4. What is Cost Data ?
It is a book that has a unit price section and a
reference section.
Unit price section includes:
Unit prices for
materials
Labour Equipment
Total unit price
including overhead
and profit
Q: Where can he find cost data?
5. Some of the sources of cost data
1.
Price Book
2.
Quotation 3.
Supplier
Catalog
4.
Priced bills
of
Quantities
Q: Where can he find cost data?
6. Recommendation
With everyday fluctuation in prices, I
would advise Steven, to use either
priced bills of quantities or quotation
from suppliers so as to get a recent
price adjustments.
Q: Where can he find cost data?
8. SIZE OF
PROJECT
Sometimes, smaller-sized
projects tend to cost more per
unit than larger one of similar
type.
Q: What are the considerations when using cost data?
1. Separate rates are
provided for different size of
projects.
9. CHOICE OF
WORK METHOD
a three-man or a
four-man crew? How will the
brickwork be
constructed?
Will there be central
mortar mixing or
individual mixers for
each crew?
Will trestles or
proper standing
scaffolding be
used?
Q: What are the considerations when using cost data?
Steven should involve in the project at early stage and
concerning about construction method that might be
used.
10. Addition for overheads
and profit
Depend on many
variables , such as:
1. Company policy
2. Market condition
Q: What are the considerations when using cost data?
Have a list of contractors that might be interested to tender.
Steven should update himself about the current construction prices like labour prices,
material prices, machineries prices and overhead costs.
11. Material Prices
Material
• Unloading
- By hand
- Machine
- Supplier delivery vehicles
• Storage
• Delivery and Haulage
Q: What are the considerations when using cost data?
12. Labour Cost
• Wages and fringe benefits are to be added into payroll.
• The hourly rate can also involve with combination of
skilled, unskilled and supervisory staffs where a mix of
different labours and staffs to carry out the works.
• Overtime or public holidays is to be considered in
determining the built up of the hourly labour rates.
The labor rate is the cost per hour for the craftsmen on the
project. To determine any craft rate, Steven starts with the
basic wages and fringe benefits.
Q: What are the considerations when using cost data?
14. Underestimating Labour Cost
Difficult to estimate labour cost
-An hourly rate per employee
Factors To be considered
- Experience
- Knowledge and education
- Whether subcontractors will be
needed
Q: Common mistakes made in estimating
15. Last-Minute Changes
1. Forgotten lines item
2. Formula errors
These errors can quickly turn a
profitable project into a loss
Q: Common mistakes made in estimating
16. Focusing on strengths alone
and ignoring weaknesses
Have depths of expertise in certain
areas
Moderate proficiency in others area
Q: Common mistakes made in estimating
17. How to
prevent the
MISTAK
E
01
Be sure to include detailed
labour information.
02
Using accurate cost-
estimation systems.
03
Good checklist, detailed
plans & specifications
Q: Common mistakes made in estimating
