Estimating at different stages of procurement is important in the construction industry. At the concept stage, estimators provide a general cost view and advise on project changes. In design, they discuss costs with designers and estimate materials and workloads. At tender, the accurate total cost is laid out for client budgeting. During construction, costs must follow the set budget and finish on schedule. Estimators ensure proper financial control, prevent unnecessary costs, and use reliable checking systems at each stage. Measurement quantifies items, estimating adds rates to get total costs, and tendering adds profit margins for priced contract offers. Preliminaries are general site costs like security, utilities, site facilities, and insurances that cannot be allocated to specific

1. Lee Kim Thiam
0310710
Liew Yong Sheng
0315108
Muhd. Hasif bin Alias
0316413

2. Q1 : The importance of estimating at different stages of procurement? (9M)
What is procurement in Construction industry?
 Process of purchasing goods or services.
 Have different routes
- Traditional
- Design and Build
- etc

3. 1. Concept
 review concept to client
 provide general view of project cost
 advice change in project
2. Design
 discuss with designers for more
accurate price
 estimate material cost
 estimate work load
 material management
3. Tender
 layout cost and price for project
 suitable ones in cost will be selected
 ensure cost within client’s budget
4. Construction
 ensure material and costs follows set
budget
 construction do not exceed planned
duration
5. Occupation
 certificate of Completion and
Compliance (CCC) issued after tests for
tenancy suitability
 guide client to builder evaluation
process
Procument Stages

4. Importance of Estimator
 Contract do not deal with apportionment of risk
 Parties do not know who pay and takes the decision
 Clients overpay without proper financial control
 Unnecessary additional cost due to contractor’s inability to perform
 Uses unreliable cost check systems

5. Q2 : The differences of measurement, tendering and estimating ? (9M)
Measurement Item + Quantity
Estimating Measurement + Rates
Tendering Estimating + Profit
Measurement - a process of quantifying items according to a rule or set of rules.
- provides a structure for the information that make up the
descriptions for taking-off list and BQ.
Estimating - a process of calculating the approximate cost of a result.
- provide the total cost of work which is derived from the element
cost(plant, material, labour), prelims, provisional and prime cost sums +
dayworks and overheads.
Tendering - a process of making a priced offer to construct the building.
- provide tender document which included both measurement
and estimating information.

6. Q3 : What preliminaries items are and provide five (5) examples ? (7M)
 Also known as General Site Charge
 Represents those costs that cannot be reasonably allocated to any specific
identified
 The Code of Estimating Practice published by the Chartered Institute of
Building described preliminaries as, '...the cost of administering a project and
providing general plant, site staff, facilities, and site based services and other
items not included in the rates”.

7. Site Security
Water & Electricity SupplyFencingSite Signboard
Insurance Temporary Accommodation

8. Le' END
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