What is an estimate in construction? Estimate file

What is an estimate and who are the estimators?

What does it mean to make an estimate, and who are these estimaters?

Budgeting is an art. The estimator needs to create an estimate that reflects the cost of construction or other work, its potential profitability, and possibly increasing its profitability.

The project may be rejected if the costs are “inflated”; the required amount should not be overestimated or underestimated in order to adapt to the customer’s expectations.

Revaluation can provide a financial cushion that can be used in case of unforeseen delays in construction or unaccounted expenses. The disadvantage in this case may be that the project may not be approved and found to be ineffective and unprofitable.

If an estimator has worked in this field long enough, he knows how to select and adjust prices so that they work for him. After all, based on the composition of the work, the price can be increased several times, “spreading” the existing price by several and getting a ruble out of a penny. But there is always a BUT that will help the inspecting estimator or the organization that issues ready-made estimate documentation, because not only can you increase the cost of the work, but it will also reduce it and that’s a completely different story!

Maneuvering between prices, calculation methods and other pricing facts, a competent estimator will always find a way out of the current situation. If we remember that the main goal pursued by organizations is profit, then the conclusion from this is the need for a qualified specialist with work experience and sometimes a flight of fancy, and maybe stress resistance, because an estimate is a creativity that requires both knowledge and experience, as well as fiction.

As a result of all this, we can sum up that drawing up estimates is necessary for organizations and it is the estimator who determines how much profit it can get; a lot depends on his experience and ingenuity. Hiding or finding what you have lost is an art!

Now let's figure out what questions we should ask the estimator so that he can help us in our work:

• experience working in programs
• having experience in various areas
• knowledge of pricing principles (knowledge of the latest pricing letters, as well as all forms of estimate documentation)
• ability to read blueprints and knowledge of construction work

A professional who strives to work, is attentive, patient, with a “creative streak” and a good memory, and the desire to improve in a given direction and learn new things is also irreplaceable.

It’s a paradox: despite the importance of this profession, there is no specialty surveyor in the state list of professions (ECTS), not a single university or technical school trains surveyors. Among the main sources of advanced training, almost all estimators name professional seminars, courses (including estimating programs), consultations in government pricing centers and reputable commercial organizations (developers and dealers of estimating software, for example), professional websites and forums, the Internet -mailings.
As a result, we get that all estimators are still self-taught in their own way.

We can distinguish three main groups of estimators:

• experienced estimators, usually specialists with a construction education or who have completed construction school from the very bottom, usually over 40 years of age.
• “average” - most likely those who were trained by competent specialists.
• young specialists - those who were indirectly connected with estimates and decided to develop in this direction and took short-term courses.

You must answer this question yourself. Each organization is individual, some can afford to train a specialist, while others need a fighter who is already experienced and hardened by tests. The advantages of a young specialist are his quick learning ability and the ability to “grab everything on the fly,” while an experienced one has the opportunity to immediately start working.

Estimators are quite in demand in the construction field, and its development makes this specialty even more promising. If we add to this the preparation of estimates for the renovation of existing buildings, then there is always a lot of work for the estimator. This is especially true for experienced and competent specialists, on whom the success of a construction company depends. In this connection, the demand for a specialist is higher, the more diverse specialists they are, understanding various areas of construction.

"Should I be an estimator"? The young specialist himself must answer this question. He must understand what difficulties he will experience on the path to becoming an estimator, but also what prospects will open up for him in the future.

--
Sofia Kaznina (Mayorova), Galaktika IT company

A local estimate or calculation is a form of documentation with a detailed calculation of the compiled scope of work and costs, which are not precisely established, but are subject to clarification. Local estimates can be calculated in several ways, namely:

1. Basis-index. The cost of work and expenses is calculated.
2. Indexing. Transition from the base to the current level, taking into account real conversion factors.
3. Resource. Calculation to determine design solutions based on natural parameters of material and human resource requirements.
4. Analog. Calculating the cost of work through indexing.

