Estimating Principles
First Principles
Which is rating up the materials, plant, machinery and labour using a summation method. These factor rates are based on Years of experience and very accurate historic records.
Second Principles
Is packaging the documents into trade packages and contacting a number of subcontractors and request a quotation. The idea result would be to get three or more prices that are relatively close together (A "Cluster" of prices).
Bench marking
The price that has been formulated form actual historic record from construction. You use these rates to price "like" buildings.
The classic estimator will always want to scope or bill every trade. Most estimators also want to bill every trade as it is truly the only way you can be confident that you have got all the scope of works. When teams of people get involved in a bid I always feel a little nervous as you are never sure if the communication from one person handling one trade passes on the correct information to another team member.
But you have to trust in everyone training and get the job done in the allocated time. So let’s say you have received an RFT and you really want to tender and don’t have the resources to do so. The call goes out and we have to find away.
Now on hard dollar tenders – it is pretty easy to find an external QS to share a Bill amongst your competitors. From here you are basically in a dog fight race to the cheapest price.
But when it comes to a Design and Construct tender – It is normally a waste of time getting a share BOQ as to many items will require re-billing once design in house consultants issue design sketches for pricing The next issue – as some of the D&C trades need a scope of work or a BOQ to provide a price.
Tender Strategy
If you review the table below – You will note that all trade would have a Request For Quotation (RFQ) sent and at and once the quotes come back (hopefully in a cluster) you would start to see if you would get trade coverage.
This is normally in the last week before tender close which is obviously not ideal.
How would you know this – The answer is simply by placing a number of phone calls to get a feel for optimism or share panic. The phone calls to the trades that have ” optional” in the BOQ column would also give you a feel where you stand running into the final week of tender close. Some trades have the capability of doing there own BOQs, others do not. Again making phone calls would close off that question.
Description
Quantities
First Principles
2nd Principles
Bench Marking
Consultants
SOW
NA
Y
Y
Authority Fees
SOW
NA
Y
Y
Demolition
Optional
Rates
Y
Y
Civil Earthworks
BOQ
Rates
Y
Y
Detailed Excavation
BOQ
Rates
Y
Y
Formwork
Optional
Rates
Y
Y
Concrete Supply
BOQ
Rates
Y
Y
Reinforcement Supply
BOQ
Rates
Y
Y
Reinforcement Fix
BOQ
Rates
Y
Y
Concrete Pump
BOQ
Rates
Y
Y
Post Tension
Optional
Rates
Y
Y
Precast
Optional
Rates
Y
Y
Tilt panel
Optional
Rates
Y
Y
Structural Steel
Optional
Rates
Y
Y
Framing
Optional
Rates
Y
Y
Roofing
Optional
Rates
Y
Y
Roof Hatches
Na
tbc
Y
Y
Roof Safety System
Optional
Rates
Y
Y
Roof Walkways
BOQ
Rates
Y
Y
Roof Platform
BOQ
Rates
Y
Y
Masonry
BOQ
Rates
Y
Y
Render
BOQ
Rates
Y
Y
External Linings
BOQ
Y
Y
Y
Windows & Doors
Optional
Rates
Y
Y
Roller shutters
Optional
Rates
Y
Y
Metalwork
BOQ
Y
Y
Y
Partitions & Ceilings
Optional
Rates
Y
Y
Doors
Optional
Y
Y
Y
Operable Walls
Optional
Rates
Y
Y
Carpentry & Woodwork
BOQ
Y
Y
Y
Waterproofing & Tiling
Optional
Y
Y
Y
Wall & Floor Finishes
Optional
Rates
Y
Y
Painting
Optional
Rates
Y
Y
Internal Fittings & Fitments
BOQ
Rates
Y
Y
Services Trades
SOW
Schedules
Y
Y
Kerb & Gutter
BOQ
Rates
Y
Y
Asphalt & Pavements
BOQ
Y
Y
Y
Line Marking, Bollards & Wheel Stops
BOQ
Rates
Y
Y
Traffic Management Systems
Optional
Rates
Y
Y
Directional Signage & general Signage
BOQ
Rates
Y
Y
External Furniture & Play equipment
BOQ
Rates
Y
Y
Fencing, Gates, and Barriers
BOQ
Rates
Y
Y
Irrigation system & Drainage
Optional
Rates
Y
Y
Landscaping
Optional
Rates
Y
Y
External Furniture & Equipment
Optional
Rates
Y
Y
Council Land (Works Outside Boundary) Infrustrauction
BOQ
Y
Y
Y
Roadworks (RMS)
BOQ
Y
Y
Y
Preliminaries & ORs
BOQ
Rates
Na
Y
Tender Strategy
The idea of this bare-bones approach is the hands-on approach mainly associated with D&C type tenders.
To summarise this approach – You are pricing all trade via Second principles and plugging the holes with either a BOQ or first principles estimating.
Step 1
RFQ and Bench Marking on all trades
RFQ to every trade and supplier. (your goal is to receive three prices closely clustered together).
Services trade normally has a specification with an SOW and schedules – Request that they are returned filled in.
Wet Trades – Often you will want rates based off quantities (Pick a number to get things rolling)
Step 2
Phone Call
Most architectural trades can normally do their own bills and most times you can pick up any issues any Subbie comparison stage. But there are some trades that need to be help reading drawings. You want to isolate those trades. Now If you are not going to get ant prices without a BOQ – well the rest is academic (start billing).
Step 3
BOQ and 2nd Principles plugs
Most architectural Trades can normally do their own bills and most times you can pick up any issues any subbie comparison stage. But there are some trades that need to be help reading drawings. You want to isolate those trades. Now If you are not going to get ant prices without a BOQ – The rest is academic, no quotes – start Billing. Obviously, some outsourcing could be on the cards,
Step 4
Last Resort
Estimators always are looking for the best science, but sometimes it is simply hard to get subbies to price for one reason or another. Benchmarking from past projects is obviously the last option. Websites and then absolute last option would be building materials cost guides like Rawlinson & Cordells (these publications are a guide only). I would normally prefer to buy some time by placing and allowance for missing trade coverage as a provisional sum.
If you wish to read more about
Tender Process – Click Here