ABSTRACT
Estimating is the process of determining both elements of an activity cost and assigning appropriate resources to complete that activity within its cost and time constraints. This chapter covers types of cost estimating used in the construction industry. A detailed process of preparing a bottom up estimate, including duration calculations for labor and equipment, is provided. The effect of differing priorities of main stakeholders for delivery system and contract pricing combinations is discussed. A detailed example demonstrating each step in preparing a task estimate, testing it against the task’s time constraints, and updating of the Work Package Dictionary is presented. Estimating challenges for various types of overheads is explained. Creating a resource-based quantity schedule based on the project work package dictionary is offered as a holistic approach for planning, organizing, procuring, and controlling project resources.
