We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Cost estimating - Research Paper Example

Comments (0)
Summary
Abstract The paper gives a detailed account of the cost estimating process. It traces the history of the estimating process right from the beginning of the construction process in the ancient times and discusses the various stages through which it passed as the construction industry progressed…
Download full paper
GRAB THE BEST PAPER
Cost estimating
Read TextPreview

Extract of sample
Cost estimating

Download file to see previous pages... The purpose orientation of each type of the estimate with reference to the advantages each type provides to the various parties of a construction project has also been discussed. Introduction The process of predicting the total costs of materials, labor, capital and professional fees required to construct a proposed project is called as cost estimating. The estimate is based on an approximation of the probable cost of the materials, labor and other services required for the construction of a project and it can never be said to be hundred percent accurate and varies with the fluctuating prices of the construction materials and services. The accuracy of cost estimation is of vital importance of the success of a project for the owner as well as the contractor. Estimates are important for developing the feasibility of the projects and the owner’s decision to carry out the project depends upon the preliminary estimates. Accurately estimating the construction costs lies at the heart of a construction company’s success. There may be two scenarios; too low estimate can win bids to the construction company but results I ultimate loss of money to the construction company. On the other hand if the estimates are too high, the chances of getting the work are very less. A good estimate is the one which also incorporates the costs which are not apparent but are likely to occur during the course of completion of the project. Such predictive expertise is the distinguishing characteristics of a good estimator. The main objective of cost estimating is cost control which is very important in construction industry because inappropriate cost control results in the over-budgeting of the project which can ultimately result in the bankruptcy of the construction company. Over the years the methodology adopted for cost estimating has changed and new techniques have evolved. The evolution of the current methodologies and techniques employed in cost estimating is discussed in the following paragraphs. History and Evolution of Cost Estimating The history of construction dates back to the early days of civilization and as other construction techniques and methodologies have evolved over the years cost estimating has also developed with the advent of new technologies and computation devices. The history of cost estimating and cost control dates back to the ancient Greek times and the Greek architects were also concerned about cost control in building their structures and sculptures (Jenkins, 2006). The construction industry has undergone rapid changes over the last 200 years with the technological development. The construction in the medieval ages was not very cost effective and very primitive methods of cost estimation were used with no proper planning resulting in project costs beyond the initial estimates. In the estimates made during those days the indirect costs were never taken into account with only the apparent costs of material and labor calculated on simple cost per unit quantity basis. The estimates were usually made by the construction contractors and the client never relied on any type of estimates while there was no concept of the role of consultants in construction projects. With the industrial progress the importance of cost estimating increased as the investors were more concerned about the return they were getting on the invested capital. With the industrial revolution the importance of economical use of resources increased resulting in the birth of cost ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Managing Processes Through Lean Six Sigma And Cost Estimating Methods
I will demonstrate how to successfully and completely design a system, its operational components, and develop appropriate system cost. Then I will demonstrate my full understanding of system operation.
8 Pages(2000 words)Research Paper
Estimating and purchasing cost control
Despite the fact that most construction contractors and managers take part in project procurement and bidding processes, these processes are not considered part of the process of cost estimation, which is somewhat independent. The commonest approach to cost estimates used in the construction industry is the definitive estimate, which is prepared using contract documents containing full project designs, plans and specifications.
10 Pages(2500 words)Essay
Estimating Purchasing and Cost Control
Unfortunately, for various reasons, many countries’ construction sectors lag behind in the use of cost control techniques such as the Cost Value Reconciliation (CVR) and Earned Value (EV), two rather common methods of cost control.
7 Pages(1750 words)Essay
Project management
According to Harrison & Lock (2004) project management is an art of creating single management capabilities to achieve an objective portfolio based on set goals and objectives. The activities involved in project management include planning, motivating, organizing and controlling the provided resources to fulfill the set objectives.
5 Pages(1250 words)Research Paper
The Independent Government Cost Estimate and the Statement of Work
This report prepares an Independent Government Cost Estimate for the procurement worthy $2 Million, for the purchase of construction of fifty three towers, with cameras and radar. The contract period is expected to be ten years or less, and the contract includes training for camera operators.
6 Pages(1500 words)Research Paper
Elemental Cost Plan for Commercial Office Development
Labor charges are assumed to be 10 pounds/mtr. Equipment charges are assumed around 5 pounds / mtr. Total excavation charges = 400 x ( 10 +5) =6000 pounds Foundation have to bear the load of two storey. A slab on grade foundation is used.
7 Pages(1750 words)Research Paper
Speech Night
In this report, I will present a comprehensive project management plan regarding the implementation of the speech night project. In this report, I will discuss and streamline the main activities for this project. I will implement WBS, OBS and CPA PM Activities. In this section, I will present the order of activities.
3 Pages(750 words)Research Paper
CONTRACT COST CONSIDERATIONS
Below these broad categories lie numerous sub-level contract pricing systems that each firm may adopt. Nevertheless, in this paper it s identified that three major contract
5 Pages(1250 words)Research Paper
Estimating
Generally this method of height estimation is based on the assumption that the floor to floor height of building such as the church is 3.5m (Gibson, 67). The Shrines bell tower is located at the 8th story and therefore the approximate height of the Bell tower can be
1 Pages(250 words)Essay
Cost Benefit Analysis and US Health Care
In order to bring a permanent solution to this problem, a major reform called the Patient Protection and Affordable Care Act (PPACA) was enacted in 2010. However, health care is still
5 Pages(1250 words)Research Paper
Let us find you another Research Paper on topic Cost estimating for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us