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Introduction 

It is vital to have a thorough understanding of the estimated cost of construction before beginning any engineering project. If the predicted cost is higher than the budget that is available, changes to the design may be required to cut costs. Calculating the quantities of different task components is done when making an estimate. These computations, which are subsequently utilized to calculate the entire cost, can be done by anybody who can understand drawings and dimensions from them.The project's estimated cost is known as the Methods Estimate, and it is calculated mathematically using plans, drawings, and current rates. While a variety of techniques can produce an approximation, the Detailed Estimate Method is used for accurate estimates. On the other hand, the Actual Cost cannot be determined until the project is finished. It entails keeping a daily log of every expense, which is then added together to get the overall Actual Cost.In order to help estimators identify specific goods for correct pricing, detailed estimates meticulously calculate amounts for various job items. Additionally, note that the slab area is indicated in parenthesis (m2) to ease pricing in compliance with ASMM section 6.1 addressing in-situ concrete for slabs.

The estimate format also complies with ASMM 6, in the following ways:

The volume of a slab is measured in cubic meters (m3).

Within parenthesis, area is stated in square meters (m2).

Slabs are presumed to be horizontal unless otherwise specified.

Take note of the Bill of Quantities layout's presentation of "Concrete - In Situ Concrete."

Measurement and definitions: The preambles are covered in this section.

The builder is directed to the complete specification by this section.

Measurement and pricing: This section addresses every component that the builder must take into account in the estimate, even if it isn't specifically stated in the Bill of Quantities.

These general considerations must be given careful consideration, especially the more expensive ones like concrete testing and RPEQ engineer inspections.It is essential to keep a project estimate notebook to safely record all project information, figures, and assumptions for future reference. The next General Contractor (GC) stepping in should be able to continue from the estimate notebook in the event that a contractor is unable to complete the project or leaves early. The project may suffer greatly if these notes are not adequately numbered, annotated, or documented. 

Typically seen are the following items:

Workup documents

summary documents

sheets to help you spot mistakes and omissions

Received proposals from manufacturers, suppliers of materials, and other third parties.

When visiting sites, take important notes.

taking notes while looking at construction documents

Before the bidding process starts, a General Contractor (GC) must go to the project site in person or send a representative. To make sure that all factors affecting the construction process are taken into account, this visit should be made. This phase is essential since a contract forbids the general contractor (GC) from filing change orders based on problems they could have seen during the site visit. Change orders based on these justifications are not allowed since everything on the site is available to the observer.

PRELIMINARY PROJECT COSTING 

When assessing the cost of a commercial building project, subcontractor costs might account for a sizeable amount of the ultimate value. However, depending on the nature of the project and the capabilities of the building contractor, the degree of this reliance on subcontractor prices may change. In a market with intense competition, an estimator could send out Requests for Quotes or Tenders (RFQ/RFT) to numerous subcontractors for every part of the project. In order to make sure that the contractor is acquiring subcontractor services at a reasonable cost, they will then use these subcontractor rates as a benchmark to evaluate and confirm the competitiveness of the bids received.When estimating a significant commercial project, the estimator may decide to start from scratch when figuring out the prices of high-risk trades like excavation, in-situ concrete, or demolition. This strategy enables them to take into account conducting these trades themselves if it turns out to be more affordable. They often solicit quotes from subcontractors for the remaining substantial subcontractor packages and may also need to make cost projections for any Scope of Works sections that weren't covered by subcontractor bids. Additionally, they participate in supplier and subcontractor adjudication, as discussed in Module 4, Section 5. These projects have become so large that the contractor's position has changed into that of a construction manager, who is largely responsible for managing suppliers and subcontractors and forecasting preliminary costs to efficiently manage the project.To make sure that subcontractor pricing is in line with industry standards and that the estimate completely covers the scope of work, estimators frequently engage in cost planning for different project components throughout the actual estimation process. The procurement team must be attentive in ensuring the accuracy and cost-effectiveness of subcontractor pricing to retain competitiveness if some project components haven't been priced by the estimate.Trades adhere to the ASMM framework, and final prices are summarized in a Priced Bill of Builders Quantities for a commercial building project. Subcategories exist for some trades, like joinery. For error checking and cost planning, net costs—including preliminary costs—are determined per square meter (GBA). Separate additions of site overheads and margins are often made in a single lump-sum price submission format. Overheads, risk, and margin are added to the net price if a Bill of Quantities is employed. This might be carried out proportionately or differently for different trades. Contractors for civil engineering use comparable procedures and submission schedules. Pre-adjustments, margin, hidden expenses, and overheads are taken into account; each has its own sources and markups.

