Construction Specifications Institute (CSI) = developed a standard format for organizing
the specs known as the MasterFormat.
MasterFormat = specific format/outline on how the specifications are listed.
Protects contractors business and projects (CYA: Cover Your Ass)
Required by federal or state statute
Considerred part of Labor Burden
Insurance based on Payroll:
Workers compensation: per $100 of payroll
o Employer pays total cos
- Forecast cost of future
- People supplying money & looking for a finished product
Basis for Estimating
- Contract Documents
- Complete or Early Documents
Start wit conceptual Est.
- What kind of project is it?
Estimates and Contingencies
GC has 2 work packages: self perform & sub out
Material takeoff needs to be done firstthen factor in productivity, crew, etc.
Scheduling needs two things: logic & duration of activities
Backlog = projects and work
Contracts bonds and Insurance
- Owner has 2 contracts = design & construction
- Architect has contract with GC or Subs
- GC has contract for all of construction
- Subs have a portion of work
- Subs may have subs for additi
Introduction to Estimating
Building construction estimating is the determination of probably construction costs of a
Design Bid Build (DBB): projects constructed with this delivery system require
contractors to submit a competitive cost estimate.
Know 1) productivity 2) how much to pay
Productivity is measured in 1) Historical value-what previous jobs have done
2) Standard rate & 3) resource enumeration
Time cards = time to get paid, keep track of how much they spent on what activities
Bids and Estimates
Types of Bids
Competitive: public owner; hired designer, put them up for bid; low bid wins the
Negotiated: mostly private; show plans and specifications, come up with price or
what may need to be changed (structure and functional
Owner has 2 contracts
Architect has subcontracts
Contractors have subcontractors
o Framing/Finish Carpentry
Contractors decide on price through:
Provisions and Bonds
Scope of Work
- Project, drawings & Specs
Time of Completion
- How long to complete job
- Liquidated Damages = compensate owner for not having project finished on time
- Usually Lump sum
- Amount of a
o Divided into Home Office Overhead Costs and Job Overhead Costs.
Home Office Overhead Costs: (General Overhead or Indirect Overhead) include
items that cannot be readily charged to any one project, but represent the cost of
The bid submitted for any construction project is based on the contract documents.
Agreement: document that formalizes the construction contract, and it is the
basic contract. Incorporates all other documents and makes them part of the