Preparing the Detailed Estimate If a contractor chooses a project he or she can

professionally and financially handle, it is worthwhile to expend all efforts to win

the bid. In addition, the contractor must successfully pass a qualification
screening. After the decision to bid, arrangements need to be made to pick up
the contract document and prepare a detailed cost estimate. The steps listed
below, in logical order, are the road map for developing a detailed estimate. One:
Review the bidding documents. Check for general conditions, specifications and
all the drawings. If any discrepancies exist, record them and check with the
architect or engineer. The general conditions and specifications are generally
organized into the following sections: the bid, the owner/contractor agreement,
bonds, alternates, general conditions, specifications, and addenda. The bid
section includes the invitation to bid, instructions to bidders, and bid forms. The
invitation to bid contains a description of the nature, extent, and location of the
project as well as contact information for the owner. The documents should also
Cost Estimating 65 Dr. Emad Elbeltagi contain date, time and place that bids will
be received; general contractor and subcontractors prequalification
requirements; date, time, and location of any prebid conference; availability of
bidding documents with their dates, locations, and procurement costs; and bond
requirements. The owner/contractor agreement section is most often a
standard document that formalizes the construction contract price and
construction duration. It should also list progress payments retained, percentage
of completed work value, acceptance conditions, and final payment constraints.
The bond section should include bid bond and performance bond forms and
requirements. Bonds are written documents that describe the conditions and
obligations related to the owner/contractor agreement. A bid bond certifies that if
a contractor is awarded the bid within the time specified in the invitation to bid,
the contractor will enter into the contract and will provide all other required
bonds in a timely manner. A performance bond guarantees the owner that within
agreement limits the contractor will perform all work in accordance with the
contracting document. Labor and material bonds guarantee to the owner that
the contractor will pay in a timely fashion for supplied materials used by all the
subcontractors related to the project. Two: Review the drawings to visualize the
building size, height, shape, function, basements, and so on. Start with floor
plans, cross-sections, exterior finish system, and the roof. Note all unusual
construction procedures, building systems, and materials that have been
specified. Three: Review structural drawings to get acquainted with specified
systems: reinforced concrete, structural steel, masonry, wood, or combinations.
Find out which pieces of heavy construction equipment will be needed for
erection and for how long. Pay attention to various wall sections, materials and
prefabricated assemblies. Four: Review mechanical, electrical, fire extinguisher,
and security drawings. Record any possible interference with substructure and
superstructure erection. Cost Estimating 66 Dr. Emad Elbeltagi Five: Start
identifying work to be done by general contractor and work to be done by
subcontractors. Six: Read and study thoroughly the specifications for the work to
be done by the general contractor and those related to any subcontracted work.
Also, review general conditions and note the items that will affect project costs.
Seven: Visit the project site and have with you the project manager or field

engineer. Eight: Call a meeting with the personnel who will hold the key
supervisory positions. Establish with them the general guidelines for quantities
take off and pricing. Nine: Develop a list of subcontractors. Notify subcontractors
and suppliers that the company is preparing a proposal and ask if they intend to
submit bids. Ten: Following the site visit and staff consultation, develop a list of
items to be considered for jobsite overhead and general overhead that need to
be priced later. Eleven: Start the quantities takeoff for the category of
construction work selected to be done in house (most often site work,
foundations, and concrete work). When taking off quantities, break each item
down by size, type of material, and workmanship. Also list the type of
construction equipment needed for each phase. Twelve: Condense quantities
from the work up sheet by work category and transfer them to a summary sheet
for pricing. Pricing means the cost of materials, labor, and construction
equipment. The prices used are from company available cost files adjusted to a
particular location, or from quotes from suppliers and subcontractors.