Estimating seminar
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The document discusses 5 main factors to consider before recommending whether to accept or decline a tender invitation for a low cost apartment project in Kajang, Selangor. The factors are: 1) the type of project, 2) the project size and value, 3) the type of client, 4) the company's current and projected workload, and 5) regional market conditions. After analyzing these factors, the conclusion is that the company is recommended to accept the tender for the project.
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This document provides approximate estimates for flyovers constructed at four different locations. It summarizes the key details of each flyover project such as location, client, contractor, scope of work, cost, duration, progress, resources used, and per meter cost. The average cost per meter of the flyovers according to the estimates given is Rs. 5,37,635.
Estimating and-costing book
This document provides information about estimating and costing for construction projects. It discusses the need for estimation to determine project feasibility and cost, outlines the estimating process, and lists the key data required which includes drawings, specifications, and rates. Measurement rules and units for different construction items like earthwork, concrete, masonry, woodwork, and finishing works are also covered. The document emphasizes accurate measurement of work quantities as the basis for preparation of estimates.
Rates Analysis For Calculating Material and Labour for building works
The document discusses the analysis of rates for construction items. It provides materials costs, labor costs, and calculations to determine the total rate per unit of different construction works. For example, it calculates that the rate of excavation work is Rs. 9857 per cubic meter based on labor and materials. It also provides an example of determining the materials required for a 10 square meter conglomerate floor with two layers of concrete.
Tender
1. A tender is an invitation from an owner to contractors to bid on a construction project within a specified timeframe and cost. Tenders can be open, sealed, limited, or single and are classified based on bidding requirements and contractor selection.
2. The tender process involves preparing tender documents, publishing a notice inviting bids, submitting and evaluating bids, accepting a tender, and awarding a contract. Key information provided includes project details, completion timeline, earnest money deposits, and bid evaluation criteria.
3. For a contract to be valid, it requires a definite offer from the owner and acceptance from the contractor to complete the specified work, as defined in the contract documents signed by both parties.
CONTRACTS AND ITS TYPES
There are several types of construction contracts. Price-based contracts include lump sum contracts, where the contractor is paid a fixed price for the entire project, and unit price contracts, where payment is made based on rates for individual work units. Cost-based contracts include cost plus contracts, where the contractor is reimbursed for costs plus a fee or percentage, and guaranteed maximum price contracts, where the owner's liability is capped but the contractor can retain savings if the project costs less than estimated. The appropriate contract type depends on factors like project scope definition and risk allocation between owner and contractor.
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Estimating seminar
- 1. ESTIMATING SEMINAR 2 Aishath Hussain 0320429 Andrew Mah KoonYan 0318798 Ervinna Endela 0327508 MaybelleWang Sze Kher 0327553 WendyTeo SiewYen 0328242
- 2. Question‽ You are working for a house builder at Kuala Lumpur. Your company has recently received an invitation to tender a low cost apartment in Kajang, Selangor. You are required to make a recommendation whether to accept or decline the tender invitation. What are the 5 main factors you will consider before making the recommendation? Explain how these factors influence your decision.
- 3. COMPANY’S BACKGROUND ■ Date of Establishment: June 2008 ■ Completed Projects : Low to medium cost residential buildings/shoplots ■ In-house Employees : Quantity Surveyors, Engineers, Project Manager etc. ■ Capital / Assets : RM250,000 in bank ■ No. of SiteWorkers : 20 ■ MachineriesOwned : 2 excavators
- 5. TYPE OF PROJECT Site location and accessibility :- ■ Low cost apartment is suitable to be constructed around Kajang ■ Existing road to provide safe access and egress ■ 35km away from our office Past experience with similar projects ;- ■ Projects undertaken include low to medium range residential buildings
- 6. TYPE OF PROJECT Is the project within the company boundaries? ■ Yes, capable of delivering the project due to past experiences. Method of construction? ■ Adopt traditional construction method. (eg.Timber formwork)
- 7. TYPE OF PROJECT Is the project complexity beyond the capability of the company? ■ No, it involves simple and typical designs only The risk involved considering the nature of the work? ■ Accidents and injuries might occur at site due to traditional method of construction ■ Exterior work such as concreting and painting depends on weather condition
- 9. PROJECT SIZEANDVALUE Project Size :- ■ 4 units x 5 storeys x 4 blocks ProjectValue :- ■ RM 100,000 per unit x 4 units x 5 storeys x 4 blocks = RM8 million
- 10. PROJECT SIZEANDVALUE Projected cash flow required during execution :- ■ Standard S Curve onGraph – past cost information and details of completed. ■ Critical Path Method (CPM) – technique for project planning made up of a number of individual activities.