In local estimates, information is often grouped into sections according to individual structural indicators of buildings and types of work. The procedure must be regulated by regulatory documentation. It is also possible that the work will be divided into underground or above ground.

So, how are calculations made for certain types of work and the cost of equipment for this? It is compiled according to the following data:

1. Options. The first step is to determine the parameters of the structure that were approved in the design solutions.
2. Volume. The basis is taken as the volume approved according to the list of construction and installation works and determined from the design materials.
3. Construction materials. The amount of equipment and material resources ordered by specification according to the statement.
4. Standards. Approved standards and indicators for the types of work performed, current prices and tariffs for technical units.

The local estimate is based on the following necessary criteria:

1. Buildings and constructions. Industrial and special construction work (wall masonry), sanitary and technical work related to the provision of electrical networks and lighting, installation and purchase of technological equipment, automation and control and measuring elements, low-current formations, as well as the purchase of furniture attributes and so on.
2. Are common. Vertical layout, organization of utility networks, roads, whether there is a garage, and also putting things in order on the territory, taking into account its architecture.

If a complex type of structure is being compiled, which is formed by more than one design institution, it is permissible to create several local estimates separately for each type of work. The local estimate contains sections on specific construction elements of the facility, general types and features of certain types of construction work.

Local estimates have the following sections:

1. Construction. The components of this section are everything that concerns the building itself: its walls, foundations, floors, etc.
2. Sanitary technical (laying water supply, sewerage, ventilation, and so on).

Procedure for creating a document

The preparation of estimates should begin a certain time before the start of construction; it is not advisable to do this hastily in a short time. A local construction estimate is a document containing the amount of time and money that must be spent on the construction of the specified structure. And also a detailed description of the quantity and quality of building materials, the conditions necessary for operation.

When drawing up a sample estimate, weather conditions, road conditions and the presence of nearby residential or construction buildings should be included. The amount for additional expenses that were not initially included in the local estimates must also be indicated. When using this money, you must attach an explanatory note about what and for what it was taken.

To create this document, you need to involve specialists in this field. After reviewing the document by the customer and the contractor, additional issues are resolved if they arise, then signatures must be placed indicating consent to carry out construction, and the work can begin.

If the estimate drawn up and the contractor's preliminary calculations differ, then the reason should be found out and considered. Direct costs may diverge due to additional materials and elements required for construction; it is due to them that the amount has changed.

As an example of estimates, consider the object type.

Object estimate

An object estimate refers to documents that are used to guide expenses. The calculation includes all data subject to approval. Costs are calculated based on current prices for construction products and services at that time. To avoid controversial issues regarding costs, you need to enter additional funds into the estimate form. For example, this is necessary in case of an increase in prices during the cold period, the cost of temporary structures (all this is provided for in the “other expenses” column).

If only one local estimate was compiled, then an object estimate is not required. Under such circumstances, all actions are carried out according to one local estimate, at the end of which an estimated profit is set to cover limited costs in the same manner as for the object one. And if several calculations are made, they are combined into an object calculation in one line.

To place two joint buildings (a residential building and a trade enterprise, and so on), it is necessary to calculate 2 calculations for each building separately. You can calculate one estimate, but indicating the total cost for 2 buildings. Estimated profits may be calculated using rounded figures or based on the cost of similar items.

Only a specialist can correctly draw up an estimate, so it is initially recommended to entrust this matter to him, so as not to waste time and effort, and possibly focus on the wrong indicators.

The estimate is part of the working documentation. It is necessary for any construction, any work. The estimate determines how much money the construction requires. How many of them are needed to complete the work? In the article we tried to tell how the estimate is filled out, where to get the data for this? What are indices and coefficients? What does the estimated cost consist of? Everything is not as difficult as it seems.

How can this article help?

