Construction Management Fundamentals - Part 3 of 4

Examine cost estimating concepts from feasibility to bidding, using a Death Star analogy to show when to use round numbers versus detailed budgets and who performs the estimates.

Explore conceptual (parametric), assemblies (schematic), and detailed (itemized) estimates and their ±20%, ±10%, and ±5% accuracy across planning, design, and construction.

Learn the cost estimating process in construction, from dividing work by CSI divisions and building a work breakdown structure to quantity takeoff, pricing, and applying contingencies, overhead, and sub pricing.

Explore how the level of detail drives estimate type and accuracy, from conceptual and parametric master-planning estimates to assemblies and detailed estimates, with quantity takeoffs and pricing from past projects.

Learn the differences between bids, proposals, quotes, and estimates in construction, and how each serves as an offer or price with varying evaluation criteria and binding contracts.

Describe construction bid process from issuing bid packages and site visits to preparing bid forms with estimates and supplier quotes, sealed submissions, bid opening, and awarding to the lowest bid.

Learn how a general contractor handles lump-sum bids, scope gaps, and scarce subcontractor bids, and decides on bid adjustments or withdrawals to avoid leaving money on the table.

Explore how proposals, RFQs, and RFPs shape design-build selections, from qualifications and technical proposals to cost proposals, interviews, and choosing the best-value team over lump-sum bidding.

Learn earthwork estimating and civil drawings by reading stations, plan, profile, cross sections, and existing conditions to identify cut and fill and move soil efficiently around sanitary sewer layouts.

Apply the average end area method to compute earthwork volumes from cross sections, converting areas to volumes and managing bank, loose, and compacted cubic yards for cut and fill.

Learn how to compute earthwork volume for roads by calculating cut and fill across cross sections, converting bank cubic yards to compacted cubic yards, and balancing stockpile with mass ordinate.

Learn earthwork estimating through quantity take off and earthwork volume process, scalable from small to large projects, using civil drawings to balance cut and fill and reduce borrow and waste.

Explore construction contracts, from professional services and prime contracts to subcontracts and purchase orders, and learn how terms flow down across all project tiers.

Learn the criteria for a legally enforceable construction contract: clear offer with a time limit, matched acceptance, mutual agreement, consideration, legal purpose, and capacity.

Explore the anatomy of a construction contract, from the basic agreement and general conditions to templates like AIA and Consensus Docs, plus supplementary terms, drawings, reports, and incorporation by reference.

Explore how offer and acceptance must mirror to form a legally enforceable contract, and learn best-practice process where the general contractor uses a subcontract template to secure an executed contract.

During a gym renovation, televisions were excluded from the contract after negotiations. An email promising to add them lacks consideration, so the promise is not enforceable.

Provide all contract documents to subs and suppliers to avoid scope omissions, prevent conflicts over parking lot work, and ensure clear mutual agreement.

A 16-year-old signs a car contract, crashes it, and seeks to void it; court rules he is not competent due to age, so he can exit and recover down payment.

Recognize an implied agreement when a homeowner does not stop a contractor who arrives with tools after receiving a quote and an offer.

Explains a contract example with the U.S. Air Force, showing how scheduled delays, undisclosed readiness exercises, and base closures impact timelines, mutual agreement, and possible extensions.

Break down complex construction projects into manageable activities with scheduling concepts, then determine feasibility, sequence tasks, estimate durations, allocate resources, order materials, and communicate milestones.

Learn to build a hand schedule with the activity on node method, map early and late starts and finishes, identify the critical path, and analyze total and free float.

Learn how finish-to-start, finish-to-finish, and start-to-start with lag govern construction schedules, using steel fabrication, delivery, and drywall timing to align on site activities.

Learn to use scheduling software and Gantt charts to track critical path, float, long lead items, and start early while seeking field and supplier input for practical, concise schedules.

Conclude part three by exploring cost estimating concepts, the types and accuracy of estimates, and producing bids or proposals, then review contract types and basic, manual scheduling.