BUILDING

TECHNOLOGY 4
SPECIFICATION
AND ESTIMATE
WHY ESTIMATE
 Construction Cost Estimate is an approximate of the probable cost of a project.
 Cost estimates will help dictate the scope of work of the project during the Pre-design
phase, Design phase, Bidding phase and Construction phase enabling the Owner and the
Architect to come up with a realizable project.

The type of estimate to be prepared as well as the accuracy of an estimate depends upon
the following:
 Information available
 Time available
 Intended use of the estimate

Estimates related to both the overall budget and to the preliminary allocations of budget to
the various system are periodically prepared. These cost estimates are successfully revised and
refined as working drawings for each system are developed. Estimating is the basis of financial
control, planning and procurement of resources throughout the project. An accurate estimate can
also help the contractor in a successful tender.

An accurate estimate is helpful in four keys of activity:

 Planning
 Financing
 Tendering
 Constructing

PLANNING – Planning a contract includes studying the project resources such as casn, labour,
materials and equipment. The project duration, project cost are determined based on the results
of the estimate. Planning facilitates:
Timely ordering of project resources
Project control
Preparation of cash flow analysis

FINANCING – There are several outside sources that contractors can use to help with its cash
management aside from their working capital. The principal source is the bank loan or bankdraft.
When preparing loan request, an estimate of the financial requirements at the different stages of
the project shall be submitted to the Instituion lending the money.

TENDERING – Contractors compete to be awarded the contract. The more accurate the
estimate, the better the contractor’s chances of winning the contract and executing it
successfully. A good tender sum is the lowest possible and still allows the project to be executed
with a reasonable profit margin. The tender sum consist of the following components:
Example: Proposal for the provision and installation of a Dry Ceiling System.
DIRECT COST INDIRECT COST TAXES TENDER SUM
Material Cost – 450,000.00 Overhead (5% of DC)- Total DC & IC –
Labor Cost - 135,000.00 29,500 708,000.00 750,480.00
Cost of Equipment-5,000.00 Profit (15% of DC) – VAT (6% of DC +
TOTAL DC – 590,000.00 88,500.00 IC)
TOTAL IC – 118,000.00 = 42,480.00

CONSTRUCTING – During construction the contractor’s target is to follow the project cost
and duration. This means controlling and programming the expenditures as well as the physical
progress of work. The estimates on materials, labor and equipment are regularly monitored and
compared to the original cost. Expenditures and incoming payments are compared with those
predicted in the cash flow analysis, which was also based in data from the estimating stage.

GENERAL ESTIMATING GUIDELINES

 Do not round-off quantities until the final summary.
 Mark drawings with different colors as items are taken off.
 Keep similar items together, different items separate.
 Identify location and drawing numbers to aid in future checking for
 completeness
 Measure or list everything on the drawings or mentioned in the specifications.
 Use indicated dimensions rather that dimensions measured off directly from drawings.
 It may be necessary to list not called for to make the job complete.
 Be alert for notes on plans such as:
 Not to scale
 Changes in scale throughout the drawings
 Reduced size drawings
 Discrepancies between the specifications and the drawings
 Develop a consistent pattern of performing an estimate, for example:
 Start the quantity take-off at the lower floor and move to the next higher floor.
 Proceed from the main section of the building to the wings.
 Proceed from south to north or vice versa, clockwise, or
 counterclockwise.
 Take-off floor quantities first, elevations next, then detail drawings.
 List all gross dimensions that can be either used again for different quantities, or used as a rough
check of other quantities for verification (exterior perimeter, gross floor area, individual floor
areas, etc.)
 Utilize design symmetry or repetition (repetitive floor, repetitive wings, symmetrical design
around the center line, similar room, layouts, etc.)
NOTE: Extreme caution is needed here so as not to omit or duplicate as area.
 Do not convert until the final total is obtained. For instance, when estimating reinforcing
bars, take off itemized units according to bas size, then summarize and convert to kilos or
tons.
 When figuring alternates, it is best to total all items involved in the basic system, then
total item involved in the alternates. Thus you work with positive numbers in all cases.
When adds and deducts are used, it is often confusing whether to add or subtract a
portion of an item, especially on a complicated or involved alternate.

