The document introduces the importance of project cost estimating at different stages. At the pre-contract stage, estimating helps provide clients a clear picture of costs to plan budgets and ensure the successful tender does not exceed budgets. At the pre-tender stage, estimating provides assurance of a project's value and allows subcontractors to determine if they can submit a tender. At the post-contract stage, estimating aids in cash flow control and ensuring the final account matches the initial estimate. The document also discusses methods of estimating, tendering, and preliminaries items which are temporary works required by the main contractor but do not form work packages.

1. ESTIMATING
Introduction to The Principle of Estimating
&
Project Cost Estimating
Darren Tan Quan Wen
Lim Hong Wei
Loo Siah Mong
Pui Chun Shian
Ranee Leow Kai Yen
Soo Yon Li
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2. Importance of estimating at ...
Pre-contract stageObtain
competitive
prices
Cost control
Compile
quotations
➔ Provide clients a clearer
picture of the costs
involved, helping them
to plan and budget
accordingly.
➔ Enable material procured/
design to be finalised
within the budget.
➔ Enable planning for
budget allocation
➔ Ensure that the
successful contractor’s
tender does not exceed
the client’s budget.

3. Importance of estimating at ...
Pre-tender stageAssurance in
project Value
sub-contractor
Budget
confirmation
➔ Provide the company a
figure which they are
capable in tendering the
project value
➔ Estimated value allows
subcontractor to know
whether they are willing or
able to submit tender to
the contractor.
➔ Ensure client knows that
the sufficient funds are
available before
committing to seeking
tenders.

4. Importance of estimating at ...
Post-contract stageTender sum =
Final account
Cash flow control
Control
contingency sum
➔ Making sure the final
account statement is
close to the amount
estimated initially ➔ Realistic monthly
assessment of preliminaries
➔ Increased costs kept up to
date in monthly valuations
➔ Daywork sheets
completed and cleared
for monthly payment
➔ Ensure majority of it is to
cover cost of extra work
that could not be
reasonably foreseen
➔ Ensure probable cost of
all variations to be
computed before issue
of variation orders.

5. Estimating Measurement Tendering
➔ Uses estimator
building’s knowledge
and skills to estimate
a rough figure on a
particular project
➔ Uses SMM2 as a
guideline to calculate
a more accurate figure
of the project
➔ Price offer to do a
construction building
➔ Based on past
building construction
price
➔ Based on current
market price
➔ Inviting subcontractor
to bid and evaluating
the bids during tender
stage
➔ No profit made ➔ No profit made ➔ Done with profit

6. What are preliminaries items ?
Temporary works which are required by main
contractor during the contract, but do not form any
of work packages required by the contract.
Occupational Health and
Safety Officer
Internet Access Portable Toilets

7. Site Office Temporary Roads