How to Estimate with
Fifth Edition
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Library of Congress Cataloging-in-Publication Data
Names: Mubarak, Saleh A. (Saleh Altayeb) | R.S. Means Company.
Title: How to estimate with RSMeans data : basic skills for building construction / RSMeans, Saleh Mubarak.
Description: Fifth edition. | Hoboken, New Jersey : John Wiley & Sons Inc., [2016] | Includes indexes.
Identifiers: LCCN 2016018464| ISBN 9781118977965 (pbk. : acid-free paper) | ISBN 9781118977972 (epub)
Subjects: LCSH: Building–Estimates.
Classification: LCC TH435 .M79 2016 | DDC 692/.5–dc23 LC record available at https://lccn.loc.gov/2016018464
978-1-118-97796-5
This fifth edition is a continuation of the success of this book. Success can never come as a coincidence or by luck. It comes only through planned, hard, and intelligent work.
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 or impacting 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 and more” 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. Time-cost trade-off is another important consideration as owners and contractors need in some situations to accelerate the project, which has direct and perhaps complicated impact on the total cost.
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 many changes in the fifth edition. Chapter 3, “Cost Estimating: An Introduction” has been expanded, adding new sections. 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. More examples and exercises were added. The CSI MasterFormat has been updated according to the 2016 version, which is periodically being updated by the Construction Specifications Institute (CSI) since the major update in 2004 that took the number of divisions from 16 to 50. 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 related to the online estimating (construction cost estimating database and software).1
The answers and solutions to the exercises were rearranged on a companion website (www.wiley.com/go/constructionestim5e) where users of the book will be given access. The solutions to Exercises—Set B will be available online only to instructors.
Included with this workbook is access to RSMeans Online Estimating, the electronic version of RSMeans Building Construction Cost Data. Students should redeem their access codes at this URL: www.rsmeans.com/academic.aspx. Professionals can access RSMeans Online through a 30-day trial at this URL: www.rsmeans.com/free-trial.aspx. Users can practice their skills in creating a complete construction estimate using the building plans for a residential and a light commercial structure (provided online).
All numbers in the examples and exercises in this book are based on the 2017 RSMeans BCCD (Building Construction Cost Database).
This book focuses on solution techniques for the various types of estimating problems and on using RSMeans Online Estimating 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 is what motivates us to keep improving with no limitation or ceiling. I hope all users of this book—instructors, students, professionals, and others—to communicate with me or the publisher for any idea or correction that can improve this book. The author can be reached at the email address cpmxpert@gmail.com.
This fifth edition comes on the heels of the fourth edition, when this book was published by Wiley, an international leader in publishing. RSMeans, the leading company in construction cost estimating databases, in still a partner and contributor to the book, including the construction cost estimating database and software. Both organizations have been superb in support and service. My experience with RS Means goes back to 1986 when I used their Building Construction Cost Data (BCCD) book as a graduate student. I have used it again as a professor since 1990.
I would like to thank the engineering team at Gordian for their help with this edition. I would also like to thank the team at Wiley 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 publishing this book as well.
I must also recognize the contribution of Tom Bledsaw, currently with Draper, Inc. and formerly with ITT educational Services as the national chair, School of Drafting and Design, and Harold Grimes, the department chair of construction management and general education 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.
RSMeans data from Gordian provides accurate and up-to-date cost information to help owners, developers, architects, engineers, contractors and others carefully and precisely project and control the cost of both new building construction and renovation projects.
This book is based on the RSMeans Building Construction Costs Database, BCCD, which has been printed in books for over 80 years and is now available online. Along with the BCCD online database, RSMeans has provided a cost estimating software. We will refer to it in the book as the RSMeans Online Estimating. It offers a single line item, assemblies, and square foot estimating programs. Users of the book will be given free access to limited use as a supplement to this book.
First, the user needs to register. Once registration is complete, user can long in to the site: www.rsmeansonline.com.
The user will be directed to the “Welcome to RSMeans Online!” page, where he/she needs to set own preferences (Figure 00.1).
Figure 00.1
Complete the choice of preferences and then click “Save & Continue”. This screen will appear every time the user logs in unless the “Display Cost Data Preferences at start-up” is unchecked.
