QUESTION 4Abang AzrinAimanKellyann HiewLee Han LinSyafiq

QUESTION 4Steven is a trainee in a Quantity Surveying company.

He is currently doing a preliminary estimate for a 3 stars hotel in Subang Jaya which is anticipated to start constructing in July 2013.

He is planning to estimate the project using cost data.

FINDING COST DATA For the purpose of estimating, Steven needs to know the rate of each item in the Bills of Quantities. To know the cost of the rate of each item, Steven has to built up the rate based on the cost of materials, labour, plants and equipment, wastage and profit & attendance.

1. MATERIAL COST

• Obtain the cost of materials from Building Cost Indices published monthly by Malaysian Statistic Department

• Refer to priced bills of quantities from other on-going projects done by his company

• Obtain data cost information on materials from CIDB or other institution.

• Refer to Schedule of Rates produced by Public Works Department

• Obtain the cost of materials from manufacturers, suppliers or its chain directly or from hardware shops.

2. LABOUR COST• Information from Daywork Rates from Bill of Quantity from on

going project undertaken by his company.

• Labour cost based on lump sum cost from sub contractors.

3. PLANTS AND EQUIPMENT• Obtain the required and type of plants needed for the job from

the plant and equipment rental companies.

• Quotation for the plant rate per day and the time taken to complete the job.

4. WASTAGE• Allow for certain percentage for wastage of material during the

works. • Refer to his seniors staff or past projects for the percentage.

5. PROFIT AND ATTENDANT Allow for certain percentage for the profit and attendance to his company. He has to refer to his company management for the percentage profit and attendance needed

CONSIDERATIONS1. Type or Size of project2. Location3. Labour Costs4. Material Costs5. Market Conditions6. Overheads and Profit

1. TYPE OR SIZE OF PROJECT1. Residential or Commercial2. Big or Small3. Star rating

2. LOCATION1. Transport cost2. Labour supply and local productivity3. Codes and local inspection

3. LABOUR COSTS

4. MATERIAL COSTS

5. MARKET CONDITIONS

6. OVERHEADS AND PROFITS

ESTIMATING MISTAKES AND PREVENTIONS1. Weak requirements2. Rushing it due to pressure from management3. Not considering risks

1. WEAK REQUIRMENTS Weak requirements are difficult (if not impossible) to provide an accurate estimate.

How to avoid? Go back and put more detail into the requirements

2. RUSHING DUE TO PRESSURE Difficult targets and timeframes

How to avoid? Push back when possible, be sure to let them know that there is a risk factor in that estimate and you’re not comfortable with it

3. NOT CONSIDERING RISKS Ignoring those risks that you were wary of when it comes to estimating is a bad idea. not all will occur, but some will.

How to avoid? You have to consider those that has a probability of occurring