Introduction to Management, Practice and Law (Lecture Week #09)

Cost Estimate and Price Breakdown

Ceramic works and plaster works cost estimate should be estimated in accordance with the updated prices of raw materials.

Cost Estimate (M2 Ceramic for Floors & Walls)

Some particular details in the technical specifications of plaster works should be taken in consideration when estimate the plaster price, but in the following example the necessary and minimum required information are used in cost estimate. and this example separate rough sub-base (TARTASHA) and final layer (TAKHSHEEN) in terms of materials and workmanship.

Cost Estimate (M2 Plaster Works)

Price Breakdown

as mentioned in earlier lecture, it is important to specify each of cost and price in order to perform the project budget. Bill Of Quantities (BOQ) is the first document which the estimator should create and consider according to the pre-prepared WBS. for each item of works the estimator should perform its cost divided into cost categories like (Materials, Man bower, Equipment, and Sub-Contractor).

Price consists of cost plus all expenses which related to the project and the organisation. this means that the price divided into Direct Cost and Overheads (Indirect Cost, Taxes, Insurances, Profits, .etc.).

Bill Of Quantities before price submission

Before pricing it is necessary to estimate all items cost and fill in the following table spaces.

Price Breakdown before cost estimate and pricing

Price Breakdown after cost estimate and pricing

Bill Of Quantities after price submission