Page 262 - TCDB combined Book

Chapter 4 ESTIMATING 239

Estimates & Methods:

The estimating format and methods used will depend on the company development,
nature of your projects and work experience of your staff. The key points in estimating are to be
complete, accurate and organized all in a manner that can be easily understood and adapted to a
final project budget form. The common method based on the traditional four digit numbering
system has proven to be the most organized, understandable and easily facilitates the customary
checklist. This method generally follows the process of the construction phase.

The use of traditional estimating methods which quantify and list information on a
preprinted form and then have quantities extended to cost amounts is the most widely used
method. The disadvantage of this traditional by-hand method is the amount of time required to
complete a quantity takeoff. With numerous manual calculations there is a good possibility of
error when dealing with a multitude of pages and numerical entries. The manually completed
estimate, when requiring modification to a quantity or unit price can be an arduous task. There
are a number of entry locations that may require an adjustment and then a complete tallying of
the estimate may be necessary each time a change is made.

Although the use of traditional by-hand estimating methods is still widespread, we
strongly suggest a computer estimating system be considered. We do not recommend
implementing a computer based estimating system unless you are completely satisfied with the
accuracy and it has been tested thoroughly and accepted by your Estimating staff. The choice of
available computer estimating systems is extensive, and depending on how completely you
convert to computer estimating we recommend a thorough review of your specific needs.
Checking with business associates and your local Construction Association may give you some
good insight on the acceptable systems being used by similar sized firms. There are computer
estimating systems that will automatically convert your estimate to a Construction Budget while
fully integrating with your general Accounting System. Starting with the estimating portion
only and adding the integrated Accounting Module later may be a cost-effective way of getting
started with computer estimating.

There are computer estimating software programs available for approximately $500.00
with an included database or the option of creating your own. The typical program requires that
you enter quantities and unit prices only, with all mathematical calculations completed by the
computer. You will be able to obtain a complete estimate printout, divided into the traditional
Masterformat divisions. The savings in time, accuracy in figures and the formal printout reports
and data are a good solid reason for implementing computer estimating for your company.

Some of your design-build estimating will be based on tendered projects with complete
drawings and specifications that can be easily quantified and priced.
Your "custom and qualified" design-build proposal estimates will require an experienced
individual with extensive construction and costing knowledge and will not be for the uninitiated,
regardless of your estimating system or methods.