Understanding building Rates and Cost Estimation

Understanding building Rates and Cost Estimation

Prepared by : Independent SAPAC Reporter
Article Classification: Aligning information 
Image courtesy: SAPAC Professionals and Contractors

 
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Introduction

Cost estimating, while seemingly straightforward, is a complex process that requires a deep understanding of construction methodologies, materials, and market dynamics. It's more than just calculating quantities; it's about predicting costs accurately to ensure project profitability and avoid financial pitfalls. In this brief overview, we'll delve into the intricacies of cost estimating, emphasizing the importance of precision and the role of qualified professionals.

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The Uniqueness of Building Costs

One of the fundamental principles of cost estimating is the recognition that no two buildings are identical. This variability extends beyond finishes, which typically account for only 20-30% of the total cost. The shape, design, and even the location of a building can significantly influence its construction expenses. To navigate this complexity, the expertise of quantity surveyors and cost estimators is invaluable. 

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Key Principles of Build Cost Estimating

• Speed and Efficiency: While accuracy is paramount, cost estimating should be a timely process. Effective estimators employ clever strategies, such as reusing previously calculated rate build-ups, to streamline their work.
  
  
• Consistency: Maintaining consistency in assumptions is crucial. For instance, the number of bricks needed for a square meter of wall depends on brick size and mortar joint. Establishing a standard quantity per square meter ensures consistency in calculations.
  
  
• Accuracy: Despite the need for speed, accuracy is non-negotiable. Careful measurements, precise calculations, and meticulous attention to detail are essential to produce reliable cost estimates.

Understanding the Building Process

A thorough understanding of the construction process is indispensable for accurate quantity measurement. While drawings and specifications provide essential information, they may not always be complete. An experienced estimator can fill in the gaps by leveraging their knowledge of construction practices. For example, they might infer the need for skirtings based on their understanding of carpentry finishes.

It is extremely important if you want a successful build to ensure that at each step of the building process a competent and reliable engineer is appointed. And that such said engineer does visit the site on regular occasions and that this is recorded. To perform due diligence inspections on the process, the build and the current processes that is being applied by the builder.  

The Role of Drawings and Specifications

Drawings and specifications serve as the foundation for cost estimating. They provide details about dimensions, materials, and finishes. However, it's important to remember that these documents may not always be entirely comprehensive. Estimators often need to make assumptions or extrapolate information to complete their calculations.

Basic Principles of Quantity Measurement

• Simplicity: Keep measurements as straightforward as possible. Avoid unnecessary complexity by using efficient methods like measuring square meters of brickwork instead of counting individual bricks.
• Completeness: Ensure that all relevant quantities are accounted for, including materials, labor, and associated costs.
• Centerline or Outside-Line Measurement: While centerline measurement is ideal for accuracy, outside-line measurement is often more practical due to the limitations of construction drawings.

Resources and Rate Build-Ups

Resources are the individual components that make up a building, such as cement or sand. Rate build-ups, on the other hand, are combinations of resources with associated quantities. By creating and using rate build-ups, estimators can significantly speed up their calculations and ensure consistency.

Important note

Cost estimating is a multifaceted discipline that requires a blend of technical knowledge, practical experience, and attention to detail. By adhering to the principles outlined in this overview, estimators can produce accurate and reliable cost estimates that are essential for successful construction projects. It is highly advised that you refrain from partnering with a contractor on social media. As SAPAC is actively monitoring various platforms and have identified many "self named" professionals and contractors.

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