CB&A Project Management
Construction Estimating Training Manual

1.Introduction to Construction Estimating

What is Estimating?

Estimating is the systematic process of predicting the cost
required to complete a project within a defined scope, schedule, and quality
level.

Why Estimating Matters

Determines project feasibility, supports bid competitiveness, establishes a baseline budget, enables cost control and forecasting, and forms the basis for contract negotiation.

Types of Estimates

Estimate Type

Accuracy Range

Project Phase

Conceptual / ROM

-30% to +50%

Early planning

Budget Estimate

-15% to +25%

Preliminary design

Definitive Estimate

-5% to +10%

Final design

Bid Estimate

Competitive

Tender stage

2. Estimating Process Overview

Step-by-Step Workflow

  1. Scope Review
  2. Drawing & Specification Review
  3. Quantity Takeoff
  4. Labor Productivity Analysis
  5. Material Pricing
  6. Equipment Costing
  7. Subcontractor Quotations
  8. Indirect Costs
  9. Risk & Contingency
  10. Markup & Profit

 

3. Quantity Takeoff Fundamentals

Manual Takeoff

  • Scale drawings
  • Highlight & color code by discipline
  • Use standardized measurement sheets

Digital Takeoff Tools

  • On-Screen Takeoff
  • Bluebeam
  • PlanSwift

Example Calculation

Concrete Slab:Length × Width × Thickness

100 ft × 50 ft × 0.5 ft = 2,500 cubic feet

Convert to cubic yards = 92.6 CY

Direct Cost Components

Labor Costs

Labor Hours = Quantity × Productivity Rate
Labor Cost = Labor Hours × Hourly Rate

Factors:

  • Crew composition
  • Overtime
  • Learning curve
  • Site conditions

Material Costs

  • Vendor quotes
  • Freight
  • Taxes
  • Escalation

Equipment Costs

  • Owned equipment rate
  • Rental rates
  • Fuel & maintenance
  • Mobilization

 4. Indirect Costs & Overhead

Includes:

  • Site supervision
  • Temporary facilities
  • Safety program
  • QA/QC
  • Permits
  • Insurance
  • Bonds

6. Contingency & Risk

Types of Risk

  • Scope gaps
  • Design development
  • Market volatility
  • Weather
  • Labor shortages

Contingency Approaches

  • Percentage-based
  • Risk register driven
  • Monte Carlo simulation (advanced)

7. Markup & Pricing Strategy

Final Price = Direct Cost

  • Indirect Cost
  • Contingency
  • Overhead
  • Profit

Consider:

  • Market competition
  • Client relationship
  • Risk appetite
  • Strategic positioning

8. Estimating Software Overview

Primavera P6

Used for:

  • Time-phased budgeting
  • Cost loading
  • Earned value integration

WinEst

Used for:

  • Detailed assemblies
  • Cost databases
  • Historical cost tracking

Microsoft Excel

Used for:

  • Custom models
  • Bid comparison
  • What-if analysis

 9. Integration with Project Controls

Estimating feeds:

Discipline

Integration Point

Scheduling

Duration assumptions

Cost Control

Budget baseline

Procurement

Commitment tracking

Risk Management

Quantified exposure

Earned Value

BCWS baseline

Strong estimators:

  • Understand schedule logic
  • Validate productivity assumptions
  • Support change order pricing
  • Assist claims analysis

Estimating Case Study Exercise

Scenario:
Industrial building – 50,000 SF
Disciplines:

  • Sitework
  • Concrete
  • Structural Steel
  • MEP

Participants must:

  • Perform quantity takeoff
  • Apply productivity rates
  • Calculate labor & material
  • Apply overhead and profit
  • Present bid summary