Estimates

1. Purpose of Estimate
 Provisional of Prelim construction cost indication
 Control of Resources Allocation
 Cost study for alternatives schemes
 Benchmarking of construction costs for similar projects

Particular to clients
 Test viability of project
 Seek funding from banks etc.
 Set a limit on expenditure
 Establish a scope which can be achieved for a specific level of investment
 Negotiation with landlords – fitting out
 Taxation – capital allowances

Particular to consultants
 Ensure design ideas can be afforded
 Ensure correct allowances are included for intended spec
 Understand the budget so they can work within it
 Fee calculation
 Design / spec comparisons.

2. Definition of GFA, CFA, UFA , LFA & Fit out areas (Refer to DLS manual)

3. Pre-contract cost planning process

Type Stages Main Purposes Available Type of By

Information Cost
Planning
(A) Inception & Prepare Total GFA, Site Prelim - CFA
location & area;
Feasibility feasibility studies Project details Cost - Functional Area
(e.g. type, plot Cost =CFA x $/CFA
to determine cost Estimate
ratio, CFA, height
Cost = Functional Area x
limit / budget limit, indication of (rough
standard Functional Rate
requried) Note : indication
No drawings of cost)
(B) Outline Prepare cost Sketch design Elemental - Elemental Qty (by using
data from cost analyses of
Proposal estimate & initial (e.g. general Cost similar project adjusted
for quality, quantity and
cost studies in layout, building Estimate
price level different
order to confirm shape, no. of
cost limit / budget storey), some

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indication and
systems provided
(C) Scheme Prepare cost Plans, elevations Cost Plan - Elemental form based
upon App Qty priced at
Design plan & detailed & sections; current rates + data from
cost analyses for items
cost studies in Framing plans;
which cannot be quantified
order to confirm Foundation at this stage of the planning
cost limit / budget information;
Finishes level;
Building services
requirement
(D) Design Update cost plan Alternative design Revised - BQ / comparative cost
studies. Progressive
Developme & further cost proposal Cost Plan elemental estimates
prepared at appropriate
nt studies of
design stages as the
alternative planning develops each one
being reconciled with the
designs budget
(E) Tender Cost check of Complete design Pre-tender Reconciliation may be
final design (i.e. tender / cost required
working drawings estimate
& spec)
4. Adv. of element form of cost plan
 Summarizes the design and cost characteristics of the project
 Acts as a concise reference for subsequent cost checks
 Enables rapid assessment of cost for subsequent design or quality changes
 Explains why costs are high/low compared with other projects of similar building types (once a
sufficient data bank of projects is available)
 Identifies the most fruitful areas to look for economics if these need to be made
 Identifies any major measurement errors in the cost plan
 Can later be used as a prelim bulk check for the BQ qty. Provides cost data in a form useful for
preparation of cost plan for other projects
 Once a data bank of projects has been built up, future cost plans may not need to measure all the
element quantities since they can be derived from element ratios of other similar projects
5. Factors affecting cost estimate / plan
(a) Project information
 Completeness of cllient’s brief
 Determination of grade of building (3/4/5 star hotel, grade A/B/C commercial bldg)
 Procurement (design responsibility)
 Building shape
 Building size
 No. of storey

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 Spec level (quality)

 Programme
 Uniqueness of project
 Available Information from Consultants
 Method of estimate
(b) Site Information
 Site location
 Site conditions / constraints (site access, working hours, slope strengthening works, noise
mitigation, precautionary works, temporary works etc.)
 Foundation conditions
(c) Cost Information:
 Source of cost data
 Supplier’s / SC’s quotations
 Use of previous cost data
 Use of previous cost analysis
 Application of tender price indices
 Reasonable % allowances
 Inclusions & exclusions
(d) Communication with the team:
 Rebar ratio
 Finish spec
 M&E system / spec
(e) Market Information:
 Market conditions (e.g. inflation / deflation etc.)
 Rapid change of material (e.g. huge increase of structural steel price in 2003)
 Change of labour costs (e.g. decreasing since 1997)
(f) Experience of QS / Estimator:
 Availability of cost data
 Senses of build-up rates
 Senses of elemental unit rate
 Reasonable assumptions
 The more expensive elements, the more attention paid
 Knowledge of construction methods
 Knowledge of new technologies (e.g. pre-cast façade, steel formwork, light weight concrete
internal wall etc.)
 Knowledge of building regulations
 Senses of market trend
 Senses of material costs (Lockhart / Portland Street)
 Senses of construction related news (e.g.建築廢物堆填費 $27-$125 / ton)
6. Essential Information

