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In estimating for contracting, the cost is what something costs you to build, and price is what you charge another party for building it.

## Estimating & Costing

Detailed documentation is recommended to accompany the estimate. For labor, the estimator should, "Determine basic production rates and multiply them by the units of work to determine total hours for the work. Oberlender and Steven M.

Generally more contingency is needed for earlier estimates due to the higher uncertainty of estimate estimatinb. The preparations of detailed construction estimate consist of working out quantities of various items of work and then determine the cost of each item.

Earlier estimates are prepared by differing methods by estimators and others to support the planning process and to compare with bids. It is called order of magnitude because that may be all that can be determined at an early stage.

### Estimating & Costing - Civil Engineering

They can also be tracked separately allowing decision makers to make better decisions about the project during its conceptual phase. There are different types of cost estimators, whose title may be preceded by a modifier, such as building estimatoror electrical estimator, or chief estimator.

In construction contracting, a cost estimate is usually prepared to submit a bid or tender to compete for a contract award. A cost estimate is the approximation of eetimating cost of a program, projector operation.

Indirect costs include overheadprofitsales or use taxes, payment and performance bondsescalationand contingency. This can only be known after the project is completed. The cost estimate is the product of the cost estimating process. This format is illustrated in the handwritten spreadsheet sample.

The bidder ultimately will go out of business; the only question is how long will it take. Factors affecting the quality of the estimate include the people who prepared the estimate, how the estimate was prepared, and what was known about the project. An order-of-magnitude estimate is prepared when little or no design information is available for the project.

These factors promote time adjustment of capital costs, following changes in technology, availability of materials and labor, and inflation. This page was last edited on 30 Mayat The accuracy of an early estimate relates to the estimate quality. Lists Glossary of construction cost estimating Glossary of project management Outline of project management MasterFormat Uniformat. In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully and then finally a rate is decided for that item.

Retrieved from " https: Project and Cost Engineers' Handbook. The standard method is to review and understand the design package and take off or perform a quantity survey of the project scope by itemizing it into line items with measured quantities. The method used for most definitive estimates is to fully define and understand the scope, take off or quantify the scope, estimatint apply costing to the scope, which can then be summed to a total cost. Then costs are applied to the quantified line items.

Additional documentation may accompany the estimate, including quantity takeoff documentation and supporting calculations, quotes, etc. These correspond to modern published classes 5, 3, and 1, respectively.

This process of determining the rates of an estimatting It greatly influences the total cost, so it is required to be estimated accurately. Andd and costing in construction management is the calculation of quantities of materials, tools, equipments, labors etc. These requirements are set out in accordance with formal quality assurance standards.

Since a cost estimate is the approximation of the cost of a project or operation, then estimate accuracy is a measure of how closely the estimate is able to predict the actual expenditures for the project or operation.

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