On the main page, we have the main menu with these options:
You can always click on the green button “Guide Me” on the upper right-hand side for valuable help lessons.
More explanation on creating and managing estimates through examples in the following chapters.
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.
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 or her to make good common sense judgments on numbers and to judge whether a number is too high or too low. Such intuition is essential to avoid 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 and other electronic devices’ keyboards. People now depend more on their cell phones rather their own memory to store telephone numbers and other information. 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 their professional intuition and analytical capability. They are becoming too dependent on technologies to the point they cannot function or perform simple tasks without their electronic devices. Computers and other electronic gadgets are wonderful tools that can and do help tremendously, but they should never be a replacement for the human intelligence, thinking, and creativity.
To the cost estimator, there are simple exercises that can help build or at least maintain this intuition, such as calculating the value of the groceries or other commodities purchased from a store, including any percent discount and sales tax, and then comparing this approximate total to the cashier's total. One can calculate or estimate the monthly payment on a purchased car and compare it with the amount provided by the salesperson. Practice estimating the height of a high-rise building (in feet or meters, or number of floors), the number of bricks in a pallet or group of pallets of bricks, or the number of openings (doors and windows) in a building. It is always a good idea to do quick and approximate mental math and then compare the answer to the one produced by the computer, calculator, or other devices. When the two answers are significantly different, you might discover that the other answer (the supposedly accurate one) is wrong, either through human input error or a software flaw.
Rounding numbers must be done systematically and with care to avoid the introduction of significant errors. It is recommended when performing calculations that you enter dimensions without rounding, especially those to be multiplied by a large quantity. The amount of error in rounding depends on the number(s) the rounded number is multiplied by.
For example, assume an elevated concrete slab is 211′-11″ long, 120′-0″ wide, and 7.5″ thick. The volume is 588.66 CY. If we rounded the length to 212′, the volume would be 588.89 CY, an error of 0.23 CY. However, if we rounded the thickness to 8″ instead of 7.5″, the volume would be 627.90 CY, a whopping 39.24 CY error.
The explanation is easy: the first error represents a 1″ × 120′ × 7.5″ strip (two small and one large dimensions). The second error represents a 211′-11″ × 120′ × 0.5″ strip (one small and two large dimensions). It is important to be careful with such practices, and avoid rounding in early stages of the estimate.
The estimator should have a sense of the size of the error introduced by rounding to ensure that it will not significantly affect the total estimate. Mathematical intuition and good common sense judgment are a must for a good estimator. As one estimator said, “While the price of one item may be too high or too low, the overall estimate should be pretty accurate.”
Be careful when using manual or electronic tools for measuring dimensions. The results produced by rolling pens, digitizing boards, and other tools vary by device and user. Again, the estimator must use common sense judgment to make sure no unmanageable error is introduced into the estimate.
If using a handheld calculator, use one with ordinary fractions capability (b/c), so you can enter 8″ as 8/12 ft, rather than the decimal fraction 0.67. This eliminates the introduction of a rounding error. Follow the same concept when using Excel.
Avoid false accuracy. As cost estimating is a prediction of future expenses, final answers should be rounded to a reasonable degree. As a rule of thumb, a figure with four significant digits is an acceptable accuracy. It would be ridiculous to estimate the total cost of a construction project as $2,148,387.23. This is false accuracy because it gives the reader a feeling that this number is very accurate, while in fact it is not. If it refers to actual expenses, the previous number may be true and accurate. The following are some examples:
| Estimate | Estimate Rounded |
| $122,778.34 | $122,800 or 123,000 |
| $367,289.45 | $367,000 |
| $2,446,983 | $2,447,000 |
| $53,674,294.55 | $53,670,000 |
| $453,681,302.88 | $453,700,000 |
In any mathematical operation, the highest level of accuracy for the answer is the same as the accuracy of the least accurate number of that operation. For example, consider:
where B, C, D, E, and F are all real numbers.