This article will help you understand the issue a little. Understand budgets at a basic level. Here are only general concepts about the composition of the estimate, examples of estimates for installation. A little about indices and coefficients. Details on the preparation of estimates for are discussed in MDS 81-35. 2001.

Title page

Let's look at how to read estimates using an example. The estimate for installation of a split system (table in the figure below) contains 13 columns. There are other types of forms, differing in the number of columns. But the principle is similar everywhere and the information in the columns is similar. The numbers of the text positions below correspond to the numbers in the picture of the estimate example. An example of an installation estimate was compiled for this article and is not tied to any specific object.

1. At the top left there is a block - “Agreed”. It specifies the contractor. The one who does the work. The organization and information of the manager are indicated. His signature and seal are also placed here.

2. At the top right there is a block - “I approve”, containing the position, surname, initials and signature of the customer’s manager. The “I approve” block is also stamped.

3. Name of the construction site - place of work. Several parts of work can be combined in one construction project.

4. Estimate number. According to regulatory documents, the following numbering order is adopted:

• the first 2 digits are the section number of the consolidated estimate;
• the second and third are the line number in its section;
• the third and fourth are the estimate number in this object estimate calculation.

In the example, the estimate number is not included. It is not included in any documentation.

5. Name of the object, work and costs. Description of work indicating the name and address of the object.

6. Base. On what basis was the estimate formed? This could be a drawing or technical specification. We indicate, for example, technical specifications.

7. Estimated cost of work. The amount of the estimate for installation work is stated in thousands of rubles. Indication of the amount in thousands of rubles is regulated by MDS 81-35.2001.

8. Funds for wages. How much should workers be paid, theoretically?

9. Standard labor intensity. The amount of man-hours excluding downtime required to complete the work.

10. Justification of the estimated cost. The example estimate is compiled in current (forecast) prices for the first quarter of 2018 (but there may be monthly indexation). All prices are recorded in 2001 prices, and then using coefficients they are converted to prices of the current period. This method is called the basis-index method.

The tabular part of the estimate is an example of an estimate for installing a split system

The estimate header includes the following columns:

1. Quote number.

2. Code and standard number. Indicates in what standards the estimate was drawn up and under what order this regulatory framework is in effect. In this case, the FER directory (federal unit construction prices) is used. The numbers in the name of the price mean the numbers: collection - section - price table.

3. Name of work, costs and unit of pricing. The work itself is described (in the same way as it is stated in the price), the price meter (in this case, 1 split system). Further, the coefficients for positions and position indices are written in the name of the price.

4. Quantity. The quantity is entered taking into account the pricing meter. In this example, this is one split system.

Unit cost (block 1). This block includes the current base price and its elements.

5. Total/wages.

6. Operation of machines/including wages (drivers).

7. Materials.

Total cost (block 2). It is obtained by multiplying the unit cost by the quantity.

9. Remuneration.

10. Operation of machines/including wages (drivers).

11. Materials.

Labor costs of workers (block 3) not related to machine maintenance, people. hour.

12. Per unit.

There is also a breakdown of the estimate into sections. There are no strict rules. They break it down logically. The section is always summed up.

What do the numbers in the estimate table mean?

The method of drawing up the estimate under consideration is base-index. Prices in it are indicated at the 2001 price level and are called basic. To convert prices to current levels, the base price is multiplied by the index. Direct prices cannot be immediately converted to the current price level, since there is no index for them. There are indices for cost elements. The estimate is prepared in cost elements.

There are four in total:

• workers' compensation - wages;
• operation of machines - EM;
• remuneration for drivers - ZPM;
• Cost of materials.

Where to look for direct costs in the table:

Where to look for cost elements in the table:

As in the FER standard 20-06-018-04, cost elements are prescribed. Here you can see which materials were included in the price and which remained unaccounted for.

Therefore, to find out the real price of the work, you need to multiply the prices of the cost elements in 2001 by indices and sum them up. If the “Materials” column is filled in the price, this means that the price unit contains this amount of materials. This can be seen in the example of the price for installing a split system (line No. 1). There are materials that are not included in the price. Then they are called unaccounted for and are entered in a separate line (positions 3 to 9 of this estimate).

