How to Make a Reliable Winning Bid.
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…
Finance Cost.
It comprises all disbursements in terms of monetary units for interest, commissions, and other expenses arising from obtaining loans from financial institutions.
How to Calculate Insurance Cost.
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…
How to Calculate Overhead Cost – Calculate Man Hours.
Overheads are indirect costs that remain constant regardless of the company’s production levels…
How to estimate other indirect costs of the Project.
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…
How to Calculate Indirect Labor in Construction.
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…
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How to Estimate Input and Consumption Materials.
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…
How to Calculate Equipment Cost per Hour.
The following diagram lists the items that make up the cost per hour of the equipment…
How to Calculate Selected Equipment Cost.
To make this calculation correctly, we must first review the following concepts…
Reliably Evaluate the Selected Equipment. To complete this stage, the estimating group with the support of specialists must define the type of equipment required for the project and then establish its costs…
Calculation of Man Hours for a Construction Project.
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…
How to Calculate Direct Material Cost (Examples).
Steps to identify direct materials, inventorying them and inquiring about their costs, delivery times and payment conditions.
The term materials includes…
How to Correctly Assess the Cost of Engineering. Conceptual Engineering is the first phase of an engineering project…
How to Inquiries to the Purchaser at the Pre-bid – Calculate Man Hours. Here, the questions that are resolved through consultations with the purchaser are clarified and analyzed…
The Importance of Site Visit Before Quoting.
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…
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How To Make a Reliable Bid.
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…