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Topic : Construction Project Management
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Started by : Anjali Bhatia, Construction-Heavy, Sobha Developers   11 15 2008 05:30:10 +0000
Industry : ConstructionFunctional Area : Business Processes(Operations)
Activity:  1371 views;  last activity : 04 30 2011 04:43:00 +0000

I want to know from you guys what are the common errors we do in estimating construction cost. Let us help each other & avoid such mistakes.

Thanks !!! 

 
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1 2 3 4 5
1 Lack of visualisation
2 Lack of Practical knowledge
3 Blindly relying on Vendor Quotes for Estimates...!!!
4 Common ERROR in BOQ
5 Common errors in the construction cost estimate.
6 Wrong measurements
7 Taking Shortcuts
8 Common errors in estimation
9 Methods Engineering and Manhours estimation
10 Improper Scheduling
11 ANALYSIS
12 Rigidity in estimating.
13 Method of Measurement
14 requirement of systemization
15 Common errors in cost estimation
16 Lack of proper prior planning of drawings and lack of escaltion of market price
17 Reduce time and cost in construction
18 Lack of Drawing study experince
19 Improper Building Materials
20 Accuracy in Financial aspect of calculation
21 Failure of Project Head & Head Office
22 Lack of Practical knowledge
23 think about the indirect costs...
24 Common errors in construction cost estimation
25 Data Collection
26 Data Collection
27 ashok
28 Use of products in finishing of building which reduces construction time.
29 Bill of Quantities
30 Speed to complete the work: chance for more errors
31 errors occured in cost estimation....
32 Lack of communication & co-ordination
33 Lack of communication & co-ordination
34 Bad work manship
35 Not identifying the direct costs
36 Avoiding direct cost anlysis
37 Comprehensive knowledge, farsightedness & ability to plan.
38 Check for Units
39 Common errors in construction cost estimation
40 Improper Bill of Quanties and Timelines
41 Lack of Practical knowledge
42 Lack of well defined cost tracking items during execution
43 basically iknow only one error &this is realy diffilct 2 overcome this error this is sourcing of raw materials
44 Approximation of the measurements and rates
45 visualization
46 Compuuter Skill and Precision
47 Modicum of descipline
48 allotment of optimum time
49 Before estimation site investigation is essential and every detail should be taken care off to prepare the BOQ wherever the site
50 calculation for Overheads
51 ERRORS IN COSTING / ESTIMATION
52 Refresh mind in between the work
53 systemization of process
54 support
55 hands on knowledge of the project
56 lack of practical knowledge
57 Right,
58 THEORITICAL ERROR
59 Lack of Visualization, Communication and Analysis
60 Lack of Drawing study experince
61 Sales cost along with project cost
62 common mistake in estimation

Lack of visualisation

idea posted by Nitin Jani President

Reading plans need 3D visualisation .Lack of it leads to wrong measurements.

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by pandianarjunan , project manager  | 04 30 2011 04:43:00 +0000

without visualisation no costestimate can be prepared.But without practical knowledge no estimate will accurate.A pile depth can be had from the report, but the risks of sliding and penetration can be calculated by practical knowledge only.An estimate for building construction may be prepared by visualising the details shown.But with practical knowledge only the idle hrs for resouces or seasonal impacts or any other related risks can be identified for costing the budget

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by Chander Pawa, Civil Engineer  | 09 06 2010 14:24:10 +0000

Lack of visualization of the various elements required for sucessful completion of project is the main reason for errors in estimates. Besides this proper knowledge of the site conditions w.r.t. the final drawings are also to be kept in mind.

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by Srinivas S.Mantrala, PMP, Executive Engineer, A.P.S.Police Housing Corporation  | 09 06 2010 06:10:04 +0000

By summing up the opinions expressed by every one discussed in this debate, one can find solutions for preparation of an estimate with enhanced accuracy level.

The PMI is bringing out with Global Standard for Preparation of Cost Estimation very soon. The draft is in circulation. I hope it will show a way how an estimate should be prepared and the factors to be considered. Different types of estimates for at different stages of the projects.

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Lack of Practical knowledge

idea posted by Naimish Construction-Heavy, Gourav Engineers

Hi Freinds,

Only theoritical knowledge is not sufficiant for cost estimation. Many estimaters do the estimates by theroticaly because they have never gone to site for execution. So they do not come to know exactly what are the actual consumption of material & how much labour used. I think that practical knowledge is must for cost estimation.

