CONSTRUCTION ESTIMATING

Instructor’s Manual For

CONSTRUCTION ESTIMATING

USING EXCEL

Third Edition Steven Peterson Supplement Files Download Link at the end of PDF. 1 / 4

CHAPTER 1: THE ART OF ESTIMATING

LEARNING OBJECTIVES

At the completion of this chapter the student should be able to:

• Explain the role estimating plays in the success of a construction company.• Identify what skills are needed to become a good estimator.• Explain the role of the bid package in the estimating process.• Identify the tools available to estimators.• Explain why practice is important.

INSTRUCTIONAL HINTS

• One of the keys to motivating students to study estimating is for them to understand why it is important for them to develop estimating skills. Helping them understand that people other than estimators (such as foreperson, superintendents, and project managers) are often required to prepare estimates for materials, labor, and equipment. The lecture on this chapter should help students see why it is important to learn estimating.• Estimating can only be learned by practice. The textbook contains hundreds of problems for the student to practice on. The lecture on this chapter should help students understand that to develop their estimating skills they need to complete the problems at the end of each chapter.Students should be encouraged to carefully review and work the example problems, including performing takeoffs on the garage drawings at the back of the book.

ACTIVITIES

• Invite a representative from industry to discuss the importance of estimating in the construction industry and the types of estimates different people prepare within their company.• Have the students research and report on an estimating software or takeoff package. You may want to assign the students to report on a specific software.

INSTRUCTIONAL RESOURCES

• PowerPoint slide show: PowerPoint Lectures\Chapter 01.ppt from the IM Resource Files

• Information on MasterFormat: www.csinet.org

SOLUTIONS TO THE TEXTBOOK PROBLEMS

• The process of determining the expected quantities and costs of the materials, labor, and

equipment for a construction project.

• “The construction and services required by the Contract Documents…and includes all other labor,

materials, equipment and services provided or to be provided by the Contractor to fulfill the Contractor’s obligations” (General Conditions of the Contract for Construction, The American Institute of Architects, AIA Document A201-1997, p 9). 2 / 4

Construction Estimating using Excel Chapter 1

• Accurate estimates are needed for a company to be successful in the bidding process, while

maintaining a reasonable profit margin.

• The estimator is the person responsible for preparing quantity takeoffs and cost estimates

regardless of their job title.

• An estimator must: have a sound understanding of the construction methods, materials, and the

capacities of skilled labor; the basic skills needed to determine the quantities of materials, labor, and equipment necessary to complete a project; be a good communicator, both verbally and in writing; possess strong computer skills; be detailed oriented; have the confidence to quickly prepare takeoffs and make decisions under pressure; and have a desire for contestant improvement.

• Estimating is an art, and like any art, you can only become good at it by practicing.
• Estimates are prepared from bid packages. The bid package defines the scope of work for the

construction project.

• Architect’s and engineer’s scales, roller wheel, digitizer, calculator, paper forms, spreadsheets,

estimating software packages, and takeoff software packages.

• The advantages include the software is inexpensive, it is easily adapted to the styles and estimating

procedures of the company, and it easily performs the mundane calculations. The disadvantage is it is less automated than an estimating software package.

• The advantages include it automates many takeoff functions which decrease the time it takes to

prepare an estimate, includes a database, can takeoff assemblies, and the takeoff is easily manipulated and printed in different formats. The disadvantages are it is expensive and takes a lot of time to setup and maintain the database. 3 / 4

CHAPTER 2: OVERVIEW OF THE ESTIMATING AND BIDDING PROCESS

LEARNING OBJECTIVES

At the completion of this chapter the student should be able to:

• Describe the steps taken to complete an estimate.• Identify the general scope of work and the items which need to be bid to complete an estimate.• Identify how information flow between the spreadsheets used in this book.

INSTRUCTIONAL HINTS

• During the lecture show how the different topics shown in Figure 2-1 relate to the chapters in the textbook. This will help them understand the organization of the course. The relationships

are as follows:

o Request subcontractor quotes: Chapter 24

o Quantity takeoff: Chapters 4 – 18

o Materials pricing: Chapter 19

o Labor pricing: Chapters 20, 21, and 23

o Equipment pricing: Chapter 22 and 23

o Prepare bid documents: Chapter 28

o Add markups: Chapter 25

o Combine pricing: Chapter 26

o Review bids for errors: Chapter 27

o Submit the bid: Chapter 28

o Project buyout: Chapter 29

ACTIVITIES

• Provide the students with copies of the Summary worksheet shown in Figure 2-2 and have them identify the items on the Summary worksheet which need to be bid to complete the bid for the Johnson Residence, the West Street Video, or another set of plans. Appendix B in Construction Estimating using Excel contains a list of items included in each of the cost codes on the Summary worksheet and should be used if a student is not sure where construction materials are located on the Summary worksheet.

INSTRUCTIONAL RESOURCES

• PowerPoint slide show: PowerPoint Lectures\Chapter 02.ppt from the IM Resource Files • Summary worksheet: The Summary tab of Excel Exercises\Chapter 32.xls from the IM Resource Files

• Quantity takeoff for the Johnson Residence: Johnson Residence Estimate.xls

• Quantity takeoff for the West Street Video: West Street Video Estimate.xls

SOLUTIONS TO THE TEXTBOOK PROBLEMS

• Get additional help, eliminate some of the estimating steps, or decide not to bid on the project.
• / 4