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(a) Calculation of GFA & CFA

1) GFA = Site Area X Plot Ratio
2) CFA = Site Coverage X No. of floors (for building with full height coverage)
3) CFA = GFA X (1.05~1.10) for residential building
X (1.03) for refuge floor
X (1.15~1.20) for commercial/office building
X (1.25~1.40) for Hotel

(b) In order to improve the environmental performance during the construction and throughout the lift
cycle of new buildings, construction of green and innovative buildings should be promoted in
order to encompass the following features:
 Adopting a holistic life cycle approach to planning, design, construction and maintenance;
 Maximizing the use of natural renewable resources and recycled/green building
materials;
 Minimizing the consumption of energy, in particular those non-renewable types; and
 Reducing construction and demolition waste.

List of green features that may be exempted from GFA and Site Coverage calculation:
 Balcony
 Wider common corridors and lift lobby
 Communal Sky Gardens
 Communal Podium Gardens
 Acoustic fins
 Sunshades and reflectors
 Wing walls, wind catchers and funnels
 Non-structural prefabricated external wall
 Utility platforms
 Mail Delivery rooms with mailboxes
 Noise barriers
 Communal sky gardens for non-residential building
Note: (1) Not apply to the non-domestic portion of composite buildings
(2) Residential accommodation fro commercial use such as hotel and service apartments
does not qualify for the exemption.

(c) Calculation of Total Construction Cost

Type A) Total construction costs = Construction Floor Area (CFA) x Unit Rate ($/CFA)
Or Total construction costs = Functional Area x Functional Rate
(i) Carpark = 30~40m2 x $A/Carpark
(ii) Hospital = 60~120m2 x $B/Bed
(iii) Hotel = 55~100m2 x $C/Room

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(iv) Auditorium = 1.5~2m2 x $D/Seat

Type B) Total construction costs = Sum of (Elemental Qty) x Elemental Unit Rate
+ Preliminaries (12%) + Contingencies (10%)
(Standard element refer to DLS Practice Manual)

Unit rate (Type A &B): - Location factor

- Spec level
- Construction method
- Cost analysis of previous projects
- Adjustment of price index

Type C) Total construction costs = Sum of (Approximate Qty) x Unit Rate

+ Preliminaries (12%) + Contingencies (10%)
(Standard element refer to DLS Practice Manual)
Approx Qty : - Design Information (eg dwg & spec)
- By measurement
Unit rate : - Supplier’s / SC’s quotations
- Recent returned tenders
- Cost analysis of previous similar projects
- Adjustment of price index

Type D) Pre-tender estimate based on BQ

Unit rate : - Supplier’s / SC’s quotations
- Recent returned tenders
- Cost analysis of previous similar projects
- Adjustment of price index

Type E) Reconciliation of cost plan

 Reflecting cost differences due to change of design / spec
 Cost saving exercise
 Factors caused cost different
 Change of employer’s
 Change in development
 Change in site conditions
 Change in design
 Change in spec
 Change in price indices

(d) Calculation of Footprint (if necessary)

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1) Directly utilize layout plan

2) For the adjustment of:
(i) Foundation and substructure due to different loading distribution and requirement
under different number of towers
(ii) Roofing and external works on podium roof

