Building & Construction: Cost Estimation, Plan Interpretation Q&A

This assignment comprises a series of questions and answers related to key aspects of building and construction, likely as part of a Certificate IV course. It covers topics such as ensuring contract understanding for owners with language barriers, different types of cost estimates (detailed quotation and tender proposal), factors not accurately accounted for in budget estimates (earthworks), disclosures when giving budget estimates, essential items for detailed quotations (plans and client specifications), features of tender documentation, the meaning of 'addenda,' elements for accurate cost estimation (labor rates, material suppliers, legal requirements, quantities), the importance of validation dates on estimates, problems with over-ordering materials, handling inferior material specifications, advantages of using subcontractors, overheads to account for, the impact of EPA requirements, considerations for employee labor costs, methods for calculating overheads, critical aspects for securing profit margins in fixed-price contracts, communication processes with clients, methods of calculating estimates, the importance of clear quotations, necessary facilities on construction sites, information needed from material suppliers, materials requiring quotations, the importance of accurate plan interpretation, and additional costs determined by statutory requirements. The document appears to be a student's submission for assessment, providing detailed answers to each question, indicating a comprehensive understanding of the subject matter.

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Cert IV Building and Construction
First Name Last Name
Institution

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Questions/ Answers:
Questions 1: Name one step you could take to ensure the owner is able to understand the
contract documentation if they have language and cultural background differences?
Answer:
To ensure that the owner understand the contract documentation when there exists language and
cultural differences I would consider having the contract documents translated into the language
the owner understands well and have a local skilled interpreter assist in understanding any
technical areas if there be.
Question 2: Name and describe 2 types of estimates that you may be required to undertake
on residential construction.
Answer:
Two types of estimates include:
i. Detailed quotation.
This kind of estimate needs availability of; engineer’s drawing and report, all plans to be used,
specification schedule from the client, and any important site information. Using ‘stick by stick
method’, a detailed estimate is determined. This includes the division of project into smaller
parts by the builder based on tasks involved hence a more itemized, accurate and detailed
estimate is realized at great advantage. The only concern with this method is that it consumes a
lot of time hence missing tender deadlines to other contesting builders.
ii. Tender proposal
A tender proposal is where the proprietor or by and large an architect will convey detailed
documents to different developers for costing. At the point when an architect is included, the
architect will be the purpose of contact for you, not the customer. They are following up for the
customer's sake for the task. The records or (Tender Documentation) that would be conveyed
may incorporate the accompanying;

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• Architectural Plans
• Engineer Drawings and report
• Specifications
• Quantity overview or QS
• Tender proposition frame (Quote page to submit)
The tender documentation will determine the accompanying;
• The customer/s name
• Site points of interest
• Architect's points of interest
• Submission points of interest (Time and date for submission)
• Any extra data required
In the event that a Quantity Surveyor or QS has been utilized they will furnish the designer with
a point by point take off, of the considerable number of materials and amounts which will then
be added to the tender documentation, the reason is so all developers are offering on a similar
thing.
Question 3: Which of the following is not able to be accurately accounted for in a budget
estimate.
a) Earth works
b) Frames and Trusses
c) Floor system
d) Development Application Fees
e) Fix-out material
f) Eaves lining
Answer:
a) Earthworks
Question 4: What should you disclose when giving a budget estimate?

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Answer:
That without accurate drawings and specifications, a firm quotation cannot be given.
Question 5: Name 2 items required to produce a detailed quotation and describe the use for
each item when quoting.
Answer:
i. A full set of plans: this allows the builder to understand all the necessary parts/
components hence allows the builder to carefully identify all needed materials,
quantity, time, and how to apply/ use them as well as their installation.
ii. Client specification schedule: enables the builder to understand the choice of
materials by the client and hence accurately come up with a relevant budget for
material acquisition.
Question 6: Which of the following is not a feature of the Tender Documentation?
a) Submission details
b) Site details
c) Neighboring property details
d) Architect’s details
Answer:
c) Neighboring property details.
Question 7: What is a change or clarification on a portion of the tender called?
Answer:
A change or clarification on a portion of the tender is called ‘Addenda’.
Question 8: Name 4 elements you must know to prepare accurate estimated costs?
Answer:
1. Employee labor rates and time estimates
2. Materials Suppliers

