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The detailed cost estimating process, like the manufacture of a product, is comprised of parallel and sequential steps that flow together and interact to culminate in a completed estimate. Figure 70.1 shows the anatomy of a detailed estimate. | CHAPTER 70_ DETAILED COST ESTIMATING Rodney D. Stewart Mobile Data Services Huntsville Alabama 70.1 THE ANATOMY OF A DETAILED ESTIMATE 2118 2119 70.7 70.8 FUNCTIONAL ELEMENTS DESCRIBED PHYSICAL ELEMENTS DESCRIBED 2125 2125 70.1.1 Time Skills and Labor-Hours Required to Prepare an Estimate 70.2 DISCUSSION OF TYPES OF 70.9 TREATMENT OF COSTS 2121 RECURRING AND 70.2.1 Initial Acquisition Costs 2121 NONRECURRING 70.2.2 Fixed and Variable Costs 2121 ACTIVITIES 2128 70.2.3 Recurring and Nonrecurring Costs 2121 70.10 WORK BREAKDOWN 70.2.4 Direct and Indirect Costs 2121 STRUCTURE INTERRELATIONSHIPS 2128 70.3 COLLECTING THE 70.10.1 Skill Matrix in a Work INGREDIENTS OF THE Breakdown Structure 2128 ESTIMATE 2121 70.10.2 Organizational 70.3.1 Labor-Hours 2121 Relationships to a Work 70.3.2 Materials and Subcontracts 2122 Breakdown Structure 2129 70.3.3 Labor Rates and Factors 2123 70.3.4 Indirect Costs Burden 70.11 METHODS USED WITHIN and Overhead 2123 THE DETAILED 70.3.5 General and Administrative ESTIMATING PROCESS 2129 Costs 2123 70.11.1 Detailed Resource 70.3.6 Fee Profit or Earnings 2123 Estimating 2129 70.3.7 Assembly of the 70.11.2 Direct Estimating 2129 Ingredients 2123 70.11.3 Estimating by Analogy Rules of Thumb 2129 70.4 THE FIRST QUESTIONS TO 70.11.4 Firm Quotes 2129 ASK AND WHY 2124 70.11.5 Handbook Estimating 2130 70.4.1 What Is It 2124 70.11.6 The Learning Curve 2130 70.4.2 What Does It Look Like 2124 70.11.7 Labor-Loading Methods 2131 70.4.3 When Is It to Be 70.11.8 Statistical and Parametric Available 2124 Estimating as Inputs to 70.4.4 Who Will Do It 2124 Detailed Estimating 2131 70.4.5 Where Will It Be Done 2124 70.12 DEVELOPING A SCHEDULE 2132 70.5 THE ESTIMATE SKELETON THE WORK BREAKDOWN 70.13 TECHNIQUES USED IN STRUCTURE 2125 SCHEDULE PLANNING 2134 70.6 THE HIERARCHICAL 70.14 ESTIMATING ENGINEERING RELATIONSHIP OF A ACTIVITIES 2134 DETAILED WORK 70.14.1 Engineering Skill BREAKDOWN STRUCTURE 2125 Levels 2134 Adapted from Rodney D. Stewart Cost