COST ESTIMATE STAGES

The method of cost estimating varies with the stage of development of the project.
BUDGETARY ESTIMATE – This estimate is prepared in response to demonstrated
need. Accordingly, it should best be related to square meter to be built, number of
people to be served, units to be reproduced, or functions to be accomplished. The
best source is prior experience. The Architect must build up his own data from
every project that he builds aside from what is available in the industry.
SCHEMATIC DESIGN ESTIMATE – At the schematic and design phase the spatial
design has been committed to a plan and few elevations. There should be a site
plan available. Toa a large degree, this phase utilizes square-meter costs, but
parametric and modular costs can become much mor practical. It is also possible
to segregate certain areas and provide detailed cost-breakdown analyses.
DESIGN DEVELOPMENT ESTIMATE – The design development estimate is based upon
drawings which are an evolution of the schematic design drawings. They are often
a full size larger and therefore accurate quantity take-off is possible. The spatial
solution for the buildings has been completed, and so the architectural and
structural take-off is substantial accurate. At this stage, the mechanical, electrical,
heating and ventilating systems, are just coming into focus. The estimating
approach is usually combined, since a quantity take-off is possible only for
architectural and structural and parametric or square-meter costs must be for the
mechanical and electrical systems.
CONTRACT DOCUMENTS ESTIMATE – At this stage of project development, a
tremendous amount of detail is in progress. Estimates can be made on quantity
take-off bases for all areas. The designer will be doing a quantity survey type
estimate, but once the drawings and specifications have been released to the
contractors, one of the principal methods of developing a cost bid is to solicit firm
price quotations from sub-contractors or suppliers.
CONSTRUCTION AND BIDDING ESTIMATE – Estimates during the construction are
based on reality. The actual cost of work in place can be used as a guideline in
estimating extra work or changes in scope. Quantity survey methods are used by
contractors in estimating the projected savings in scope which would result from
accepted value-incentive programs.
 Estimating the cost of a project, or portion of a project is basically a two-step process:
1. Defining the project component to which the cost can be applied.
Example:
Description of Work No. of Units Unit
Wood Doors (2.10 x .80) 2 Sets
Wall Painting 70 Sq.m.

1. Assigning the unit cost in order to arrive at a component cost

Description Quantity Material Cost Labor Total
of Work No. of Units Unit Unit cost Total Cost Unit Cost Total Cost
Wood Doors 2 sets 4500 9000 1350 2700 11,700
(2.10 x 0.80)
Painting 20 Sq.m. 80 1600 24 480 2,080
(Exterior
Masonry)
TOTAL COST 13,780

Estimating procedures vary considerably from industry to industry and many special
approaches have been developed. The following is not all-inclusive but does not describe the
basic well-known approaches.

ESTIMATING BY USER UNITS METHODS

The facility to be designed or constructed is defined in terms of its capacity to
serve.
Example:
Hospital - Cost per bed
Hotel - Cost per bed
School - Cost per student population
Parking Structure- Cost per parking space

In some cases, using a agency which builds the same types of structure many times has
well-developed historical file on cost and use requirements. An estimate developed on this type
of data can be quite accurate.

ESTIMATING BY SQUARE METER METHOD

 Square meter cost are found by multiplying the area of space times a cost
factor. The cost factor is usually available from the historical cost file of past
projects. This is the method commonly used by Architects.
 Space Factor to be used in Estimating by Area: In order to arrive at an
accurate cost per square meter of a building spaces and its appendages
should be converted into their equivalent values in relation to the
predominant enclosed space.

Example: Office building – Unit Cost = 15,000 per sq.m.

