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<html><head><style> body, p, td { font: 12px Verdana, sans-serif; } </style></head><body>
 <table width="700" border="1" cellspacing="0" cellpadding="20">
 <tr>
 <td valign="top" width="50%">Ref: M4.A09</td>
 <td valign="top" width="50%">Where it fits: 
 Module 4: Finance</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Title: Estimating, Budgeting, Tendering</td>
 </tr>
 <tr>
 <td valign="top">Objectives: 

	&bull;&nbsp;Understand the difference between estimating, budgeting and tendering</td>
 <td valign="top">Assessment Criteria: 

	In Evaluating this Assignment, the student should be able to:

	&bull;&nbsp;Understand the importance of estimating project costs at the feasibility stage 
	&bull;&nbsp;Appreciate the importance of developing an accurate estimate as the project progresses. 
	&bull;&nbsp;Identify estimating methods used in the industry and in your own company 
	&bull;&nbsp;Understand the breakdown of a good project estimate 
	&bull;&nbsp;Be aware of the importance of value (cost) engineering as a tool during project planning 
	&bull;&nbsp;Be able to distinguish between the Project Estimate, Project Budget, and the Tender Price. 
	&bull;&nbsp;Understand different pricing strategies used when preparing procurement documentation 
	&nbsp;</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Due Date: 2013-09-30</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Assignment: 
 
	Assignment&nbsp; No: ASS M4.A09 

	 
	Difference between estimating, budgeting and tendering.

	 
	The assignment is based on the School project which forms part of the overall Heritage Case Study. You may assume that you are responsible for one of the following engineering disciplines for the project:

	 
	&bull;&nbsp;Civil engineering works 
	&bull;&nbsp;Electrical services 
	&bull;&nbsp;Mechanical services

	The initial feasibility and detailed pre-tender project estimates are described in Clauses 2.1 and 7.1 of the Case Study. 
	&nbsp;

	&bull;&nbsp;Provide a very brief explanation of how you arrived at your feasibility stage estimate based on methods used in your workplace

	 
	&bull;&nbsp;Motivate, with reasons which of the following pricing strategies you recommend be used to develop the tender documentation: 
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; o&nbsp;Fixed price with schedule of rates 
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; o&nbsp;Fixed price with bill of quantities 
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; o&nbsp;Remeasurement contract

	 
	&bull;&nbsp;The client instructs you to draw up the document on the basis of a fixed price with a bill of quantities. Describe the headings of the main sections of the bill of quantities that you will produce. (Hint: you must base the answer on an actual bill which has been used in your workplace).

	 
	&bull;&nbsp;Explain the difference between the project estimate and the project budget (less than 50 words)

	 
	&bull;&nbsp;At what stages during the project would you expect budget reviews to be undertaken and how would you use these to exercise cost control

	(Note to Students: Be aware that, depending on the professional team structure and procurement strategy applicable to the project, the Structural Engineer, and possibly the Mechanical/Electrical Engineer, may not be responsible for financial matters such as estimates,&nbsp; bills of quantities and financial administration of the project)</td>
 </tr>
 <tr>
 <td valign="top">Reading and Resources: 
 
	Presentation: M2. P07, P08, P09, P10: Construction Financial Administration 
	Presentation: Estimating, Escalation, Contract Financial Administration: Giuseppe Marra 
	ECSA Scope of Services and Determining Professional Fees June 2013 
	Heritage Project Case Study 
	Student Notes: Role of the Consulting Engineer in Project Delivery 
	Student Notes: Financial Processes During Project Delivery 
	ASAQS Various documents related to Standard Systems of Measuring Building Work 
	SABS 1200 
	COLTO Measurement 
	Website: CIDB</td>
 <td valign="top">Pre-Reading: 
 </td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Notes: </td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Module Convenor: Celia Mullane (MBA) 
 011 325 2695&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;082 891 8057&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="http://www.cesa.co.za/cesanet/modcontact.php?id=3&amp;facilitator=1">send Celia Mullane a message</a>
</td>
 </tr>
 </table></body></html>