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Unit: Planning and costing

LMFFL3001A: Plan and cost flooring technology work

Section 4: Estimating costs

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Cost estimation is the process of working out how much to charge for an installation project.

The estimates you come up with will be based on the information you've collected in your site assessment and the knowledge you have about pay rates, product prices and time allowances.

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It's not an exact science, because you can never know in advance whether everything will unfold the way you expect it to.

But a good estimator is able to be accurate enough to win a job with a competitive price and still make a reasonable profit for the company.

In this section, we'll look at the main categories of costs that need to be allowed for, and discuss the process of adding all the components together to arrive at a total price.

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Completing this section

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The assignment for this section is designed to test your ability to calculate the cost estimates for three different installation projects and prepare formal quotations.

Have a look at the Assignment now to see what you'll need to do to complete it. You'll find the link in the menu bar.

Also in the menu bar are links to the lessons for this section:

  • Material costs

  • Labour costs

  • Overheads

  • Profit mark-up and GST

  • Using contract rates.

These lessons will provide you with background information that will help you with the assignment.

The Just for fun exercise will give you practice in identifying the correct cost categories for a range of expense items.

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