Chapter 18 - Cost Estimating and Budgeting

Question 1

what is one of the most important parts of the programming or design process?

Answer 1

establishing a budget early on

it influences so many design decisions and can help determine whether a project is even feasible

Question 2

three interrelated aspects of budgets:

Answer 2

Quantity
Quality
Money

changing one affects the others

Question 3

Many factors affect the final project cost. These include:

Answer 3

• construction costs
• furniture, fixtures, and equipment
• contractor’s overhead and profit
• professional fees
• taxes
• moving costs
• telephone and data system installation
• contingencies
• financing
• inflation factor (for large projects that take a long time)

Question 4

items that are part of the FF&E budget

Answer 4

• furniture
• appliances
• freestanding equipment (vending, library bookshelves, etc)
• window coverings
• rugs and mats
• interior plants and planters
• lamps
• artwork
• accessories

Question 5

contractor’s overhead and profit has two fees:

Answer 5

-General overhead:
office rent, secretarial help, utilities, etc.

-Project overhead:
temp offices, project telephones, trash removal, insurance, permits, and temp utility hookups

Question 6

total overhead fees for the contractor can range from ___ to ___

Answer 6

10% to 20%

Question 7

contractor’s profit can range from ___ to ___ %

Answer 7

5 to 15

Question 8

taxes. if the interiors designer buys furniture, accessories, and other purchased items, what must happen?

Answer 8

the interior designer must collect tax from the client and pay it to the appropriate taxing jurisdictions

if a client has a total budget for purchased items, the tax must be deducted from the top so the designer knows how much

Question 9

typically contingency fee

Answer 9

5-10% of the total budget

Question 10

what is the first type of budget that is normally done for a project?

Answer 10

a budget based on the square footage

Question 11

when doing square footage budgets, is it good to do more than one?

Answer 11

yes- show low, medium, and high cost-per-square foot so the owner can see the possible range

Question 12

What is parameter budget?

Answer 12

it comes after square footage budgets. involves an expanded itemization of construction quantities and furnishings and assignment of unit costs to these quantities.

ex: floor finishes can be broken down into carpeting, vinyl tile, wood strip, etc . the areas are multiplied by an estimated cost per square foot and the total budget for flooring is developed.

budget pricing on furniture layout by using typical numbers

Question 13

what’s good about a parameter budget?

Answer 13

it is possible to evaluate the cost implication of each building component and to make decisions concerning both quantity and quality that meet the original budget estimate

Question 14

what is matrix costing?

Answer 14

a matrix is drawn with the various alternatives along one side and the individual elements that combine to make up the total cost of the alternatives along the other side

Question 15

What type of budget comes after a parameter budget?

Answer 15

detailed quantity take-offs

Question 16

two conditions that must be accounted for in developing an project budget

Answer 16

geographic location and inflation

these variables can be adjusted by using cost indexes that are published in a variety of sources, including the major architectural and construction trade magazines

Question 17

what’s the difference between a life cycle cost and a life cycle analysis?

Answer 17

life cycle cost: method for determining the total cost of a building or building component or system. taken into account initial costs, operational costs, maintenance, replacements costs, finance costs, and residual value

life cycle analysis: analyzes the environmental impact of a product or building system over the entire life of the product or system