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by rakesh r raje, Project Architect, SAPL  | 09 18 2010 14:18:42 +0000

 a practical knowledge is very important for error free cost estimation.because it is called humane error

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by MUHAMMED SHABEER AHMED, Project Manager, SHRISHTI TECHNOLOGIES PVT LTD  | 03 23 2010 12:19:54 +0000

without practical knowledge like blindly driving

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by Murali K Balla, Technical Support Manager Atkins  | 02 23 2010 11:49:25 +0000

If the person who does the calculations has got some practical experience, this will defenetly help him to estimate more accurately.

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Blindly relying on Vendor Quotes for Estimates...!!!

idea posted by M NITIN SHENOY, PMP, IPMA-D, CEng MICE Manager

Most of the cost estimates in a project go wrong because we totally rely on vendor quotes and three quotation system instead of doing a detailed Item Rate Analysis for indivudal items of work.

By relying on a vendors estimate blindly, the following risk components are on our head :

  1. Lack of vendors clarity or perception on scope and specification
  2. Lack of vendors knowledge on market trends
  3. Lack of vendors knowledge on the inter dependcies of various activities in the project.
  4. Lack of vendors knowledge on the main contractual terms and condition set between you and client
  5. Vendor may quote unrealisticallly low just for the sake of winning the order and then stop performing later.
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by Tagore , DGM - Projects  | 07 06 2010 12:52:52 +0000

Most of the mistakes come due to blind acceptance of numbers given by vendors. Interpreting with different modes can give an exact value. Vendors always rise their rates to enhance negotiation

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by Venkatesh M, Warehouse Manager, Larsen and Toubro  | 04 09 2009 05:16:12 +0000

Yes Nitin i am with you in this regard.

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by Er. Harnam Singh, Project Manager, CPWD  | 04 08 2009 14:40:59 +0000

we should go for vendor quotes for the items which are not in vogue i mean new Items or we call them Non shcedule or market rate items. For these items we can have vendor's quotes but these quotes shall be based on some specification say manufacurere's specification and proper analysus shall be done for these items also and only then the cost shall be worked out. If we simply go by quote we will not be knowing actual cost and we can not compare cost quoted by the bidders. It is just that we are ignorant of the item. For this we have to do some market survey about rate and discussions with manufacturer for its specification.  We i suggest we share use of new items there avaiabilty and there suitabilty of use.

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Common ERROR in BOQ

idea posted by Anant Gupta Project Manager, Apollo db City

Hello to all

Here are some common error in preparing BOQ:

1.Lack of knowledge of lacally available building material like sand. metal, Bricks etc.:

Most of the estimaters are not considered actual cost of material which is available locally or near to site. Actually they depend on venders quotes (Who r based  from the estimaters town) bcos they not conduct actual servey for the quality, quantity, availability and rates.

2.  Lack of pratical knowledge:

Most of the estimaters prepare BOQ by theoritically in his office without considering actual problems that may occure at site bcos they hav never gone to site. Also they not considered actual consumption of raw material and men power.

3. Error in calculation/Analysis:

It is the most common error in BOQ. to solve this error estimater should use Cost Estimating Software.

4.Non considering of complete set of Final drawings:

Most of the estimater prepared BOQ on the basis of Architectural & stractural drawings. But they not considered proper drawings in case of services like Approach Road, Internal Roads, Drainage System, Water Supply System, Electrification (HT & LT both), Street Light, Land Scapping etc. Also they not considered Site Survey Plan (Contoor). Site Topography play major role in Price escalation so, it is necessary to considered it in all calculations.

5. Other common errors are:

a. Lack of knowledge about  Liasoning & Taxes.

b. Error in measurement: Deduction or Addition to be made in calculation.

c. Incorrect interpretation of Drawings.

d. Non considering the project completion time.

e. Pressure on time bound completion.

f. Lack of coordination among Architect, Client & estimater.

and many more..............

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by vishal p. chaskar, Civil Engineer  | 09 17 2010 17:35:52 +0000

Mistake done in estimation due to common error in calculation. Mistake in conversion.

 

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by Manoj , Asst. Manager/Manager (Technical), ENGINEERING PROJECTS INDIA LTD A GOVT OF INDIA ENTERPRISE  | 09 08 2010 15:54:42 +0000

in hilly areas most of the estimator never visit the site they usually on topographical picture estimate the quantity of earth work, how ever during execution of work, hard rocks and ordinary rock came accross and due to huge variation in rock excavation total variation of cost takes place..so be aware....what there inside the earth after excavation

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by Anant Gupta, Project Manager, Apollo db City  | 09 06 2010 17:46:33 +0000

One of reason is frequent change in specification.

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Common errors in the construction cost estimate.

idea posted by Bellala Gopinatha Rao Assistant General Manager, Promax Management Consultants

Hi in my view common errors are

Not understanding what is involved to complete an item of work.

