Estimating
There are many times throughout a project when it is necessary to perform an estimate or take-off. The first time will typically be completed before a bid or offer is made. Estimators for a company must quantify the costs involved with the project they are working on. An estimate comprises of all the costs involved to complete the work. What sort of manpower is required? Will you need equipment like boom lifts, backhoes, bobcats or compactors? Are there more material costs involved than meets the eye? What about overhead and profit?
Remember the example mentioned on the take-off page? Here's what the next step towards creating an estimate might look like:
Example of an Estimate
Material:
CMU Block: $1.15 per 8" block
$1.15 x 341 blocks = $392.15
Grout: $108 per cubic yard
$108 x 5 = $540
9% Tax on Material Costs
$83.90
Equipment:
Bobcat: $110 per day
$110 x 3 days = $330
Labor:
Brick Tender: $45 per hour
3 men, 4 days
$45 x 8 hours x 4 days x 3 men = $4320
Bobcat Driver: $52 per hour
1 man, 3 days (not needed the fourth day when grouting is completed)
$52 x 8 hours x 3 days x 1 man = $1,248
Subtotal:
$6,914.05
15% Overhead and Profit:
$1,037.10
Total:
$7,951
As you can see, there is an important relationship between Bidding, Estimating and Scheduling? a project. As shown above in the breakout for Labor costs, in order to estimate those costs, you must first understand how long it will take to complete each portion of the work. In order to bid a project, you must understand how much a project will cost and how long it will take to complete. Visualize the bidding, scheduling and estimating parts of the project as a triangle with Bidding on top supported by Scheduling and Estimating.
To review sample problems visit the Practice Questions? page. This also includes a broad range of construction-related questions that apply to the PE Exam.