Flashcards in 6 - CE Deck (169)
for the programming phase, what are 3 ways cost estimates can be performed?
1. unit cost, such as per hospital bed, per theater seat
2. historical data based on similar type of projects perviously completed
3. cost per sq.ft.
what cost estimating method is used during the SD phase?
preliminary, rough; based on major elements, such as structural system, MEP systems
what cost estimating method is used during the DD phase?
detailed pricing based on the actual components being considered, including windows, curtain walls, finishes, & equipment
what cost estimating method is used during the CD phase?
complete & final pricing based on direct quotes from suppliers, installers, sub-contractors, & manufacturers
can only be done once nearly everything in the building has been specified, a great deal of effort
final check before construction begins, allows for revision to design as needed to meet budget
what factors can have an effect on cost estimates?
- availability of labor & material, labor rates, material prices, resources to produce material, convenience of transportation, location (more remote = more costly), less predictable costs in rural areas
- high interest rates = less housing construction = lower material prices
- increased cost of living = increased union wages & higher labor costs
what is the typical profit margin factored into the construction cost estimate?
15-20% for small projects
10-15% for med-large
5-10% for very large
what are the typical fees of the MEP consultants?
as a % of construction cost:
mechanical = 15%
electrical = 12.5%
civil = 10.5%
structural = 9.4%
cost estimating with parameter costs can be adapted to a city by using _____ or adding an inflation factor
ENR 20 Cities Building Cost Index
what is a pro-forma, who does it, and during what phase of a project is it typically done?
financial analysis of the building project showing costs & ROI
typically done by client at beginning of project to determine if project will be profitable
what is general obligation bond?
a municipal bond that is issued when a state or local government wants to raise money for a project
shareholders are guaranteed to be repaid using future tax revenues
what is a revenue bond?
a type of municipal bond
shareholders are promised payment form the revenue collection of the projects (e.g. tolls from a new bridge)
interest rates are higher than general obligation bonds
describe the 5 phases many firms use to help in cost estimating
pre-planning/proposal phase: unit cost coming from occupancy of building
programming: function of spaces & unit costs come from similar buildings
SD: begin to determine major elements & systems in buildings
DD: more defined materials
CD: finishes in place, should reflect pre-bid cost breakdown
federal tax benefit given for the decrease in the value of assets over time
with regard to project budget, how are quantity & quality related?
a change in one will result in a change in the other
what 4 conditions are out of the architect's control when it comes to cost estimates?
- market conditions
- inflation & cost of goods & services
- contractor means & methods of construction
- unknown site conditions
what is the project development budget?
the budget for the entire project, including but not limited to site acquisitions, construction costs, professional service fees, permit & inspection costs, financing costs, & contingencies
name 7 steps in the project development budget
1. site acquisition & purchase
2. construction: off-site & on-site
3. professional services (architect, engineers, & consultants)
4. miscellaneous fees (bids, permits, or reports)
5. inspections & testing
7. financing costs
what are 5 contract elements between owner & architect?
1. description of services to be provided
2. fees or services
3. name, address, & license number of architect
4. provision for additional services
5. termination clause
which method of compensation for architectural services reduces the risk to the architect?
direct personnel expense
instead of a multiple of employee salaries, the client is billed for the salaries of staff working on the job, plus the cost of their benefits, and a set amount for overhead & profit
since the is the exact cost of the employee for the architect, this approach is best for new clients with speculative work, as it minimizes risk to the architect
multiple of direct salary expense, direct personnel expense, and hourly billing rate are all examples of what type of billing method?
these are all time-based methods of billing
define fast track schedule
construction documents are issued in phases, construction begins while design is still being completed
describe a typical project schedule, itemized by phase
SD - time to complete affected by size & complexity, quality of client's program information, decision-making ability of client, design team (usually 1-2 months)
DD - time to complete affected by complexity of project (usually 2-6 months)
CD - affected by complexity of project (usually 3-7 months)
Bidding & Negotiation - usually 3-6 weeks
CA - varies depending on size/complexity of the project; may require years to complete
name at least 4 negative effects that might be experienced from shortening the project schedule
- overtime work: costly & inefficient
- hire mor people: inexperience, time to train
- reduce man hours: poor quality of drawings
- overall, causes higher costs for design & construction, and lower quality project
define CPM (critical path method)
path with the longest required time is the critical path, and the activities on that path are called critical activities
reducing the critical path reduces the whole schedule & increases job costs, but decreases overhead costs
describe what happens when a project is fast tracked
also called accelerated or telescoped
CD's are issued in phases, requires coordination and precludes against major design revisions
requires staged bidding - may get many contractors & therefore makes it hard to get a fixed price early on; usually needs a CM to oversee
who is responsible to pay for labor & materials?
the contractor (unless otherwise provided for in the contract documents)
does a contract allowance cover labor, installation, or overhead costs?
no - only covers cost to contractor of materials & equipment delivered to site & all required taxes
costs for unloading, handling, labor, installation, overhead, & profit are not included in allowances (included in contract sum instead)
if a construction change directive provides for an adjustment to the contract sum, what is the adjustment based on?
1. mutual acceptance of a lump sum properly itemized & supported by sufficient data
2. unit prices stated in the contract documents or subsequently agreed upon
3. cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee
AIA A201 7.3.3
what items does the architect assist the owner with during the bidding or negotiation phase?
1. establishing a list of prospective contractors
2. obtaining either competitive bids or negotiated proposals
3. confirming responsiveness of bids or proposals
4. determining the successful bid or proposal
5. awarding and preparing contracts for construction