What is cost estimation for main contractor of construction?? Normally, for a contractor, a bid estimate submitted to the owner either for competitive bidding or negotiation consists of direct construction cost including filed supervision, plus a markup to cover general overhead and profits. The direct cost of construction for bid estimates is usually derived from a combination of following approaches.
- Subcontractor quotations
- Quantity takeoffs
- Construction procedures
In this Tutorial must apply the WBS concept into costing. Based on our WBS as Tutorial 2, the main elements are people (labors/staffs), materials, machinery and equipments. Hence, we use these items as parameters for the cost estimates.
In addition details of the costing must include fixed costs, variable cost and others costs.
Fixed costs - staff's salary, subcontractor's quotation, materials costs
Variable costs - labors' salary, machinery and equipments cost
Others costs - foreigner working permit levy, hire ausitor inspect site, contigency cost