The highest accuracy for A is the same as the least accuracy for B, C, D, E, or F. Note that when exact numbers are used, they have a perfect accuracy (or infinite number of significant digits). For example, if we are calculating the volume, in cubic yards, of a concrete footing that measures 3′-4″ by 3′-4″ by l′-4″, the answer would be:
The answer can be rounded to any number of significant digits we desire, such as 0.55, 0.549, 0.5487, and so on.
Suppose volume is written as:
The answer cannot have more than three significant digits because the least accurate number used in the operation had only three significant digits.
RSMeans uses the following rounding standards:
| Prices From | To | Rounded to nearest |
$ 0.01 |
$ 5.00 |
$0.01 |
5.01 |
20.00 |
0.05 |
20.01 |
100.00 |
1.00 |
100.01 |
1,000.00 |
5.00 |
1,000.01 |
10,000.00 |
25.00 |
10,000.01 |
10,000.00 |
100.00 |
50,000.01 |
Up |
500.00 |
Use educated common sense judgment. Human errors and equipment malfunctions are always possible. For example, when entering a number in a calculator or a computer keyboard, you may intend to press the 8 key, but the key got stuck and multiple of 8s were displayed instead, or nothing at all. To minimize such errors, follow these three rules:
RSMeans Building Construction Cost Data (BCCD) is the most widely used reference book for estimating construction costs in the United States and Canada. The costs for each construction item are broken down into the components of material, labor, equipment, and overhead and profit. The book also contains square foot costs by project type. The square foot cost data must be adjusted to fit the specific location, size, and conditions of a particular project. RSMeans Online Estimating and Cost Works1 are electronic versions of the BCCD and contain all the same information plus additional features—including the ability to adjust all cost figures by a specific location factor, apply quantities to line items, and export cost data to a spreadsheet.
All RSMeans unit price (UP) data are presented in the same basic format (Figure 1.1).
Figure 1.1
Each line in the RSMeans database contains information unique to that line: a specific 12-digit number address, detailed description, crew, daily output of the task using the noted crew, labor hours for the task using the specific crew, and a unit of measurement. Also included are the unit bare cost (material, labor, equipment, and total) and the total unit cost, including overhead and profit.
Unit price information is presented according to the 50 divisions of the Construction Specifications Institute (CSI) MasterFormat 2016. These divisions are divided into major subdivisions and then into subsections of similar items. Within each subsection, items are arranged alphabetically by type. Each line item is unique.
The address number of the line item shown here can be read as three parts:
Note that while MasterFormat used spaces and a period in the number for better reading (03 30 53.40 0350), no spaces or period should be used when searching for an item in RSMeans online estimating software.
The column to the right of the Line Number, for example 033053400350, contains a detailed description of the item. For a full description of an item, one must read up through the subsection, including all descriptive information that appears on lines above and to the left of the selected item.
Thus, the complete description for the item in line 03 30 53.40 0350 is “Concrete in place including forms (4 uses), Grade 60 rebar, concrete (Portland cement Type I), placement and finishing unless otherwise indicated, Beams (3500 psi), 5 kip per LF, 25′ span.” An easier way to read description is to click on the Line Number, as shown in Figure 1.2
Figure 1.2
Note that the wording here may not match the example in the previous paragraph exactly, but it is the same content.
In the RSMeans cost estimating database print books, the description box of some items may include an illustrative sketch or a reference box. The reference box next to the item indicates an RSMeans reference number or assembly. Reference numbers and assemblies contain detailed information that may be helpful to the estimator. Several reference boxes indicate that all these notes apply to all the items in that section. For example, R033053-10, R033053-60, R033105–10, R033105–20, R033105–50, R033105–65, and R033105–70 apply to items 03 30 53.40 0010 through 03 30 53.40 7050. They show in the pop-up window in Figure 1.2 under the title Link. View the note by clicking on the Reference number; a new tab opens to show the note in pdf format. It can be downloaded and saved or printed. In the same pop-up window are other categories: Crew (to be explained next) and Graphics, which may include a clickable file name. Most likely, this graphics is G.pdf, HANDICAP.pdf, or another file. The G.pdf is usually accompanied by a green leaf in the main spread sheet, indicating that this item was identified by the RSMeans engineering staff to be environmentally responsible and/or resource-efficient. The HANDICAP.pdf simply shows the handicap logo. Other items may have a graphic illustration.
