Cost, control estimating construction

Project Control Having made a good estimate of the capital cost and the expected construc tion time, it is essential to introduce an effective system for controlling expenditure of time and money during construction. Good capital-cost control can cut down expenditures even when the definitive estimate is not veiy accurate. It is most important for management to receive early warnings if overruns in expenditure or time are likely to occur. 

Detailed (Quotation) estimates, accuracy 5-10 per cent, which are used for project cost control and estimates for fixed price contracts. These are based on the completed (or near complete) process design, firm quotations for equipment, and a detailed breakdown and estimation of the construction cost. 

Cost Costs were estimated at 4.5 million, which includes soil importation, revegetation, quality control and assurance, construction management, and installation and operation of moisture monitoring systems. 

This type of estimating is used by contractors who are bidding for a given job. If they are wrong they will not make any profit. It is also used by companies who want to keep a close control on costs during the construction phase. 

Detailed Estimate Method For estimates in the detailed category, a code of account needs to be used to prevent oversight of certain significant items in the capital cost. See Table 9-15. Each item in the code is estimated and provides the capital cost estimate then this estimate serves for cost control during the construction phase of a project. 

Whether the formal step approach, or the trending approach with snapshots is used, it is essential that a control estimate be created to be used during construction to control the cost of the constructed project. The result of shortchanging the estimating and cost control effort are a noncurrent cost reality and unhappy surprises as to final cost and schedule. 

The control estimate is a final confirmation of the cost of the project (Fig. 12). It is a detailed pricing ofthe project from takeoffs of quantities and, in most cases, will reflect local bids for materials and construction labor. By the time this estimate is made, the project cost has been decided and this is done to form a control basis for the project as it proceeds through construction. 

Several problems were identified to be resolved to enhance the feasibility of an earlier realization of the 4S-LMR project, related to the reliability of a reactor shutdown system including a reflector control system, and chemical activity of the secondary sodium systems. The total R D costs, including the construction of a prototype reactor needed to obtain data for licensing of the commercial reactor is estimated at under US 1 billion, under the present design conditions. These costs may depend on the future design conditions and other factors. 

Halpin, D. W. and R. W. Woodhead. 1997. Construction Management, 2nd ed. New York John Wiley Sons. Looks at the skills required by a construction manager and all professional groups including engineers and contractors, the resources in terms of equipment and materials as well as financial and human. There are chapters on estimating and cost control. 

If the evaluation is positive at this stage, a project control estimate is then prepared. Final flow sheets, site analyses, equipment specifications, and any architectural and engineering sketches are employed to prepare this estimate. The accuracy of this estimate is about 10% probable error. A project control estimate can serve as the basis for a corporate appropriation, forjudging contractor bids, and for determining construction expenses. Due to increased intricacy and precision, the cost for preparing such as estimate for the process can approach 150,000. 

There is one turbine for each power block. The turbine generator equipment is located in one turbine building. An estimate of the plant capital cost, using the modular construction approach, showed a small cost reduction when compared with conventional construction. Aside from any direct cost reduction, modular construction provides advantages such as greater control of plant capital cost and construction schedule and, hence, a reduced risk in these areas. 

Pollutants that require an unusually high level of control or that require the fabric filter bags or the unit itself to be constructed of special materials, such as Gore-Tex or stainless steel, will increase the costs of the system. The additional costs for controlling more complex waste streams are not reflected in the estimates given below. For these types of systems, the capital cost could increase by as much as 75 % and the operational and maintenance (O M cost could increase by as much as 20%. 

The second example originates from the constraction business. Because of inadequate quality control measurements on the construction materials the whole project was considerably delayed and the total cost, which was originally estimated as 900 million US dollars, exceeded 1 billion US dollars. 

A document that indicates cleany what is provided in terms of technology, quality, schedule, and cost A basis in enough detail to be used in controlhng the project and its costs to permit proper evaluation of any proposed changes A device to permit subsequent evaluation of the performance compared to the intended performance A document to control the detailed estimate for the final design, construction, and design... 

The preliminary equipment cost for the two PTA (12 MGD RO WTP) with blowers was estimated to be 450,000, with an estimated total construction cost of 1 million. Included in the total construction cost are costs for 20 and 30 in. diameter stainless-steel inlet and discharge piping and valving, 30 and 42 in. diameter reinforced fiber glass ducts, 6 in. diameter PVC drain pipes, 2-14 ft diameter concrete pad for the vessels, electrical, instrumentation, and controls. The preliminary equipment cost for the four PTA (20 MGD LS WTP) without fans is 825,000 and the estimated total construction... 

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