CVE 4073 5073 Construction Cost Estimating Class 1 Course

CVE 4073/5073 Construction Cost Estimating Class #1: Course Introduction Class #2: The Estimating Process Prof. Ralph V. Locurcio, PE

Course Introduction

Course Intro… Syllabus handout… Course admin & grading… Textbooks About your instructor… Course objectives … Estimating introduction Assignment for next class…

Text & References… Texts: RSMeans Student Edition Construction Estimating using Excel References: Walker’s Builder’s Cost Estimating Manual Estimating Construction Costs, Peurifoy & Oberlender, Kerzner, Project Management

My background… Education… BSE – West Point 1965 MSE, Ph. D(abd) - Purdue 1972 Resident Engineer Training – 1974 Contracting Officer Training – 1984, 1988 Registered PE: NJ, PA, GA, VA Construction Experience… Army Corps of Engineers 1965 -1996 3 - Construction Commander, Operations Officer 3 - Public Works Director 2 - Construction Planner & Estimator 2 - Resident Engineer 6 - District Engineer – Philadelphia, Savannah 1 - Commander Kuwait Reconstruction Project 6 - Division Engineer – Pacific, SE United States Senior VP STV Engineers – Infrastructure Design 1996 -2004 Professor of Construction Management 2004 -2014

Course Objectives… Understand the estimating process Types of estimates & their use Reading plans & specifications Material take-off process by trade Pricing labor & materials Constructing & presenting a bid Experience factors – guest lecturers

About Construction… It’s an extremely complex process… Like manufacturing but… Ø Many players, many variables, many unknowns Design is never perfect Teams are variable; not trained on this project Production site is crude & unprepared Very large projects – rarely build more than one Very large risks – owner’s first and last experience Money drives all aspects of the process One chance to get it right Large penalties for error or contract failure CM goal is to deliver a perfect product

Why Estimating is Key Sets the price for the owner Sets the fee for the contractor/builder Contractor pays for mistakes in estimate Material costs vary by the market Labor costs vary by the market Productivity varies by sub-contractor Labor costs vary by work available in region Time to bid/estimate is very short Hidden costs – weather, underground, site, owner

Where Estimates are Used…

This course… Skills you need: Reading Plans (Learn on your own) Estimating Procedures (Class lectures + Excel Text) Material costs (RSMeans) Labor Practices, Teams & Productivity (RSMeans) Equipment Utilization & Cost (RSMeans) Construction Methods (RSMeans) Contracting Terms & Methods (not covered) Patience & Accuracy (Learn on your own) Common Sense! (Learn on your own)

Hammurabi’s Code – 1780 B. C. 228. If a builder build a house for someone and complete it, he shall give him a fee of two shekels in money for each sar of surface. 229. If a builder build a house for some one, and does not construct it properly, and the house which he built fall in and kill its owner, then that builder shall be put to death. 230. If it kill the son of the owner the son of that builder shall be put to death. 231. If it kill a slave of the owner, then he shall pay slave for slave to the owner of the house. 232. If it ruin goods, he shall make compensation for all that has been ruined, and inasmuch as he did not construct properly this house which he built and it fell, he shall re-erect the house from his own means. 233. If a builder build a house for someone, even though he has not yet completed it; if then the walls seem toppling, the builder must make the walls solid from his own means.

Homework assignment… Read text – Chapter 1 – on my website Garden Shed Project - handout Bill of materials Complete bid price; all labor & materials Signed bid documents

Stick Built House-1

Stick Built House-2

Stick Built House-3

That’s all for today… Slides are on my web site My web site: www. my. fit. edu/~locurcio

Questions… Contact info for me… Prof. Ralph Locurcio, PE LINK – Room 233 Office Hours: Wed + Fri Email: locurcio@fit. edu Web: http: //my. fit. edu/~locurcio