4 - Cost Management Flashcards
Match each of the phases of a construction project to the corresponding estimating method and then select the appropriate answer. The same estimating method may be used more than once.*
Project phase
1) The functional and technical program for a residential-care centre with 126 beds
2) The budget validation of the construction documents for a new bank branch
3) The schematic design for a 100-m2 addition to a residence with a clay-brick cladding
Cost estimation method
a) Elemental cost
b) Area
c) Volume
d) Unit use
A) 1a, 2c, 3b
B) 1b, 2a, 3c
C) 1b, 2c, 3c
D) 1d, 2a, 3b
E) 1d, 2c, 3c
D) 1d, 2a, 3b
True or false? Tenderers may inflate prices in good economical time and reduce in tie of recession
True.
True or false? Adding a policy such as LEED decrease the price of a project.
False, adding policies (LEED, Passive Haus, ASHRAE, etc) Increase the price of a project however, many governmental grants are applicable in such projects.
How are site characteristics may influence the cost of a project?
- Unusual or unaccounted subsurface condition
- Hazardous waste, decontamination
- Proximity to adjacent buildings additional soil retention or underpinning required; room for construction crew;
- Topography: retention wall, additional excavation
How does the politics and economics are influencing the cost of a project?
- Inflation rates
- Politic stability can drive off the prices
- Wars, disputes, strikes
- union vs non union
- Exchange rate for imported materials
- Supply chain interruption
- Market conditions
- Policies (LEDD, PH, etc.)
Is it more or less expensive to build in the city (vs suburbia and remote)?
- Suburbia is the cheapest - non complicated site, room for construction crew, not crazy far
- City site can be expensive because of competition and difficulty to access site, crane may be required because no room for material/crew, etc.
- Remote location is expensive because of the distance to supply materials, less or imported manpower, etc.
How can the design help with cost control? (8)
Structure material
Building height
Building form
Finishes
Mech, elec, struc - tradeoffs between systems; type of system
Planned life cycle of the project
Off the shelf vs custom made
Sustainable design certification, depend on the city
How can the client & owner drive up the cost of construction? (12)
Unresolve or undefined brief, budget, deadlines
Delays in paying the contractors
Out of norm requests or quality (custom made, more supervision)
Taste, objectives (finishes request, intentions to make building impressive)
Changes in scope of work
New legislation or changes in market conditions
Lack of sufficient detailed information
Change in stakeholders/partners
Accelerated project timeline
Delayed commencement/ completion date
Owners approval process
Construction scheduled around existing ongoing tenancies
Provide recommendations to a client on following a life cycle Costs
value analysis
Total cost = Capital cost+Operating cost+Maintenance cost
Capital cost: initial cost of construction (land, fess, carrying cost
Operating cost: servicing (insurance, electricity, heat, management, etc.)
Maintenance cost: repairs and renewals
Lower capital cost may result in higher maintenance cost
Different construction, technique and material will have a different life span
Maintenance cost can be substantial
Name 3 ways to evaluate the value of a building outside of economicalvalue.
- Life-cost analysis
- Valued engineering
- Embodied Energy Cost Analysis (Embodied Energy Consumption)
What is valued engineering?
Systematic procedure to determine the best optimum value for investments in a construction project
- Early in design process
- Doesn’t take into consideration the architect’s logical and intuitive design process
How do you call a cost estimate only based on previous work you’ve done? Ball-park cost
Analogous Cost Estimating
quick but inaccurate
What cost evaluation requires the most extensive efforts?
Bottom-up Cost evaluation: Breakdown structure and aggregate up to the deliverables and subdeliverables including material, installation, management, logistics, etc.
Evaluation done as part of a bid package. Requires extensive time, effort, knowledge, cost
What is Parametric Cost Estimating and what is its initial requirement?
Applies to measurement of a building, system or component
- Size of building x $/sq.m.
- Area floor x $/sq.m.
- Length of steel lintel x $/m
- Number of light fixtures x $/supply and installation
Requires an initial design
What are the pros (2) & cons (1) of the Elemental Cost using Uniformat II ?
Pros
-Process without construction or specifications
-Useful when trading off between elements to improve the quality of the project without compromising the total budget
Cons
-Cut across traditional construction trade areas, it can be difficult to compare estimated cost information with actual cost info because of a different format (Uniformat vs Masterformat)
Name 3 reasons to use the volume cost evaluation $/m3
- For specialized building like warehouse or freezer buildings
- For multi-storey building where floor area may not reflect the true costs
- As a double check for other methods
At what stage each class is done? What are the accuracy design contingencies for each class?
Class D: Pre-Design; 20-30%
Class C: Schematic Design; 15-20%
Class B: Design Development; 10-15%
Class A: Construction Document; 5-10%
En utilisant le programme suivant, quel est le budget du client, au mètre carré, pour la réalisation de son projet de construction d’un restaurant à Winnipeg?