Estimated coefficients

In addition to indices, there are coefficients. They are charged on elements of unit prices. Indicated in column 3. The coefficients may be different (for wooden structures, for excavation work, for dismantling, for work in winter conditions...). All of them can be found in magazines, collections of prices and in MDS 81-35.2001. Coefficients are calculated on the elements of unit prices. They can be either decreasing (for example, for dismantling) or increasing (for example, tightness).

At the end of the estimate, all costs are summed up. In this option for filling out the estimate, the cost line first appears in 2001 prices. Then a line with current prices, where all price indices are taken into account. Then comes the column - “Labor costs”.

Next two lines:

• SP (estimated profit).
• HP (overhead).

The coefficients for them are indicated in the prices. More information about the calculation of SP can be found in MDS 81-25.2001, and about the calculation of NR - from MDS 81-33.2004.

Afterwards, the “Total” section is divided into cost elements.

Unforeseen expenses are being accrued.

If there are sections in the estimate, then the totals of the estimate are made up of the totals of the sections.

At the end, signatures are placed and decrypted:

Compiled by (engineer full name).

Checked by (engineer full name).

At first glance, the estimate only complicates life. Instead of immediately getting down to business - building a house, organizing a literary festival or launching a new production line - you need to draw up and approve a bunch of papers called “estimates”, and this is labor-intensive and painstaking work.

In general terms, an estimate is a recalculation of upcoming expenses and income.

However, such a general definition does not reflect the whole arsenal of possibilities of the estimate and its main goal - to help business participants make the right decisions at the project preparation stage.

A correctly drawn up estimate will determine the exact amount of costs required to implement the project, which will allow you to soberly assess how the budget corresponds to the volume of work to be done, and, if necessary, make the necessary adjustments.

If we talk about the estimate in detail, it is worth noting that the estimate is used not only by commercial companies, but also by budget organizations. Moreover, various ministries, acting as customers, draw up a financial planning act, that is, an estimate that determines the amount, target and quarterly distribution of funds allocated by the state for the full operation of budgetary institutions.

In the future, this estimate becomes the main controlling document, since it indicates expense items that are strictly obligatory to follow.

Estimate - information from Wikipedia

Customer – estimate – performer

For both commercial and government organizations providing services, the estimate is an integral part of the contract.

Accordingly, the estimate can be drawn up in the form of a whole package of documents - usually complex estimates are needed by construction or production organizations; special forms and templates have been developed for them.

For smaller tasks, a detailed estimate may not be required; a table or free-form list of costs is quite suitable, but whatever the form or volume of the estimate, it should reflect the calculation of all resources and costs per unit of material.

For example, for construction and production it can be a piece, a pallet, a set, a linear meter or a kilogram. The calculation of upcoming cash expenses can be preliminary or firm, that is, final. The approved estimate is attached to the contract between the customer and the contractor.

Description of the estimate in simple words

If in your professional activity you have not had to deal with estimates, then you have probably dealt with them when planning and solving any household and personal matters, for example, renovating an apartment or organizing a wedding. It would be very difficult to realize these dreams without an estimate, because there is so much to consider! The estimate, in which you are your own customer, and partly your executor, can be drawn up by hand and fit on one sheet of paper. However, the basis of an amateur estimate will be the same principle as a professionally completed construction estimate.

You will most likely break down an event such as a wedding into the following expense items:

• outfits for the bride and groom,
• the bride's bouquet,
• banquet (restaurant rent, menu for 1 person, number of guests),
• toastmaster services,
• wedding car rental.

Well, then list your income, and perhaps add one more item - honeymoon.

Types of estimates

Estimates are different; each type of estimate has its own specifics and takes into account different periods of project implementation. And all together they are estimate documentation, which is also called the final, public form of estimate calculation. Estimates, in all their diversity, are most often used in the construction industry.