- 11. PROJECT SIZEANDVALUE Is the project size beyond the capability of the firm? ■ Yes. It is within our boundaries as it is a medium scaled project. Equipment, Labour and Plants :- ■ Equipment(s)– owns 2 excavators. ■ Labour(s) – 20-30 workers available.
- 12. PROJECT SIZEANDVALUE Risks of project :- ■ Force majeure (construction risk) ■ Late changes / additional work ■ Site access ■ Labour productivity (performance risk) ■ Defective work – latent defects ■ Vandalism (security) ■ Intrusion ■ Delays ■ Liquidated ascertained damages (LAD)
- 13. PROJECT SIZEANDVALUE Conditions of contract :- ■ Date of possession, deferment of possession, progress, delays, completion date ■ Liquidated ascertained damages ■ Partial possession ■ Quality of works ■ Testing and defects (Defects Liability Period)
- 14. TYPE OF CLIENT
- 15. TYPE OF CLIENT Public Sector or Private Sector ■ Private Sector – Kelly Jeners Financial capability of the client :- ■ Financially strong, reliable and has good financial records.
- 16. TYPE OF CLIENT Reputation of the client :- ■ Well known among the peers in the industry. ■ Kelly Jeners delivers on its promises to the customers and is worthy of respect and trust. Relationship with the client :- ■ Has an existing and positive relationship with the client.
- 17. TYPE OF CLIENT Expectations of the client :- ■ Client expects contractor to focus on their requirements, all of their needs and how to solve their problems. Form of contract :- ■ PAM Contract 2006 (With Quantities)
- 19. CURRENTAND PROJECTED WORKLOAD OFTHE COMPANY The need for work :- ■ The need for work is present since the company is only dealing with a medium range cost residential project at the moment. Other projects currently out for tender :- ■ Currently bidding for 2 projects and one of them is the Kajang low-cost apartment project.
- 20. CURRENTAND PROJECTED WORKLOAD OFTHE COMPANY Forecast for upcoming projects :- ■ To be able to secure at least 5 projects in the next 2 years. Availability of in-house staff :- ■ Yes. Quantity Surveyors, Engineers, Project Managers, etc.
- 21. CURRENTAND PROJECTED WORKLOAD OFTHE COMPANY Labour force availability :- ■ 20 workers. Availability of equipment owned by the contractor :- ■ 2 excavators.
- 23. REGIONAL MARKET CONDITIONS Economical situation overall and the construction industry :- ■ Have to look into the economic factors of the country, such as GDP growth rate, or GDP for construction (July 2016 – RM11899 million) • How many projects are currently available in the market? • How many competitors are expected to tender? • How competitive are they and what is the experience of estimators? • What are the status of the competitors?
- 24. REGIONAL MARKET CONDITIONS Amount of work currently available in the industry :- ■ The lesser the work, the more likely contractors are forced to bid for works which may be partly out of their competence and therefore more risky in terms of successful implementation. Availability of skilled workers and equipment needed :- ■ Not always available due to high demand at peak periods (January – April)
- 25. REGIONAL MARKET CONDITIONS Rate of price escalation in labour/materials price :- ■ Different price between tender period and obtaining actual material period. Unforeseeable circumstances which affects the final costs. Codes and standards applicable in the region :- ■ Different area, different standards and procedures. Eg: Noise level cannot exceed certain decibels in residential areas. Reliability of subcontractors :- ■ Finding a good subcontractor would be a tough job without connection.
- 26. CONCLUSION 5 factors to consider: ■ Type Of Project ■ Project Size AndValue ■ Type of Client ■ Current and ProjectWorkload ■ Regional Market Conditions FinalVerdict : OUR COMPANY IS RECOMMENDEDTO ACCEPTTHETENDER FORTHE PROJECT.
- 27. THE END