Detailed Cost

The detailed cost estimate will be determined from the detailed construction drawings of the project and the completed project

Design

%13

Materials

%38

Fabrication

%27

Coating

%10

Erection

%12

Figure 6.1 Percentage of cost for steel structures.

Table 6.4 Percentage of steel structure costs

Item

Percentage from the Total Cost, %

Percentage of Cost for Connection, %

Percentage of the Connection Cost, %

Preliminary design

2

33

0.7

Final design

3

55

1.7

Detail drawings

8

77

6.2

Total design cost

13

8.6

Material

38

40

15.2

Fabrication

27

63

17

Painting

10

35

3.5

Erection

12

45

5.4

Total percentage

100

49.7

specifications. The engineering office calculates the estimated cost based on the experience of the contractors who carry out the construction of such projects, as well as the expected profit. This depends on the engineering expertise of the office. The costs for supervision borne by the owner should also be included.

The contractor calculates the cost for the tender to be included in the bidding, presenting it to the owner in the form of a bid or offer,

or as the starting-point of negotiating his price. Often the contractor arrives at a price estimate of relatively high accuracy, in order to ensure that the work carried is out according to the financial terms governing the project. Most construction companies have a proce­dure to calculate the cost of construction of the project and to develop appropriate pricing of the tender.

Some work, facilities or equipment will be delivered by subcon­tractors. The general contractor studies subcontractors’ offers and chooses the best price, adding on his percentage of indirect costs and profits.