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25 views

(LEC-2)

Uploaded by

nk0000066666
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

In the

name of
Allah, the
Most
Gracious
the Most
Merciful
2

CONSTRUCTION
ESTIMATES
Preparing Construction Estimates

Methods of preparing estimates can be divided into two main categories:

1. Preliminary estimating techniques


2. Detailed estimating techniques
The method adopted by the estimator mostly depends on what the estimate is
to be used for and how much project information is available.

There are three further factors that have a significant influence on how an
estimator goes about preparing a construction estimate:
3. The type of project to be built
4. The delivery system used to move from the developer’s project idea to a
finished structure
5. The nature of the contract(s) used in the delivery system

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Project
delivery
systems

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Traditional (Design- Bid- Build) Delivery

• Requires the project to be fully designed before work


begins, and then makes use of a single general
contractor who assumes responsibility for constructing
the entire project on the terms of a lump-sum contract
with the owner.
• Used as a basis of the amount of fee charged by
consultants involved in the design process.

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Construction Management Delivery
• This form of organization seeks to facilitate overlap between
project stages, often referred to as fast tracking, to allow
earlier completion of the project.
• Fast tracking is achieved by dividing the project into several
phases. This approach allows construction work to begin
after the design and bid for phase one only are complete.
• Phase one may consist of nothing more than demolition and
site preparation that require very little time for design.
• While the work on this first phase proceeds, the design
continues for phase two, which may be the building
foundation system
• With this organization structure, the construction manager
assumes the responsibility for overall control and
coordination of the construction work that was provided by
the general contractor under the traditional organization 8
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Design-Build Delivery

• The owner deals with a single organization that assumes


the responsibility for both the design and the
construction of the project.
• With the design- build method, the owner indicates that
he or she requires a certain facility and usually outlines
some parameters relating to location, size, design, and
the desired time of occupancy.
• The design- build contractor is assuming the
responsibility for both the design and the construction of
a project for the price quoted.

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Contracts
A contract is a legally binding document that recognizes and
governs the rights and duties of the parties to the agreement. A
contract is legally enforceable because it meets the requirements
and approval of the law.

12
Contract System

1. Single contract

 Owner contracts with prime contractor


 Prime contractor hires subcontractors and material
suppliers
 Subcontractors and suppliers are responsible towards
the prime contractor
 Prime contractor is responsible directly to the owner.

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Contract System

2. Separate contracts

Owner contracts separately for:


 General construction
 Plumbing
 Heating
 Electrical
 Sewage disposal
 Specialties (Elevators, Lifts, Air conditioning)
 Etc.
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Types of Contract
Agreement

15
Lump-Sum contracts

• The Lump Sum Contract can sometimes


be called 'Stipulated Sum' and is the
most basic form of agreement where the
contractor/supplier agrees a fixed lump
sum price to undertake all the specified
contract works and the employer
(owner) agrees to pay this price upon
completion of works.

16
Unit Price Contract or Bill of
Quantities Contract
• In a unit price contract, the work to be
performed is broken into various parts,
usually by construction trade, and a fixed
price is established for each unit of work.
For example, painting is typically done on a
square foot basis. Unit price contracts are
seldom used for an entire major
construction project, but they are frequently
used for agreements with sub-contractors.
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Schedule of Rates Contract

• It contains inaccurate quantities of work.


It is common for separate rates to be
quoted for labor, materials, equipment,
sub-contract work, temporary works. The
contract price is derived by measuring
the man hours, plant hours and
quantities of materials actually
consumed, and then pricing them at the
tendered rates.
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Guaranteed-maximum-price contracts

• The contractor agrees to undertake the project for a fixed


price (A) and gives a guarantee that a target price will
not be exceeded unless the owner makes further
additions to the work. Good management by the
contractor is crucial for successful application of this type
of contract.
• In some guaranteed maximum price contracts, a savings
clause provide that if a project costs the owner less than
the guaranteed maximum price the owner and the
contractor are to split the difference b/w the cost and the
maximum guaranteed price.

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Cost-Plus-Fee Contracts

• The contractor undertakes the job, the owner pays for


construction costs and adds a fee for management by
the contractor. It is necessary to have a reputable and
efficient contractor who will undertake detailed
accounting for this contract.

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Build , Operate and Transfer ( BOT )
Contract
• This type of contract is sometimes known as “ Build ,
Own , Operate and Transfer ( BOOT ) contract ” . The
client will layout a series of required end products with
specification , terms and conditions ; and the contractor
must finance , design , construct , maintain , manage
and operate the finished work for an agreed period say
10 years , 20 years or so.
• During this agreed period , the contractor has the
temporary ownership of these finished works and can
charge the end users for recovery of its investment
together with the expected profit . However, when the
agreed period expires , the finished work will have to be
transferred back to the client in specified conditions .
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