(e) Calculation of Elevation Area (if necessary, e.g. bay window adjustment in residential building,
curtain walling/cladding adjustment in office building)
1) Directly utilize layout plan
2) Alternatively, assume the following wall to floor ratios:
(i) 1 : 1 for residential building
(ii) 0.4 : 1 for office building
(iii) 0.4:: 1 for hotel
(iv) 0.4 : 1 for industrial building

(f) Calculation of Internal Wall Area (if necessary, e.g. non-bearing wall adjustment in intelligent
building)
Assume the following wall to floor ratios:
1) 1 : 1 for residential building
2) 0.5 : 1 for office building
3) 1.5 : 1 for hotel

(g) Indices
 Tender Price Index
 Building Services tender price index
 Labour index
 Material index
 Consolidated labour & material index

(h) Other points to note

 Telephone confirmation with Arch about plot ratios, GFA inclusions, floor heights, CFA usage,
standard of building/finishes, any design changes, etc.
 Telephone confirmation with Engineer about structural design changes, particularly
foundation and substructure (driven piling/bored piling), basement construction (4-level or
more - diaphragm wall; 2-level or less – sheet piling)
 Check the difference in the time of preparing the estimate of two schemes (TPI adjustment)
 Approximate time for commencement of calling tenders/construction

(i) Adjustments of elemental costs

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Scenario 1.1 – Residential Building (towers + podium + basement) – Change in Quantity

Assumptions:
1. GFA kept constant
2. Decrease in No. of towers, i.e. increase in tower height; or
3. Decrease in No. of basement levels but No. of carparks kept constant, i.e. basement
floors shifted to as podium floors

Change in No. of towers Change in Basement

levels

Preliminaries
a) Higher scaffolding costs because of a) Generally no
a) Temporary latrines
higher rates for higher scaffolding difference
b) Safety precautions
b) Traffic for site staff and labour to upper
c) Plant
floors take longer which implies longer
d) Scaffolding
construction period is required and thus
e) Hoisting
costs more
f) Fire fighting
c) Transportation of plant and materials take
g) Removal of water
longer and costs more
h) Temporary drainage
d) More material hoists and passenger
i) Temporary water supply
hoists per tower may be required which
j) Temporary lighting and
may be offset by fewer towers
power
e) More watchman per tower may be
k) Hoarding, screens &
required which may again be offset by
walkways
fewer towers
l) Temporary access and
platform
m) Insurances
n) Surety bond
o) Industrial training and
pneumoconiosis levies
p) Noise control
q) Watchman

Foundation and
substructure
a) Generally bored piles cost more than H- a) Generally no
a) H-piles vs. bored piles
piles under the same loading (Assume difference
b) Pile cap
20~30m; $20/kg for H-pile; $6,000/m3 for
bored piles (12% of footprint under tower
and 5% under podium))

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b) Generally pile cap for H-piles is larger

than bored piles in size (Assume 50% of
footprint for 2m deep pile cap)
c) The addition of 1 No. refuge floor per
tower does not significant affect the
overall loading but fewer towers result in
fewer no. of piles, the saving due to the
significant reduction of which cannot be
offset by the increase in loading per tower

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Basement
a) Generally no difference a) Proportionate
a) Excavation
b) Generally no difference in basement reduction in
b) Diaphragm wall vs.
construction method excavation (based
sheet piling
c) Bottom-up vs. top-down method on volume;
c) Structural frame and
$1,800~2,000/m2 for conventional $200/m3)
slab
bottom-up method; $3,000/m2 for top- b) $300/m2 for sheet
d) Waterproofing
down method (due to phased excavation, piling $10,000/m3
e) Dewatering
i.e. longer construction period and for diaphragm wall
f) Geotechnical monitoring
allowance for stanchion ($300/m2) or (1m thick down to
g) E&M services
cofferdam ($100/m2)) bedrock)
d) Generally no difference c) See the left column
e) Generally no difference d) Proportionate
f) Generally no difference reduction in
g) Generally no difference waterproofing
(based on surface
area; $300/m2)
e) Proportionate
reduction in
dewatering (based
on construction
period)
f) Proportionate
reduction in E&M
costs (based on
CFA)
g) Saving in
ventilation, fresh air
supply and smoke
extraction system
for fewer basement
levels (based on
CFA; $450/m2)
h) Saving in lighting
due to natural light
coming from outside

