New Code of Estimating Practice

The Chartered Institute of Building is at the heart of a management career in construction. It is the world's largest and most influential professional body for construction management and leadership, with a Royal Charter to promote the science and practice of building and construction for the benefit of society. With over 48,000 members worldwide, the CIOB is the international voice of the building professional.

• Foreword xiGlossary xiiiCode of estimating and tendering practice – principles and procedures xxvSection One Principles – the theory and background 11 Introduction 31.1 An imprecise science 31.2 Data, information, and knowledge in estimating 41.3 Experience, instinct, gut feel, intuition and bias 51.4 Optimism bias 62 The Fundamentals 72.1 Tender and bid 72.2 Pricing 72.3 Profitability 82.4 Types of tender 92.5 Tender award 102.6 The difference between procurement and tendering 102.7 Methods of procurement 113 Changes driving estimating practice 133.1 Digitisation 133.2 E-Tendering 143.3 Legislation and taxation 143.4 Bureaucracy 143.5 Competition and winning work 143.6 Specialisation 153.7 New technologies and off-site production 153.8 New methods of procurement 153.9 Best value 154 The bid process 174.1 Work breakdown structure 174.2 Underlying principles 185 Health and safety 255.1 Introduction 255.2 Estimating the cost of health and safety 256 The pre-qualification process 316.1 Introduction 316.2 Bidding for public sector projects 327 Procurement, selection, contractual arrangements and legal issues 377.1 Methods of procurement 377.2 Two-stage tendering 437.3 Framework agreements 447.4 Concession contracts 447.5 Engineer Procure Construct (EPC) 467.6 Prime contracting 467.7 Early contractor involvement (ECI) 477.8 Integrated Project Delivery (IPD) 477.9 Selection processes 477.10 Integrated design and construction 497.11 E-procurement 497.12 E-auctions 507.13 Abnormally low tenders 508 Preliminaries 518.1 Site establishment 518.2 Insurances, bonds and so on 588.3 Site records 618.4 Fees and charges 628.5 Compliance 638.6 Environmental management 658.7 Wastewater treatment system 688.8 Waste management 698.9 Waste disposal, sorting and storage 718.10 Setting out 748.11 Control and protection 758.12 Completion and post-completion requirements 768.13 Contingencies 778.14 Management and staff 789 Temporary Works 819.1 Introduction 819.2 Temporary works management 839.3 Temporary works co-ordinator (TWC) 839.4 Temporary works supervisor 849.5 Temporary works register 849.6 Temporary works design brief 849.7 Scaffolding 899.8 Falsework 929.9 Formwork 939.10 Earthworks 949.11 Temporary services 979.12 Façade retention 989.13 Structures – design and loading 999.14 Plant foundations 1009.15 Protection on-site 1009.16 Traffic management 1019.17 Temporary access for vehicles and pedestrians 1019.18 Barriers for pedestrians and vehicles 1019.19 Haul roads 1029.20 Works associated with any ordnance uncovered 1029.21 Signage 1029.22 Protection of adjacent properties 10210 Cost-estimating techniques 10310.1 Approximate quantities 10810.2 Cost planning 11011 Private finance initiative/public–private partnerships/build, operate and transfer, and whole-life costing 11312 Risk management 11512.1 Background 11512.2 Risk analysis 11812.3 Cost estimating accuracy 11813 Logistics 12113.1 Materials logistics plan 12213.2 Materials management 12413.3 Personnel management and health and safety 12413.4 Plant, tools and equipment – maintenance and management 12413.5 Transportation 12413.6 Traffic management 12714 Resource and production planning 12914.1 Planning techniques 13014.2 Resource planning 13014.3 Time – its perception and impact on the estimating process 13315 Computer-aided cost estimating 13516 BIM and the estimating process 13716.1 Overview 13716.2 The challenges of using BIM in the estimating process 138Section Two Processes – the practice 1391 Consider and assess 1411.1 Receive preliminary enquiry 1421.2 Consider order backlog/new orders 1431.3 Decision to tender (bid or no bid) 1431.4 Project information, schedule and questionnaire 1481.5 Consider client and consultant team and project delivery availability 1491.6 Assessment criteria – lowest price/quality and so on 1501.7 The likely competition 1512 Information and time planning 1532.1 Works specialty/works contractor enquiries 1542.2 The bid team 1572.3 Produce bid timetable/strategy 1582.4 Examine documents – contract, design, bonds, warranties and insurance 1602.5 Site visit – utilities, ground conditions, adjacent properties and so on 1622.6 Method statement/logistics plan 1643 Contract terms and conditions 1713.1 Special employer requirements and modifications to standard clauses 1734 Resource planning and pricing 1754.1 Pricing the works 1764.2 Establish unit rates – labour and plant 1784.3 Establish unit rates – labour, materials and plant 1804.4 Labour cost issues – a summary 1854.5 Build-up unit rates 1864.6 Gang sizes for activities 1894.7 Allocation of costs 1924.8 All-in rates for plant and equipment 1944.9 Select materials and specialty contractors’ quotations 1974.10 Specialty contractor quotations 1994.11 Provisional sums – defined and undefined 2004.12 Incorporating provisional sums in an estimate 2004.13 Daywork 2044.14 Pricing the preliminaries 2054.15 Add allowances 2065 Prepare estimator’s report 2116 Examine and consider 2156.1 Examine preliminaries 2166.2 Requests for further information 2166.3 Examine method and tender programme 2166.4 Examine resource costs 2176.5 Consider the competition for the project in the market 2176.6 Consider cash flow and capital requirements for the project 2177 Bid assembly and adjudication 2197.1 Finalise the pricing 2207.2 Bid adjudication/final review 2217.3 Qualification of any special items of tender 2228 Pre-production planning and processes 2258.1 Develop a detailed method statement 2268.2 Develop production planning schedule 2268.3 Allocate resources 2278.4 Obtain licences and so on from local authority and utilities organisation 2278.5 Ordering of long lead-time materials, plant and equipment 2288.6 Request for further information from consultants and specialty contractors 2298.7 Pre-production schedule prior to work commencement 2298.8 Check conditions of contract award 2299 Site production 2319.1 Pricing change and variation orders 2329.2 Appointment of specialist contractors 2329.3 Estimating and pricing contractual claims 2329.4 Production of final account 2339.5 Cost–value reconciliation 234Bibliography and References 235Index 241