General office space: 100sq.m. x 1.00 x 15,000 = 1,500.000
Stair: 20sq.m. x 1.25 x 15,000 = 375,000
Toilet: 15sq.m. x 2.0 x 15,000 = 450,000
AHU: 12sq.m. x .70 x 15,000 = 126,000
TOTAL= 2,451,000.00
SQUARE METER SIZE FACTOR
The Square Meter Size Factor for project is determined by dividing your project area square
meter by the typical project size for the particular building type. With this factor,
enter the Area Conversion Scale at the appropriate Size Factor and determine the
appropriate cost multiplier.
Example: Determine the cost per square meter for a 10,000 Sq.m. mid rise
apartment building
 Proposed building area = 10,000 sq.m. = 2.00
 Typical size from (Table 3) = 5,000 sq.m.
 Enter Area conversion scale at 2.0 intersect curve, read horizontally the appropriate cost
multiplier of 0.97
 Size adjusted cost becomes 0.97 x coverage cost per square meter (table 2)
CUBIC METER METHOD
This approach is very similar to the square meter procedure except that the cubage provides
the basis for cost. The cubic meter method is normally used in earthwork, civil construction
and airconditioning.
There are two times when square meter and cubic meter are useful. The first is in the schematic
design stage when no details are available, when square meter costs and cubic meter cost
makes a useful starting point. The second is after the bids are in and the costs can be
worked back into their appropriate units for information purposes. As soon as details
become available in the project design, the square meter or cubic meter approach should be
discontinued and the project priced by its particular components.

Example: Excavation for Foundation

105lm (Total length) x 0.40 (width) x 0.60 (depth) = 25.20cu.m.
25.20cu.m. x P275.00/cu.m. = P6,930.00
ESTIMATING BY PARAMETRIC METHOD
This procedure involved identifying the major scope of work which make-up the building and
then applying costs to each system based upon data or examples of similar buildings.
Example: Estimate of an Office Building: High Rise (35,000/sq.m.)
2%
2.50%
15% (700)
(875) 36% (12,600)
(5,250)
ARCHITECTURAL

STRUCTURAL

15% ELECTRICAL
(5,250)

MECHANICAL

SITEWORKS

OTHERS

PARAMETRIC
29%
(10,325)
METHOD
ESTIMATING BY MODULAR COST
In a situation in which the project is made up of repetitious modules such as housing units,
apartments, hospitals rooms or suites accurate cost is developed for one unit and
extrapolated by the total number of units and their characteristics.

Example:
10 units of socialized housing at 500,000/ house = 5,000,000.00

https://www.lumina.com.ph/property-
listing/model/10
COMBINED METHOD
The combined approach is used when the project is only partially defined. A detailed bill of
materials type take-off is performed for those portions which are defined, and square meter
cost are used for undefined systems. Most usually, the square meter costs is applied to the
electrical, mechanical and plumbing sections of the building which are the last to be
defined.
Example:

Construction Cost of a 27.00 sq.m. single detached studio unit

• Detailed architectural and structural plans and specifications are

available.
• Only the basic requirements are known for the electrical and plumbing
design.
Image from: Froilan Hong
Estimating Guide for Architects
BIDDING
This approach involves furnishing description of a portion of the project to a contractor of
supplier specializing in that portion. The job then costed in the form of a proposal to do the
work. This approach can be used either before the project is awarded or in developing costs
for extra work.

Example: An invitation to bid for the provision and installation of the door system for an office
building. Doors shall be hollow metal, 38mm thk, painted: duco finish. Include locksets:
a. 10 sets of 2.10m x 0.80m.
b. 5 sets of 2.10m x 0.90m.
DETAILED ESTIMATES BY QUANTITY TAKE-OFF METHOD
This is the description of a complete take-off of all materials in the project. Unit prices are
applied to each type of material and the results extended and summed up to provide a total
cost. This method is widely regarded as the most accurate in estimating.

METHODS AND PROCEDURES

 Develop the construction estimate in three separate but interlocking parts:
o Take-off
o Pricing
o Sub-Bids

 Before starting to take-off the quantities for estimate, attend to some

preliminary chores if the estimate is to go on with the minimum of difficulty.
Prerequisite to estimate
o Complete set of Construction Drawings
o Complete set of Technical Specification
o Project Site Examination and Inventory
o Others

Note: The more detailed these items are, the more accurate the estimate
become.