Starting with an amount of money and making the project cost fit it.

Assigning resources at more than 80 percent utilisation.

Failing to build in contingency.

Failing to adjust the estimate in accordance with changes in scope.

Dividing tasks between more than one resource.

Providing estimates under pressure in project meetings.

Giving single-data-point estimates rather than range estimates.

 

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by sidheshwar Gadkari, Mechanical Engineer-Other, silane & silicon specialities  | 04 02 2009 08:28:52 +0000

Hello to all,

my comment is based on mechanical engineering ...construction cost ,,, basically the person who is doing costing must be aware of the fact that is happening out of his office. sitting in front of pc & putting up the figure will not help out. when you are estimating  one should prepare the punchlist of the require information which is missing from the  enquiry submitted by the client secondly the costing sheet should be submitted to the department head for eg  in production dept & qc department for manhrs calaculation,then in purchase department for confirming the raw material cost & dispatch cost, after the final approval by each departmental head the quotation should be further process for submission to the client.In this i will say to each one  each department should  work with  estimation department for avoiding the rare miss in the enquiry ,as we should work as a team to acheive our goal If each department will put there contribution in estimation  then it will be a grand success. I feel the person with 10 yrs of experience in estimation should have minimum 6yrs of shop floor or practical experience.  I will give an example of IHI japan .they had given an drawing for estimation which states that the total tonnage of the project was 1000 tones but apart from the heavy structure the the attachment on the structure was very light weight &  during estimation the the manhrs estmated were 200/ton -- but till the completion of the project the manhrs  were reached upto..600 manhrs /ton..the maximum manhrs were waisted in welding & removing the distortion in the weldedsection..So one should very carefull & take advice from production department for all estimation when they are dealing with deferent type of enquiry.

thanks for reading

sidhesh

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by sidheshwar Gadkari, Mechanical Engineer-Other, silane & silicon specialities  | 04 02 2009 08:28:37 +0000

Hello to all,

my comment is based on mechanical engineering ...construction cost ,,, basically the person who is doing costing must be aware of the fact that is happening out of his office. sitting in front of pc & putting up the figure will not help out. when you are estimating  one should prepare the punchlist of the require information which is missing from the  enquiry submitted by the client secondly the costing sheet should be submitted to the department head for eg  in production dept & qc department for manhrs calaculation,then in purchase department for confirming the raw material cost & dispatch cost, after the final approval by each departmental head the quotation should be further process for submission to the client.In this i will say to each one  each department should  work with  estimation department for avoiding the rare miss in the enquiry ,as we should work as a team to acheive our goal If each department will put there contribution in estimation  then it will be a grand success. I feel the person with 10 yrs of experience in estimation should have minimum 6yrs of shop floor or practical experience.  I will give an example of IHI japan .they had given an drawing for estimation which states that the total tonnage of the project was 1000 tones but apart from the heavy structure the the attachment on the structure was very light weight &  during estimation the the manhrs estmated were 200/ton -- but till the completion of the project the manhrs  were reached upto..600 manhrs /ton..the maximum manhrs were waisted in welding & removing the distortion in the weldedsection..So one should very carefull & take advice from production department for all estimation when they are dealing with deferent type of enquiry.

thanks for reading

sidhesh

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by Pragya Kothari, Construction-Heavy, DLF  | 03 25 2009 12:36:37 +0000

Here are some of the common errors that can occur when it comes to construction cost estimating.

Problems with Your Adding and Subtracting

Probably one of the most common construction cost estimating errors that occurs is a problem with the arithmetic. You may add, subtract, or multiply wrong, coming up with the wrong numbers. This can be a real problem if you are trying to do all the math yourself. Use the modern equipment available and double check to make sure you get the math right for your estimates.

The Wrong Measurements

The wrong measurements can also be a problem that causes errors when you are making a construction cost estimate. Whether you get the wrong measurements from plans or you use the wrong unit of measurement, this can definitely cause a big difference in the estimates. Make sure you get the right measurements and get the right unit of measurement being used as well.

Problems with Labor Cost Estimates

Problems with labor cost estimates can cause errors when it comes to construction cost estimating as well. All you have to do is calculate in too much or too money for the labor costs. Make sure that you know the real cost of labor at the current time that you are coming up with the estimate. This way you don't make this common error yourself.

Never Visiting the Site

Never actually visiting the construction site can also be a huge error that can lead to problems with the construction cost estimating. Taking time to visit the site is going to be important when you are estimating the cost of the project. You'll have to determine whether current structures must be removed, whether you'll have to protect bordering properties, and more. If you don't visit the site yourself, you can't get the big picture in order to come up with an accurate measurement.

