How do you estimate steel fabrication and erection costs in your bid?

1 Scope of work

The first step to estimate steel fabrication and erection costs is to define the scope of work. This includes the quantity, quality, and specifications of the steel materials, as well as the design drawings, codes, and standards that apply to the project. You should also identify the scope of services that you will provide, such as shop drawings, engineering, fabrication, delivery, erection, welding, bolting, testing, and inspection. The scope of work will help you determine the level of detail, accuracy, and complexity of your estimate.

2 Material costs

The next step to estimate steel fabrication and erection costs is to calculate the material costs. This includes the cost of raw steel, such as plates, beams, columns, bars, and tubes, as well as the cost of any accessories, such as bolts, nuts, washers, anchors, clips, and connectors. You should also factor in the cost of any protective coatings, such as paint, galvanizing, or fireproofing, that are required for the project. You can use the current market prices of steel and accessories, or consult with your suppliers for quotations. You should also account for any waste, scrap, or contingency factors that may affect the material costs.

5 Risk factors

The fifth step to estimate steel fabrication and erection costs is to evaluate the risk factors. This includes the factors that may increase or decrease the costs, such as the project location, site conditions, weather, schedule, quality, safety, and changes. You should also consider the factors that may affect the profitability, such as the competition, market demand, customer expectations, and contract terms. You can use the historical data, industry benchmarks, or expert opinions to estimate the risk factors, or consult with your risk managers or insurance agents for advice. You should also account for any contingency, markup, or profit margins that may affect the final bid price.

6 Estimation methods

The sixth step to estimate steel fabrication and erection costs is to choose the estimation methods. This includes the methods that are used to calculate the costs, such as the unit cost method, the assembly cost method, the parametric cost method, or the detailed cost method. Each method has its own advantages and disadvantages, depending on the level of detail, accuracy, and complexity of the estimate. You should also use the appropriate software, tools, or templates to facilitate the estimation process, such as spreadsheets, databases, calculators, or estimation software. You should also verify, validate, and document your estimate, and review it with your team, client, or stakeholders.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?