4 Module Four: Cost Estimating and Procurement
Module Four: Cost Estimating and Procurement
Module Learning Objectives
- Identify the basics elements of cost estimating. (CLO 2)
- Recall the estimating process for a construction project. (CLO 2)
- Distinguish between cost estimation types. (CLO 2)
- Compare contract types and their uses. (CLO 2)
- Evaluate when to use different contract types assuming conditions, risk, pricing, and timing. (CLO 2)
- Discuss the contrasting demands of cost, time, and quality for a project. (CLO 2)
Module Essential Questions
- What are the fundamental elements involved in cost estimating, and how do they contribute to accurate project budgeting and planning? (CLO 2)
- Can you outline the steps involved in the estimating process for a construction project, and how does each step ensure the accuracy and reliability of cost estimates? (CLO 2)
- How do different types of cost estimation vary, and what factors influence the choice of estimation method for a particular construction project? (CLO 2)
- What are the key characteristics of various contract types used in construction projects, and how are they tailored to suit different project requirements and objectives? (CLO 2)
- When considering conditions, risk, pricing, and timing, how can you determine the most suitable contract type for a given construction project, and what factors should be taken into account during this evaluation process? (CLO 2)
- How do the competing priorities of cost, time, and quality impact decision-making in construction projects, and what strategies can be employed to balance these demands effectively? (CLO 2)
Bridge-In
Two of the most important constraints in a project are cost and schedule. In the previous module, we discussed scope and schedule. In this module, we will be discussing estimating as it relates to the construction project and its importance in the planning phase. Detailed, accurate estimates are a critical part of construction, and professional estimators are in demand. Without accurate estimates, construction managers can’t build budgets, get approvals, or hire workers. Without an approved budget, the project will never move forward into the Executing phase. In this module, we’re taking our project roadmap and that customer’s dream and starting to turn it into something tangible for them. We will walk through the types of construction delivery and how to choose the right one for our construction project. From here we’ll look at the types of contracts used to implement each construction delivery method, as well as the bidding and procurement processes. These three things (project delivery method, procurement method, and contract model) are the three key decisions in construction bidding.
Lesson 1: Cost Estimating for Construction
This video covers the basics of cost estimating and the estimating process for a construction project. We aren’t going to make you expert estimators overnight, but you should gain knowledge to impr