How to Estimate with RSMeans Data: Basic Skills for Building Construction

Contents

Cover

Title Page

Copyright

Acknowledgments

Introduction

Using RSMeans CostWorks Instructional Version CD-ROM

Introduction

System Requirements

Pre-Installation Notes

Installation

Troubleshooting

Software Support

A Cautionary Note: Numerical Rounding and Mathematical Judgment

Mathematical Intuition

Some Helpful Suggestions

Chapter 1: Basic Calculations

RSMeans Cost Data Format

Productivity and Activity Duration

Equipment Costs

City Cost Indexes and Location Factors

Chapter 2: Spreadsheet Types

Manual Spreadsheets

Electronic Spreadsheets

Using RSMeans CostWorks

Additional RSMeans CostWorks Features

Square Foot and Cubic Foot Costs

Chapter 3: Cost Estimating: An Introduction

Introduction

Definitions

Types and Purposes of Estimates

Types of Contract Award Methods

Types of Contract Agreements

Chapter 4: General Requirements

Estimating General Requirements

Project Duration

Architectural and Engineering Fees

Workers' Compensation Insurance

Builder’s Risk Insurance

Sales Tax

Chapter 5: Adjusting RSMeans Data to Job Conditions

Markups on Labor Cost

Interpolation between RSMeans Items

Substituting Known Local Labor Rates

Overtime Productivity Loss and Extra Pay

Effect of Inflation/Cost Escalation

Unit Consistency

RSMeans CostWorks Estimator

Adding, Changing, or Deleting Costs

Chapter 6: Concrete (Division 3)

Types of Concrete

Estimating Concrete

Additional Estimating Examples

Chapter 7: Masonry (Division 4)

Types of Masonry

Estimating and Waste Allowances

Productivity Factors

Quantity Takeoff

Chapter 8: Metals (Division 5)

Estimating Structural Steel

Chapter 9: Wood and Plastics, Thermal and Moisture Protection (Divisions 6–7)

Wood and Wood Products

Nominal versus Real Dimensions

Thermal and Moisture Control

Estimating Wood-Framed Structure

Using Units of Quantity

Chapter 10: Doors and Windows, Interior Finish, and Equipment (Divisions 8–14)

Using RSMeans Costs

Division 8: Openings

Division 9: Finishes

Division 10: Specialties

Division 11: Equipment

Division 12: Furnishings

Division 13: Special Construction

Division 14: Conveying Equipment

Chapter 11: Fire Suppression, Plumbing, Mechanical, and Electrical (Divisions 21–28)

Fire Suppression

Plumbing

Heating, Ventilating, and Air Conditioning

Electrical

Communications

Electronic Safety and Security

Chapter 12: Earthwork (Division 31)

Types of Earthwork

Soil Excavation

Truck Capacity

Excavate by Hand or Machine?

Optimum Number of Trucks per Loader

Equipment Rental Costs for Short or Long Periods

Renting versus Owning Equipment

Chapter 13: Equipment Analysis

Equipment Depreciation

Equipment Expenses

Equipment Rental

Chapter 14: Assemblies Estimating

Preliminary Cost Estimating

Assemblies Estimates

Combining Assemblies and Unit Costs

Chapter 15: Approximate Estimates

RSMeans Project Costs

Using RSMeans Project Costs

Appendix A: Answers for Exercises

Appendix B: Contractor’s Cash Flow

Appendix C: CSI Masterformat

Appendix D: Sample Estimating Forms

Appendix E: References

Index

Customer Note

Download CD or DVD content

Wiley End User License Agreement

List of Illustrations

Chapter 3: Cost Estimating: An Introduction

Figure 3.1 AACE International Cost Estimate Classification Matrix for Building and General Construction Industries (Reprinted with the permission of AACE International, 209 Prairie Ave., Suite 100, Morgantown, WV 25601 USA. Phone 800-858-COST/304-296-8444. Fax: 304-291-5728. Internet: http://www.aacei.org. E-mail: [email protected] Copyright © 2007 by AACE International; all rights reserved.)

