COST
ESTIMATION
Name: Lê Thị Phương Trâm
Class: 69DCKX21
ID student: 69DCKX20070
Introduction
IMP ORTA NC E O F C O S T
ES TI MATI O N
Projected words are words of expected
calculated value before construction of
works
A IMS O F C O S T ES TIMATIO N
• To
• To
• To
• To
• To
• To
establish the selling price of a product
determine the most economical process
make/buy decisions
evaluate the alternate designs
prepare production budget
initiate the cost reduction in existing faciliti
Main Content
O V E RV I E W
What is cost estimation is?
Types of cost estimation
Example of cost estimation
N E C E S S A RY FA C T O R S A N D
M A N D AT O RY C O N D I T I O N S
Construction estimating process
Components to make an estimate
Equipment & macinery
Overview
W H AT I S C O S T E S T I M AT I O N I S ?
Cost estimating may be defined as the
process of determining the probable
cost of the product before the start of
manufacture.
DESIGN ESTIMAES
T Y P E S O F COS T
E S T I M AT I ON
For the owner or its designated design professionals, the types of cost
estimates encountered run parallel with the planning and design as
follows:
•
•
•
•
Screening estimates (or order of magnitude estimates)
Preliminary estimates (or conceptual estimates)
Detailed estimates (or definitive estimates)
Engineer's estimates based on plans and specifications
B I D E S T I M AT E S
For the contractor, a bid estimate
submitted to the owner either for
competitive bidding or negotiation consists
of direct construction cost including field
supervision, plus a markup to cover
general overhead and profits.
• Subcontractor quotations
• Quantity takeoffs
• Construction procedures.
C O N T R O L E S T I M AT E S
For monitoring the project during
construction, a control estimate is derived
from available information to establish:
• Budget estimate for financing
• Budgeted cost after contracting but
prior to construction
• Estimated cost to completion during
the progress of construction
Necessary factors
and mandatory
conditions
Necessary factors and mandatory
conditions
• Step 1: Set up to-do Work Item
• Step 2: Make a Quantity
surveying/estimating
• Step 3: Make an estimated unit
price
Components to makeDirect
an estimate
costs
Overhead cost
Material cost
Pre-determined taxabl
Special items
icome
Overhead cost
Estimated construction
Labor cost
cost including VAT
Subcontractor
Valuable Projects
Executive machine cost
STEP 1: SET UP TO-DO WORK ITEM
S T E P 2 : M A K E A Q U A N T I T Y S U RV E Y I N G / E S T I M AT I N G
S T E P 3 : M A K E A N E S T I M AT E D U N I T P R I C E
ESTIMATE = QUANTITY x UNIT PRICE
WORK VALUE = QUANTITY x UNIT PRICE WORK
Components to
make an
estimate
M AT E R I A L C O S T
SPECIAL ITEMS
OVERHEAD COST
L ABOR COS T
SUBC ONTRAC TOR
EXECUTIVE MACHINE COST
Pre-taxable income : is the input account (The pre-calculation
system for enterprises is defined by the state for each project.
Estimated construction cost including VAT : is the construction
value of the work after including the 10% value-added tax
Estimated value of the work: is the cost that the
investor must pay to the construction
contractor and is also the cost to determine and
select the contractor
INCONCLUSION
The making of an estimate will help the
business to anticipate the money for the
items of the upcoming plan and help the
investors to prepare well all the stages of
the plan as well as mobilize capital in a
timely manner.
Estimation will help investors calculate
costs and easily select the most suitable
contractors, and at the same time save
costs for activities to implement the plan.
DOCUMENTATION
1. Project management for construction: cost
estimaion
2. Project estimating process
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