Tower/Podium
a) Columns and structural walls generally a) Proportionate
a) Structural frame and
larger and thicker for higher tower option increase in these
slab

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b) General finishes
c) Floor and ceiling finishes
d) Internal wall finishes
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to withstand heavier windload elemental costs
b) Larger columns and thicker structural (based on CFA)
walls at lower floors than upper floors
c) Higher grades reinforced concrete used
for lower floors
d) Addition of 1 No. refuge floor per 40 floors
per tower ($5,000~7,000/m2)
e) Generally no difference for internal
finishes
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Tower/Podium
a) Thicker glazing at upper floors to a) Proportionate
a) External walls, windows
withstand heavier windload increase in external
and finishes
b) More difficult to work on external walls walls, windows and
b) Roofing
due to heavier windload finishes (based on
c) External works and
c) Proportionate reduction in roofing (based CFA)
landscaping
on decrease in no. of towers; $50/m2) b) Generally no
d) Proportionate increase in landscaping on difference in roofing
podium roof (based on decrease in no. of and external works
towers; $1,500/m2)

Tower/Podium
Plumbing & drainage
a) Two sets of pumps are required to serve a) Proportionate
a) Pumps and sumps
the lower and upper floors respectively, increase in
b) Risers and distribution
i.e. one extra set is required per tower plumbing (based on
pipes
b) More powerful pumps are required to CFA)
c) Valves and accessories
serve the upper floors in the higher tower b) Generally no
d) U/G drainage
option, the cost of which may be offset by difference in design
e) Manholes, pits and
the reduced no. of towers
interceptor
c) Intermediate booster pumps or larger pipe
size for risers at lower floors to maintain
the same flow rate at upper floors
d) Longer risers are to be used due to higher
towers, the cost of which may be offset by
the reduced no. of towers
e) Heavier duty valves and accessories are
to be used under higher working pressure
f) Fewer but larger U/G drain pipes are
required
g) Fewer manholes, pits and interceptor are
required
h) The design is relatively more advanced
and sophisticated

Tower/Podium
Gas
a) Larger pipe size for risers at lower floors a) Proportionate
a) Risers and distribution
to maintain the same flow rate at upper increase in gas
pipes

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floors pipes (based on

b) Heavier duty valves and accessories are CFA)
to be used under higher working pressure b) Generally no
c) The design is relatively more advanced difference in design
and sophisticated

Tower/Podium
Fire services
a) More powerful pumps are required to a) Proportionate
a) Fire hydrants and hose
withstand higher working pressure in the increase in gas
reel
higher tower option, the cost of which may pipes (based on
b) Sprinkler system
be offset by the reduced no. of towers CFA)
c) Drencher system
b) Intermediate booster pumps or larger pipe b) Generally no
d) Gas floor/BTM system to
size for risers at lower floors to maintain difference in design
transformer
the same flow rate at upper floors
room/computer room
c) Heavier duty valves and accessories are
e) Fire detection
to be used under higher working pressure
d) The design is relatively more advanced
and sophisticated

Tower/Podium
Electrical installation
a) The design is relatively more advanced a) Proportionate
a) Incoming mains
and sophisticated increase in gas
b) Transformer
b) Electrical loading is higher per tower and pipes (based on
c) HV/LV switchgear
hence higher rating is required as per CFA)
d) Emergency generator
transformer, HV/LV switchgear, b) Generally no
e) Uninterrupted power
emergency generator and electrical mains difference in design
supply system
and sub-mains, etc., the extra cost of
f) Electrical mains and
which may not be able to be offset by the
sub-mains
reduced no. of towers
g) Cable trunking and
c) Longer cable trunking is required and
supports
hence more supports per tower
h) Small power installation
d) Saving in lightning protection system due
i) Lighting installation
to the reduced no. of towers
j) Earthing system
k) Lightning protection
system
l) External lighting