Figure 3.2 Factors Influencing Type of Estimate and Accuracy Range

Figure 3.3 Relationship between Preparation Effort and Expected Accuracy

Chapter 4: General Requirements

Figure 4.1 Fast-Track Projects

Appendix B: Contractor’s Cash Flow

Figure B.1 Typical Contractor’s Spending and Reimbursement in a Project

Figure B.2 Contractor’s Progress Payment Monthly Cycle

List of Tables

Chapter 3: Cost Estimating: An Introduction

Table 3.1 Partial breakdown taken from the CSI Masterformat 2010. For more details go to http://www.csinet.org/

Table 3.2 Example of Bid Analysis Using the A+B Contracting Method

Chapter 4: General Requirements

Table 4.1 Calculation of Performance Bond for Building Construction

Table 4.2 Calculation of Performance Bond for New Highways and Bridges Projects

Table 4.3 Calculation of Performance Bond for Highways and Bridges Resurfacing Projects

Table 4.4 Examples on Calculation of Performance Bond

Appendix B: Contractor’s Cash Flow

Table B.1 Contractor’s Monthly Spending in a Project

Table B.2 Contractor’s Monthly Cash Flow in a Project

How to Estimate with RSMeans Data

Basic Skills for Building Construction

Fourth Edition

RSMeans and Saleh A. Mubarak, Ph.D.

Barbara Balboni, Technical Editor

RSMeans

This book is printed on acid-free paper.

Copyright © 2012 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978–750–8400, fax 978–646–8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201–748–6011, fax 201–748–6008, or online at http://www.wiley.com/go/permissions.

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Library of Congress Cataloging-in-Publication Data:

How to estimate with RSMeans data: Basic Skills for Building Construction / Saleh A. Mubarak and RS Means. 4th ed.

p. cm.

Includes bibliographical references and indexes.

Title of previous eds.: How to estimate with Means data & CostWorks, published by R.S. Means Co.

ISBN 978-1-118-02528-4 (pbk.); ISBN 978-1-118-17615-3 (ebk); ISBN 978-1-118-17616-0 (ebk); ISBN 978-1-118-18338-0 (ebk); ISBN 978-1-118-18339-7 (ebk); ISBN 978-1-118-18340-3 (ebk)

1. Building Estimates. I. Mubarak, Saleh A. (Saleh Altayeb) II. R.S. Means Company.

TH435.H88697 2012

692.5–dc23

2011031420

Acknowledgments

This Fourth Edition is special. Apart from the updates and addition of new material, this RSMeans book is now published by John Wiley & Sons. RSMeans has been, and still is, the leading company in construction cost estimating databases. RSMeans and Wiley: two great organizations. In addition to the review of the book, RSMeans provided the CD material that serves as a necessary component of the book. I have been dealing with the RSMeans Company for 25 years and I have nothing but high praise for them. In particular, Barbara Balboni contributed significantly to this book as co-author and technical editor. Ms. Balboni is currently a senior engineer with RSMeans, where she is responsible for the content of RSMeans Square Foot Costs, Assemblies, and Interior Cost Data publications. I also thank Melville J. Mossman; Senior Engineer and Editor, Stephen C. Plotner; Senior Engineer and Editor, and Andrea Sillah; Product Manager for RSMeans Books.

From the Wiley organization, I like to thank Paul Drougas; Michael New; and Bob Hilbert for great support. Wiley took care of my book Construction Project Scheduling and Control and did a great job. They are the world’s experts in publishing and marketing scientific books, and I am glad they are taking care of this book as well.

I must also recognize the contribution of Tom Bledsaw, ITT Educational Services and National Chair Schools of Drafting and Design; and Harold Grimes, Director of Construction Management at Redstone College, as reviewers of this edition.

Finally, I owe a lot of gratitude to the numerous friends and colleagues who passed their comments on the book to me. As humans, we are far from perfection but I take this as a motivator: there is always room for improvement.

Introduction

Professional estimators quantify the needed resources—materials, labor, and equipment—required by the scope of a project, and then price these items. This is a two-phase process that includes quantity takeoff and cost estimating. To complete the quantity takeoff, the estimator examines plans and specifications to determine total quantities of materials required, as well as labor and equipment. During the cost estimating phase, the estimator examines the direct costs of installed materials and equipment, labor rates, construction equipment and tool costs, and indirect expenses, such as overhead and profit. Inflation and market conditions are additional factors to consider. The estimator needs also to be familiar with the contract, especially the sections relevant to the cost.

Special problem-solving skills are required to obtain an accurate estimate. No matter what source is used, construction cost data are rarely available in the perfect format for a particular estimate. Data must often be adapted in some way, such as changing the number of units, the location, production rates, or the type of labor. Frequently, there is math to be done beyond what is required to produce the quantity takeoff, such as converting units of measure, adjusting for overtime, allowing for difficult access to the site, or factoring in other special considerations.

This book provides information about how the costs in RSMeans Building Construction Cost Data (BCCD) are developed and presented. It also provides numerous sample problems that show how to apply this cost information. Following these guidelines will enable you to use the BCCD to the max, creating a detailed estimate, made more accurate by utilizing the full capabilities of the data.

