ASSIGNMENT 08

Cost Estimating

Directions: Be sure to make a copy of your answer before submitting it for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Your response should be a minimum of one (1) single spaced page to a maximum of two (2) pages in length.

To increase your knowledge of the building cost estimating field, reflect on the work you have done in this course and in particular, on Chapter 19—Profit. There is little available information published on how to calculate profit for a project or what a reasonable profit is, so there will be no single right answer to this writing assignment. Your response will be based upon your experiences. Describe in a written essay how you would calculate the profit to be added to a project. If you have a project in mind, use that as an example, but if not, make up one. You do not have to prepare an estimate for this exercise, but you must consider many of the different types of work we have learned about, and each will likely have labor, materials, equipment, and subcontractor costs.

1. Provide a brief description of the project you have selected.

2. Describe three (3) considerations you would make in calculating the profit for this project.

3. Describe the process that you would use to calculate the profit. Provide two (2) supporting facts that justify your method.

4. Describe three (3) reasons why your method is fair and reasonable.