In the database, the term crew refers to a unique grouping of workers and equipment, identified by letter and number. The crew on each line includes the labor trade or trades and equipment required to efficiently perform the indicated task. Crew details are shown in the reference section at the back of the print book or by clicking on the item in the online database and then “Crew” in the pop-up window (Figure 1.3).
Figure 1.3
The opened tab shows all crews in pdf format, listed in alpha-numeric order. Another way to obtain the crew list is to click “Reference Items” on the top bar menu, and choose Crews. The “Reference Items” page gives a host of other useful information.
Crew labor hours are shown in the lower-left corner of the crew box. In the case of Crew C14A, the total is: 200 LH Daily Totals. This figure represents the total labor hours worked by the 25 members of Crew C14A in a normal eight-hour workday.
If the task is done by one type of laborer with no equipment (e.g., the crew is composed of one trade only), there will be no crew ID. Instead, there will be an abbreviation for that particular labor trade and the number of workers. For example, most items in section 03 21 11 60 0360 are done by rodmen, abbreviated as Rodm. Hence, Rodm appears in the crew column. The labor trade table lists the abbreviations and their detailed cost information. The table can be seen on the inside back cover of the BCCD book or it can be obtained online by choosing Labor Rates in the “Reference Items.”
Figure 1.4
Most columns can be resized by grabbing and dragging the divider lines at the tops of the columns.
Costs in the crew details box are itemized in three ways:
The bare cost is based on the wages displayed in column A of the table “Installing Contractor’s Overhead and Profit” (located on the inside back cover of the printed book, or in the Crew Information (as show in Figure 1.3). The cost “Including Subs O&P” is based on the labor wages with add-ons, displayed in columns H and I of the same table. Equipment cost, including O&P, is calculated by adding 10 percent to the bare equipment cost. The cost per labor hour is based on labor and equipment cost, divided by total labor hours.
In our example, total daily labor bare cost of crew C14A is
If this number is divided by 200 labor hours per day, we’ll get $49.40 per average labor hour. If we repeat these steps with labor wages including O&P, we’ll get $15,128.80/200 = $75.64 per average labor hour.
For equipment, total daily bare cost is $28.25 + $806.40 = $834.65, or $4.17 average per labor hour, or $918.11/200 = $4.59 average per labor hour, including O&P. This is a hypothetical number that represents the average equipment cost per labor hour if the equipment costs are spread evenly among all workers.
When a crew contains a 0.5 or 0.25 worker, it means the worker is working a half day (4 hours) or a quarter of a day (2 hours) during a normal workday.
The number of units of a defined task that a designated crew will produce in one eight-hour workday is referred to as the daily output. Daily output represents an average figure, which will vary with job conditions. Daily output is measured in the units specified in the unit column. For line 03 30 53.40 0350, the output is 18.55 CY (cubic yards) per day.
This number represents the total number of labor hours it takes to produce one unit of this task using the specified crew. Labor hours per unit is calculated by dividing the crew labor hours (found in the crew detail) by the daily output:
This basic relationship of crew labor hours and productivity can be used to calculate labor hours for crews of different composition. It can also be used to calculate the length of time it will take to perform this task with crews of differing composition.
One important observation about the two terms representing productivity—namely, units/day and labor hours/unit—is the adjustment needed when productivity changes. There is an inverse proportionality between the two terms. For example, if productivity decreases, then units/day decreases while labor hours/unit increases, and vice versa.
In most cases, the unit is self-explanatory, such as CY (cubic yards), SF (square feet), or Ea (each). In some cases, the user might see an unusual unit, such as SFCA (square foot contact area), SQ (square = 100 SF), Cwt (100 pounds), or VLF (vertical linear feet). Refer to the abbreviations list in the reference section of the BCCD, or use “Reference Items” in RSMeans Online Estimating.
This category has four columns: Materials, Labor, Equipment, and Total. The numbers here represent the contractor’s direct (bare) cost. They do not include any overhead, subcontractors’ markups, or profit.