There are substantial changes in the fourth edition. Chapter 3 , Cost Estimating: An Introduction is a new chapter. I found this chapter particularly important for those who want to get an idea on construction cost estimating without reading an entire book on the subject. There is also a small section added (Appendix B) on contractor’s cash flow analysis along with a supporting electronic file with the attached CD. Many more examples and exercises were added. The CSI MasterFormat has been updated according to the new 2011 version, which has some changes from the MasterFormat 2010. Chapter 4 , General Requirements, was expanded and moved to the front of the book.

The book now is published by Wiley, an international leader in publishing scientific and professional books. RSMeans is still involved with the book, particularly in updating the materials on the CD including the cost estimating database and software.

The answers and solutions to the exercises were rearranged. Appendix A contains answers to Exercises—Set A. The full solutions can be found in electronic files (Excel format) in the attached CD. It is highly recommended to look at those solutions since many solutions contained assumptions and many answers need explanations. The solutions to Exercises—Set B will be available online to instructors only.

Included with this workbook is an RSMeans CostWorks CD, the electronic version of RSMeans Building Construction Cost Data. RSMeans CostWorks includes the capability to create your own cost list estimates within the program, or to export data directly from the disk to a spreadsheet. Users can practice their skills in creating a complete construction estimate using the building plans for a residential and a light commercial structure (provided on the CD).

Also included on the CD is RSMeans CostWorks Estimator and a sample basic spreadsheet, complete with formulas. (See the "Using RSMeans CostWorks Instructional Version CD" section for more information and installation procedures.)

This book focuses on solution techniques for the various types of estimating problems and using RSMeans CostWorks to create a spreadsheet estimate. Theoretical explanations of the various estimating techniques are beyond the scope of this publication.

As we improve in each new edition, we are striving for perfection, which humans can never reach. To me, this is good news because it means there is always room for improvement. This what motivates us to keep improving with no limitation or ceiling. I hope all users of this book; instructors, students, professionals, and other; to communicates with me or the publisher for any idea or correction that can improve this book. The author can be reached at the email address [email protected].

Using RSMeans CostWorks

Instructional Version CD-ROM

Introduction

This appendix provides you with information on the contents of the CD that accompanies this book. For the latest and greatest information, please refer to the ReadMe file located at the root of the CD.

Here is what you will find:

System Requirements

Pre-installation Notes

Installation

Troubleshooting

The following sections provide a summary of the software and other materials you'll find on the CD.

Instructional Information

All author-created material from the book, including code listings and samples, are on the CD in the folder named Instructional Information.

The Instructional Information folder contains two subfolders: Building Plans and Spreadsheets. The Building Plans folder contains two more subfolders: Light Commercial and Residential. Each folder contains a list of TIF (image) files. Double click on the file you wish to access.

The Spreadsheets folder contains two folders: Estimate Sheet and Solution Sheets. The Estimate Sheet folder contains a basic estimate spreadsheet with formulas embedded. The Solution Sheets folder contains spreadsheet files for the solutions to the exercises (Set A) at the end of Chapters 4 through 14.

Applications

The following applications are on the CD:

A fully functional instructional version of RSMeans Building Construction Cost Data and Repair & Remodeling Cost Data, as well as samples from other RSMeans titles: Square Foot Costs, Assemblies Cost Data, and Facilities Maintenance & Repair Cost Data. Project Costs are also included.

Shareware programs are fully functional, trial versions of copyrighted programs. If you like particular programs, register with their authors for a nominal fee and receive licenses, enhanced versions, and technical support.

Freeware programs are copyrighted games, applications, and utilities that are free for personal use. Unlike shareware, these programs do not require a fee or provide technical support.

GNU software is governed by its own license, which is included inside the folder of the GNU product. See the GNU license for more details.

Trial, demo, or evaluation versions are usually limited either by time or functionality (such as being unable to save projects). Some trial versions are very sensitive to system date changes. If you alter your computer’s date, the programs will time out and will no longer be functional.

System Requirements

Make sure that your computer meets the minimum system requirements listed in this section. If your computer doesn't match up to most of these requirements, you may have a problem using the contents of the CD.

PC running Windows XP or later

256 MB RAM (recommended)

1024 × 768 High Color Monitor

800 MHz Computer (recommended)

24X CD ROM

250 MB Hard Disk Space

Pre-Installation Notes

Note: DO NOT uninstall any previous versions of RSMeans CostWorks.