Local estimates

The local estimate includes only certain types of work, which is part of the total amount of work, for which all possible costs are calculated: materials, wages of attracted specialists, operation of equipment and mechanisms, as well as possible overhead costs and planned savings.

Calculation of a local estimate is necessary as an intermediate stage when a large-scale construction project is to be implemented, and it is not immediately possible to determine the final volume of necessary work and its cost. Then the estimate groups the individual components of the technical building depending on the urgency of the work.

Object estimate

The object estimate combines all local estimates within one object, and also takes into account indirect costs, for example, seasonal increases in the cost of any work. Thus, an object estimate for the improvement of the adjacent territory of a residential complex may include a number of local estimates: for the construction of a parking lot, for the creation of a complex of children's playgrounds, and barbecue areas.

Summary estimate

A consolidated estimate is a package of documents for all object estimates and reports for certain types of expenses necessary to determine the final figures and completion dates for the construction of all objects within the framework of the project being implemented.

How much does it cost to prepare an estimate, cost of preparation

An important role in construction projects is played not only by the estimate, but also by the so-called “estimated cost”: we are talking about the money that will be required for the construction from the materials or resources included in it.

Estimated cost- this is a general value for determining the full volume of capital investments, as well as the contract price for the required building materials, payments for completed contractual works (commissioning, construction and installation work, payment of expenses for the purchase of technical equipment and its delivery to construction sites, as well as compensation for other costs for account of funds provided for by the consolidated estimate.

Thus, it is the estimated cost that satisfies the construction needs for financial resources. Physical indicators of the estimate, for example, types and volumes of work, consumption of materials, contractor services are indicated in natural measures and in full during construction design, being solid, that is, unchangeable parameters of the construction project.

As for the estimated cost, it can be calculated at any point in time, that is, using new, market-relevant prices for resources and services in construction. The estimated cost of construction costs also takes into account the estimated profit, that is, funds planned to cover the costs of contractors and material remuneration for specialists involved in the project.

Costs and expenses in the estimate: overhead, direct, planned

The cost estimate is most often calculated using the base-index method, which is based on a system of current and forecast indices in comparison with the cost determined at the base price level. This method allows you to take into account the current (forecast) price level at various stages of the investment process.

Indices are used to convert the base value into currently relevant prices. Today, various standards, coefficients and indices are taken into account by specialized programs that perform many calculations necessary in the preparation of estimate documentation, for example, DefSmeta Free, My Estimate, Lightik Estimate, etc.

The estimated cost of work consists of three components: direct and overhead costs, as well as planned savings.

• Direct costs– these are funds for the purchase of materials, rent or purchase of equipment, salaries for specialists and workers. They are calculated in any convenient way.
• Overheads– these are the costs necessary for the organization, management and maintenance of the construction site. When calculating them, coefficients are used.
• Planned savings- this is the estimated profit that compensates for the company’s costs and allows the company to successfully operate and develop. Planned savings include costs for modernizing the technical base of the enterprise, developing infrastructure, tax deductions, and creating good working conditions for personnel.

When calculating the estimated profit, certain coefficients are taken into account. To calculate the estimated cost, you need to decide on the type of estimate standard.

To draw up an estimate and formalize it in the form of estimate documentation, you should adhere to a clear plan:

1. calculation of all expenses necessary for the implementation of the project;
2. determining the volume of required cash investments;
3. calculation of wages;
4. determination of the contractual cost and amount of costs for building materials, equipment and other resources;
5. adjustment of the estimate.

This information is reflected in the structure of the estimate, usually in the form of a table with columns.

Not a single estimate can do without the adjustment stage and, as a rule, after a thorough check it becomes several times smaller.

An estimate is an appendix to the contract between the contractor and the customer, in which the cost of performing the work is calculated. The document also provides a cost estimate for materials.

