values engineering, cons est.

It is the process of anticipating the expense of building a

physical structure. This step is essential, and one of the most crucial

in the construction process. Estimators need to be as accurate as

possible because profit margins (the livelihood of contractors) are

impacted if any estimated direct and indirect costs for the project are

off by even the slight amount.

Cost Estimating Key Components

are costs and expenses that are accountable directly for a specific

activity in construction work.

Some examples of ______ are: Materials,

Field workers (labor), and

Equipment

are expenses of items that are not allocated directly for specific

construction activities. These are called overhead costs.

which are not example of indirect costs

• Quality control

• Security costs

• Legal fees & permit

• Materials

Types of Construction Estimate

This is an estimate where you’re just looking to get in the

ballpark range for a project. Figures here are typically based on

previous on-the-job knowledge and assumptions rather than hard

numbers and facts.

estimate can be created using stochastic or

parametric techniques when a project is defined to some limited

extent. Like an order of magnitude estimate, its main purpose is

determining project feasibility based on the general project concept.

Created when a project’s deliverables are about halfway defined, a

_____ uses somewhat detailed scope information to

incorporate unit costs.