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Cost estimating - Coggle Diagram
Cost estimating
forecast/prediction for future
past cost data- future cost estimate
factors: inflation, future demand of labour & material
Approximation/probable cost
assumption and allowances
guess work: consists of risk and uncertainty
no exact, not a guarantee
Resources cost calculation
tradework,wages,productivity,skill/unskill
overhead
material, labour, machinery
Cost data & market information
up-to-date, real market condtion, relevant, accurate
Systematic & methodical process
structured procedures: study drawings, specs, contract condition, take off quantities, rate, overhead & profit
Standard method: SMM, CESMM
Project-specific & location-sensitive
site conditions: site access, ground conditions, logistics, contraints
Scope definition & design information
-clear project scope and design
-related to uncertainty and contigencies
Technical and market knowledge
technical understanding (construction method, sequencing, productivity)
interpret drawings, specs, and contract conditions