Engineering

CE 5382: Construction Cost Analysis and Bidding

COURSE: CONSTRUCTION COST ANALYSIS AND BIDDING

LEVEL: GRADUATE

ASSIGNMENT # 2

TOTAL POINTS: 100

LEARNING OBJECTIVES:

After successfully completing this assignment, students will be able to:

• Differentiate between various construction processes and methods for cost estimation

• Understand direct and indirect cost associated with a construction project

• Understand various components of a good cost estimate

Note: Your work should be professionally presented and all the steps for calculations must be

included.

Remember that this assignment will be a part of the final

term project so please give proper attention to the details.

CE 5382: Construction Cost Analysis and Bidding

Problem Statement

Your company is interested in bidding for a commercial building project (you can choose

any location). Use the hint below to estimate all job overhead and assumed home office

overhead costs for that project. Please note that DRAWINGS ARE PROVIDED FOR

YOUR REFERENCE ONLY and you will not need to use all of them for this assignment.

The site plan will provide an overview of the project that is helpful to plan for some of

the temporary facilities. The duration of the project is 2 years. You can make

assumptions on the annual revenue of your company.

Hint

1. You should follow the examples in chapter 6 (Overheads and Contingencies) to

make assumptions and calculate these overheads (For home office overhead

follow figure 6.1, example 6-1 and for job overheads follow details on pages1 68-

70).

2. Please go through the estimating checklist under week 2 folder for various

indirect costs.

Grading

Your work will be graded based on the completeness and accuracy of the

following components:

o Cover sheet including your name and ID (-5)

o Assumptions made to complete your work for example what’s the annual

revenue of your company, office rent etc. in order to calculate home office cost

allocation (-15)

o Calculations needed to get all the quantities and cost numbers (-50)

1 The page number can be different if you have different edition of the textbook. Please contact the TA in this case.

CE 5382: Construction Cost Analysis and Bidding

o Project estimate summary excel sheet attached as an Excel sheet. You will only

fill out the portion for the overhead cost ONLY in that excel sheet (-20)

o References including your cost resources (-10)

Quote of the Day:

“The secret of getting ahead is getting started. The secret of getting started is breaking your

complex overwhelming tasks into small manageable tasks, and then starting on the first one.”

Mark Twain

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