Using Software to Avoid Errors

One of the best ways that you can avoid errors in construction cost estimating is to make sure that you use good software. The right estimating software can change the way you do business. Not only will it make your job easier, but it will help you make sure that you come up with an accurate estimate every time.

 

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Wrong measurements

idea posted by Anjali Bhatia Construction-Heavy, Sobha Developers
From my experiences I have seen that errors in measurements and dimensions taken from plans, drawings, and specifications result in corresponding mistakes in the cost of construction items based on those measurements.
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by Ramachandra Rao.M, Construction-Residential, Vasathi Housing & Infra  | 02 05 2009 08:37:14 +0000

hai,

how can we calculate the material requirement for concreting and plastering?

are these methods vary w.r.t. their proportions?

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by Bellala Gopinatha Rao, Assistant General Manager, Promax Management Consultants  | 12 05 2008 14:00:06 +0000

In my view following points are very important while estimating:

1.Limitation in  Understanding /knowledge

2. Errors in calculations.

3. Errors in analysing.

 

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by Anjali Bhatia, Construction-Heavy, Sobha Developers  | 12 04 2008 08:02:01 +0000

Hussain in your case,

It depends on the mix ratio.If given the quantity for c.m 1:5
Area to be plastered=96.77sq.m(300 sq ft)
thickness of coat=12mm
volume of mortar required=96.77*.012=1.161m3
sand required for 1.161m3=1.161m3
cement required=(weight of cement in 1m3/mix ratio)*total volume
= (1440/5)*1.161 = 335kgs

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Taking Shortcuts

idea posted by Subhendu Roy Construction-Heavy, DLF
Anjali a very common error is taking short cuts, we generally take shortcuts when making an estimate which can be risky. Often there is a temptation to take shortcuts when under pressure because of time-limit in which to complete the cost estimate or because of a heavy backlog of work. Shortcuts take the form of guess estimating, using square feet or cubic foot costs in place of details, and using lump sum figures picked out of the air, all of which have inherent risks...
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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 10:51:16 +0000

It hase been a practice that it is always taken while preparing Estimates that YEH TO SUB CHALTA HAI word is offenly used ,thus leads to a poor estimation ,results in hold up of project iat later stages.

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by Anjali Bhatia, Construction-Heavy, Sobha Developers  | 11 15 2008 05:48:55 +0000

yes sir very true....we are in a hurry to complete the cost estimate work & do such mistakes.

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Common errors in estimation

idea posted by Er. Harnam Singh Project Manager, CPWD

Civil construction involves construction of basic structures and sservices equired for making these structures functional. What i feel that we can estimate accurately cost of structure based on drawing(Architectural) and may not do so acuurately in case of services. To estimate cost of these items we require field data. This field can be complied in site sirvey plan. If estimation for services is done by assuming a flat ground where on ground u may require earthcutting or filling which can be assesed only afyter a accurate site survey plan. We must also know availabilty of basic servies of water supply elctricty and approach.  Depending upon size of project design of services needs to done i.e fpr water supply, sewer services and roads. Similarly provision for landscaping and horticulture needs to done. 

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by N.Sreenivasa Rao, Construction Management, Central Public Works Department  | 04 05 2009 04:14:57 +0000

Sir,

  It is absolute and necessary to study the field data. Which is in generally being ignored particulary the soil report may effect the foundation cost. And also depends on the topography of the site the services cost will be effected.(I am N.S.Rao happy to see u on this website. I had worked under u at Dimapur,Nagaland from 1991 to 1995 under your division)

nsrao_cpwd@yahoo.com

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Methods Engineering and Manhours estimation

idea posted by M.L.Suryaprakash Regional Director, National Productivity Council

Cost focus is always on Materials cost. A major component of cost goes towards method of construction and manhours utilised. These need to be defined clearly in the beginning itself for a realistic estimation of cost. This is where 3D and 4D simulations can be used for an accurate estimation of cost. I am not sure whether this method is used in India but i understand it is quite common in US and Europe.

I also feel quantity surveying should be made a seperate specialisation in Academics and there should be a qualifying examination for producing certified quantity surveyors.

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Improper Scheduling

idea posted by arun vyas Structural Engineer-Building, Engineer

Improper Scheduling- of manpower, material and plant machinary

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:10:29 +0000

WITHOUT PROPER planing ,pogramming,improper ordering of material required. 

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:10:09 +0000

WITHOUT PROPER planing ,pogramming,improper ordering of material required. 

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ANALYSIS

idea posted by VIMALAN DIRECTOR, VIRGIN ENGINEERS

1.MISTAKES IN DATA AND RATE ANALYSIS

2.MISTAKES IN TAKING MEASUREMENTS ESPECIALLY IN EARTHWORK

EXCAVATION,BAR BENDING SCHEDULE,FILLING ETC.

