Construction Cost Estimating Example

Name: Construction Cost Estimating Example
Rating: 4.7 (250 reviews)

A detailed worked example showing how to calculate construction costs on a real-life project!

Created byTim Fairley

Last updated 10/2024

English

What you'll learn

We've helped over 20,000 students
Over 94% of students surveyed say we helped accelerate their careers
Downloadable resources and lecture slides included!
Understand the cost estimating process
Use microsoft excel to estimate the costs of a construction project
Learn to plan your estimate
Understand the project scope by reviewing the drawings and specifications
Develop the Work Breakdown Structure
Estimate the costs of civil and structural works
Estimate the costs of building a concrete slab

Course content

8 sections • 40 lectures • 2h 3m total length

Introduction1:30
Learn to develop a comprehensive construction cost estimate in Microsoft Excel, from planning and pricing to civil and structural scope, indirect costs, and client offer with margin.
Why you need to become a great estimator!2:11
Develop accurate construction cost estimates using a robust work breakdown structure, historical data analysis, cost indexing, and cost modelling to guide decisions from design to closeout.
Who is this course for?1:20
Structure of the course1:19
Learn the process of estimating construction costs using a garage project, including setting up the estimate, building a work breakdown structure, and applying an Excel-based pricing model.
Who am I?3:23
Learn from a seasoned construction manager's hard-won lessons about budget overruns, missteps, and the need for fundamental cost estimation and project management skills across the full project life cycle.

Section 1 - Introduction0:17
Plan and prepare a cost estimate by reviewing the project scope, examining drawings and scope of works, and developing a work breakdown structure as the basis of the estimate.
Planning our Estimate4:33
Plan your construction cost estimate by defining the scope, building a work breakdown structure, developing a pricing model, and pricing direct, indirect, and overhead costs within a delivery strategy.
What we are being asked to price4:15
Review drawings and scope of works to define the project scope, identify what to price, and prepare a tender package with a pricing schedule and a work breakdown structure.
The Work Breakdown Structure1:37
Develop a level-based work breakdown structure from the project scope to price each component. Break the project into earthworks, foundations, facades, and services, using an Excel WBS.
Can you see any gaps in the WBS?
Section 1 Quiz

Section 2 - Introduction0:24
Develop the pricing model1:45
Delivery methodology2:27
Determine delivery methodology for each work package by weighing self-perform, subcontracting, and hybrids against supervision, risk, and cost. Align choices with organization type to control overall project costs.
Resource Set-Up6:24
Learn to build a comprehensive pricing model for construction, covering self-performed vs subcontracted work, labor and plant rates, on-costs, overtime, and plant utilization, with delivered material costs.
Section 2 Quiz

Section 3 - Introduction0:19
Assess the pricing of the civil and structural components—earthworks, concrete foundations, and structural steel—by reviewing each work breakdown structure item in line with the delivery methodology to estimate costs.
Earthworks10:26
Explore earthworks pricing, from defining scope and handling incomplete site information with an RFI or exclusions, to estimating earthwork costs for vegetation removal, bulk earthworks, detailed excavation, and underground utilities.
Raft Slab5:51
Estimate raft slab costs by calculating concrete volume for eight beams and a 150 mm floor slab, including formwork, reinforcement, pour, wastage, and curing.
Useful concrete production rates0:05
Structural Steel6:38
Install the structural steel frame by welding 450 by 450 base plates to the roof slab and erect vertical and horizontal members with purlins, anchor bolts, and chem set.
Roofing5:24
Estimate roofing costs from drawings by pricing purlins, roof sheets, and box gutters, including labor, plant, and fixings, then use a pricing model to project total budget and installation time.
External Slabs5:58
Estimate external slabs by detailing concrete base and screed, formwork, and saw-cut joints, and include fence footing and sequencing of water tank, walkway, and car slabs to determine total cost.
Section 3 - Quiz

Section 4 - Introduction0:24
Estimate the costs for earthworks, concrete structures, roofing, and the architectural fitout and services after completing major structures.
Fence and Gate4:56
Doors and Windows3:36
Internal Floors and Walls5:41
Internal Fit-Out1:51
Electrical3:12
Identify the electrical scope within the services, including distribution board, lighting, and communications. Take-off from drawings, assemble materials and labor estimates, and plan delivery with a subcontracted electrician.
Utility Connections1:47
Estimate utility connections for water and wastewater and electricity within a turnkey scope, consult with the water and electricity providers, and determine the total cost of $7,420.
Hydraulics5:58
Develop a turnkey plumbing and hydraulics package by reviewing drawings, creating a scope of works and bill of quantities, and issuing a tender to evaluate subcontractor quotes.
Section 4 - Quiz

