For a construction and industrial assembly company to be financially viable, it must achieve positive economic results in the work or services it provides.
When the awarded project has its origin in a bid with errors, the project will not be profitable…
It comprises all disbursements in terms of monetary units for interest, commissions, and other expenses arising from obtaining loans from financial institutions.
The estimation of financial costs in an economic proposal includes the cost of insurance and the financial cost itself. This post examines the costs and types of insurance and sureties bond…
Overheads are indirect costs that remain constant regardless of the company’s production levels…
Analysis of the items to which the estimator assigns a defined cost.
The magnitude of these costs can be significant and their amount depends on the characteristics of the project, its location, and the requirements determined in the bidding documents…
Labor that is not assigned to a specific task or process is called indirect labor.
The total indirect labor budget in a construction company is the sum of the indirect hours of each work in progress plus the indirect hours of the company in the engineering, budgeting, quality control, purchasing, sales, administration, accounting, finance, etc. departments…
Continue reading 
In this step, the Estimator must analyze what the Input and Consumption Materials are, and how much they cost.
The term consumables, or consumption materials, refers to all the auxiliary material used to carry out work, but which is not incorporated into the construction…
The following diagram lists the items that make up the cost per hour of the equipment…
To make this calculation correctly, we must first review the following concepts…
A complete guide for calculating the number of man-hour of direct workers of a construction project.
For estimation of the direct labor to be employed in the execution of a work, it is required at least…
Steps to identify direct materials, inventorying them and inquiring about their costs, delivery times and payment conditions.
The term materials includes…
Steps to follow to make a successful site visit before bidding.
As a first step, it is necessary for bidders to carefully study all the documentation sent by the buyer in their bid…
Continue reading
The price competition is an activity within the purchasing process, in which the purchaser invites different bidders to present their offer for the provision of goods or services in a sealed envelope…
