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1、SECTIONNINETEENCONSTRUCTIONCOSTESTIMATINGColmanJ.MullinSeniorEstimatorBechtelCorporationSanFrancisco,CaliforniaBlackmagic.Beancounting.Guesswork.Guestimates.Askagroupofengineerstodescribeconstructioncostestimatingandthatiswhatyouarelikelytohear.Notthattheyregardcostestimatingasunimportant.Theyrea
2、lizeitisessentialtoallprojects.Butfromtheirpointofview,itisamysteriousprocess.Thereisnothingesoteric,however,aboutcostestimating.Itisanengineeringdisciplinelikeanyother,withitsownrulesandtechniques,andaknowledgeofthesecanbeveryhelpfultothoseinotherdisciplines.Suchknowledgecan,forexample,helpdesig
3、ners,contractors,andbuildingownerstodeterminewhetheranestimateadequatelyreflectstheirintentionsandtounderstandhowachangeindesignorconstructioncanaffectthescheduleortotalcostofaproject.Thiscanleadtoconsiderationofappropriatealternativesanddevelopmentofbetterquality,lower-costprojects.19.1COMPOSITIO
4、NOFPROJECTPRICEThetotalpriceofaconstructionprojectisthesumofdirectcosts,contingencycosts,andmargin.Directcostsarethelabor,material,andequipmentcostsofprojectconstruction.Forexample,thedirectcostofafoundationofabuildingincludesthefollowing:Costsofformwork,reinforcingsteel,andconcreteCostoflabortob
5、uildandlaterstriptheformwork,andplaceandfinishtheconcreteCostofequipmentassociatedwithfoundationactivities,suchasaconcretemixerContingencycostsarethosethatshouldbeaddedtothecostsinitiallycalculatedtotakeintoaccountevents,suchasrainorsnow,thatarelikelytooccurduring19.119.2SECTIONNINETEENthecourseof
6、theprojectandaffectoverallprojectcost.Althoughtheeffectsandprobabilityofoccurrenceofeachcontingencyeventcannotbeaccuratelypredicted,thetotaleffectofallcontingenciesonprojectcostcanbeestimatedwithacceptableaccuracy.Margin(sometimescalledmarkup)hasthreecomponents:indirect,ordistrib-utable,costs;com
7、pany-wide,orgeneralandadministrative,costs;andprofit.Indirectcostsareproject-specificcoststhatarenotassociatedwithaspecificphysicalitem.Theyincludesuchitemsasthecostofprojectmanagement,payrollpreparation,receiving,account