Item no 

Description 

Qty

Unit 

Rate 

Total 

Employers requirements

Lumpsum charge for site engineer and general maintenance 

1

320

Management and staff

Requirement for quantity surveyor , site engineer and site supervisor

1

97452

Facilities and services 

Power supply

Water connection

Gas service 

1

520

Temporary works

Temporary toilet work

Asbestos removal

Storage facility, gate and bracings for material

1

450

Site accommodation

Office 

Storage and worker facilities

1

1050

Contract condition

Preparation of tender documents, site dairy 

1

1200

Mechanical plant

Machinery and power sources 

1

855

Non mechanical plant 

Utility like heating and cooling facilities,earthmoving and essential services 

1

1100

Preliminaries required for these 

Employers requirements

Management and staff

Requirement for quantity surveyor , site engineer and site supervisor

All employees must be legally eligible to work in the country where the site is located. This typically requires proof of citizenship, a work visa, or other appropriate documentation.

Safety Training: Employees should receive appropriate safety training before starting work on the site. This may include training on the use of personal protective equipment (PPE), hazard identification, and emergency procedures.

Facilities and services 

Administrative offices where project management, engineering, and administrative staff work. These offices often include meeting rooms, workstations, and storage spaces.

  1. Storage and Warehouses: Buildings or areas designated for storing construction materials, equipment, and tools.
  1. Restrooms and Washrooms: Permanent restroom facilities for workers and visitors.
  1. First Aid Stations: A dedicated area for providing basic medical assistance and first aid.
  1. Cafeteria or Break Room: A designated area where workers can take breaks and have meals.

Temporary works

Project managers, engineers, and supervisors can coordinate activities, handle paperwork, and host meetings in a temporary administrative office called a "site office."

Field Shelters: Structures or trailers where workers can rest, dine, and find shelter from inclement weather.

Tool Crib: A temporary, safe place to keep tools and equipment in order and to guard against theft.

Construction supplies and materials can be temporarily stored in these spaces to help keep them orderly and weather-protected.

Site accommodation : - 

A construction office, storage space, worker facilities, safety precautions, parking, utilities, security, waste management, and clear access pathways are examples of site accommodations. The particular criteria vary depending on the project size and regional laws.

Contract condition 

job Scope: The job scope must be fully specified in the construction contract. This contains the project plans, requirements, and drawings that offer a thorough explanation of what needs to be constructed. Making this part clear helps avoid confusion later.

Timeline: A defined project timeline should be included in the contract. This schedule has to outline milestones, due dates, and any fines or rewards for finishing early or on schedule. Project management requires a clearly defined schedule.

Payment Conditions: The contract's payment conditions are an essential element. The overall contract amount, the timing of payments, and any clauses addressing additional expenses, change orders, or other payment periods should all be included in this section.Liability and insurance needs should be outlined in the contract for both parties involved in the project. Additionally, it must specify how responsibility for mishaps, harm, or other problems will be managed.

Permits and Approvals: The contract should specify who is in charge of securing the relevant permits and approvals. This guarantees that the project conforms with local laws and has the necessary permits.

Mechanical 

Equipment and machinery with moving elements that carry out specified tasks are referred to as mechanical plant. Excavators, bulldozers, cranes, loaders, forklifts, and conveyor systems are just a few examples of the various things that fall under this category.

Power Sources: To carry out labor-intensive operations like excavation, lifting, and material handling, these devices are often powered by engines, motors, or hydraulics.

Use: Mechanical equipment is frequently employed for activities including digging, earthmoving, lifting big loads, and moving things. They are crucial to the manufacturing, mining, and construction sectors.

Non-mechanical

Equipment that is stationary or fixed, not mobile, and does not contain moving parts is referred to as non-mechanical plant. Boilers, generators, HVAC systems, electrical substations, and storage tanks are a few examples of such things.

Utility Systems: Non-mechanical plant frequently includes utility systems that supply a facility or industrial site with necessities like electricity, heating, cooling, and water delivery.

Usage: Non-mechanical plant is necessary to support building operations and infrastructure. Boilers, for instance, supply steam for industrial or heating processes, while electrical substations manage the distribution of electricity.

REQUIREMENT OF ESTIMATION SOFTWARE

Cost estimation in project management comprises estimating the sum of money and other resources required to complete a project within its predetermined boundaries. All project components, including materials and labor, are used to calculate the overall budget required for the project.

