ARE_Budgeting Flashcards
(20 cards)
What does the project delivery method impact in budgeting?
It dramatically impacts the budgeting process, including how and when costs are estimated.
How is an assemblies-type cost system used in Design-Bid-Build?
To compare alternatives and align design with budget during the design phase.
In Design-Bid-Build, what is the budgeting goal?
To facilitate discussion with the owner and ensure the design fits the budget.
What is the primary budgeting concern in Design-Build?
Controlling costs through value engineering to meet a pre-agreed contract price.
Why is value engineering essential in Design-Build?
Because the project must meet the contract price; overruns cut into the contractor’s profit.
How does Fast-Track impact budgeting?
Costs are broken into separate packages and estimated as each design portion is completed.
Why is assemblies analysis not used in Fast-Track?
Because the entire building isn’t designed at once, making a complete assemblies estimate impossible.
What budgeting challenge arises with Multiple Prime?
Assemblies may be divided between multiple contractors, requiring disaggregation of costs.
What should be your default assumption about project delivery in exam questions?
Assume Design-Bid-Build unless otherwise stated.
How should cost estimating approaches vary?
They must align with project delivery type—e.g., assemblies for Design-Bid-Build, value engineering for Design-Build.
What makes a budget accurate?
Aligning the estimate with actual design conditions, materials, systems, and performance goals.
When should adjustments to budget estimates be made?
Throughout design development, based on updated program and system decisions.
How is a budget used in decision making?
To evaluate and compare design options and ensure design aligns with cost constraints.
What is lifecycle costing?
A method of evaluating costs including first cost, maintenance, replacement, and energy use over time.
What is a logical way to evaluate HVAC options like a chiller vs DX rooftop units?
Lifecycle cost analysis, including maintenance, longevity, energy use, and replacement costs.
Why are DX rooftop units potentially less cost-effective long-term?
They degrade faster due to weather exposure and require more frequent replacement.
What must be considered when transferring a cost estimate between locations?
Location factors—regional cost differences can significantly affect pricing.
Why can’t you use a Louisiana school’s cost for a San Jose project directly?
Because San Jose has a much higher cost of construction; adjustments via location factors are required.
When is the ideal time for value engineering?
At the end of Design Development, before Construction Documents are finalized.
Why is late value engineering problematic?
It may require redrawing CD sets, often without additional compensation, if bids come back over budget.
