Evaluate mechanical plans and specs, perform takeoffs, estimate materials and labor costs, apply direct and indirect cost components. Contains RSMeans costs, plus accepted standards and procedures for estimating HVAC systems, ductwork, heating and ventilating systems, plumbing, fire protection and tools and equipment. This manual makes it easy to prepare accurate estimates quickly and accurately.
Materials
Efficient cost estimating is a key part of any mechanical project. It is important to evaluate every aspect of the specifications and plans in order to arrive at correct estimates. This includes evaluating labor, equipment, and materials. It also includes determining a reasonable overhead rate.
Commercial mechanical projects are complex and require careful evaluation. Failure to consider these complexities could lead to extra expenditures, delay, or project failure. Using a Factor Estimating Method at the beginning of the project can decrease these problems and save money.
To find accurate costs for a mechanical project, the task must be decomposed into the smallest work increments possible. A unit price is established for each increment of work, and all of these prices are added together to compute the total construction cost. This method is useful for design estimates and bid estimates. It also allows you to compare estimates to actual construction costs.
Labor
The cost of labor is an important factor for commercial mechanical projects. It can be affected by skill level, experience, availability and regional wages. Also, specialized tasks may require more workers and increase overall labor costs. Technology can help reduce labor needs, reducing expenses and saving time.
Assemblies and systems estimates are intermediate-level estimates performed when design drawings are between 10% and 75% complete. They price work items into a single unit by applying values available in assemblies cost data guides. This helps to ensure accuracy of estimates.
It’s essential to track all costs associated with commercial mechanical projects. This helps minimize change orders during construction and prevents unplanned expenditures. To do so, you need reliable software tools like building information modeling and cost estimation. Seek advice from industry pros and suppliers that specialize in mechanical equipment and materials. This will ensure you get accurate quotes and avoid costly mistakes.
Equipment
Sheet metal, piping and plumbing are the core of any mechanical project. This easy–to–use cost guide, powered by RSMeans data, offers timeproven methods and comprehensive labor and price data for all of these items. Also included are detailed estimating guidelines, ready–to–use forms and completed examples. Featuring new sections on solar heating, energy management, computer estimating and fire control and sprinkler systems.
The book includes material costs based on prices in your area at the time of publication. These figures can change wildly between updates, especially with wood items like plywood and OSB, so it’s important to compare the numbers with your local prices. You can modify these numbers by using a labor rate multiplier and a profit percentage that you know from your own experience or from the results of a previous job. Some books leave out overhead and profit entirely, while others include it in the overall price estimate as a markup on direct costs.
Subcontracts
When estimating a mechanical project, you can get expert help from a professional estimating company. These companies provide contractors with precise and accurate cost estimations. They also help them streamline construction activities and mitigate errors. They also help them find high-quality and reasonable construction materials.
They use a variety of techniques to calculate their costs, including evaluating plans and performing takeoffs. They then generate a BOQ (bill of quantities) that reflects the scope of work and pricing for each item. They also use different colors to highlight non-allowances and approved services.
A subcontractor’s quotation is then added to the BOQ as a lump sum. This can include supervision and profit, or it can be a flat fee for each hour of labor. In either case, the resulting estimate is a composite of the individual contractor quotations. This decomposition of the project is useful for both design and bid estimates.
Cost Variances
Cost variance is a vital metric that allows project managers to assess the financial performance of construction projects. Effective management of costs can help companies maintain profitability and enhance client satisfaction. It is also necessary for companies to identify potential problems early and make informed decisions.
Variance analysis is a process that determines gaps between what you expect to pay in key budget areas (such as materials and labor) and what you actually pay. It includes comparing the standard cost to the actual cost at month-end and using a formula to calculate variances.
There are several types of cost variances, including price, quantity, and efficiency variances. Direct material cost variances are based on the difference between the actual price paid for materials and the standard cost of the materials used to create a product. This type of variance is combined with the direct product cost variance and the indirect material variance to calculate total direct product cost variance.
Variance Analysis
Cost variance analysis is an essential tool for quantifying damage claims. It enables contractors to compare actual project costs against budgeted amounts and to identify problem areas of the construction process. The credibility of a cost and damage analysis method is greatly enhanced when proper and timely cost accounting adjustments are made to the actual cost database prior to the final comparison that forms the basis of a damage claim.
The coding and posting of each cost account to an activity level definition in the control budget is a critical step. This enables the correlation between a cost problem and a specific cost overrun, making the damage calculation process more credible.
Variances are characterized as either favorable or unfavorable depending on their impact on the company’s projected operating profit. A favorable variance decreases expected costs, while an unfavorable one increases them. For example, a direct materials price variance of $30,000 is characterized as unfavorable because the organization paid more for direct materials than it expected to.