2. Steven is a trainee in a Quantity Surveying company. He is
currently doing a preliminary estimate for a 3 stars hotel in
Subang Jaya which is anticipated to start constructing in July
2013. He is planning to estimate the project using cost
data. Advise him on the following matters:
A. Where can he find cost data?
3. Sources of cost data from the following sources:
● Price Book,
● Quotation,
● Public sector price guides,
● Monthly cost information,
● Priced bills of quantities
As the project is in Malaysia, consultants or Steven in this case will generally opt for
the use of recent priced bills of quantities with necessary price adjustments tailored to
the project.
4. B. What are the considerations when using
cost data?
5. Size of project
● Smaller sized project will likely cost less
to build than the larger sized project
● The larger the project, the more
materials, and labour will be needed,
and the construction schedule will
stretch out accordingly
● Separate rates are provided for
different size of projects
6. Location of construction
● When a location of construction
project is far away from available
resources, it increases the project cost
● Cost of transportation for workmen,
equipments, materials, tools etc.
increases with distance and adds to
the project cost.
7. Material costs
● Material costs are impacted by
availability, shipping costs, and taxes,
among other thing
● The type and availability of a particular
material can also affect your approach to
a cost estimate
● For example, if your client insists upon a
particular material or if a particular
manufacturer’s product is crucial to the
success of a project, the cost of that
specific item can drive up the cost of the
project.
8. Labour cost
● Labour costs are affected by the type of
skills needed, the number of available
workers, and the local wage range.
● For example, if local workers don’t have
the required skills, you need to consider
the cost of transporting and boarding
workers from farther away.
● The farther away the start date and the
longer the timeline, the more variability
will be seen in these particular costs.
9. Nature of the site
Physical site condition:
-The site topography i.e. the natural site features,
ground conditions and obstructions, existing and
adjoining building, and underground and
over-ground services all impact on how the building
is designed and subsequently constructed.
-Heavily sloped sites require extensive stepping or
cut and fill operations and such sites may be
dangerous and adversely affect the working
conditions and productivity of operatives and plant
output. Sites with poor loadbearing capacity will
require more expensive foundations while exposed
or waterlogged sites will also reduce overall
productivity
10. Method Of Procurement
● The procurement strategy identifies how
the project is structured and establishes
where responsibility for design is to be
placed, how the work is to be co-ordinated,
and on what price basis the contract is to
be awarded.
4 type of procurement
❖ Traditional Procurement
❖ Design and Build Procurement
❖ Management Procurement
❖ Construction Procurement
11. Availability of the service
● The availability, location and capacity of existing
utilities must be considered in the design.
● Connecting to these may involve significant
costs particularly where they are inconveniently
located or are distant from the site
● For example septic tanks or pumping plant may
be required to drain a site, easements may be
required to cross neighbouring land, and
diversions of live services may be required to
accommodate the development.
12. C. What are the 3 common mistakes make in
estimating and how to prevent the mistakes?
13. Mathematical, figure and take off
● Humans error
● careless
● Eg: sums wrong, wrong scaling, reading error
■ Double check the work
■ Make sure using right scaling during the work
■ Using accurate cost estimating software
■ Eg: costX, Buildsoft
14. Planning of work
● Do not know how to start the work
● Not having idea of the time, labour loadings, quantities
of pricing
● Eg: forgotten line items and formula errors from
cutting and pasting
■ Planning before start and refer to previous
similar work
■ Avoid last minute works or changes
15. Lack of knowledge of works
● Unable to visualize the work before work
● Stick to the work you know
● Focusing on strengths alone, ignoring
weaknesses
