Construction Cost Estimating Example

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.

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.

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.

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.

Explore pricing the project from scope, develop a pricing model, establish delivery methodology, and set up self-perform and subcontract estimates.

Learn to build an Excel pricing model that estimates direct costs by unit rate times quantity, summing labor, plant, material, and subcontract costs for each WBS item.

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.

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.

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.

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.

Estimate raft slab costs by calculating concrete volume for eight beams and a 150 mm floor slab, including formwork, reinforcement, pour, wastage, and curing.

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.

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.

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.

Estimate the costs for earthworks, concrete structures, roofing, and the architectural fitout and services after completing major structures.

Learn how to structure a fence and gate estimate using a three-part work breakdown, issue requests for quotes to fencing suppliers, and adjust for exclusions, lead times, and on-site configuration.

Estimate the cost to supply and install door frames and windows and window frames, with glazing subcontracted, three glazing quotes averaging $3,200, and a total around $10,000.

Estimate internal floors and walls by identifying floor types F1, F0, F2 and walls W1, W2, measuring quantities from the architectural overlay, and calculating material and installation costs.

Price the internal fit-out by subcontracting the plasterboard ceiling (156 m²) at $75/m² and include bathroom fixtures costs. Exclude storage room fit-out, include garage shelves, with a total of $14,732.

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.

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.

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 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.

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.

Estimate management and staff overhead by assigning site supervisor, engineer, and project manager needs, durations, and salaries, including on costing, training, PPE, and hiring costs.

Identify and estimate site facilities, including offices, a lunchroom, toilets, storage, first aid, waste management, security, and cleaning; compute setup, demobilization, and weekly running costs based on project duration.

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.

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.

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.

Compute total project costs by adding profit and corporate overheads to determine the sale price, applying a markup to cover overheads and secure profitability.

Conduct a thorough cost estimate review to verify correctness, cross-reference with plans and specifications, and alignment with the project scope, while auditing high-value items with stakeholders.

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.

Master construction cost estimating with a worked example in Microsoft Excel. Explore fundamentals of cost estimating and construction management and discover related topics like contract management, procurement, quality and completions.