3.NON FOLLOW UP OF IS CODES IN TAKING OFF MEASUREMENTS

4.CONVERSION OF UNITS WITH REFERENCE TO DRAWINGS

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:17:16 +0000

ANALSYS basically means the actual involvement of material, labour ,wastage,taxes ,profit,overhead expenses such as liaosoning expenses.

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Rigidity in estimating.

idea posted by Nittoor Jayaram Suresh Sr.Project Manager, DHV India Pvt. Ltd

Most of the estimates are in government sector,where they are prepared based on SR's, which do not comprehensively take into consideration rapidly changing market scenario. Probably the estmates should have better projecting techniques.

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by Dhanaraman , Project Manager, CRN  | 03 30 2009 10:17:28 +0000

Yes, Government spent more then 36,000 Crs extra in infrastructure projects because of rigidity in estimation (Delhi schedule rate) in this fiscal year. In private projects lock of project management knowledge is the problem.

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by Dhanaraman , Project Manager, CRN  | 03 30 2009 10:17:07 +0000

Yes, Government spent more then 36,000 Crs extra in infrastructure projects because of rigidity in estimation (Delhi schedule rate) in this fiscal year. In private projects lock of project management knowledge is the problem.

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Method of Measurement

idea posted by Poornananda Kumar Planning Engineer, L&T ECC Division

The method of measurement varies from one project to another. For instance, the method of measurement of concreting works in a project may include formork also, whereas another project envisage concrete and formwork as different items. So we need to clearly understand the method of measurement envisaged in the project to avoid errors in estimation.

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requirement of systemization

idea posted by Rajiv Ranjan Srivastava Head/VP/GM-Corporate Planning/Strategy, ITNL

Apart from the 5 ideas casuing error, establishment of a proper system, where manual error is reduced considerably, shall be a powerful tool in proper estimation. System shall include from the very first step of recognition of job and shall be upto the final result including measurement methodes, entry system, calculation process, theories involved in measurement and calculations and presentatio of result and role and responsibility of each individual of team. System shall not be man oriented rather node oriented where chances of humen dependancy reduces tremandously.

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Common errors in cost estimation

idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

Incorrect interpretation of contract conditions especially special conditions reagarding the mode of measurements and BOQ can leade to horrendous errors.

Incorrect interprepation of the drawings very often structural drawings results more incorrect measurements.

Most of the times while arriving at market analysis of an items like concrete and masonry items the upto date rates of material,Labour,seignorage & taxes to be considered.Which other wise may results wrong rates in pre bid analysis of rates.

Often omissions are possible in considering the variation in rates involving the difficuties in conveying the materials for the items operated at heights and remote areas. 

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Lack of proper prior planning of drawings and lack of escaltion of market price

idea posted by N.Sreenivasa Rao Construction Management, Central Public Works Department

The common errors which i found leads to errors in arriving the exact cost of the project is mainly

(1) Due to non availability of proper prior planning

(2) Disproportionate proposals of prject without seeing the available budget

(3) Due to non availability of Architectural/Structural Drawings.

(4) Lack of proficiency of in assessing the escalation of material cost

(5) Considering the project completion times which adds to additional cost of men and material.

(6) After comletion fo the estimate there should be cross checking by expertise consultants in the respective field.

N.S.Rao

Asst Engineer,CPWD

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Reduce time and cost in construction

idea posted by M.P.Sharma SBU/Profit Center Head, LARSEN & TOUBRO OMAN LLC

I observed common error in reading Drawing  at tenderstage and  during construction . It happens due to improper attention given by engineers .

This lead to rework which increases construction cost  and time priod for construction .

Selection of proper and able engineers , cross examination of their working  can help to minumise such errors which occour due to not reading of detail of drawing properly

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by Narayan Kulkarni, Civil Engineer-Highway Roadway, Reliance infrastructure  | 05 14 2009 11:46:25 +0000

optimum time is to be given for all the events and ativities to minimize errors in all the stages of constrution, crushing of time frame will cause fishy things ie errors then mistakes then blunders 

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Lack of Drawing study experince

idea posted by RAJIV KUMAR Project Engineer, PARSVNATH DEVELOPERS LTD.
If we read the drawing properly with practical experince the chance of error is nill.
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by Ganga Singh, Real Estate Attorney,Billing,estimating, tendering and liaisioning with Contrator/Architects/ Interior Designers.  | 11 05 2009 07:49:49 +0000

Dear Mr. Rajiv ji your answer seems to be the best among all, but difference between estimate and actual cost will never be nill. It may be negligible if a construction manager is also wise and expert in the field in addition to your views.

