Design and Implementation of Computerized Bill of Quantity System for Engineering Project
Chapter One
Aim and Objectives of the Study
The aim of this project is to develop a prototype computer – aided project cost estimating system which can help the users to prepare preliminary estimate cost of building works. In order to achieve the above aim, the following objectives of study have to be carried out.
- To study the various conventional methods of estimating from contractors perspective.
- To identify the software used by contractor for cost estimating in practice and the problems they faced in using the software.
- To develop a computer – aided project cost estimating system by using Microsoft Access 2003.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Cost estimating is an essential aspect for the business operation of construction firms. Construction is a unique industry that by nature is risky since most projects must be priced before they are constructed, whereas in other industries the selling price is based on known manufacturing costs. The success or failure of a project relies on the accuracy of several estimates done throughout the course of the project.
Estimating has been recognized as an important element of construction project. The primary function of preliminary or approximate estimating is to produce a forecast of the probable cost of a future project, before the building has been designed in detail and contract particulars prepared. In this way, the building client is made aware of his likely financial commitments before extensive design work is undertaken (Seeley,1996).
The purpose of pre-tender price estimating is to provide an indication of the probable costs of construction at a very early stage in the life of a construction project.
It is one of the most important factors influencing the client’s decision to build. An approximate estimate, which is too high, may discourage a potential client, whereas estimates, which are shown to be far below a tender sum, may result in an abortive design.
Definition of Estimating
Researcher and experts give cost estimating different definition, thus the succeeding paragraph states some of them. The Project Management ( PMI ) defines the cost estimating to involve developing an approximation (estimate) of costs of the resources needed to complete project activities (Duncan 1996). Hendrickson specifies that are design, bid and control. Furthermore, he defines that at the very early stage of design, the screening estimate or order of magnitude estimate is made before the facility is designed, therefore it relies on the cost data of similar facilities built in the past. While preliminary or conceptual estimate is based on the conceptual design of the facility at the state when the basic technologies for the design are known. Moreover, the detailed or definitive estimate is made when the scope of work is clearly defined and the completed plans and specification when they are ready for the owner to solicit bids from construction contractors (Hendrickson 1989) Association for the Advancement of Cost Engineering (AACE) International define the cost estimation to provide the basis for project management, business planning, budget preparation and cost and schedule control. Included in these costs are assessments and an evaluation of risks and uncertainties (Uppal 1997). On the other hand, Carr defines it as being an accurate reflection of reality that shows the levels of detail that is relevant to decisions (Carr 1989).
Estimating is the process of looking into the future and trying to forecast project costs and resource requirements (Halpin 1985). An estimate is a judgement, opinion, forecast or prediction. It is a judgement or opinion of the cost of a process, product, project or service. It is a prediction or forecast of what a work output or work activity will cost (Stewart 1982). Estimating is a collection and analysis of the bill items which influences and contribute to the cost of the project (Clough, 1984 ) According Society by Laws, march 1978 Estimating is the art of approximating the probable worth or cost of an activity based on information available at the time (Stewart 1982). The primary function of preliminary estimating is to produce a forecast of the probable cost of a future project, before the building has been designed in detail and contract particulars prepared. (Seeley, 1996). Consequently, all those definition are similar in one way or the other in describing cost estimating as being the process of guessing and foreseeing the future costs of a project or product before it actually exist. Despite the likeness between cost estimating and pricing, one has to carefully distinguish the difference. Cost estimating involves an assessment of the likely quantitative result, how much will it cost to perform product or service involved. Pricing is a business decision, how much will be the charge for that product or service (Duncan 1996). Wood mentioned that in management terminology the cost refers to expenditure, not revenue, the price and cost are not the same. Thus, the price may be less than the cost in the case of a loss, or the price may be greater than the cost in the case of a profit (Wood 1974).
Purposed of Cost Estimates
Peculiar to the definitions an estimate, at its most excellent, is a close approximation of the actual costs. Hence the purpose of an estimate is to postulate the costs required to completing a project in accordance with the contract plans and specification. Furthermore, it is important that management has as much information as possible when deciding on funding projects. Sutherland (1999) explains the purposed as to provide the client and design team with as precise an estimate of final cost as possible so that the project can be accomplished within the client’s budget. Likewise, Weatney (1997) outlines the purposed of a cost estimate through the following :
CHAPTER THREE
COMPUTER AND COST ESTIMATING
Introduction
This chapter the role of computers, as an effective tool to increase the level of accuracy and reduce the time required in preparing a construction cost estimate.
Computer have tremendous number and type of applications in construction business, which very from accounting to scheduling, estimating and so forth. Fast and accurate estimate is one of the key factors that can make the difference between gaining a reasonable profit and running out of business. Therefore the use computers is essential to fulfill this obligation.
In Malaysia, computers were used to prepare cost estimating since 1980’s (Chong WP,2001). At that time, Quantity Surveying System (Q.S.S) was selected by the QS Department of Jabatan Perumahan Negara to handle the taking off, cost planning, tender procedure, interim payment, variation orders, cost estimating, tender report, specification, preliminaries, prime cost and provisional sum.