Windows XP, Windows Vista and Windows 7 Users

It may be necessary to have an Administrator log in to install the RSMeans CostWorks program.

Note: The first launch of the RSMeans CostWorks program is also part of the installation procedure. This first launch may require an Administrator to log in to help ensure that the Serial Number and Authorization Code register properly.

Installation

Note: DO NOT uninstall any previous versions of RSMeans CostWorks. Before installing RSMeans CostWorks, make sure you have permissions to install software to your system.

To install CostWorks 2011:

Close all programs and then place the RSMeans CostWorks 2011 CD-ROM in the CD drive. From the desktop (or the Start menu), open My Computer.

Double-click on your CD-ROM drive.

Locate the file named Setup or Setup.exe. This file should show a description of Application in the Type column. Double-click on this Setup file.

Follow the instructions as they appear on the screen. If any previous versions of RSMeans CostWorks exist, install RSMeans CostWorks 2011 into the same directory.

When the installation is completed, click the Finish button and then restart the computer if prompted to do so.

To launch RSMeans CostWorks simply double-click the RSMeans CostWorks desktop shortcut icon.

RSMeans CostWorks will prompt for the Serial Number and Authorization Code. These numbers are located on the back of the CD case supplied by RSMeans or by following the instructions on the Telephone Activation Certificate.

Troubleshooting

If you have difficulty installing or using any of the materials on the companion CD, try the following solutions:

The RSMeans CostWorks screen has only two tabs: Settings and Estimator. Where is the data?

Solution: From the Settings screen, click on the File menu and then select Open Titles. This will display an Open Titles window. The accessible titles will be shown in bold print. The titles available will depend on the data titles to which you have subscribed.

Click in the box to the left of the title(s) that you wish to open or click the box to the left of the ________ All of the following ________ line to open all of the titles that are accessible within any one group.

Reference the ReadMe: Please refer to the ReadMe file located at the root of the CD-ROM for the latest product information at the time of publication.

Software Support

The RSMeans Software Support Department provides phone assistance to registered users of RSMeans CostWorks.

Before calling Software Support, review the applicable Help Files that are provided with the RSMeans CostWorks program. If any error messages have occurred, write them down exactly as they appear.

To help provide quick and accurate assistance, please position yourself at a phone near your computer. This makes your hardware and software information immediately available.

Note: A current valid RSMeans CostWorks Serial Number must accompany all Software Support requests. Please include this serial number in all email correspondence and have the serial number available before calling the Software Support Department.

RSMeans Software Support via Phone:

(800) 334-3509

RSMeans Software Support via Email:

[email protected]

A Cautionary Note: Numerical Rounding and Mathematical Judgment

Construction cost estimating is not an exact science. It depends on many uncertain factors (labor productivity, price escalation, and so forth) that make absolute accuracy impossible. It is a prediction of future expenses. Assumptions will have to be made about waste factors, contingency costs, takeoff techniques, and many other unknown or uncertain factors. Given the same set of plans and specifications, several estimators will come up with different project totals, all of which will probably differ from the final project cost. The good estimator is the one who gets his estimates consistently close to the actual cost.

Mathematical Intuition

Scholars differ and argue on the definition of mathematical intuition and what factors play in measuring or increasing it. In the context of construction cost estimating, we can simply state that a cost estimator must possess a minimum level of mathematical intuition to enable him/her to make good common sense judgment on numbers and tell if a number is too high or too low. Possessing such intuition is essential for avoiding major mistakes that may lead to financial losses and other negative consequences. Cost estimators with good mathematical intuition also can provide, in most cases, a ballpark figure for the cost of a proposed project without sophisticated methods and tools.

Although scholars may argue, again, on how much of this mathematical intuition is inherited and how much is acquired, there is no question that any human being can enhance it by learning a few simple techniques and continuous practice. It is just like any other mental and physical power that humans possess; it increases—or at least is maintained—by practice, and decreases by neglect and lack of practice. This point is becoming increasingly important as we have entered the digital age and accumulated plenty of electronic gadgets. Technological advancements and inventions continue day after day with no end (or even a slowdown) in sight.

Our increasing dependence on such gadgets is leaving a negative effect on many talents such as the mathematical intuition. For example, there is no question that the quality of the average human’s handwriting has declined because of the overwhelming use of computer keyboards. People now depend more on their cell phones rather their own memory in storing telephone numbers and other information.¹ New technologies have also automated many processes such as structural analysis and design, medical diagnosis, and automotive mechanical and electrical diagnosis. As wonderful as it seems to many people, this should trigger an alarm: many people are losing