Estimating Construction Resource Requirements and Costs

Posted on Feb 24, 2025 in Economy

Physical Resource Requirements

Question 1: Identifying Resources for a Timber Roof Frame

List and describe the physical resources (direct labor, subcontractors, and plant) you would select for constructing a timber-framed, two-story house roof frame.

Physical resources include:

  • Material: From the Bill of Quantities
  • Waste: Based on published rates of experience
  • Direct Labor: From published output rates (labor hours per unit), net unit rates, and Safe Work Method Statements
  • On-costs: The costs of employment, from your calculations

Question 2: Resources for a Concrete Slab Pour

Identify physical resources required for completing a concrete pour for a 500m2 slab on ground:

  1. Conventional slabs with deep excavated beams
  2. Waffle pod slabs
  3. Expanded polystyrene foam pods
  4. Suspended slab

Material Lists and Quantity Calculation

Question 3: Calculating Brick Quantities

Describe how to calculate the quantity of bricks to order for a single-story brick veneer (BV) home with face bricks only.

Identify the type of bricks, calculate the area of the wall, and then multiply the area by the quantity of bricks needed per unit area, considering wastage.

Quantities and Construction Contracts

Question 4: Materials for Walls (Excluding Bricks and Mortar)

Identify materials other than bricks and mortar required to complete walls in the building described in Question 3, and establish quantities for each item, assuming the wall is 5.00m long and 3.50m high.

ItemQuantity
Facebrickwork
Mortar Composition
Slab on ground
Lintels
Studs

Obtaining Supplier Prices

Question 5: Determining Bricklaying Material Costs

Describe how to determine the cost of materials for bricklaying.

Use the same method as quantity calculation, but apply labor constants to calculate the time for a bricklayer and mixer hire (1 day = 8 hours of work).

Plant and Equipment Requirements

Question 6: Selecting Plant for Activities

Describe a method to determine which plant to use in a particular activity.

Use WHS Legislation and the WHS Act to determine which plant suits a particular activity (e.g., bulldozers for stripping sites, scrapers for cutting, collecting, and moving large quantities of spoil across sites, etc.).

Question 7: Establishing Total Plant Costs

Describe a method to establish the total cost of construction plant required for a particular task.

It typically requires a large initial outlay or financing. Carefully consider the required outlay given your business’s current cash flow and financial situation. Other costs include loan fees and interest payments, as well as costs associated with transporting your equipment for use on a remote site.

Applying Labor Rates and Material Costs

Question 8: Calculating Labor Output Rate for Concrete Slab

Describe how to calculate an approximate labor output rate for contractors placing concrete for a slab on ground per cubic meter.

Calculate the total volume of the slab on ground, then multiply that number by the cost per cubic meter, and then multiply by the cost of labor per day (1 day = 8 hours).

Question 9: Material Waste Factor for Timber Studs

Describe how to calculate an appropriate material waste factor for timber studs in a timber wall frame where the studs are 2.6m high.

Environmental Protection Agency (EPA) Compliance

Question 11: Factors in Assessing EPA Compliance Costs

Identify the factors to be considered in assessing costs necessary to comply with Environmental Protection Agency requirements.

These factors are:

  • Substantial upgrading of kerbside recycling systems
  • Household chemicals collections programs
  • Development and promotion of markets for recycled materials
  • Major studies into waste minimization, handling and disposal, organics recycling, and litter control
  • Community support projects

Cost Recovery: Overhead and Margin

Question 12: Applying Overhead and Margin Percentages

Describe how to apply, for cost recovery, a given company overhead percentage and margin percentage to a completed estimate.

Must obtain approval from the Australian Government to cost recover a specific activity. They should seek approval:

  • To undertake a specific activity
  • To make significant changes to an existing model
  • To bring forward new legislation or amend existing legislation to provide authority to charge or change charges

Prime Components of Estimated Project Costs

Question 13: Identifying Prime Components

Identify the prime components of estimated project costs.

  1. Cost Estimation
  2. Fixed Estimation