Explore the intricacies of cost estimation in construction projects, with a focus on calculating labor, material, equipment, and subcontractor costs. Learn how to check the validity of your cost totals and understand how to handle alternates and WBS codes in your spreadsheet.
Key Insights
- The total construction project cost is calculated by adding labor, material, equipment, and subcontractor costs. These figures are combined throughout the entire spreadsheet to give the total project cost.
- Double-checking the validity of the total construction cost is essential to ensure no errors or discrepancies have been made in the calculations.
- Alternates and WBS codes require a specific breakdown in order to separate costs that may be provided as an add-on and not included in the base bid. The total cost, in this case, was $158,531, which then moves forward into the markups and add-on sheets.
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Let’s look at the very bottom of the spreadsheet where you have Estimate Cost Totals. They represent the totals for labor, material, equipment, and subcontractor costs. This is calculated across the entire spreadsheet for every page, resulting in the total amount shown on the right-hand side.
That is the raw cost of the entire project, which does not include any add-ons or markups that we’ll touch base on in a moment. I also did a 100% check to make sure that the number is accurate and hasn’t been disrupted. I also check notes, alternates, and WBS codes.
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Typically, alternates and WBS codes often require a specific breakdown so those costs can be separated and might be provided as add-ons if they are not included in the base bid. So all of these are actual costs. We’re looking at a grand total of $158,531, and that number now carries forward into the markups and add-on sheets.
