CONSTRUCTION ESTIMATES
Construction Estimates are a calculation of the quantities of various trade items or work, and their expenses that are likely to be incurred. The estimated cost of these works is a close approximation of their actual cost.
The agreement of the estimated cost with the actual cost will depend on accurate use of estimating methods and correct visualization of the work, as it will be intended. Therefore correct estimating is vital to the success of a project.
Denary utilises vast experience in the Quantity Surveying industry to provide detailed estimates using the latest computerised measuring and estimating technologies available.
The agreement of the estimated cost with the actual cost will depend on accurate use of estimating methods and correct visualization of the work, as it will be intended. Therefore correct estimating is vital to the success of a project.
Denary utilises vast experience in the Quantity Surveying industry to provide detailed estimates using the latest computerised measuring and estimating technologies available.
Types of Construction Estimates
Feasibility Estimates
Feasibility Estimates provide an approximation of the cost of a particular project. They are prepared for budgeting and planning purposes only and therefore the estimate is not detailed and accurate enough to provide a basis for a firm costing.
Denary can prepare Feasibility Estimates based on concept sketches or design to allow the Client to determine if a project is profitable without spending high frontend costs in the preparation of detailed design and documentation prior to construction.
Budget Cost Estimate
A Budget Estimate is undertaken at the beginning of the design process and allows the owner to know up front what the project in likely to cost to complete. Budget estimates are prepared based on preliminary designs and documentation. Once the Budget Estimate is prepared the owner can then proceed with the Development Application (DA), detailed design and documentation.
Pre-tender Cost Estimate
Is a detailed estimate of the cost of a project that is undertaken when the scope of work is clearly defined and the detailed design is nearing completion so that the elements of the building are designed and detailed. It is prepared by determining the quantities and costs of all the work that a contractor is required to do for the acceptable completion of the work. It is the best and most reliable form of estimate and can be used in the Tender process.
Bill Of Quantities (BOQ)
A BOQ is a very detailed document that itemises all of the quantities of materials, parts and labour in a construction project. This is measured from detailed design drawings and is used by the developers and contractors for the tendering process. The BOQ can either be un-costed or costed depending how the developer uses the document. The BOQ contains a high level of accuracy and can also be used to facilitate the administration of the project, for example the processing of any variations and monthly progress payments.
Section 94A Estimates
A Section 94A contribution is a payment made by developers to the relative local government Council to enable them to construct or provide the public amenities and services required for new residents and businesses. Section 94A of the Environmental Planning and Assessment Act 1979 is the principal legislation that allows the councils to levy contributions. Section 94A contributions are imposed by a condition of development consent or complying development.
A Section 94A form is required to be completed by a Registered Quantity Surveyor and is submitted with the Development Application to provide the Council with a means to calculate the amount of the Section 94A contribution. Denary is registered with the Australian Institute of Quantity Surveyors (AQIS) and therefore recognised to complete these estimates.
A Section 94A form is required to be completed by a Registered Quantity Surveyor and is submitted with the Development Application to provide the Council with a means to calculate the amount of the Section 94A contribution. Denary is registered with the Australian Institute of Quantity Surveyors (AQIS) and therefore recognised to complete these estimates.
Cost To Complete Estimate Reports (CTC)
A CTC is a detailed estimate that identifies the total cost of a project then deducts the cost of works that have been completed to date. This is then used to calculate the cost to complete the unfinished works.
PROGRESS CLAIMS & VARIATION ASSESSMENTS
Progress claim assessments are usually undertaken monthly and are a means of providing details to the Developer and Financier as to how much work has been undertaken in the previous month and therefore provides details as to how much money is to be paid to the Contractor.
These progress claim assessments are also a means by which the Developer, Financier and Contractor maintains their cash flow. The monthly flow of funds are progress payments for the achievement of progress in accordance with the Contract.
Any changes to the contract requiring a change to a particular section of work will lead to a Variation of Contract. A variation causes changes to the contract sum and can either be a positive or a negative amount and are generally assessed by a Quantity Surveyor and included in the monthly Progress Claim Assessments.
TENDER REVIEWS
Is a process undertaken to decide on the most suitable contractor to construct the development. A review of all submitted tenders is undertaken to assess cost, suitability and availability and a decision is made as to the most appropriate contractor.
Denary reviews the tenders, seeks any clarifications that is required, ensures all documentation is in order, and advises the developer as to the ranking of the tenders. If a number of tenders fall into an acceptable range, then the developer, quantity surveyor and architect discuss the suitability of the various tenderers and their proposals. The developer is not obligated to accept the lowest price, and it is customary for other factors including past performance, quality of other work and availability to influence the selection process.
REPLACEMENT COST ASSESSMENT
With building codes continually evolving coupled with changes in the economic climate, you can be almost guaranteed that many existing buildings cannot be rebuilt completely to their current state for the sum amount they are insured for.
When building a dwelling after an insurance claim you are required to comply with current building codes and regulations which will impact on rebuild costs. Seeking advice from a quantity surveyor, will ensure that you have the correct level of insurance cover to replace your building to its existing state. A Replacement Cost Assessment (RCA) is an estimate of the actual cost to rebuild the building at the time of insurance renewal. It is recommended that this assessment be updated annually to match the current economic trends and building codes.