Hall d’entrée/accueil : 10 m2
Salle à manger : 140 m2
Cuisine : 65 m2
Dépôt réfrigéré : 15 m2
Salle de poubelles : 6 m2
W.C. : 12 m2
Circulation, murs, cloisons : 10 %
Budget de construction : 400 000 $
10+140+65+15+6+12=248 (m)
248*10%=24.8 (m) (circulation, murs, cloisons
248+24.8=272.8
400 000/272.8=1, 466.28
Answer: The budget is $1, 466.28/m2
What are the 8 main factors influencing cost?
1 - Economic + Political
2 - Env.
3 - Building Type
4 - Owner / Client
5 - Proj. Rqrmts
6 - Proj. Delivery
7 - Owner Timetable
8 - Other
What about an economic / political climate might influence costing? (4)
1 - Inflation (follow trends / carry allowance)
2 - Market Conditions (ex: low demand = high cost)
3 - Other (unions, exchange rates..)
4 - Political and Social Climate (ex: approval often affected by election timing)
How might Environmental factors influence cost? (3)
1 - Site Characteristics (ex: adj. buildings, odd topo or soil, contamination or removal)
2 - Weather / Season (ex: Hoarding = $$$)
3 - Location (ex:urban = $$$ vs suburban and remote=$$$)
How can a client/owner influence cost? (4)
- Unresolve or undefined brief, budget, deadlines
- Delays in paying the contractors
- Out of norm requests or quality (custom made, more supervision)
- Taste, objectives (finishes request, intentions to make building impressive)
How might the type of construction delivery influence cost? (main 4)
1 - Stipulated Price Contract (Design Bid Build)
• price known before build but many ‘extras’ (changes)
2 - Construction Management
• adds $ for another consultant (and redundancy in services may occur)
• but provides careful monitoring of costs
3 - Design Build
• cost benefit analysis done early
• owner commits to program early
4 - Public Private Partnership (P3)
• ‘best value’ not always achieved (low cost = driver )
• shifts risk to private sector
How might the BUILDING TYPE + DESIGN influence cost? (main 4)
1 - simple wood residential or complex steel hospital
2 - construction method
3 - planned life of structure
4 - height / finishes
# Define (2) this method of costing and list pros/cons(2): CLASSES of COST ESTIMATES
- arranged by MASTERFORMAT
- used by CONTRACTORs
+ easy to retrieve info
+ info CURRENT / RELIABLE
- rqrs estimator with DESIGN+CONST. experience
Define (2) the ELEMENTAL COSTS method of costing and list pros/cons(3):
- arranged by MAJOR ELEMENTs (divide building)
- uses costs established on other jobs
+ process can proceed WOUT DWGs
+ useful DURING DESIGN
- hard to CHECK
Who uses the AREA (cost/m2) method of costing? List pros/cons(3):
• used by architects for GENERAL COSTING ONLY
+ floor area EASY for all building types
+ EASY for all to understand
- does not account for unique conditions
What is the VOLUME (cost/m3) method of costing used for(2):
- used for refrigeration
- used as double check against other costing
What are the 6 steps of value analysis?
1 - COLLECT data
2 - functional ANALYSIS (how is it performing)
3 - ALTERNATE options
4 - ASSESS feasibility of options
5 - RECOMMEND
6 - IMPLEMENT + monitor
CAAARI
When critiquing a client’s budget VS the PROGRAM what should the architect consider? (5)
(enough $?)
1 - cost/m2
2 - SME systems
3 - Proj. Delivery Method
4 - Unusual Site Conditions / Location / Weather
5 - Client’s Vision + Aspirations
When critiquing a client’s budget VS the CONDITIONS OF COMPLETION what should the architect consider? (4)
1 - Pre-Design / Programming
2 - Coord of SME
3 - Commissioning
4 - Post Project Evaluation
What is the CPI and who typically publishes it?
Construction Price Index, published by Gov. Agencies + Private Companies
(shows trends)
What are the pros/cons of Quantity Surveyors? (2/2)
+ success based on track record
+ can double check for credibility
- unit costs = HISTORIC (not current)
- detailed cost info cannot be broken out of trade divisions
Define construction cost, project costs, overall costs, Life Cycle Costs
Construction costs: HARD Costs: materials / labour (excl. land purchase)
Project costs: HARD + SOFT (inc. consultant fees + land purchase)
Overall costs: HARD + SOFT + OTHER: interest / mkting / legal etc
Life Cycle Costs: CAPITAL (inc. land purchase) + OPERATING + MAINTENANCE
Match each of the following building types to the appropriate price bracket ($/SF).
up to 100, 101-200, 201-300, 301-400
Elementary School
Warehouse
Regional Hospital
Fire Station
- up to 100 Warehouse
- 101-200 Elementary School
- 201-300 Fire Station
- 301-400 Regional Hospital
How does the building type and design influence the cost (8)?
- Structure material
- Building height
- Building form
- Finishes
- Mech, elec, struc - tradeoffs between systems; type of system
- Planned life cycle of the project
- Off the shelf vs custom made
- Sustainable design certification, depend on the city
What resources can be used when preparing a cost estimate?
- Cost Consultants
- Quantity surveyors - Based on historic data
- Construction managers and other development/construction experts
- Construction Price Index - show trends
- Publications - Construction cost data
- Contingencies
- HIgher for renovation
- Reduce when we get more info and project progress
