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  • 1.  Cost Estimating

    Posted 10-26-2021 02:47 PM

    Hi ASCE,

    Does anyone have a rule of thumb when completing cost estimating reports for projects? From my understanding of it the reports change as the project becomes materialized from concept to final. 

    What are some changes that you learned about when you were working on these tasks and things you wish you knew before? 

    Thank you,
    Oanh Le

    Oanh "Wan" Le, A.M.ASCE (She/Her)
    Rochdale, MA

  • 2.  RE: Cost Estimating

    Posted 11-01-2021 09:48 AM
    From my experience, Rule of Thumb is the interpolation of your Experience High and Low.
    For Cost Estimation, there are a lot of things to be considered.
    - Industry, Discipline, Building, Infrastructure, Machines, Military, Type of Expenses- Opt./Capital.
    From the above, the details will go deeper.

    Rule of thumb may be a result of the same projects, with the same specification.

    Then the detail will be divided into more sub .. like Direct Cost, Indirect Cost, Profit ( Contracting ).

    My advice is to have some research with AACE, it is quite dedicated to cost engineering where cost estimate is only a part of their expertise.

    Manolito Cresencio A.M.ASCE
    QS Qupervisor

  • 3.  RE: Cost Estimating

    Posted 11-01-2021 06:36 PM
    Hi Oanh,
    I like your question. I understand your concern
    The meaning of "completing cost estimating reports" can be subject to interpretation. In theory, some numbers are found as the result of the performed calculations that can be taken as figures of interest, but there is however the reality, efficiency of the labor forced involved in the project plus the possible/s approach to complete the project.  These factors are unknown to the estimator unless he/she has informed about it.
    Personally as an estimator, my report is the mathematical result of all my calculations which includes: rounding up, no waste (nor extra material) and all the material is expected to be useful (no damaged material). 
    My estimate will include any of the following sentences:
    -Minimum estimate assuming no waste and all material is in useful condition.
    -Estimate is subject to the productivity and the skills of the builders, installers, etc.
    -Estimate must be in agreement with the quality, availability and the rates for production.
    -Rates of production must be validated by the corresponding person in charge.
    I enjoyed writing about estimating; Agustin Jimenez.

    Agustin Jimenez A.M.ASCE
    Merced CA

  • 4.  RE: Cost Estimating

    Posted 11-08-2021 10:00 AM

    Dear Oanh Le,

    To a greater level of cost certainty by utilising the softwares like Revit + Naviswork + #bexel + primavera/ msp + costx etc. 

    BIM can gain value for the management to make decisions related to the commercial and save cost from collaborating the detail and all the parties from the beginning of project by providing a preconceptiual planning accurate cost, quantities and resources. 

    It also able to keep all accuracy and complete data from design stage, updated through construction stage to help operation and maintain the building by proper hand over the all detail properly. 

    BIM can save time and money of both client and contractor and also satisfy the user. The ROI analysis has shown BIM's return has increased significantly. BIM implementation will be need of 4 th Revolution of Digital Transformation.

    With warm regards,
    Narsimha Poloju
    President | ASCE India Section Southern Region
    P.Eng.,S.E, M.GI, M.ASCE, M.AEI, M.SEI

  • 5.  RE: Cost Estimating

    Posted 11-16-2021 07:57 AM
    Dear Oanh Lee,

    In addition to my below mail suggestions, also I recommend you to below metioned around 7 minutes video describing in detail for your reference. 


    With warm regards,
    Narsimha Poloju
    President | ASCE India Section Southern Region
    P.Eng.,S.E, M.GI, M.ASCE, M.AEI, M.SEI