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Improper Building Materials

idea posted by Anjaneyula Reddy Construction-Heavy, DLF
A common error on building materials and supplies which you buy for site should be correctly described as to kind, quality, size, and dimensions. Also confirm that they are priced competitively or else it will add to further cost.
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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:02:48 +0000

Due to lack in understanding proper Cpecification ,wrong orders for puchase of material is floated 

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Accuracy in Financial aspect of calculation

idea posted by sreepada_vinaya Construction-Construction Management, EQUIS INDIA

Even after calculating all quantities accurately like materials, labour, transportation, escalation etc., The other costs like adminstration & other expenses are accounted under one head like overhead expenses & charged between 10-15%. I find this very inaccurate. The administrative expenses should be calculated based on the set up. Then the machinery costs should be taken into consideration like for ordering, runnning, idling, maintainance, shifting, depriciation, insurance, this should be calculated for atleast for the duration of the project. This will according to me will surely exceed the range of 10-15%.

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Failure of Project Head & Head Office

idea posted by Suraj Sinha Propritor, SRS Structure

If A Project delays due to Manpower .It is Failure of Project Manager.If It Delays Due to budget, rate & design then it is failure of Project Head or Head Office & shows insufficient knowledge & Experience .

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Lack of Practical knowledge

idea posted by Murlidhar Soni, IPMA-D Sr. Engineer - Projects
Site survey and detailed BoQ preparation is essential but experience in subject field much more important to judgment of correct rate.
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think about the indirect costs...

idea posted by Prakash Dinkar Barkale Jr. Site Engineer, Phinix Yash Associates

"indirect" costs can "directly" affects the estimation made...keep in mind the aspects of indirect costs...

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Common errors in construction cost estimation

idea posted by Uttal Kumar Ray CALCUTTA METROPOLITAN GROUP (HILAND)

In my view one of the most critical error happend during cost estimation is tax part.

i.e calcuilation of Work Contract Tax/ Service Tax  & Vat , most ofetnly we do not conseder this thing while estimate. More over Contingencies must be taken in to consedaration.

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:06:33 +0000

Actual expenses during estimation is not cosiderd such as all taxes,actual labour charges as per market rates physically available. 

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Data Collection

idea posted by Madhusudan R Project Manager, Larsen & Toubro

Unit rate costing, once you have acquired knowledge, working out all the resource involved undr each item, under 1st line principle & LMPO finaly applying total qty of the project with applied risk analysis

This normally I apply in projects, success rate good

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Data Collection

idea posted by Madhusudan R Project Manager, Larsen & Toubro

Unit rate costing, once you have acquired knowledge, working out all the resource involved undr each item, under 1st line principle & LMPO finaly applying total qty of the project with applied risk analysis

This normally I apply in projects, success rate good

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idea posted by ashok mahadev tundare estimation & billing eng, mirchandani group pune

we do not count  rate escallation properly or earth work & plinth work not linked with actual levels so the differ never come in front of us hence the cost error makes us fool

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Use of products in finishing of building which reduces construction time.

idea posted by Er. Harnam Singh Project Manager, CPWD

Well i would like to know ideas for using items in finishing of resdential units which cut down construction time if compared with other items.

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Bill of Quantities

idea posted by Prasanth Kumar Palepu Project Manager, CARE Hospitals

We should get Bill of Quantities with poper estimation, calculating the time of projects completion. Main reason for cost escalation is because of deviation and deviation is because in proper bill of quantities.

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Speed to complete the work: chance for more errors

idea posted by Snehal Vinodkumar Shah Project Manager, Cushman & wakefield India Pvt. Ltd.

When somebody want to complete the work in speed one may mistake in tyoing the word or figure this will cost us in time and money in long run.

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 11:11:35 +0000

IMPROPER PROGRAMMING

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errors occured in cost estimation....

idea posted by Nagender Singh Engineer-Q.S.

common errors in cost estimation are generally...

misunderstanding of drawings, detailing shown in drawings, lack of understanding, lack of experience in construction works, lack of knowledge about IS codes or mode of measurments for deduction or additions to be made in calculation, lack of information about unit prices of materials, labour and equipments, and may be also the lack of communication between clients, contractor or architects or consultants..

before preparing the final cost estimation, it is to be very important to prepare the parametric cost estimation of the same project to get the approximate information of cost of project.

parametric cost estimates are plays important role in to get the final cost estimation or budget.