If a project is accepted, it will depend on the preliminary cost estimate. If the estimate is too high, organizations could need to reduce the project's scope or start looking for additional funds. Once the project is underway, the cost estimate is crucial for managing and controlling all associated expenditures in order to maintain it on schedule and under budget.The RIB costX tool provides cost takeoff and estimation solutions to assist with report writing, budgeting.BIM files from a variety of programs, including SketchUp, Revit, Tekla, Microstation, ArchiCAD, and Mudshark, are supported by costX. Estimates can be color-coded by users to speed up the review process, and Microsoft Excel integration helps to avoid duplicate entries.

ADVANTAGES OF SOFTWARE

Create Accurate Quotes: Upload BIM files to quickly estimate quantities and expenses. To create effective what-if scenarios, use forecast models. Encourage cooperation among cost planners who are working on the same estimate.

Getting Rid of Data Entry Errors: Drag & drop dimensions from the system to Microsoft Excel spreadsheets to save time. Maintain automatic updates to estimates to guarantee consistency.

Execute precise takeoffs: Use 2D takeoff tools to accelerate takeoff procedures by up to 80%. To distinguish between negative and positive measurements in each dimension group, give each a random color.

Take Knowledgeable Decisions: Using reporting modules, you can create and evaluate data. Set up tasks according to zones and codes. Create graphs and charts to spot patterns and outliers for data-driven decision-making.Utilize web-enabled devices to access files remotely and monitor project statuses in real time with cloud deployment.Aimed for quantity surveyors, subcontractors, estimators, builders, and BIM managers. Suitable for the residential, commercial, and civil engineering, landscaping, and roofing industries. Suitable for all sizes of businesses.

BIM Takeoff: Use 3D models to extract material amounts for accurate estimations. Utilize model maps to alter takeoffs. Make it possible for several workers to work together on a same project. With the costX Viewer, users can see BIM takeoffs.

2D Takeoff: From scanned 2D drawings, CAD files, and PDFs, determine lengths, areas, and counts. Link dimension and quantity adjustments to Microsoft Excel spreadsheets through seamless integration with costXL.

Workbooks: To cut down on errors, live-link material amounts to cost databases and drawings. Maintain existing formulas while importing data from Excel.Subcontractor Comparison: Utilize the bid day tool to build databases with pertinent quotes. Integrate subcontractor information with related reports to enable informed choice.

Auto-revisioning: To highlight changes, perform comparisons, and update amounts, load initial measurements into revised DWG drawings.

Reports: Create cost plans and bills of quantities that are customized to the needs of the client using report writing software. Reports should incorporate page breaks automatically.

Ranking Libraries From BIM files, extract worker data, produce bills of materials, and generate cost projections. Establish rate libraries by logging into system administration.

Limitations in study 

Limited Reporting Capabilities: Users have complained that the product doesn't offer extensive reporting options.

Cost: In comparison to other takeoff and estimation solutions, some customers find it to be somewhat pricey.

Learning Curve: Using the software is thought to have a steep learning curve.

REFERENCES 

 Ahamad, N. B. (2020). Construction Procurement in Industrialised Building System. Retrieved from IOP Science: https://iopscience.iop.org/article/10.1088/1757-899X/849/1/012072 

Ahamad, N. B. (2020, May). Google Chrome. Retrieved from ProQuest: https://www.proquest.com/docview/2562477079

Davis, P. (2008). Building Procurement Methods . Brisbane: Cooperative Research Centre for Construction Innovation.

Dzulkalnine, N. (2016). Comparative Study of Procurement System between Industrialised Building System (IBS) and Conventional Construction . Kuala Lumpur : Construction Research Institute of Malaysia (CREAM).

Hashim, N. (2013). Exploring e-Procurement Value for Construction Companies in Malaysia. Elsevier Ltd. Retrieved from Tipalti Website: https://tipalti.com/e-procurement/

 Ling, T. M. (2014). PROJECT PROCUREMENT METHOD: THE CONFLICTS IN CONSTRUCTION PROJECTS PROCURED UNDER DESIGN AND BUILD METHOD . 

 Ming, H. L. (2016, November 26). Traditional procurement method. Retrieved from Slideshare: https://www.slideshare.net/hiewliming/traditional-procurement-method 

 Nawi, M. N. (2017, April). E-Procurement in Malaysian Construction Industry: Benefits and Challenges in Implementation. Retrieved from ResearchGate: https://www.researchgate.net/publication/315797650 

 Saaidin, S. (2016, December ). The Current Practice of Design and Build Procurement Process in Malaysia. Retrieved from ResearchGate: https://www.researchgate.net/publication/332411945_The_Current_Practice_of_Design_and_Build_Procurement_Process_in_Malaysia 

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