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Tower/Podium
HVAC installation
a) Air-conditioning available only in entrance a) Proportionate
a) Chillers and chilled water
lobby and hence fewer window-type air- increase in pipes
system
conditioners are required by the reduced (based on CFA) (if
b) Condensing water
no. of tower any)
system
b) Other systems generally not applicable b) Generally no
c) Condensate drain
difference in design
system
(if any)
d) Heating system
e) Air conditioning system
f) Ventilation system
g) Smoke extraction
system
h) Staircase pressurization
system
i) Temperature control
system
j) Boiler plant
k) Acoustic treatment

Tower/Podium
Lifts & escalators
a) Two sets of lifts instead of one are a) Generally no
a) No. of lift cars
required to serve the lower and upper difference
b) Capacity
floors respectively and hence no
c) Speed
corresponding reduction in no. of lifts and
d) No. of stops
no increase in capacity and no. of stops
e) Rise of escalators
($1,500,000/lift car)
f) Finish to lift cars
b) Higher speed for the set of lifts serving
g) Dumbwaiter
the upper floors is required
h) Cover to external
c) Longer conveyor is required for higher
escalator
towers
i) Finishes to escalators
j) Emergency access
hatch
k) Conveyor

Scenario 1.2 – Office Building (towers + podium + basement) – Change in Quantity

Assumptions:
a) GFA kept constant

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b) Decrease in No. of towers, i.e. increase in tower height; or

c) Decrease in No. of basement levels but No. of carparks kept constant, i.e. basement floors
shifted to as podium floors

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Preliminaries
a) Generally similar to Scenario 1.1 a) Generally similar to
a) Foundation and
Scenario 1.1
substructure
b) Basement
c) Floor and ceiling finishes
d) Internal wall finishes
e) External walls, windows
and finishes
f) Curtain walling
g) Cladding
h) Roofing
i) External works and
landscaping
j) Plumbing & Drainage
k) Gas installation
l) Fire Services
m) Electrical installation
n) Lifts and escalators
o) Intelligent backbone

Tower/Podium
a) Proportionate reduction in chiller plant a) Generally similar to
a) Structural frame & slab
room and general finishes (based on Scenario 1.1
b) General finishes
decrease in no. of towers;
$6,000~7,000/m2))
b) Addition of 1 No. refuge floor per 25 floors
per tower ($5,000~7,000/m2)

Tower/Podium
HVAC installation
a) Proportionate reduction in no. of chillers a) Generally no
a) Chillers and chilled water
but higher capacity per chiller is required difference
system
due to heavier loading for higher towers
b) Condensing water
(based on decrease in no. of towers)
system
b) Larger pipe size for chilled water system
c) Condensate drain
to withstand higher working pressures
system
due to longer traveling distance
d) Heating system
c) The design is relatively more advanced
e) Air conditioning system
and sophisticated
f) Ventilation system

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g) Smoke extraction
system
h) Staircase pressurization
system
i) Temperature control
system
j) Boiler plant
k) Acoustic treatment

Tower/Podium
Window cleaning
equipment a) Proportionate reduction in total no. of
a) Generally no
a) Gondola gondola and handling unit at roof (based
difference
b) Gondola handling units on decrease in no. of towers)

Tower/Podium
Security system
a) Generally no difference a) Generally no
a) CCTV
difference
b) Door phone
c) Alarm system
d) Carpark control

Tower/Podium
Building automation &
management system
a) Proportionate reduction in computer a) Generally no
a) Computer and
hardware (based on decrease in no. of difference
associated system
towers)
b) ELV system
b) Generally no difference in overall cables,
trunking and conduits

7. Reference
 Cost implicating factors
 Estimate checklist
 DLS practice manual
 All Cost Data
 All samples

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