THE QUANTITY TAKE-OFF (QUANTITY SURVEY)

 Every construction estimated is based on a quantity survey. This is the extraction from the
drawings and specifications of all the labor and materials required for the structure. An
estimator must be able to work accurately, quickly and methodically in preparing the
quantity take-off. There are many “tricks of the trade” that will save time, reduce errors
and improve accuracy; there are no shortcuts, however, that can be taken at the expense of
accuracy.
 Before starting to take-off the quantities, examine the drawings. Take a
quick look through the entire set of drawings for an idea of the following:
o Layout, type of building
o Number of floors
o General design
o Order of the drawings
This quick look takes only a few minutes, yet many little things will stick in
your mind and save you time later.
 There are three basic rules for taking off quantities:
o Measure everything as it shows. Take-off quantities as it shows on the drawings.
o Do the take-off on everything that you can see. Do not deliberately leave out anything.
You will undoubtedly make mistakes, we all do, but in order to reduce the possibility of
error and so minimize the risk inherent in any bid, do the take-off on all items you can
see.
o If it is different, keep it separate: Separate items will require different unit
prices (e.g. separate slabs on fill from suspended slabs).
ORDER OF THE QUANTITY TAKE-OFF
• Study the floor plan carefully. On the floor plans, number the spaces, moving clockwise
from the upper left hand corner. Designate each wall with a letter, also moving in a
clockwise direction.
• Prepare a specification take-off, for each space, to summarize data from
plans and specifications. One sheet pre space.
• Proceed with the take-off in definite pattern not only by trade but also by
item within each trade. Compute roof separately.
o Concrete - Substructure
- Superstructure
- Finishes
o Masonry - Exterior
- Interior
o Carpentry - Rough
o Finishing Trades -
o Excavation - Building
o Sitework, Alternates and others
• Refer to quantity specific quantity take-off procedures. Jot down
calculations.
• Summarize quantities on long pad
• Recapitulate quantity take-off and enter in corresponding column in a form

REPAIR AND REMODELLING

The cost for repair and remodeling work must be modified due to the following
factors that may be present in any given repair and remodeling project.
• Equipment usage curtailment due to the physical limitations of the project,
with only hand-operated equipment being used.
• Increased requirement for shoring and bracing to hold up the building while structural
changes are being made and to allow for temporary storage of construction materials and
above grade floors.
• Material handling becomes more costly due to having to move within the confines of an
enclosed building. For multi-storey construction, low capacity elevators and stairwells may be
the only access to the upper floors.
• Large amount of cutting and patching and attempting to match the existing construction is
required. It is often more economical to remove entire walls rather than create many new
door and window openings. This sort of trade-off has to be carefully analyzed.
• Cost of protection of completed work is increased since the usual
sequences of construction usually cannot be accomplished.
• Economies of scale usually associated with new construction may not be present. A small
quantities of components must be custom fabricated due to job requirements. The unit costs
will naturally increase. Also, if only small work areas are available at a given time, job
scheduling between trades becomes difficult and sub-contractor quotations may reflect the
excessive start-up and shut down phases of the job.
• Work may have to be done on other than normal shifts mad may have to be done around
existing production facility which has to stay in production during the course of the repair
and remodeling.
 • Dust and noise protection of adjoining non-construction area can involve
substantial special protection and alter usual construction methods.
• Job may be delayed due to unexpected conditions discovered during
demolition or removal. These delays increase construction costs.
• Piping and ductwork runs may not be as for new construction. Wiring may have
to be snaked through walls and floors.
• Watching “existing construction” may be impossible because materials may no
longer be manufactured. Substitutions may be expensive.
• Weather protection of existing structure requires additional temporary structures
to protect building at openings.
• On small projects, because of local conditions, it may be necessary to pay a
tradesman for a minimum of four hours for task that is completed in one hour.

All of the above areas can contribute to increased costs for a repair and remodeling project. Each of
the above factors should be considered in the planning, bidding and construction stage in order to
minimize the increased costs associated with repair and remodeling jobs.