate the volume of

Outline
Cubic Cost/m³ air-conditioned space or space which
proposal
is given mechanical ventilation.

A popular method and can be used Outline

Floor area Cost/m²
for almost all types of building. proposal

Storey Cost/storey Scheme

The method is no longer practised.
enclosure enclosure design

Later Stage Estimate

When It
Method Unit of Measurement Note
Is Used

A popular method to use

Depends on the
especially for unique or
Approximate method employed for Detailed
di icult projects and when
quantities calculating composite design
the duration to prepare the
items
estimate is long.

Preparation of cost is based

Elemental Is more towards cost Detailed
on element to ease the
estimate per unit (m, m², m³) design
process of cost control.
Floor Area Method
Usage
 Area Definition: Area is measured as Gross Floor Area (GFA).
 Gross Floor Area (GFA):
o Total of all enclosed spaces.
o Enclosed spaces are defined as all spaces that have a floor, a
ceiling, and enclosing walls on all sides at full or partial height.
o Columns, open balustrades, louvers, and similar elements are
deemed enclosing walls.
o Includes areas occupied by columns, internal structures, or party
walls without omission.
o Includes areas of lift rooms, tank rooms, and engine rooms above
the main roof.
 Measurement Rules:
o Sloping surfaces, such as staircases, are measured flat on plan.
 Exclusions:
o Spaces that are not enclosed, such as open ground floors, rooftop
car parks, and similar areas.

Adjustment in Elemental Estimate

1. Price Level
o Current price level.
o Changes in market conditions and price level between the
preparation date and tender date.
o Price index can be obtained from government sector.
2. Quantity (Three Methods)
o Proportion-vertical elements.
o Approximate Quantities Estimate (involves dimension
calculations, so requires more detailed description of the project).
o Inspection (used when hard to measure and cannot use proportion
method).
3. Quality
o Adjusted similarly to quantity.
o Usually, the specifications are not given at this stage.
Aims of Elemental Estimate
 To enable the design team to determine how much has been spent on
each building element.
 To assess whether a balanced distribution of costs has been achieved
amongst the various elements of the building.
 To provide a comparison of the costs of the same element that may be
used in di erent buildings.
 To obtain cost data for use in the cost planning for other projects.