For an undergraduate introductory or advanced course in construction cost estimating.

This text comprehensively covers the fundamental cost estimating principles and processes used in commercial construction today. It covers theory, types of estimates, estimating procedures and contractual aspects as well as providing practical tips on how to estimate. Using a single case study, the book shows readers how to prepare their estimates and to develop the necessary skills needed to be successful in the construction industry. The text illustrates the process for developing three separate types of estimates: a budget estimate during design development, a guaranteed-maximum-price estimate for a cost-plus contract, and a bid for a lump-sum contract. The book also discusses analysis of subcontractor quotations as well as estimating job site general conditions and company overhead costs.

(NOTE: Each chapter begins with an Introduction and concludes with Summary, Review Questions, and Exercises sections.)

I. OVERVIEW.

1. Introduction.

Cost Estimating Process.
Design Process.
Uses of Cost Estimates.
Types of Cost Estimates.
Types of Construction
Contracts.
Procurement Methods.
Preconstruction Services.
Risk Analysis and Contingencies.

2. Case Study: Training Center.

Project Description.
Project Execution Strategy.
Project Participants.

II. BUDGET ESTIMATING PROCESS.

3. Budget Estimates.

Programming Budget Estimates.
Schematic Design Budget Estimates.
Design Development Budget Estimates.

4. Budget Estimates for the Training Center.

Design Status.
Take-Off of Substantial Areas.
Pricing Data.
Budget Estimate Accuracy.

5. Estimates for Preconstruction Services.

Marketing for the General Contractor.
The Request for Proposal.
Development of the Preconstruction Services Estimate.
Preconstruction Services Contract.
Budget Control Log.

III. BID CONTRACT ESTIMATING PROCESS.

6. Pre-Estimate Activities.

Estimating Process.
Solicitation of Lump-Sum Bids.
Invitation for Bid.
Pre-Bid Meeting.
Bid Date and Time.
Bid Document Revisions.
Personal Estimating Notebook.
Order-of-Magnitude Estimates.
Decision Whether or Not to Tender a Bid.
Work Breakdown Structure.
Estimating Team.
Scheduling the Estimating Work.
Subcontractors and Major Suppliers.
Plan Centers and Rooms.
Data Resources.
Estimating Forms.
Estimate Files.
Electronic Spreadsheets.
Accuracy and Error Prevention.

7. Quality Take-Off.

Basic Procedures.
Substructure Concrete.
Structural Steel.
Rough Carpentry.
Doors.
Toilet Accessories.
Finish Carpentry.
Completing and Checking the Quantity Take-Off.

8. Pricing Self-Performed Work.

Recapitulation Sheet.
Materials.
Labor.
Applying Pricing Factors.
Summary Recap.

9. Estimating Subcontractor Work.

Subcontractor Work.
Estimating Subcontractor Work for the Training Center.
Completing the Subcontractor List.

10. Estimating General Conditions.

Project Summary Schedule.
Alternative Techniques.
Elements of the General Conditions Estimate.

11. Completing the Estimate.

Final Document Review.
Completing the Bid Summary.
First Run Bid Estimate.
Final Markups.
Sales Tax.
Validating the First Run Estimate.
Preparing the Estimate for Bid Day (Electronic).

12. Unit Price Estimates.

Unit Price Bid Forms.
Direct Cost Estimation.
Markup Determination.
Variation-in-Quantity Contract Provision.
Risk Analysis.
Bid Finalization.

13. Pre-Bid Day Activities.

Setting Up the Bid Room.
Bid Forms.
The Bid Day Team.
Subcontractor Bid Evaluation Procedures.

14. Bid Day Activities.

Receiving Subcontractor and Supplier Bids.
Posting Subcontractor and Supplier Bids.
Evaluating Subcontractor and Supplier Bids.
Preparing for Delivery of the Bid.
Completing and Tendering the Bid for the Training Center.
Additional Bid Day Issues.

15. Post-Bid Day Activities.

Bid Opening.
Subcontractor and Supplier Inquiries.
Post-Bid Analysis.
Post-Bid Ethics.
Post-Bid Negotiations.
Record Keeping.

IV. NEGOTIATED CONTRACT ESTIMATING PROCESS.

16. Guaranteed Maximum Price Estimates.

Contract Procurement Process.
Documents.
Strategies.
Estimating Process.
Contingencies.

17. Fee Determination.

Reimbursable versus Non-Reimbursable Costs.
Home Office Overhead.
Risk Evaluation.
Other Impacts on Fee.
Fee Structure.
Construction Cost Savings Split.

18. Guaranteed Maximum Price Estimate for the Case Study.

Design Status.
Assemblies Method.
Estimating General Contractor Work.
Estimating Subcontractor Work.
Estimating Contractor General Conditions.
Markups and Add-Ons.

19. Cost Proposals for Negotiated Contracts.

Strategies for Responding to the Request for Proposal.
Documents to be Included with the Written Proposal.
General Contractor Interview and Selection Process.
Negotiated Subcontracts.

V. ADVANCED ESTIMATING TOPICS.

20. Automated Estimating Techniques.

Pre-Estimate Automated Techniques.
Automated Estimating Techniques.
Project Management Automation Tools.

21. Other Types of Estimates.

Estimating Bid Alternatives.
Residential Project Estimates.
Industrial Project Estimates.
Change Order Estimates.
Claim Preparation.
As-Built Estimates.
Database Updates.

22. Project Management Issues.

The Buyout Process.
Correcting the Estimate.
Schedule of Values.
Cash Flow Curves.
Cost Control.

Appendices.
List of Abbreviations.
Glossary.
Estimating Resources.
Request for Proposal.
Invitation for Bid.
Estimating Forms.
Selected Project Specifications for the Training Center.
Selected Project Drawings for the Training Center.
Index.