In the mid 1990’s, when the computer are becoming more affordable and user friendly and more contractor and consultant firm are using the computer to facilities their work not only in the technical field but in administrative works. At the same time, students and trainees in this field were exposed in the importance of information technology and as a matter of fact, more construction graduates are well-literate in computers.
On the development of computer software and application, more and more complete, reliable and easy to use software was produced. More and more specific and specialized software for construction industry were being produced and being introduced to the industry. From a blue screen of dimension sheet ( the old DOS version of specific software ), it has develop in a 32-bit application with enhance 3D and digital imaging for instant processing. The latest version of the software would be able to automatically calculate quantity from CAD drawing and produced a complete BQ and cost estimating in just a few mouse click.
Use of Computers in Construction
Most construction cost estimates in the past and newfangled are performed manually accordingly errors are most likely to occur. Thus the use of computers in the construction industry is growing rapidly. The early use of computers in construction and general accounting functions. Nowadays, computers increasingly are playing a big role in the contractor’s project management functions, including estimating.
Computers have introduced modern technology to the construction industry. The estimator in search of any advantage that can assist in preparing an estimate (Jurkiewicz 1999). Computers play an essential role in cost estimating because estimating may involve complex and advanced mathematical calculations and techniques. Automating the process of construction cost estimation is desirable not only for improving the efficiency, but also for reducing human errors as much as possible (Wu and Adeli 1998). Computers cannot do the entire estimating process, but they can ease the estimating procedure. The use of computers in documenting cost estimating, give estimators more times to study and analyze projects. Consequently, estimators will be able to generate more accurate estimates (Cost Engineering Journal 1998).
CHAPTER FOUR
ANALYSIS AND RESULTS
Introduction
A through planning and scheduling had been organised on the methodology and research sequence to ensure a smooth running of the research program from literature review, data collection, data analysis until discussion of result and conclusion.
Literature review involved a through searching and investigating project manager related issues through different primary and secondary sources such as textbooks, articles, and journals. In additional, there also effort on searching and browsing through internet web pages, internet websites, electronic database and online articles and journals to seek for supplementary information. The purpose of literature review is to gather important information related to the topic and deepen the understanding of cost estimating.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
Conclusion
After extensive research on the specific software for producing cost estimating
and analysed data from respondents, finally Cost Estimating System (COES) was being develop. It is Microsoft Access 2003 application designed specifically for doing building cost estimating. Cost Estimating System have the ability to automatically produce cost estimating from the calculation form has be develop according to approximate quantities and element cost analysis method. Moreover, user-friendly interfaces features such as selecting built up rate development and producing summary of cost estimating making this system easy to use application. Nevertheless, there are still some features which are lacking such as formatting errors. Actually, the problem can be solve by either reprogramming or using a patch file. As a final conclusion, this research has achieved its objective of developing an application which is capable of producing building cost estimating using Microsoft Office Suite.
Research Contribution
The contribution of this research reside in the following :
A unique cost estimate computer system has been developed that is particular for the construction industry.
An operational database system has been designed and implemented using windows environment and utilizing Microsoft Access 2003applications.
This advances the field of MIS (Management Information System) applications in the construction industry, which is known to lack behind other industries in this area. This will aid practitioners in the construction industry to perform conceptual estimates within the short time available to study a project.
The developed system is intended to assist owners, contractors, and estimators in preparing fast, efficient, and reliable cost estimates. It provides the user with the option of selecting the of division to use. It reduces the time required to build costs list for the project activities so that this reduction can be beneficial for the quantity take off time process. It provides professional output reports that can be used for bidding purposes. The system includes a structured database, which can be extended, enhanced and modified depending on the user needs.
Recommendation
The research has generated a milestone result for automatically producing building cost estimating from Microsoft Access 2003 despite that this research introduces a functional system as a tool for contractors and estimators to use in preparing cost estimates for the construction industry, it is a platform that can be potentially enhanced by future works. These may include:
Detailed cost database models so that the user will be able to prepare all types of estimates in accordance with the different phases of the project.
Automatic integration between the detailed estimate and scheduling tools allowing the user to schedule the activities according to the crew productivity after generating the estimate.
Integration between AutoCAD and the detailed cost estimate database model to enable the user to automate the quantity off process directly from the drawings while preparing the estimate.
Using neural networks or regressions to forecast the cost items of the preliminary cost estimate database model.
REFERENCE
- Abd. Majid, Muhd Zaimi (1997). “Non-Excusable Delays in Constructions.” Loughborough University of Technology, UK: PhD Thesis.
- Adrian. J. “Construction Estimating an Accounting and Productivity Approach’:, 2nd edition, 1993 , Stipes Publishing Company.
- Asworth, Allan, “Cost Studies Of Building”, Longman Group UK Limited, 1988,p60,85.
- Bryan, S.M. “Assembly Pricing in Construction Cost Estimating.” Cost Engineering Journal, Vol.33, No. 8, August 1991.
- Carr, R.I, “Cost Estimating Principle,” Construction Engineering and management Journal, Vol. 115, No 4, December 1989.
