4. Question 1 (a)
● It provides a comparison with budget and cashflow estimate.
● It provides a basis to compare and assess the tender from contractors.
● It provides a prediction of the construction period.
● It provides the expected project cost.
● It uses to allocate the budget and the feasibility of the construction
project.
● It forms the basis of the future budget and cost control.
Importance of estimating in pre-contract :
5. ● It provides budget to the Management and enable them to
control costs during construction execution.
● It is used for many assessments that made during the
construction stage.
● It is used for judgements that made during the construction
stage.
Question 1 (a)
Importance of estimating in post-contract :
6. Question 1 (b) :
Explain to your client the differences of measurement,
tendering and estimating.
[9 marks]
7. Question 1 (b)
Differences Measurement Tendering Estimating
Measurement is a process of
calculating the quantity for
different materials to produce
an accurate quantities and
descriptions by apply a rule or
set of rules.
Tendering is a process of bidding
and obtaining the construction
project by contractors.
Estimating is the process of
calculating the net cost required
to carry out the construction
work.
Involve in different
construction
procurement process
Involved in both pre-contract
and post-contract work.
Involved in pre-contract work
only.
Involved in both pre-contract and
post-contract work.
Purpose It provides the quantity of
materials required for the
construction project.
It provides the price of estimated
cost and profit for contractors to
tender the project.
It provides the estimating cost of
preliminaries, plant, labour and
material cost, daywork, provisional
sums, prime cost sums and
contingencies.
Profit Without profit. With profit. Without profit.
Application Application on SMM. Application on Bill of Quantity. Application on the building up
rate.
Item + Quantity
Measurement + Rates
Estimating + Profit
8. Question 1 (c) :
Explain to your client what preliminaries items are and
provide five (5) examples.
[7 marks]
9. ● Include:
- Financials of the construction project.
- Outlying necessary details.
- Getting approvals for things like building permits or equipment leases.
● Preliminaries also used to give important details about testing measures
and the goals for completion.
Definition of Preliminary items :
Question 1 (c)
10. Question 1 (c)
Examples of preliminaries items :
● Site administration and security ● Requirement for the operating
and maintenance manual
11. Question 1 (c)
Examples of preliminaries items :
● Site waste management plan ● Insurances
- Example: risks insurance
(covers physical damage to the works and
site materials.)
12. Question 1 (c)
Examples of preliminaries items :
● Relevant report, like soil report. ● Electrical supply.
13. Question 1 (c)
Examples of preliminaries items :
● Allowance for small plant, tools and
machinery.