ESTIMATING

Introduction to The Principle of Estimating

&

Project Cost Estimating

Darren Tan Quan Wen

Lim Hong Wei

Loo Siah Mong

Pui Chun Shian

Ranee Leow Kai Yen

Soo Yon Li

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Importance of estimating at ...

Pre-contract stageObtain

competitive

prices

Cost control

Compile

quotations

➔ Provide clients a clearerpicture of the costsinvolved, helping themto plan and budgetaccordingly.

➔ Enable material procured/design to be finalised

within the budget.➔ Enable planning for

budget allocation

➔ Ensure that thesuccessful contractor’stender does not exceedthe client’s budget.

Importance of estimating at ...

Pre-tender stageAssurance in

project Value

sub-contractor

Budget

confirmation

➔ Provide the company afigure which they arecapable in tendering theproject value

➔ Estimated value allowssubcontractor to know

whether they are willing orable to submit tender tothe contractor.

➔ Ensure client knows thatthe sufficient funds areavailable beforecommitting to seekingtenders.

Importance of estimating at ...

Post-contract stageTender sum =

Final account

Cash flow control

Control

contingency sum

➔ Making sure the finalaccount statement isclose to the amountestimated initially ➔ Realistic monthly

assessment of preliminaries➔ Increased costs kept up to

date in monthly valuations➔ Daywork sheets

completed and cleared for monthly payment

➔ Ensure majority of it is tocover cost of extra workthat could not bereasonably foreseen

➔ Ensure probable cost ofall variations to becomputed before issueof variation orders.

Estimating Measurement Tendering

➔ Uses estimator

building’s knowledge

and skills to estimate

a rough figure on a

particular project

➔ Uses SMM2 as a

guideline to calculate

a more accurate figure

of the project

➔ Price offer to do a

construction building

➔ Based on past

building construction

price

➔ Based on current

market price

➔ Inviting subcontractor

to bid and evaluating

the bids during tender

stage

➔ No profit made ➔ No profit made ➔ Done with profit

What are preliminaries items ?Temporary works which are required by maincontractor during the contract, but do not form anyof work packages required by the contract.

Occupational Health and

Safety OfficerInternet Access Portable Toilets

Site Office Temporary Roads