Standard Estimating Practice, 7th Edition

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Standard Estimating Practice, 7th Edition

Standard Estimating Practice, 7th Edition, was designed by the American Society of Professional Estimators as a set of standards to guide professional estimators. It's intended to help every estimator develop estimates that are uniform and verifiable. Every step that should be included in the estimate is listed, as well as aspects in the plans to consider when estimating a job and what you should look for that may not be included. The result should help you produce more consistently accurate estimates.

Website Price $89.00

Author: American Society of Professional Estimators
Format: Softcover
Copyright: 2008
Pages: 502

Qty:

Description

Table of Contents

Estimating isn't always an easy job. Sometimes snap decisions can produce negative long-term effects.

This book was designed by the American Society of Professional Estimators as a set of standards to guide professional estimators. It's intended to help every estimator develop estimates that are uniform and verifiable. Every step that should be included in the estimate is listed, as well as aspects in the plans to consider when estimating a job and what you should look for that may not be included. The result should help you produce more consistently accurate estimates.

From the Introduction
The practice of construction estimating is a highly technical discipline. It involves certain standards of ethical conduct and moral judgment that go beyond the technical aspects of the discipline.

Estimators are often the persons most familiar with the complete project. They must exercise sound moral judgment when preparing the estimate. Estimators sometime receive pressure from other members of the construction team to make expedient short term decisions that can result in an unsound bid. Resistance to this pressure is a part of the estimator's job.

Examples of expedient behavior litter the history of construction estimating. The fruit of this shows in inaccurate estimates. Deficient estimates also can cause strife between members of the construction team, divisive litigation, and lost profits.

For these reasons, the Society states the following ethical, moral and technical precepts as basic to the practice of estimating.

Ethics
Construction estimators shall follow a high standard of ethical practice as defined by this Society. Members of this Society shall show a commitment to ethical practices by adopting a detailed code of ethics. The Society invites users of this manual and others to join in a discussion of ethical practice in the construction industry.

Integrity
All estimators shall use standards of confidentiality in a mam1er at least equal to that of other professional societies. The estimator shall keep in strictest confidence information received from outside sources. All members of this society shall follow the Confidentiality Standards. Certified Professional Estimators shall pledge fidelity to this standard. The practice, commonly called "bid peddling," is a breach of ethics and condemned by this society.

Judgment
Judgment is a skill gained by estimators through proper training and extensive experience. Always use sound judgment and common sense when preparing estimates. Proper use of judgment may mean the difference between profit and loss for the company or client.

Attitude
Approach each estimate with a professional attitude and examine in detail all areas of the work. Set aside specific times each day for entry of estimate quantities and data without interruption. Total mental concentration is basic when preparing accurate estimates.

Thoroughness
Allow enough time to research and become familiar with the details of the project and then promptly complete the quantity survey. Review the various aspects of the project with others involved. The estimator with the most knowledge of a project has the competitive advantage.

Awareness
Review the project scope and determine if the company has sufficient financial resources, staff, and plant to complete the project. Consider the time allotted for construction of the project. Examine the general conditions of the contract and determine the effect these requirements have on indirect costs. Consider alternate methods of construction for the project. Conduct an examination of the special conditions that may alter the intent of the general condition. Review all division specifications to gain a better perspective of the total project scope. Estimate the general and special conditions similar to all other divisions of the specifications. Review the deadline for submitting the estimate and determine if there is enough time to prepare the estimate. Review all sections of the plans and find out the degree of coordination between architectural and engineering drawings.

Uniformity
Develop a good system of estimating forms and procedures. that exactly meet the requirements of the company. This system should provide the ability to define material, labor hour and equipment hour quantities required for the project. Material, labor and equipment unit costs are then applied to the quantities as developed in the quantity survey. Apply amounts for overhead and profit in the final summaries.

Consistency
Use methods for quantity surveys that are in logical order and consistent with the CSI numbering system. These methods also must meet the specific need of the company or client. Use of consistent methods allows several estimators to complete various parts of the quantity survey. Combine these surveys into the final account summaries. These methods also permit a second estimator to continue the quantity survey from any point where the first estimator stopped.

Verification
The methods and logic employed in the quantity survey must be in a form which can provide a method of proof of the accuracy of any portion of the survey.

Documentation
Document all portions of the estimate in a logical, consistent, and legible manner. Estimators and other personnel may need to review the original estimate when the specific details are vague. The documentation must be clear and logical or it will be of little value to the reader. Such instances may occur in change order preparation, settlement of claims, and review of past estimates as preparation for new estimates on similar projects.

Evaluation
When the estimate involves the use of bids from subcontractors, check the bids for scope and responsiveness to the project. Investigate the past performance records of subcontractors submitting bids. Determine the level of competence and quality of performance.

Labor Hours
The detailed application of labor hours to a quantity survey is primary in governing the accuracy and sufficiency of an estimate. The accuracy of project schedules and work force requirements are dependent on the definition of many hours. The combined costs for worker's compensation, unemployment insurance and social security taxes are significant factors in project costs. The most accurate method for including these costs is to define labor hours and wage rates, then apply percentages to the labor costs.

Value Engineering
Structure the estimate to aid in researching and developing alternative construction methods resulting in cost optimization. Using the same levels of detail in value engineering as in the base estimate is important. This provides a more precise comparison of costs for proposed alternate methods.

Final Summaries
Provide methods for listing and calculating indirect. costs. Project scope governs the costs of overhead items such as insurance, home office plant, and administrative personnel. Determine these costs in a manner consistent with quantity survey applications. Consider company work in progress that may have a bearing on projected overhead costs. Each bidder must determine amounts for performance bonding, profits, reserve funds, and shareholder returns.

Analysis
Develop methods for analyzing completed estimates to find out if they are reasonable. When the estimate is beyond the normal range of costs for similar projects, research the detail and determine causes or possible errors. Develop methods of analysis of . post-bid estimates to find the reasons for the lack of success in the bidding process. Calculate the variation of the estimate from the low bid and low average bids, Determine from outside sources if there were subcontract or material bids provided only to other bidders. Determine if the low bidder may have made an omission in the estimate. Properly document this information for future use and guidance.

Conversion
Show estimating procedures that allow conversion of the estimate to field cost systems where management can monitor and control field activities. These procedures include methods of reporting field costs for problem areas. Make reports daily or weekly rather than at some point in time after the project is complete. Field cost reporting, when consistent with estimating procedures, enables estimators to apply the knowledge gained from these historical costs to future estimates. Help train field personnel in labor hour and cost reporting that provide the level of accuracy required.

Change Orders
Apply the highest level of detail from information provided or available to the estimator. State quantities and costs for all material, labor, equipment and subcontract items of work. Define amount for overhead, profit, taxes, and bond. Specific itemization of change order proposals is essential in allowing the client to determine acceptability. Upon approval, use the estimate detail as the definition of the scope of the change order.

From the Foreword
The American Society of Professional Estimators is proud to present its Standard Estimating Practice, Sixth Edition. It has been developed and written by the members of the Standards Board of the American Society of Professional Estimators and of the society. It is written in the language of estimators to provide not only basic and fundamental guidance for estimators, but also to define industry recognized standards that are the basis for certification of experienced estimators as Certified Professional Estimators.

This manual is developed for use as an educational tool to be used in the training of new estimators, to provide a foundation for future ASPE publications on estimating, and as a guide to the format and content of construction cost estimates. The information contained in this work has been obtained by the American Society of Professional Estimators from sources believed to be reliable. However, neither ASPE nor its members guarantee the accuracy or completeness of any information published herein and neither ASPE nor its members shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that ASPE and its members are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.