Construction Cost Estimates

Construction Cost Estimates

Course Outline

This 3-hour course is intended to establish uniform guidance to describe methods, procedures, and formats for the preparation of construction cost estimates for civil and military projects. Guidance is also provided for the preparation of estimates for project/construction contract modifications.

This course addresses all phases of construction cost estimating from early planning and budgeting stages all the way to construction completion and contract modifications.

This course describes methods and procedures for planning the work, productivity adjustments, contingencies, cost escalations, forward pricing, environmental considerations, overtime, and contractor’s overhead and profit.

This course is intended for contractors, owners, facilities managers, architects and engineers involved in the preparation or review of construction cost estimates for civil and military projects.

The course materials are based entirely on the Unified States Department of the Defense, United Facilities Criteria (UFC), UFC-3-700-02A, Construction Cost Estimates.

This course includes a multiple-choice quiz at the end, which is designed to enhance the understanding of course materials.

Learning Objective

The purpose of this course is to provide the student with methods and procedures for the preparation of construction cost estimates for civil and military projects.

At the conclusion of the course the student will be familiar with the:

Estimating Philosophy;
Work Breakdown Structure (WBS);
Estimating Methodology;
Parametric Estimates;
Price/Level Escalation Adjustment;
Life Cycle Cost (LCC) Study Support;
Types of Costs;
Price Sources;
Cost Estimating Format and Supporting Documentation;
Wage Rates;
Overtime and Shift Differential;
Taxes and Insurance
Productivity Adjustment Considerations;
Mobilization and Demobilization;
Handling and Storage;
Job Office Overhead;
General Home Office Overhead (G&A);
Distribution of Overhead;
Amount of Required Surety Bonds;
Cost of Performance and Payment Bonds;
Contingencies;
Negotiated Procurement and Contract Modifications; and
Mistakes in Bids.

Intended Audience

This course is intended for contractors, owners, facilities managers, architects and engineers involved in the preparation or review of construction cost estimates for civil and military projects. This course could also benefit personnel in construction contract negotiations or addressing legal issues associated with modification or completion of construction projects.

Benefit to Attendees

Construction cost estimates are an important and necessary part of any successful project. They should be performed and updated during all phases of the project, from early planning stages all the way to construction completion, and contract modifications. All costs that a prudent, experienced contractor would expect to incur should be included in the cost estimate. Each estimate should be developed as accurately as possible, in as much detail as can be assumed, and be based on the best information available. This objective should be maintained so that, at all stages of the project design and during construction, the cost estimate will in all aspects represent a “fair and reasonable” cost to the client or owner.

The attendees will be presented with a set of procedures and methods and examples for the preparation of construction cost estimates. The objective is to make the attendees thoroughly familiar with:

Basics for Preparation of Estimates
Composition of Construction Estimates
Labor and Labor productivity Issues
Construction Equipment
Materials and Supplies
Subcontracted Work
Overhead Costs
Profit
Surety Bonds
Contract Modifications and Other Negotiated Procurement

Course Introduction

The information in this course is arranged by chapters. Contents in each chapter begin with information and instructions common to all programs. The last paragraph of each chapter is used for program specific requirements, i.e., military, civil works, and Hazardous, Toxic, and Radioactive Waste HTRW programs. Therefore, the attendee should first become familiar with the common guidance and then refer to the program specific guidance. Appendix B contains sample estimate pages. Appendix C contains the work breakdown structure for civil, military, and HTRW.

Appendix D contains a checklist for cost estimate preparation. Appendix E contains an overview of automation systems used for developing cost estimates. Reproducible blank forms are included at the end of this document.

Guidance and recommendations herein are based on industry standards and experience in existing facilities. However, projects and situations vary greatly, and sound engineering and management judgment must be exercised when applying these methods and procedures. All available information must be considered in conjunction with this course.

Course Content

This course contains methods and procedures with specific examples, for the preparation of construction cost estimates for commercial and industrial projects.

You are required to study UFC 3-700-02, Construction Cost Estimates, published by the United States Department of the Defense.

Construction Cost Estimates

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CONSTRUCTION COST ESTIMATES

Table of Contents

Introduction
Background and Objectives
Basics for Preparation of Estimates
Composition of Government Estimates
Labor
Labor Productivity
Construction Equipment and Plant
Materials and Supplies
Subcontracted Work
Overhead Costs
Profit
Surety Bonds
Other Costs
Contract Modifications and Other Negotiated Procurement
Preparation of Drudge Cost Estimates
Protests or Litigation Concerning the Government Estimate
Standard Estimating Forms

APPENDIX A References
APPENDIX B Sample Estimate Pages
APPENDIX C Work Breakdown Structure
APPENDIX D Sample Check List for Cost Estimate Preparation
APPENDIX E Automation
Glossary Abbreviations and Acronyms

Course Summary

This 3-hour course presents uniform guidelines and procedures for the preparation of construction cost estimates for civil and military projects. The course covers the fundamentals of construction cost estimating such as; estimating methodology, work breakdown structures, productivity adjustments, life cycle cost studies, and price sourcing among others. The course also contains sample estimate forms and recommended check list for cost estimate preparation.

This course is intended for contractors, owners, facilities managers, architects and engineers involved in the preparation or review of construction cost estimates for civil and military projects.

Quiz

Once you finish studying the above course content, you need to take a quiz to obtain the PDH credits.

DISCLAIMER: The materials contained in the online course are not intended as a representation or warranty on the part of PDH Center or any other person/organization named herein. The materials are for general information only. They are not a substitute for competent professional advice. Application of this information to a specific project should be reviewed by a registered architect and/or professional engineer/surveyor. Anyone making use of the information set forth herein does so at their own risk and assumes any and all resulting liability arising therefrom.