Last edited 23 Apr 2020

Operational rate estimating

Contents

[edit] Introduction

Operational rate estimating is a method used to calculate building costs. In operational rate estimating a distinct parcel of work is priced as a package. This is as opposed to projects where each unit of the bill of quantities are priced individually.

The estimator will still need to calculate all the individual items that are required in unit rate estimating , such as labour, plant and materials, but the key difference in operational estimates is that the estimator views a section of the work as a whole rather than as a set of separate items.

[edit] Operational Rate

Operational rate estimating is commonly used in the civil engineering industry. This is generally due to the larger quantities involved in civil engineering projects. The plant and machinery required in civil engineering works can also play a more significant role in the project. Operational estimating is preferred in plant-dominated projects.

Operational rate estimating can also be be used for pricing in design and build contracts where the contractor is responsible for their own pricing methods and a bill does not have to be produced.

The estimator will calculate all the resources needed for parts of the construction packages together rather than in isolation. Operational estimating will involve forecasting the cost of completing a construction operation, which may consist of many bill items.

Operational estimating will require a completed:

It is usually beneficial for the estimator to work alongside the operational teams to prepare the resource schedules and programmes as they may require comparative estimates or cost alternatives to help adopt the most suitable approach and achieve value for money.

Typical packages in operational estimating are:

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