Estimating Part 2: Costing TSYH 3453

Upon successful completion, the student will be able to:

Module 1 - Introduction to Costing

• Define the general terms related to costing and pricing of a heavy construction project tender.
• Differentiate between fixed and variable indirect costs in general terms.
• Differentiate between lump sum and unit price tender prices and give examples of the application of each.
• Discuss the differences between balanced and adjusted tender prices, and the reasons for and against unbalanced tender prices.

Module 2 - Labour Rates

• Identify and discuss the components of hourly labour rates used in the costing phase of an estimate.
• Research and calculate hourly labour rates for use in the costing phase of an estimate.
• Identify and discuss overtime and shift premiums and calculate appropriate overtime and shift premium factors.

Module 3 - Equipment Rates

• Identify, discuss, and calculate the ownership cost and depreciation allowances for equipment and convert these values to hourly rates.
• Identify, discuss, and calculate the operating costs for equipment.
• Compare and recommend either rental or purchase of equipment based on calculated comparisons.

Module 4 - Direct and Indirect Cost Calculation

• Define the cost categories typically involved in direct and indirect costs.
• Employ a typical item detail analysis form to calculate unit and total costs for specific direct and indirect cost items using previously calculated take-off quantities and productivity.

Module 5 - Estimate and Tender Completion

• Describe in detail the engineering fundamentals of productivity and apply these concepts to the calculation of productivity rates for equipment and labour crews.
• Employ a typical estimate summary form to summarize direct and indirect cost items, distribute indirect costs to tender items and distribute profit to tender items.
• Describe the process for completing and submitting a tender for a heavy construction project.

Effective as of Fall 2003