Types of International Project Estimates

International Project Estimating Limited

International projects normally bring together parties from all over the world that create unique problems from bidding in different currencies, procuring suppliers from different countries and estimating using different measurement systems.

International Estimators must prepare estimates in multi-currencies and both metric and imperial measurement systems.

International estimating involves bidding on a wide range of projects from Build Own Operate, Design Build, Project Management and Bid Build Construction Contracts.

Country Flags

Build Own (BOT) Projects: These Projects normally involve Public Private Partnerships, brought together to jointly bid and develop these projects over an extended concession period,

Contractors, Operators, Equipment Suppliers and Engineers create Joint Venture Development Companies to Design, Construct and Operate these Infrastructure Projects. Estimates must be prepared for the Capital Cost of Construction, Equipment, Rolling Stock, Operation & Maintenance, Concessionaire Expense and Financing.

This creates unique problems associated with satisfying all the demands of the various parties involved. Detailed Cash Flows must be prepared in multi-currencies to accurately predict the return on investment in order to procure Project Financing.

On International BOT Projects cash flow schedules must be prepared simultaneous in different currencies. All reports are automatically generated into Excel format for integration with Financial Models.

Design Build Projects: These projects require multiple estimates to be created during the life of a project. The projects require separate estimates for Design and Construction activities.

When the Project is first conceived, Conceptual Estimates are prepared based on space and use requirements only. The International Project Estimating System allows users to import and prorate unit costs based on project size from a library of unit rates or directly from previous estimates in order to prepare conceptual estimates. As the project evolves, the conceptual bid can be replaced with detailed estimates or proposals from subcontractors and suppliers.

Project Management Projects: Many large Industrial Projects are constructed using the Project Management model. These projects are often too complicated to accurately define the scope of work early on in the project.
Complex Work-breakdown Structures (WBS) must be prepared to organize the project into distinct procurement packages that can be tendered out to specialty sub-contractors. The estimator must create multi-level breakdowns as well as sort the estimate by Procurement Bid Package, Workgroup and Location.
When closing International Estimates, the Estimator must compare and award tenders on individual items or complete packages. The estimator must also allow these costs to be entered in their currency of origin.
Industrial Projects are often designed in modules. These modules can be saved and imported into other estimates that require similar assemblies that can be updated to reflect the productivity, resource rates and the currency of the current project.

Bid Build Construction Projects: The majority of International Project Estimating still involve bidding hard money Construction Contracts. The estimator must develop a library of resource rates including; labor, equipment, material and subcontracts. The labor and equipment resources can be built into crews and various material resources combined into material assemblies.

The above elements are common to all domestic and international projects. When bidding International Projects the estimator must have the ability to create multiple rates for the same resource in the same file in multiple currencies in both metric and imperial measurement systems.

The estimator selects standard crews with production rates or conceptual unit rates from a standard resource file or enters resources directly into the bid on the fly. The system selected should let the estimator import a list of items directly from digital files prepared by the client or other members of the proposal team.

When bidding on unit price Civil Contracts, overhead and profit can be spread and unbalanced over the bid items. When bidding on hard money Building Projects, a system that includes a Bid Closing Module for comparing and selecting last minute quotations from suppliers and subcontractors is crucial. On Industrial Contracts the estimator must be able to enter and compare quotations on subcontract packages. When performing takeoffs for mechanical piping projects it is useful to have the ability to link external digitizing boards to the Takeoff Assembly Module within the estimating process.

The Technology Required to Estimate all Types of International Projects:

International Estimators should be committed to keeping pace with the latest technology.

Estimators should be able to work alone, work in a network environment or logon through the internet. The estimating system used should allow the estimator to e-mail their reports in common formats so their client's can review the work easily. Multiple users should be able to work on the same bid at the same time. Estimate reports and resource files should be able to be saved on the network, on your desktop or e-mailed to remote offices through the internet.

The estimating system should have the option of generating reports directly into Excel format. These reports can then be distributed via e-mail to management, partners and clients or inserted directly into proposals.

The Process required for all Types of International Estimates:

In summary the process for bidding on all types of International Construction Projects can be summarized as follows;

Bid Summary: Summarize estimates according to Direct Costs, Plant Costs, Indirect Costs, Engineering and Project Management.

Work-breakdown (WBS): Create an unlimited number of drill -down summary levels.

Import List of Items: Import lists of items prepared in excel and import into the estimate work-breakdown.

Work Assemblies: Import pre-set assemblies of work from resource files or previous estimates.

Conceptual Estimating: Bid based on historical unit rates or import complete assemblies from other estimates.

Design & Development: Keep design, & development costs separate from construction costs.

Procurement Packages: Compare & award subcontract and material supply packages.

Multiple Currencies: Estimate costs in the currency of origin.

Export Cash Flows: Create cash flow schedules in multiple currencies and export to Financial Models.

Chart Resource Loading: plot selected resources over time.

Report in Excel Format: Generate reports directly into Excel Format for insertion into proposals.

Resource Files: Create multiple resource files. The same resource can have multiple rates in different currencies and measurement systems.

Resource Breakdown: Generate Payroll Burden Formula. Summarize Equipment Ownership Costs and Operating Costs.

Quantity Takeoffs: Link directly to external digitizer boards.

Standard Crews: Bid using standard crews & production rates or utilize man-hour factors.

Bid on the Fly: Enter resources by selecting from the resource file or create and enter resources and crews directly into the bid.

Spread Unit Prices: spread and unbalance unit prices automatically.

Alternate Bids: Create alternate bids for the same item in the bid, compare subcontract bids against your estimate

Windows: use true 32 bit technology, Windows 9x/ME/NT/XP, VP6 Active X, Internet Compatible, SQL Compatible.

Multi-user or Standalone: have the capability to work alone or in a network environment.

Operate Remotely: have the ability to logon remotely through the internet.

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