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3. Legislation requirements/fees
4. Quantities
Question 9: Why is it necessary to have a validation date on your estimate or quotation?
Answer:
There must be a validation date on your quotation so you have the opportunity to re-quote the
project if or when costs fluctuate.
Question 10: What can the problems be with over ordering materials?
Answer:
You may not be able to return these goods and you have excess stock which will also cost you
money. Excess stock tends to get damaged or may be subject to deterioration.
Question 11: a) What should you do if an inferior material or product is specified to be
estimated on?
b) Where would you find the correct information on the suitable residential materials or
product?
Answer:
a) If this occurs you should immediately notify the client and architect of this finding. If you
fail to rectify this and use inferior materials required for the purpose, you may be liable to
repair it at a later date.
b) In ledger on the architectural plans.
Question 12. Sub-contractors are useful for construction. Name one advantage of using a
subcontractor for your project estimate.
Answer:
Sub-contractors are very useful in helping you achieve a common goal for the project.
Question 13: Name 7 overheads that you need to account for in your business when
estimating project costs.

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Answer:
1. Administration costs, staff wages.
2. Marketing costs
3. Loan repayments or rent
4. Interest on credit cards
5. License fees (Building Authority)
6. Accounting fees
7. Business insurances
Question 14: What impact would an EPA requirement have on the costings of your
project?
Answer:
E.P.A (Environmental Protection Agency) requirements may have an impact on what site
clearing is possible, what additional requirements may be needed or bushfire attack level (B.A.L)
is needed, waste management requirements, sediment control, Work Cover costs and seeking
Approvals.
Question 15. What are the 2 things you need to consider when allowing for employees
labour costs in your project?
Answer:
a. How much per hour the employee costs the business (allow superannuation, work
cover, income tax, holidays and sick days)
b. The length of time specific tasks of the project will take to be completed in hours.
Question 16: How would you calculate an allowance for overheads to be recovered in your
project estimate?
Answer:
i. Itemizing and recording on paper. (Stick by stick method)
ii. Creating a spreadsheet with calculations to document costs.
iii. Using an estimating software package to help with your costings.

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Question 17: What are two critical aspects you must consider for securing your desired
profit margin when engaged in a fixed price contract?
Answer:
i. Ensure your estimated costs for the project are correct.
ii. You have sound contracts in place with all contractors.
Question 18: What communication processes, and follow, up can you implement when
booking a meeting on-site with a client.
Answer:
1. Send a confirmation email confirming the appointment date and time.
2. Communicate to your client if there is any change to this, notify them
immediately.
3. Call your clients if you are running late for the meeting. Everyone runs late from
time to time and your clients will appreciate your communication.
4. Offer a contact with previous clients for referee, or send images of your recent
works.
Question 19: Name 2 methods of calculating your estimate.
Answers:
 Creating a spreadsheet with calculations to document costs.
 Using an estimating software package to help with your costings.
Question 20: Why should you make your estimate or quotation as easy as possible for the
client to understand?
Answer:
A clear description is needed on quotations to allow the client to completely understand exactly
what you have allowed for.
Question 21: Identify 5 facilities necessary for a building construction site.
Answer:

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a) toilets,
b) lunch room’s first aid rooms,
c) heating and
d) cooling rooms and
e) offices
Question 22: What type of information is needed to gather from material suppliers when
preparing a quote, ordering or planning?
Answer:
Material costings
Question 23: List 12 materials that quotations may be required for.
Answer:
1. Concrete,
2. Steel,
3. Masonry,
4. Timber –frames
5. Trusses,
6. Timber floor,
7. Cladding, Hardware, Gyprock, Tiles,
8. Windows,
9. Doors,
10. Colourbond,
11. Fittings, and
12. Fixtures.
Question 24: Why is it important to interpret plans correctly when estimating?
Answer:
Helps in;- ensuring you have allowed for the sufficient amount of materials will mean you do not
lose money on purchasing extra materials and wasting time on the job ordering additional items.

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Question 25: Before a project quote is produced, it is important to identify additional costs
such as statutory requirements. List 3 costs that may be determined by statutory
requirement.
Answer:
i. Workers compensation costs
ii. Superannuation costs
iii. Severance costs