Cost Estimation in Structural Engineering

🔍 What Does an Estimator Really Do? Here’s a Look into the Estimation Work Order 🧾 As an Estimator in the Tendering Department, my role involves more than just numbers. It’s a structured process that requires technical knowledge, attention to detail, and strategic thinking. Here’s a typical Estimation Work Order I follow for each project: 1️⃣ Receive Tender Documents ➡️ Drawings, BOQ, specifications, and client requirements 2️⃣ Study the Project Scope ➡️ Analyze design intent, materials, construction methods, and site conditions 3️⃣ Perform Quantity Take-Offs ➡️ Extract quantities from drawings using digital tools or manual methods 4️⃣ Get Subcontractor & Supplier Quotations ➡️ Request competitive rates for specialized works and materials 5️⃣ Build Up the Cost Estimate ➡️ Calculate direct and indirect costs, preliminaries, overheads, and profit margins 6️⃣ Review & Finalize with Management ➡️ Check accuracy, risk assessment, and compliance with tender instructions 7️⃣ Submit Tender on Time ➡️ Prepare final bid package and ensure timely submission 📌 Outcome: A complete and competitive estimate that supports the company’s success in winning quality projects. Each step is critical, and no two projects are the same — that’s what makes this profession both challenging and rewarding. Let’s connect and share insights on construction estimating, cost control, and project management! #Estimator #Tendering #QuantitySurveying #ConstructionEstimating #BOQ #CostPlanning #CivilEngineering #Procurement #LinkedInProfessionals #ConstructionLife

Cost Planning of Concrete Structure (Case-study for 45 Story Hotel) 💡 Cost planning is absolutely essential for the success of any construction projects. It's a roadmap for managing finances, budgets, and resources throughout every stage of the project. When it comes to the concrete structure, which forms the backbone of such a building, careful allocation of funds and resources is crucial. This involves three main components: ready-mix concrete, formwork, and rebar (reinforcement). ⭕ Overall Concrete Cost: Breaking down the expenses, roughly half of the total cost is dedicated to the supply and installation of rebar. The remaining portion is divided between the costs of ready-mix concrete and formwork, with each contributing more or less equally to the overall concrete structure cost. ➡ Concrete Cost (Supply & Installation) -->> 28% ➡ Formwork Cost (Supply & Installation) -->> 25% ➡ Reinforcement Cost (Supply & Installation) -->> 47% Concrete structure cost (Hard) for such type of developments ranges 320 ~ 350$/m² in the GCC countries. ⭕ Man-hours Distribution: Effective scheduling relies on smart allocation of manpower. In the case of concrete structure construction, the lion's share of man-hours typically goes into formwork, constituting about half of the total labor productivity. Following formwork, rebar installation takes precedence, with concrete placement rounding out the allocation of manpower resources. ➡ Concrete Placing -->> 12% ➡ Formwork Installation -->> 48% ➡ Reinforcement Cut&Bend and Installation -->> 40% Man-hours for such structure ranges 25 ~ 28 MHR/m². ⭕ Material Cost: When it comes to materials, rebar accounts for approximately half of the total concrete structure cost for projects of this scale. The remaining material costs are split between concrete and formwork materials, with each contributing their share to the overall expenses. ➡ Ready-Mix Concrete -->> 35% ➡ Formwork (Doka/Peri) -->> 13% ➡ Reinforcement Black Steel -->> 52% By effectively planning and managing costs and resources for the concrete structure phase, project managers ensure that the project stays on track, within budget, and meets its schedule targets, setting a solid foundation for the successful completion of the entire development. Above cost is based on current market prices (2023 ~ 2024) and reflects GCC market dynamics. hashtag #costplanning #costmanagement #bidding #tending #estimation #estimates #proposalmanagement

Estimating costing in projects is a key part of project cost management. It involves forecasting how much money will be required to complete project activities. Here’s a breakdown of how it’s done, including the types, tools, and techniques used: 🔹 1. Cost Estimating – Definition Cost estimating is the process of developing an approximation of the monetary resources needed to complete project activities. It includes direct and indirect costs, such as: Labor Materials Equipment Services Facilities Overheads Contingency reserves 🔹 2. Types of Cost Estimates Estimate Type Description Accuracy Range Used When Rough Order of Magnitude (ROM) Broad estimate for feasibility phase -25% to +75% Early project phases Budget Estimate More refined, used for funding requests -10% to +25% Planning phase Definitive Estimate Most accurate, used for baselines and control -5% to +10% Execution/Pre-construction 🔹 3. Common Cost Estimating Techniques A. Analogous Estimating (Top-Down) Based on historical data from similar projects. Fast but less accurate. ✅ Example: Last bridge project cost $1.2M, so estimate similar cost. B. Parametric Estimating Uses mathematical models based on historical data and variables. ✅ Example: $50 per meter of cable × 1,000 meters = $50,000. C. Bottom-Up Estimating Estimates each activity or work package and sums them up. Most accurate but time-consuming. ✅ Example: Labor (300 hrs × $40/hr) + Materials ($5,000) + Equipment ($2,000). D. Three-Point Estimating Considers uncertainty with three estimates: Optimistic (O), Most likely (M), Pessimistic (P) Expected Cost (PERT) = (O + 4M + P) / 6 ✅ Example: ($10K + 4×$12K + $15K) / 6 = $12.17K E. Expert Judgment Use the knowledge of experienced professionals or SMEs. ✅ Often used in combination with other methods. F. Reserve Analysis Adds contingency for identified risks and management reserve for unknowns. ✅ Example: Add 10% of total cost for contingency. 🔹 4. Outputs of Cost Estimating Process Cost estimates Basis of estimates (assumptions, methodology) Project documents updates (e.g. risk register, schedule) 🔹 5. Tools & Software Microsoft Project, Primavera P6 Spreadsheets (Excel) Cost estimating software like CostX, RSMeans, or specialized ERP tools Would you like an example of a cost estimate worksheet or a template for your type of projects (e.g. construction, electrical, hydraulic)? #costing #estimating