Cost Estimating - Theory & Concepts

Methodologies for cost estimation, quantity takeoff, and unit price analysis.

Calculate total direct and indirect costs by adjusting labor, materials, equipment, and overhead.

Labor Cost (

C_{\text{labor}}

)$50,000

Material Cost (

C_{\text{mat}}

)$100,000

Equipment Cost (

C_{\text{equip}}

)$30,000

Overhead & Profit (

O_{\%}

)15%

C_{\text{direct}} = C_{\text{labor}} + C_{\text{mat}} + C_{\text{equip}}

C_{\text{overhead}} = C_{\text{direct}} \times \left( \frac{O_{\%}}{100} \right)

C_{\text{total}} = C_{\text{direct}} + C_{\text{overhead}}

Total Direct Cost$180,000

Overhead & Profit (15%)$27,000

Total Estimated Cost$207,000

Labor

Materials

Equipment

Overhead

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