16203 Cost Management 2: Estimating

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2025 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 16105 Cost Management 1: Measurement

Description

This subject examines estimating practices and techniques typically used by contractors. Construction pricing underpins the subject and includes breaking construction costs and quantities into labour, material, plant, sub-contract and indirect cost components. The differences in quantity-related, time-related and fixed costs are explored. A series of tutorials and exercises in quantifying and pricing construction work items and activities are carried out by students. The subject then looks at more strategic estimating areas such as tender preparation, the use of builder's bills of quantities, obtaining and checking sub-contractor quotations, pricing preliminaries and determining margins for profit and overheads. Estimating software applications are utilised throughout the subject and students are exposed to leading edge practices that involve integrating construction cost estimating into building information modelling (BIM) systems.

Subject learning objectives (SLOs)

On successful completion of this subject, students should be able to:

1.	Demonstrate a knowledge of the PMBOK Competency Unit for Project Cost Management
2.	Understand the process of estimating and the techniques used by construction contractors in preparing a tender
3.	Determine costs of construction for bill of quantities items by calculating unit rates based on labour, materials, plant and sub-contract components
4.	Understand the use of published and historical cost data
5.	Obtain and analyse the accuracy of sub-contract quotes and estimate the cost of facilities and supervision supplied by the head contractor
6.	Understand the methods for calculation of profit and overheads
7.	Assemble an estimate for tendering
8.	Prepare unit rates using current estimating software available in Australia

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

Identify ethical issues and apply informed ethical judgements in professional Contexts. (A.1)
Work effectively in project teams in professional contexts. (C.2)
Operate effectively within the social, legal and technical framework of the design and construction process. (P.1)
Apply the body of knowledge underpinning construction project management practice. (P.2)
Develop strategic advice for clients on the costs and benefits of various courses of action involving construction projects and financing options. (P.5)
Demonstrate an understanding of construction technology and structural principles. (P.10)
Source evaluate and use information to approach new projects/problems. (R.1)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Teaching and learning strategies

The subject is delivered in blended learning approach with pre-recorded lectures (with online materials), and on-campus tutorials. The learning activities in this subject also involve a variety of assignments, quizzes and in-class tutorial tasks. A tutorial approach is used to give immediate feedback to students and to provide professional comment and advices.

Students are further supported through the use of UTS Canvas offering subject material and information moderation with the subject coordinator/lecturer. Pre-reading queries will be discussed and addressed before being applied in class exercises.

The option to attend classes online will no longer be continued for this subject. Regular class attendance (i.e. tutorial classes in this subject) is a requirement of the University. It is your responsibility as a student to attend lectures and tutorials, and to carry out all in-class assessment tasks.

Content (topics)

The content of this subject covers the following topics:

PMBOK Competency Units/Knowledge Areas in Project Cost Management
The development of techniques and skills for the pricing of construction works
Calculation of labour, material, plant, sub-contract and indirect costs
Determination of labour productivity rates
Preparation of trade estimates using built-up rates. Procedures for general building work, likely inclusions and omissions, allowances for waste, cutting and laps. Labour and plant production constants
Analysis of sub-contractors’ quotations, inclusion or exclusion of plants, tools, equipment, sheds, scaffolding, possible duplications and conditions of quotation
Identification and pricing of project preliminaries
Determination of profit and overhead, and rate distribution
Tender preparation and submission
Use of estimating software, e.g. iTwoCostX and/or Cubit

Assessment

Assessment task 1: Assignment (Group)

Intent:

Students are required to price bill of quantity trades from first principles using estimating software suggested by lecturer. Students will collect the required information to prepare unit rates and critically review unit rates from a priced bill of quantities.

Objective(s):

This task addresses the following subject learning objectives:

1, 2, 3, 4, 5, 6 and 8

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

C.2, P.10, P.2 and P.5

Type:

Exercises

Groupwork:

Group, group assessed

Weight:

30%

Criteria:

Assessment criteria will be provided in additional assessment information.