 

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Lack of communication & co-ordination

idea posted by thiyagarajan Construction-Residential simplex

in all level. thats it

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Lack of communication & co-ordination

idea posted by thiyagarajan Construction-Residential simplex
in all level. thats it
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Bad work manship

idea posted by jagtap kiran dhondiram Corporate Planning/Strategy Manager, mai Indolink Consulting Pvt. Ltd

bad workman ship

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Not identifying the direct costs

idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd

In many cost analysis, estimators prefer to increase the indirect costs in order to save rogorious exercise & time. More the analysis better the identification of direct cost & mare accurate the costing.

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Avoiding direct cost anlysis

idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd

In many cost analysis, estimators avoid direct cost analysis per heads. This increases indirect cost & proper estimation could not be done. This may save rigourious exercise & time but accuracy of estimation cannot be relied. More anlysis of direct costs, better would be estimation & more accurate would be the costing.

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Comprehensive knowledge, farsightedness & ability to plan.

idea posted by Resmi Maxim GENERAL MANAGER - OPERATIONS, SI PROPERTY (KERALA) PVT.LTD.,

You are mentally IMAGING & BUILDING the building when you prepare your cost and estimate. It does not mean that visualization alone will minimize the errors. You may be good at visualizing the components, but if ignorant about the material, labour and the other factors, wrong estimate would be the result. There are chances of the estimate going wrong for many other reasons. A person who is good in planning and sequencing, combined with subject knowledge and practical exposure would perform best in estimate, I feel. Records on previous errors and corrective measures will help yield better results.

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Check for Units

idea posted by vijay kishore Project Architect, Concept Promotions Pvt, Ltd.,

Do not get confused with the Units you are working in. 

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Common errors in construction cost estimation

idea posted by Chandrakant Baburao Karlekar Civil Engineer-Other, Swati Build Tech Pvt. Ltd.Hyderabad

  1. Knowledge limitaition -
    • Reading of plans/ drawings
    • Errors in measeurements
  2. Pressure of time bound completion
  3. Fund Limitations
  4. Lack of cordination between planner and estimator

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Improper Bill of Quanties and Timelines

idea posted by Prasanth Kumar Palepu Project Manager, CARE Hospitals

Bill of Quantities should be prepared in such a way that they should not be deviated. Drawings should be freezed and should meet the timelines.

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Lack of Practical knowledge

idea posted by Naimish Construction-Heavy, Gourav Engineers

Hi Freinds,

Only theoritical knowledge is not sufficiant for cost estimation. Many estimaters do the estimates by theroticaly because they have never gone to site for execution. So they do not come to know exactly what are the actual consumption of material & how much labour used. I think that practical knowledge is must for cost estimation.

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Lack of well defined cost tracking items during execution

idea posted by Prashanta Bhaumik Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd
Very often tender/Bid items and items of execution of project are not in tandem from ocnstruction project goals. Items where tender price has been frozen does not have direct ir indirect cost linkages. as a result WHY and HOW part of cost analysis missing
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basically iknow only one error &this is realy diffilct 2 overcome this error this is sourcing of raw materials

idea posted by khalid khan Head/VP/GM-Marketing, hindustan associates

it is really difficult to believe that your sourcing is the minimal one

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Approximation of the measurements and rates

idea posted by Rishu Bansal Manager, IREO Management Pvt. Ltd.

Sometimes rounding off the measurements and rates make a big difference in total estimation.

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visualization

idea posted by SANJAY GUPTA Project Architect S. G. & Associates

The basic need for estimation is the proper visualization of the project. The main errors arises due to this, since the person making the estimation over looks many things and make estimation on major things

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by qimti lal vij, Electrical Engineer-Commercial, vij traders  | 02 08 2009 10:58:29 +0000

while preparing the estimates it is taken very lightly to go in to the roots of the project to find out the actual work is to been executed and the actual materiasl (such as an ordernary SPLIT PIN )is ommeted which delays the whole project if not VISUALIZED properly

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Compuuter Skill and Precision

idea posted by Miraj yagnik Project Manager Tendering Department, Simplex Infrastructures Limited

Above all points, in final stage of estimation we use computer for estimation and tendering. Data linking and formula needs Advanced Level Computer skill and perfection.

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Modicum of descipline

idea posted by Mohammad Bakhsh Consultant(Civil), Rail Vikas Nigam Limited

Estimates must be prepared after extensive market survey and collecting quotes.The trend in the prices must be absorbed in the estimates.