The estimated cost is the basic value for determining the total amount of capital investments, contract prices for products and materials. Let's look further at what types there are.

General information about settlement documents

Experts note that estimates for large projects must be ordered from professionals.

Estimate by type of work is an integral part of the working documentation. There are a number of requirements for its design. As a rule, the estimate is prepared simultaneously with the project.

Local estimates

They are compiled for a specific type of work or for one object. This type of estimate is used when the expected scope of work and expenses has not been finally determined.

The calculation is made in contract prices. The appendix or the estimate itself provides a list of all materials indicating the cost per unit of each of them. The final part calculates the total cost of all materials that will be used to perform a specific type of work or the entire facility as a whole.

Object estimates

They combine local calculations. Such an estimate reflects everything types of costs. In the estimate for landscaping, for example, there may be calculations for:

• Creation of landscape design.
• Construction of a gazebo.
• Installation of a fountain.
• Creation of a children's playground, etc.

Summary calculation

This type of estimate is intended to reflect generalized, aggregated indicators. The summary calculation takes into account a variety of costs.

Main types of expenses in the estimate costs are considered for:

• Construction equipment.
• Finishing work.
• Materials.

The summary calculation includes calculation of the costs of demolition of the structure, preparation of documents for allocating a site for construction, costs associated with obtaining technical conditions, etc.

Features of compilation

Each type of estimate has its own characteristics that must be taken into account when drawing up the document. If necessary, the developer can make the calculation himself. However, as a rule, customers turn to specialized companies.

Any type of estimate can be compiled on a computer using the Excel program. In addition, special applications are released. They already contain the main indicators, types of work, costs, types of materials, consumption rates, etc.

If the capital construction project is large, for the convenience of contractors and the customer, all work is divided into stages. Accordingly, payment is made as each of them is completed.

Nuances

In any construction project there is a section that lists all materials and indicates the time for completing a specific stage of work. The deadline for delivery of the finished object is also set. Accordingly, a correctly drawn up estimate must contain quantitative characteristics of all the work envisaged: from digging a pit to finishing.

In any type of estimate, overhead costs are taken into account. These include, in particular, transportation costs, costs of paying for the services of the contractor’s administrative department, etc. These costs account for approximately 10-15% of the total costs. In addition, the contractor's profit must be taken into account. It accounts for about 20% of all costs.

As practice shows, when carrying out construction work one cannot do without additional costs. The estimate must include a small percentage for them as well. However, the budget preparer must explain to the customer the conditions for the occurrence of such costs.

Stages

The budgeting process includes:

• Calculation of project implementation costs.
• Determining the total amount of required investments.
• Calculation of workers' salaries.
• Cost calculation for materials, structures, equipment.
• Determination of the total estimated cost.

As a rule, all calculations are presented in the form of tables. In this form, it is convenient for the user of the estimate to compare and evaluate the correctness of the calculations.

Adjustment

Not a single estimate can be done without it. In this case, adjustments will be made repeatedly, especially if calculations are carried out for a reconstruction or overhaul project.

Additions and changes are made to the estimate after examining the property before approving the estimate. The adjustment allows you to avoid unexpected expenses. Typically, after a revision, the estimated cost is reduced.

Calculation method

The estimate is prepared, as a rule, based on a system of prognostic and current indices. The method allows you to take into account the level of market prices at different stages of project implementation.

Indices are used to convert the base cost to the actual cost at the time of work. Currently, various software products are being produced to help designers, which already contain current standards, indices, and coefficients.

Estimated cost

It includes the calculation of direct and overhead costs, as well as the amount of planned savings.

Direct costs are the costs of purchasing materials, equipment, and labor.

Overhead costs are necessary to manage and maintain the construction process. Ratios are used to calculate such expenses.

Planned savings are the estimated profits that compensate for the company's expenses. They include costs for modernization, development of the enterprise’s infrastructure, and creation of appropriate conditions for the work of personnel.