Section 5 - Introduction0:51
Section five explains indirect costs in construction, detailing their types and how the construction program drives them, alongside direct costs such as labor, materials, equipment, permits, and site facilities.
The Construction Program4:05
Classify indirect costs in construction as recurring and non-recurring, with examples like site office rent, utilities, and insurance. Use a quick resource-based duration estimate with contingency to project nine weeks.
Management and Staff Salaries3:09
Site Facilities2:21
Certification and Other Fees3:40
Outline the range of certification and other indirect cost fees, including building permits, inspections, insurance, legal and professional fees, surveys, testing, training, and miscellaneous charges.
Section 5 - Quiz

Section 6 - Introduction0:27
Refine the total project cost by adjusting the estimate, complete risk and opportunity assessment, add corporate overheads and profit margins, and submit with the offer letter and pricing schedule.
Risk and Opportunity5:17
Identify and quantify risks and opportunities to account for uncertainty in construction cost estimates, using risk registers, stakeholder input, site reviews, and historical data for accurate budgeting.
Profit and Corporate Overheads2:09
Reviewing the Estimate3:08
Notice any mistakes in the estimate?
Summarise and Submit4:00
Learn to complete the client pricing schedule, align items with the scope for variations and cash flow, allocate costs, apply a 15% markup, and prepare the offer letter.
Section 6 - Quiz

Requirements

Basic understanding of construction management
Basic understanding of cost estimating
Willingness to accelerate your career by mastering the fundamentals

Description

So far, we've helped over 20,000 students accelerate their careers in construction management by mastering the fundamentals.

Learn the tools, techniques, and processes to estimate construction costs with a detailed worked example!

The course is:

Proven - taken by thousands of students with satisfied results. Over 94% of students surveyed believed our construction management courses supported their career progression
Practical - developed in consultation with industry experts to teach you exactly what you need to know to succeed in the real world
Fast - we know you are busy, so we developed the course with that in mind and cut out every second of unnecessary information
Packed with Downloadable Resources - we offer students a guidebook and downloadable copies of all slides so you never forget what you learned!
Contains useful templates - we offer useful templates so you can apply the skills in the real world

Master the art of Construction Cost Estimating with our comprehensive online course, the Complete Construction Cost Estimating Worked Example. Whether you're an aspiring professional or an industry veteran looking to enhance your skills, this course provides a step-by-step guide to cost estimating in the construction field.

Designed for intermediate learners, this course assumes a basic understanding of cost-estimating concepts. We won't cover the fundamentals in this course, allowing us to dive straight into the core principles and techniques of accurate cost estimation.

Estimating is an indispensable skill in the construction industry, employed by project engineers, estimators, and professionals across the infrastructure sector. With the knowledge gained in this course, you'll be equipped to pursue high-paying positions in a range of infrastructure and building companies.

Throughout the course, you'll engage in a comprehensive estimating exercise centered around an imaginary garage construction project. Using real design materials, you'll develop a complete cost estimate for the project. Although the figures used will be fictional, the focus is on understanding the estimation process rather than precise numerical accuracy.

The course covers all aspects of cost estimating, from setting up the estimate to pricing the job, calculating direct and indirect costs, factoring in profit margins, and preparing the estimate for submission. You'll learn how to utilize Microsoft Excel effectively to create detailed estimates and gain valuable insights into the overall estimating process.

By the end of the course, you'll have a deep understanding of cost estimation principles and the ability to leverage Microsoft Excel for comprehensive estimates. You'll also have a complete estimate for the garage construction project, serving as a valuable reference for future endeavors.

Enroll now to elevate your estimating skills and unlock a world of opportunities in the construction industry. Join us on this transformative learning journey and become a proficient Construction Cost Estimator.

Who this course is for:

Construction Management Professionals
Quantity Surveyors
Cost Estimators
Project Engineers

Construction Cost Estimating Example

What you'll learn

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Course content

Introduction5 lectures • 10min

Section 1 - Planning our Estimate4 lectures • 11min

Section 2 - How are we going to price it4 lectures • 11min

Section 3 - Civils and Structures7 lectures • 35min

Section 4 - Architectural, Fit-Out and Services8 lectures • 27min

Section 5 - Overheads and Indirects5 lectures • 14min

Section 6 - Finalise and Submit5 lectures • 15min

Overall Conclusion2 lectures • 1min

Requirements

Description

Who this course is for: