The document provides advice to Steven, a trainee quantity surveyor, on estimating the cost of a 3-star hotel project using cost data. It discusses where to find cost data sources like price books and bills of quantities. Considerations for using cost data include fluctuations in material and labor costs, the project location and site conditions, and the size and type of the project. Common mistakes in estimating are failing to visit the site, not checking calculations, and underestimating labor costs. The document recommends preventing mistakes by conducting site visits, having calculations checked, and including detailed labor information.

1. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
SEMINAR
(QUESTION 4)
ESTIMATING (QSB 60504)
BACHELOR OF QUANTITY SURVEYING (HONOURS)
CHAI JIA ERN
0324653
CHEAH MAN YEE
0324743
GOH XINGXIN
0325587
NA YONG YI
0324458
TAN KAI XUAN
0325066
TEE WAN NEE
0325074
GROUP MEMBERS:

2. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
QUESTION 4: 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
2019. He is planning to estimate the project using cost data. Advise him on the following
matters:
a. Where can he find cost data? (4 marks)
b. What are the considerations when using cost data? (12 marks)
c. What are the three (3) common mistakes make in estimating and how to prevent the
mistakes? (9 marks)
Preliminary estimate for a 3
stars hotel in Subang Jaya
Start constructing in July 2003 Using cost data
Hi, I am Steven!
A trainee in a Quantity
Surveying company.

3. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
INTRODUCTION TO COST DATA
Factual information concerning the cost of labor, material, overhead and other cost
elements which are expected to be incurred by a contractor.
WHAT IS
COST DATA ?
THE IMPORTANCE
OF COST DATA:
• Project managers have the information they
need to make decisions.
• Determine not only the budget of the project but
also the profitability for the organization.
Collection, analysis,
publication and
retrieval of cost and
price information.

4. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
WHERE CAN WE FIND COST DATA?
• Price Book
WHAT ARE THE
DETAILS SHALL
CLEARLY INCLUDED IN
COST DATA:
• Date of the data • Location of the
data
• Specification /
Quality
• Inclusion and Exclusion
THE SOURCE OF
COST DATA:
• Quotation • Public Sector Price
Guide
• Monthly Cost
Information
• Priced Bill of
Quantities

5. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
WHAT ARE THE CONSIDERATIONS WHEN USING COST DATA?
Supply and Demand
Outdated Price
Labour and material costs shift depending on supply and
demand in the market.
Cost from previous similar project priced BQ will vary due to
increase/decrease of material and labour cost over the year.
WHY
fluctuation is one
of a consideration?
Completion year of
previous project
In price book or website, price shown may not be updated
frequently based on current market which affect the accuracy of
the cost.
FLUCTUATION OF MATERIAL AND LABOUR
COSTFluctuation may occurs over the year and it should be taken into consideration when using cost data

6. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
Whether the site is in the
middle of town
Surrounded by
existing structures
If the site is distant from resources, transportation costs will
increase.
The typical weather and environment in Subang Jaya might be
different with East Malaysia. So, the soil type can be different with
any other place. The soil and rock suitability and drill ability
have the impact on construction.
WHY
location and
condition of the
site is one of a
consideration?
Weather and soil type can differ
from one place to another
If the project is hemmed in by existing structures, different issues
have to be concerned.
• Noise abatement
** Eg: Type of pile used **
WHAT ARE THE CONSIDERATIONS WHEN USING COST DATA?
SITE LOCATION & CONDITIONS
The location of the site affects the estimate in a couple of different ways.

7. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
WHAT ARE THE CONSIDERATIONS WHEN USING COST DATA?
INFORMATION (can adjust the font size &bold if needed)
SIZE & TYPES OF PROJECT
Cost data can be used from previous similar type & size of project
Shapes of building
Similar project cost
can be used
repeatedly
Larger projects tends to cost more than a small project.
Sometimes, smaller projects tends to cost more than a larger
projects
WHY
size & type of
project is one of a
consideration?
Function of the building
Cost of previous project with similar size and shape can be used
in current project
Construction of a simple building would make estimates easier,
but people would want something more special and different

8. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
3 COMMON MISTAKES MAKE IN ESTIMATING AND HOW TO PREVENT THE MISTAKES
FAILURE TO VISIT THE PROJECT SITE
This may seem obvious, but this step is often overlooked by contractors who are either inexperienced or
overly confident and assume that a particular job is cut-and-dried.
Whether existing
structures have to be
demolished
Topography and
whether grading or
drainage is an issue
Proximity to supply
centers and sources
of labor
Access and
temporary route to
the site
WHY
VISITING SITE IS CRUCIAL ?
SOLUTION Go for a site visit and study carefully the inclusions and exclusion of project
scope

9. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
3 COMMON MISTAKES MAKE IN ESTIMATING AND HOW TO PREVENT THE MISTAKES
NOT CHECKING YOUR NUMBERS.
Even if you’re sure you’ve got the right rates, measurements, taxes, etc., you should check and double-check
your numbers before submitting your estimate.
Math errors
Measurement
errors
Using incorrect
units of measure
COMMON
MISTAKES
At the very least, use a calculator or have the calculations
checked by another person.
can result in substantial cost increases or decreases.
Taking the wrong measurements and dimensions from
plans, drawings, and specs results in corresponding
mistakes in the cost of materials. Consider using software
to calculate measurements, and have another person
check your work.
SOLUTION

10. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
3 COMMON MISTAKES MAKE IN ESTIMATING AND HOW TO PREVENT THE MISTAKES
UNDERESTIMATING LABOR COSTS.
Labor is one of the most difficult costs to estimate. Hourly rates for construction workers is vary throughout the country, you’ll need to verify
current wage rates and fringe benefits for the building trades involved and also to include possible overtime rates.
How many workers
needed ?
How many hours
required ?
Is subcontractor
required ?
What is the worker
experience ?
THINGS
to consider
SOLUTION
Be sure to include as much detailed labor information as possible and
capture it in assemblies. This way, you ensure that any quantity changes
will automatically be reflected in labor costs.
Look at similar projects and compare the cost per square foot using key
figures.

11. CHAI JIA ERN 0324653 l CHEAH MAN YEE 0324743 l GOH XINGXIN 0325587 l NA YONG YI 0324458 l TAN KAI XUAN 0325066 l TEE WAN NEE 0325074
THANK YOU
BACHELOR OF QUANTITY SURVEYING (HONOURS)