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allotment of optimum time

idea posted by Narayan Kulkarni Civil Engineer-Highway Roadway, Reliance infrastructure

Time factor is imp for reducing errors,

otherwise

consequense are not errors but errors>mistakes>blunders

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Before estimation site investigation is essential and every detail should be taken care off to prepare the BOQ wherever the site

idea posted by Sabyasachi Dasgupta Project Manager, Ajayraj constructions Pvt Ltd
location is.
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calculation for Overheads

idea posted by Pradeep Kumar Construction-Construction Management, VSK Associates

Calculation of Quantity is easy and controlable.But you can not calculate for overheads because it differ organisation to organisation and place to place

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ERRORS IN COSTING / ESTIMATION

idea posted by SRINIVAS CHADA Consultant, STRATEGIC PLANNING & COST ENGINEERS , MUMBAI

ERRORS IN COSTING / ESTIMATION

  • Lack of Practical Knowledge of Activities
  • Lack of Costing based on a Method Statement
  • Error in reading drawings
  • Too many assumptions due to pressure of work

 

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by venkatamangalampandurangam , Head/VP/GM-Corporate Planning/Strategy, ETL Infrastructure Services Ltd  | 02 09 2009 07:10:04 +0000

I agree with hin

During the palnning the person who is the final decision making talks of many many  innovative things and when it comes to budgeting and cost he wants either please the bosses or reduce the cost leading to confusion and cheos in the original estimate and budgeting.

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Refresh mind in between the work

idea posted by Reni sebastian Assistant Engineer, State government of Keralam

we have to think about the functioning of our brain. The neurones controls the functions while we estimating something with logics and numbers. After continuous work neurones get tired and the efficiency they possessed lost and there may be errors occurred.So while estimating some big constructions that require more wearisome  work , we may have to take rest for 1 or 2 minutes by stopping the work and engage  some other things and after such time come back to the work again then the brain refreshed with some new energy and u can involve in the work with more correctness and exuberance.

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systemization of process

idea posted by Rajiv Ranjan Srivastava Head/VP/GM-Corporate Planning/Strategy, ITNL

A system need be created, which should be node (job) oriented in place of personale oriented which shall effectively reduce chances of all sorts of humen error.

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support

idea posted by kanti prashad verma Freelancer, Freelancer

The common causes for the wrong estimation are mainly Lack of visualization with respect to the drawings designs or late submission of some particular drawings

secondly due to change in the specifications during the course of construction

And also due to the wrong measurements

enhancement in the market and labor rates

due to unexpected site conditions causing delays increase the cost

all these factor guide the construction cost while the estimation done on the preliminary stage proves to be wrong if the cost of construction varies with respect to the estimated cost due to these reasons

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hands on knowledge of the project

idea posted by aniruddha Construction-Specialty, contech

Estimation has to be primarily carried by person who has been involved with the project at a grassroot level. Construction projects come up with lot of un knowns.  Field engineers and project managers who have got their hands dirty know what is involved to get the work done. Trying to estimate without such expertise will lead to unforgivable blunders .

 

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lack of practical knowledge

idea posted by rakesh r raje Project Architect, SAPL
common erors in construction and cost are because of practical knowledge because u cannot define the events properly
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idea posted by RAJIV KUMAR Project Engineer, PARSVNATH DEVELOPERS LTD.

If the viulisation of Drawings are not done properly there is alwayse error in estmation

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THEORITICAL ERROR

idea posted by mohd abdul hameed zakir Construction-Residential, self employed

Calculating  and preparing estimates with  theoritical knowledge according to the drawing is not sufficient for cost estimation. Many people prepare the estimate according to the drawing in the office with out considering the actual practical problems that may occur at site. 

The major consideration is that they don't consider the wastage.

In calculating of earth work many estimators don't consider the compresion of earth which is also a major varition in the cost estimate.

They dont concider variation of the cost of material according to the market rate.

 Improper calculation of material & labour (They prepare estimate  according to the drawing).

They don't consider the extra work dun at site.

The changes in drawing make lot of wasteges on the site which is not consider.

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Lack of Visualization, Communication and Analysis

idea posted by Santosh Kumar Product Technical Lead
Improper communication to all impacted team/individual and lack of complete analysis leads to wrong cost estimation. One requires complete visualization of the project. Identifying all the impacted area/persons help to accumulate the complete cost.
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Lack of Drawing study experince

idea posted by RAJIV KUMAR Project Engineer, PARSVNATH DEVELOPERS LTD.

If we read the drawing properly with practical experince the chance of error is nil

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Sales cost along with project cost

idea posted by Rajkumar Garg Manager Finance - Regional Accounts Incharge

Sales cost (Time) along with project construction cost is impacting the completion of project.

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common mistake in estimation

idea posted by chouhands Construction-Construction Management, govt

common mistak in estimate is manual calculation ,proper site selection and condition of site visit by engineer not prepared technical report and estimation as per drg.prepared .constr. start problem faced by site team ,engineers.Rate analysis done as per site cond.than prepare est.

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