This column represents the sum of the bare material cost plus 10 percent for profit, the bare labor cost plus labor burden and 10 percent for profit, and the bare equipment cost plus 10 percent for profit. This figure represents the amount the installing contractor may charge to a general contractor or owner.
Labor cost is, without a doubt, the single most unpredictable expense in a construction project. Labor cost can be calculated in at least two ways, as shown in equations (1.1) and (1.2):
or
Note: The unit of time used in activity duration could be hours, weeks, or any other unit of time. The crew cost then must be in dollars per the same time unit.
Both methods require knowing the productivity—that is, the total number of units produced by the unit of time. If we define productivity as a crew’s daily output (units/day), then:
and
Then equations (1.1) and (1.2) can be rewritten as one equation:
RSMeans productivity figures assume average conditions. Productivity involves two indicators: daily output and labor hours (per unit). For any given task:
If productivity increases (or decreases) by a certain percentage, the daily output will also increase (or decrease) by the same percentage. The labor hours per unit will go the opposite way—that is, they will decrease (or increase) by the same percentage. To understand this, let’s consider the following scenario.
Duration varies significantly, not only with productivity but also by crew size or composition, or the number of crews used. Duration has an inverse relationship with productivity—that is, when productivity increases, duration decreases, and vice versa.
The estimator must exercise caution in calculating the duration of an activity. Duration is important for scheduling and calculating the expected finish time (for that activity and the entire project) as well as for estimating general conditions and overhead cost (rent, staff salary, utilities, etc.) of the job.
Equipment for each task is shown in the crew detail. Crew equipment cost consists of equipment rental costs plus equipment operating costs.
For line 03 30 53.40 0350:
Using Crew C-14A information:
RSMeans cost data for equipment are based on two assumptions:
For the gas engine vibrator in Crew C14A, refer to line 01 54 33.10 3000.
Figure 1.5
For this equipment, the hourly operating cost is $2.38 and the rent per week is $46. The crew equipment cost per day is:
Crew equip. cost = $28.24/day (in the crew cost, it shows as $28.25 because of different rounding process).
This crew equipment cost per day (shown in the far-right-hand column in the equipment section in the print book only) is the figure used in the crew detail. Construction equipment is often rented for periods other than one week or may be owned. Variations in times for equipment rental will be discussed further in Chapter 13.
The costs shown in the unit price section of the BCCD represent US national average prices and are given in US dollars. The national average is an average of costs in 30 major US cities. National average costs should be adjusted to local costs when performing an actual estimate. City cost indexes for 731 US and Canadian cities are available in the reference section of the BCCD. The 30-city national average is given a value of 100, and each of the 731 index figures is shown as a value relative to this figure. They are broken down not only by city but also by the major CSI division.
In the BCCD print book, the location factors list the same factors for 731 cities with the addition of zip codes (but without breakdown by CSI divisions). To determine the cost in a particular location, multiply the cost by the location factor and divide by 100.
All cost numbers in the BCCD print book show US national averages, and then the user needs to multiply the cost number by CCI factors. In the Online Estimating, it is adjusted automatically by choosing the Location: A small window will pop up, and the user chooses one of the available cities in the United States or Canada (Figure 1.6).
Figure 1.6 Project Location
In the examples in the next chapters, we will be using the numbers from the online estimating, that are already adjusted for location.
When using the online estimating with automatic location adjustment, we get: $309.81, $426.93, $43.11, $779.85, and $1,034.54, for materials, labor, equipment, bare total, and total including O&P; respectively.
As mentioned earlier, the results obtained by the BCCD book (and adjusted by CCI factors) differ slightly from those obtained from online estimating because the adjustment factors apply in a different way, and because of rounding (Figure 1.8).
Figure 1.8
In RSMeans online estimating, location factors can be applied by clicking on Location on the Settings or in the estimate. A choice first must be made among: National Average (US), United States, or Canada. If the choice is United States or Canada, a dropdown menu appears to choose the state. Once a state is chosen, a final dropdown menu appears to choose the city (Figure 1.9). The location can be changed at any time, in the database or the estimate. If this happens while an estimate is open, the prices will adjust automatically but the user needs to save the estimate before / when exiting to keep this change.
Figure 1.9