*Budgeting & Cost Estimating Flashcards
(8 cards)
What are CAPex items?
furniture and equipment expected to have a lifespan extending beyond the current budget year. These are physical assets financed with costs depreciated over time, such as guest room furniture
What are OPex items?
the day-to-day costs of operation and maintenance and items with a short lifespan, which are expected to be replaced and deducted within the current tax year, such as certain linens or candles used in the restaurant.
What is the square footage method for cost estimating and when and why would it be used?
budgets based on size. The anticipated square footage of the project is multiplied by a cost per square foot.
- the most preliminary type of estimate
What is the parameter method for cost estimating and when/why would it be used?
Parameter method involves an expanded itemization of construction quantities and furnishings and assignment of unit cost to these quantities.
- can be used once the interior designer and client have a better idea of the exact scope of work
What is matrix costing?
a technique in which a matrix is drawn with the various alternatives along one side and the individual elements that combine to make up the total cost or the alternatives along the other side.
What is a detailed quantity takeoff and when/why would it be used?
This is developed by counting actual quantities of materials and furnishings and multiplying these quantities by firm, quoted costs.
- This is the most precise method
-Cannot be done until late in the design and construction document phase
What is Life-cycle analysis
method for determining the total cost of a building or building component or system
What method enables the designer and owner to evaluate the cost implication of each building component and to make decisions concerning both quantity and quality that might meet the original budget estimate?
parameter and matrix costing
