When developing an initial costs estimate one should start by establishing the scope of the project and consider the direct costs and possible indirect costs versus the potential profit produced by the project in order to determine its economic feasibility. Then one must prepare the estimate by going through the following steps:
- Break the Project into Cost Centers
- Estimate Quantities Required
-Consider the Scope and Make Necessary Calculations
-Determine Layout and any Special Requirements (such as waste storage/location)
-Also consider unanticipated conditions: Adverse Weather, Work Disruption, Out-of-sequence Work, Congestion, Resource Unavailability, etc.
- Develop Unit Costs for Quantities Using Adequate Sources
-Talk to Contractors/Suppliers, Consult Unit Price Guides, or Search Off-The-Shelf Prices
- Conduct Resource Analysis to Execute Work
-(Team Composition) x (Hourly Production Rate Prediction) = Estimate of Efficiency
-Calculate the Effective Unit Price
- For Autoclave Aerated Concrete Blocks
Solid, 4" x 12" x 24", incl. mortar = Including Material/Crew/O&P: $5.55 per S.F.
6" x 12" x 24" = Including Material/Crew/O$P: $6.25 per S.F.
8" x 8" x 24" = Including Material/Crew/O&P: $7.10 per S.F.
10" x 12" x 24" = Including Material/Crew/O&P: $8.15 per S.F.
12" x 12" x 24" = Including Material/Crew/O&P: $9.10 per S.F.
Prices are from the RS Means Building Construction Cost Data 65th Annual Edition (2007)
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