Civil Engineering Cost Estimation Canada

How do civil engineers estimate?

The total cost per unit quantity of each item is analyzed and worked out. Then the total cost for the item is found by multiplying the cost per unit quantity by the number of units. For example, while estimating the cost of a building work, the quantity of brickwork in the building would be measured in cubic meters.

Whether it is fluctuating resources, materials or other resources, cost estimators heavily rely on 5D BIM cost estimation to provide precise and accurate cost estimates. The importance of Estimation and the value of Estimation Accuracy. This makes 5D BIM cost estimation an imperative for all construction projects.

Indicative Estimates are used to seek preliminary project approval (PPA) and lease project approval (LPA)—Policy on the Management of Projects.

Cost Estimating Service Inc. | LinkedIn

                Call us +1   703-659-8010         /  Email:

A Substantive Estimate is one of high quality and reliability and is based on:

1 detailed system and component design, design adaptation, work plans and drawings for components, construction or assembly, and installation. It includes site acquisition, preparation and any special requirements estimates. Contingency funding requirements must be justified based on line-by-line risk assessments, including market factors, industrial capability and labor considerations;

2 all significant and identifiable deliverables, as well as the costs of the government’s contribution to employee benefit plans (20 percent of all salaries charged to the project);

3 all agreed objectives, including those resulting from procurement review; and,

4 market assessment, where acquisition is through lease, lease purchase or capital lease. The provisional allowance for fit-up or special tailoring requirements will be subject to review and possible revision at the contract approval stage.

Substantive Estimates are used to seek effective project approval (EPA)—Policy on the Management of Projects.

The Steps involved in cost estimating are;

1. Materials Estimates: This is the quantity take off step that was already discussed in an earlier section
2. Calculate Material Costs: So here you just need to multiply the quantity by the cost per unit.
3. Equipment Estimates: To figure out this section you might have to understand equipment production rates to calculate the amount of time you will need the equipment. These estimates are in a different study section that I will later show you. So for now let assume they will give you the equipment production rate to do the jobs and the cost of the equipment. You may have to multiply a efficiency factor to increase or decrease the production rate if it is given.
4. Calculate Equipment Costs: Multiple the equipment cost/day by the number of days required to do the work.
5. Personnel Estimates: The exam question will give you crew size, the cost/hr for each crew member, and the production rate of the crew or members.
6. Calculate Personnel Costs: Using the above information multiple number of hours to do the job by the cost per hour to do the job.
7. Sum up all the costs
8. Multiply the overhead and Profit to the total cost
9. Congratulations…You have the total project cost now


Why Is Cost Estimation Important in Project Management?

Estimating costs is one of the core activities of project management and planning. This is because a project is defined as being subject to at least three fundamental constraints: scope, budget and time. Cost estimates are obviously addressing the budget constraint; hence they are highly relevant for the management of a project. The initial rough cost estimate is usually included in the project charter as well as in the business case of a project.

The estimation of costs is also necessary to compute the project budget which is subject to the approval of the project sponsor(s). In fact, the process “determine budget” uses a technique called “cost aggregation” which directly refers to the outputs of the “estimate cost” process.

Cost estimates are the basis for allocating budget to work packages and deliverables which can be politically sensitive within a project as well as among its stakeholders. Therefore, budget determination and assignment require some stakeholder involvement, communication and, in many cases, their approval.

In addition, cost estimates are input parameters for the earned value and variance analyses as well as forecasting of project costs.