Criteria linkages:

Criteria	Weight (%)	SLOs	CILOs
Overall presentation and referencing	10	1	C.2
Accuracy of unit rates	20	5	P.2
Demonstrate the skills of preparing unit rates	20	3	P.5
Critically review unit rates from a priced BoQ	20	4	P.10
Demonstrate an understanding of first principles	20	2	P.2
Applying estimating knowledge into calculating final tender sum	10	6, 8	P.2

SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Quizzes (Individual)

Intent:

Six (6) online quizzes. Top five (5) quizzes marks go towards final assessment marks

Refer to the assignment brief/subject announcement for further details.

Objective(s):

This task addresses the following subject learning objectives:

2, 3, 4, 5 and 7

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.10, P.2 and R.1

Type:

Quiz/test

Groupwork:

Individual

Weight:

30%

Length:

Each quiz contains a number of random multiple choice questions/short theory/calculation questions. Once started, students have 20 minutes to complete the quiz. You cannot re-do the quiz once completed.

Criteria:

Assessment criteria will be provided in additional assessment information.

Criteria linkages:

Criteria	Weight (%)	SLOs	CILOs
Understanding of estimating theories and practices	25	2	P.10
Applying estimating knowledge into practices	25	3	P.10
Demonstrate the skills of preparing unit rates	25	7	P.2
Use of appropriate cost data and information	25	4, 5	R.1

SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 3: Class Works (Tutorial Exercises)

Intent:

Five (5) In-class Tutorial Exercises. Top four (4) tutorial exercise marks go towards final assessment marks

Objective(s):

This task addresses the following subject learning objectives:

1, 2, 3, 4, 6 and 7

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

A.1, P.1, P.2, P.5 and R.1

Type:

Exercises

Groupwork:

Individual

Weight:

40%

Criteria:

Assessment criteria will be provided in additional assessment information.

Criteria linkages:

Criteria	Weight (%)	SLOs	CILOs
Understanding of estimating theories and practices	20	2	A.1
Applying estimating knowledge into practices	15	3	P.1
Demonstrate the skills of preparing unit rates	15	7	P.2
Use of appropriate cost data and information	15	4	P.5
Demonstrate an understanding of first principles	15	1	R.1
Applying estimating knowledge into calculating final tender sum	20	6, 7	P.2

SLOs: subject learning objectives
CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions for each class they are enrolled in to remain eligible for assessment.

Required texts

1. Australia Institute of Quantity Surveyors, (1991) Australian Standard Method of Measurement, 5th Edition, Canberra.

2. Marsden, P. (1998) Basic Building Measurement, 2nd Edition, NSW University Press, Sydney.

3. Flanagan, & Jewell, C. (2018). New code of estimating practice. Wiley.

4. PMI (2013), A Guide to the Project Management Body of Knowledge (PMBOK®Guide), 5th Ed, Project Management Institute, Newtown Square, PA.

5. Rawlinsons (2024) Australian Construction Handbook, Edition 42, Rawlinsons Publishing, Perth, Western Australia (students can use a either the 2022 or 2023 editions of the handbook)

Other resources

1. AIB (1995) Guide to Estimating Practice for Building Work, 6th Edition, Australian Insitute of Building, NSW.

2. Ashworth, A. and Hogg, K. Willis (2002), Practice & Procedure for the Quantity Surveyor. 11th edition, Blackwell Science, London.

3. Ashworth, A. (2002), Pre-contract studies: Development economics, tendering and estimating, Blackwell Science, Oxford.

4. Hardin, B. (2009), BIM and construction management: proven tools, methods, and workflows, Indianapolis, Ind., Wiley Pub.

5. Popescu, C. (2003), Estimating building costs, Marcel Dekker, NY.

6. Pratt, D.J. (2006), Estimating for residential construction, Thomson Delmar Learning, Clifton Park, NY.