thanks liang notes

Question 1

List the 6 types of estimation?

Answer 1

For owners:
Conceptual
Alternative Design Estimates
Owners Engineer’s Estimate

For contractors:
Contractors Bid Estimate
Alternative Construction Methods
Changes/Claims

Question 2

What is a conceptual estimate?

Answer 2

Feasibility Study - Hires A/E to provide order of magnitude estimate of cost

Question 3

What is an alternative design estimate?

Answer 3

Architect/Engineer shows different designs giving owner more options
Perform a Quantity Take-off (QTO)
Rely on bid abstracts for cost info

Question 4

What is an Owner’s Engineer’s Estimate?

Answer 4

Engineer gives owner a cost to compare when evaluating bids
Performs another QTO

Question 5

What is a Contractor’s Bid Estimate?

Answer 5

QTO (very detailed)
Based on in-house cost database
Consider construction methods

Question 6

What is an Alternative Construction Methods?

Answer 6

Contractor has been awarded the job
Detailed review on how he priced job
Finds better ways to approach project
Eg. better construction methods?
Trying to maximize profits

Question 7

Changes/Claims

Answer 7

Need to be priced
When owner wants to make a big change that’s not part of the scope, contractor can make a claim for that

Question 8

What is a direct cost?

Answer 8

Any cost that can be associated with a discrete, physical part of a construction project

Question 9

What is an indirect cost?

Answer 9

Any cost that cannot be associated with a discrete, physical part of a construction project

Question 10

What are permanent materials (PM)?

Answer 10

Any material that falls within the neat lines of the drawing
LOW RISK

Question 11

What are Expendable Material (EM)?

Answer 11

Any material that falls outside the neat lines of the drawing + temporary structures like falsework and framework
HIGH RISK

Question 12

What are labourers (L)?

Answer 12

Related to productivity
Difficult to estimate
HIGHEST RISK

Question 13

What are subcontractors (S)?

Answer 13

Covered by performance bond
LOW RISK

Question 14

What are Equipment Operating Expense (EOE)?

Answer 14

FOG (Fuel, Oil, Grease)
Tires
Small repair parts
3rd part overhaul
MID RISK

Question 15

What are Repair and Service Labour (RL)?

Answer 15

Direct costs
HIGH RISK

Question 16

What are Rental, Depreciation, and Writeoff (R)?

Answer 16

In-house equipped division -> Rent equipment to that own project
Rent/Lease
Operated + Maintained (HIGH RISK) -> Renting equipment and an operator
MID RISK

Question 17

What are the 7 horizontal cost types? PEE-RSLL

Answer 17

1. Permanent Materials
2. Expendable Materials
3. Equipment Operations
4. Rentals
5. Sub Contractors
6. Labour
7. Labour Service

Question 18

What are the two bid formats we consider in CM2?

Answer 18

Lump Sum Bid -> Only shows final price of bid
Schedule-of-bid-items Bid -> Calculate each individual item

Question 19

What makes up the rows in the Bid Formats table…?

Answer 19

Directed Costs
Fixed Costs
——->Indirect Costs
——————->Salaried Payroll
——————->Time-related overhead
——————->Non-time-related overhead
——————->Insurance and Taxes
——————->Construction plant in & out
——->Escalation
——————->Labour
——————->Material
——————->Equipment
——->Interest
——->Contingency
——->Markup
Bond (Premium)

Question 20

What makes up the columns in the Bid Formats table…?

Answer 20

Labor
PM
EM
Subs
EOE
RL
Rent

Question 21

What are the three kinds of shifts when considering labour premium?

Answer 21

Regular - 8AM to 4:30PM - 8 hours worked - 8 hours paid
Swing - 4:30PM to 12:30AM - 7.5 hours worked - 8 hours paid
Night - 12:30AM to 8AM - 7 hours worked - 8 hours paid

Question 22

What is the Shift Differential Equation? What is it use for?

Answer 22

(Hrs paid - Hrs worked)/Hrs worked

This is used to find the pay premium amount, by multiplying it with the total dollar value labour cost

Question 23

What are the types of Overtime?

Answer 23

1.5/1.5/2
1.5 applies to weekdays and saturdays
2.0 applies to sundays and holidays

2.0/2.0/3.0
2.0 applies to weekdays and saturdays
3.0 applies to sundays and holidays