POLICY: The Estimate
PURPOSE: To establish the estimated cost of a project based on final plans and specifications.
RESPONSIBILITY: Estimator in Charge
To provide a final estimate using the following procedures:
A. The Estimator/Project Manager shall review the plans and specifications to determine the scope of work.
B. The Estimator/Project Manager shall conduct an estimate start up meeting with the Estimating Team to discuss the project and make work assignments in accordance with O.EST.-10.
C. The Project Manager and Superintendent (if available) shall prepare a preliminary construction schedule in accordance with O.EST.-15. The Estimator in Charge shall prepare a General Conditions estimate. This estimate will be checked by the Project Manager.
D. The Estimator in Charge shall review the plans and specifications and prepare an Estimate Summary using the standard Timberline database cost codes. All sections of specifications shall be included whether the work item appears on the plans or not.
NOTE: Lumber takeoffs should be from an outside source. Bulletin/addendum indicate who is required to price.
E. Quantity takeoffs shall be prepared as directed in the start up meeting using quantity sheets and lists to record the work of the Estimating Team. The Estimator shall use checking methods to back check quantities to ensure accuracy of the quantity takeoffs.
F. Bid Analysis Worksheets, O.EST.-110, shall be generated by the person responsible for the spec section takeoffs. These worksheets shall be reviewed by the Project Manager and Estimator in Charge.
G. The Estimator in Charge shall insert the quantities into the Estimate Summary along with unit prices in order to calculate an estimated cost prior to Bid Day. A correction sheet shall be prepared with transfers checked for use on Bid Day.
H. The Estimate Team shall receive bids using the Telephone Bid Form (O.EST.-85) or via facsimile. This form shall be filled in completely, questions should be asked relative to completeness of bid, qualifications, duration of the work, delivery times, possible duplications, and possible breakdown of prices.
All requests by subcontractors and vendors for their bid position are to be referred to the Project Manager for handling. All bid information is to be withheld until our position is finalized and the estimate is approved by the Owner or until authorized by the Chief Estimator.
I. The Estimator in Charge will check the Subcontractor/Vendor Worksheet Form (O.EST.-100) to verify that all bids promised are received. Those subcontractors and vendors who have not entered a proposal will be called to verify their intentions. The Estimator in Charge will complete the Bid Analysis Sheets (Form O.EST.-110) to analyze various bid combinations which shall be checked by the Project Manager.
J. After receipt of final bids, the Estimator in Charge will incorporate the bids into the Estimate and a final estimate calculated. This final estimate must be checked and approved by the Project Manager, the President and/or the Vice President of Contract Management and will be presented to the client by the Project Manager and/or the Estimator in Charge in the form of an estimate presentation (O.EST.-140).
A subcontractor shall not be included in the estimate and presented to the owner without a written confirmation received.
K. After the estimate has been presented to the client, a final revision will be made to the Estimate by the Estimator in Charge, reflecting accepted alternates, changes, etc. by correcting affected line items in the Estimate.
The revised estimate figure shall be equal to the Final Contract Amount.
L. A complete copy of the estimate, bids, and presentation shall be provided to the Project Manager. The Project Manager and Estimator in Charge shall review the estimate to discuss:
1. Low bid used in estimate.
2. Subcontractor/vendor names.
3. Estimate logic and scope inclusions/exclusions.
4. Any other information required to prepare Purchase Orders and Subcontracts.
5. Buyout losses will not be finalized without approval by the Estimator in Charge.
6. Changes in Subcontractors and Vendors after the final estimate presentation will be reviewed by and agreed upon by the Estimator in Charge and the Project Manager.
Telephone Bid Sheet
Estimate Summary Sheet
Quantity Takeoff Sheet
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