Ch 7 Coordinating Budgeting Scheduling

Question 1

What phase of design includes coordinating the work of consultants, integrating the design with teh applicable building systems, making sure all the requirements of codes and regulations are met, start budgeting the project based on the client’s resources, and developing design and production schedules for his/her work?

Answer 1

Schematic Design

Question 2

Who is responsible for coordinating the efforts of the designer’s office as well as everyone on the building team who is under contractual agreement with the designer?

Answer 2

Interior Designer

Question 3

When should the interior designer involve the consultants on a project?

Answer 3

a early as possible - their advice is vital to determining the scope of the project, developing broad conceptual approaches to solving client’s problems, and underingstanding the concerns of the client and other design professionals working on the project.

Question 4

What is one of the most important tasks for the interior designer during the early stages of a project?

Answer 4

The assembly and coordination of the various consultants on the project (Structural, M, E & P at a minimum)

Question 5

If the owner contracts directly with the consultant, how does that affect the designer?

Answer 5

The designer avoids any problems with contract provisions and payments but may lose some ability to direct the consultant.

Question 6

If the designers writes an agreement directly with the consultant, how does that affect the designer?

Answer 6

The designer is responsible for paying the consultant, and he/she has more control but may encounter problems with paying the consultant’s fees if the client payment is delayed.

Question 7

Once the consultants are retained, what are the designer’s responsibilities?

Answer 7

The designer should inform consultants about applicable code requirements for the project. He/she is also responsible for informing the consultant of any design decisions that may have code implications. The designer is responsible for ensuring that the drawings and specs conform to applicable codes. THE DESIGNER IS THE PRIME CONSULTANT AND IS LIABLE TO THE OWNER FOR THE CONSULTANT’S WORK. The designer must coordinate distributing accurate copies of the drawings to the consultants and keep the consultants constantly informed of any changes to the program or the layout of the plan.

Question 8

What are the consultant’s responsibilities?

Answer 8

The CONSULTANTS ARE RESPONSIBLE FOR CODE COMPLIANCE REGARDING THEIR AREA OF WORK. By signing their drawing, the engineering consultant become responsible for code compliance. They are also responsible for accurate production of their own drawings and specs, and are responsible for checking their own documents for consistency. HOWEVER, THE DESIGNER IS THE PRIME CONSULTANT AND IS LIABLE TO THE OWNER FOR THE CONSULTANT’S WORK.

Question 9

Is code review and application started at Schematic Design?

Answer 9

No, it should begin during programming and early space planning, and should continue through schematic design.

Question 10

What code information should be checked during Schematic Design?

Answer 10

Check number of exits, minimum exit separation, maximum travel distance, common path of egress travel, exit widths, dead-end corridors, and door swings. Very detailed code requirements can be verified in design development.

Question 11

When should budgets be established?

Answer 11

Early in the programming or design process - this is one of the most important aspects of design because it influences so many design decisions.

Question 12

After a budget is set, what must a designer do?

Answer 12

The designer must work within the set budget and keep the client advised about any changes that might affect final cost.

Question 13

In what ways can intial budgets be set?

Answer 13

Preset Figure, Public Funding or Legislationm, Client Describes Extent of Work and Designer Develops Anticipated Budget

Question 14

What three elements affects a budget?

Answer 14

Money, Quantity, Quality - changing one affects the others.

Question 15

What are construction costs?

Answer 15

The moneys required to build or remodel the interior, including demo, partitions, ceilings, millwork, finishes and M, E and P work - anything attached to and part of the structure.

Question 16

How can FFE be purchased?

Answer 16

Interior designer can purchase directly (designer arranges delivery and installation); Specified by designer for purchase and installation by one or more furniture dealers.

Question 17

What types of items are included in FFE?

Answer 17

Furniture, Appliances, Free-standing equipment (vending machines, library bookshelves), Window Coverings, Rugs/Mats, Plants/Planters, Lamps, Artwork, Accessories

Question 18

For construction projects, overhead can be divided into what two categories?

Answer 18

General Overhead and Project Overhead

Question 19

General Overhead

Answer 19

The cost of running a contracting business and includes things such as rent, secretarial help, utilities and other recurring costs.

Question 20

Project Overhead

Answer 20

The money it takes to complete a specific job, not including labor, materials, or equipment. Examples include temporary offices, project telephones, trash removal, insurance, permits, temporary utility hookups.

Question 21

What percentage can the total overhead costs range for the contractor’s labor, materials and equipment?

Answer 21

10% to 20%

Question 22

What is one of the most highly variable parts of a project?

Answer 22

Profit

Question 23

What does profit consist of for construction costs?

Answer 23

For construction costs, profit is a percentage of the total labor of materials, equipment, and overhead to do the job.

Question 24

What percentage of the total cost of the job typically does the profit range?

Answer 24

5% to 15%

Question 25

Overall, overhead and profit can total what percent?

Answer 25

15% to 25% of construction costs, with most jobs in competitive markets at the lower end of the scale.

Question 26

What is included in professional fees?

Answer 26

Charges for the designer’s services as well as other professional’s services, additional consultants, legal fees and testing.

Question 27

When can a designer not charge professional fees?

Answer 27

When a designer is working on a retail basis where markups account for the designer’s fees. Only when other professionals are involved may professional charges be billed to the client.

Question 28

How should taxes be approached when looking at the client’s budget for furniture or other items?

Answer 28

Taxes should be deducted from the top so the designer knows how much money is actually available for buying items.

Question 29

How are taxes on construction materials paid?

Answer 29

These taxes are paid by the G.C. and subs and are included in the total construction budget.

Question 30

What do moving costs include?

Answer 30

Money required to physically relocate and amy include things like reprinting stationary and downtime caused by the move.

Question 31

Why should costs for telephone and data be kept separate?

Answer 31

Because they are purchased separately and installed by specialty companies.

Question 32

What should always be added to the budget to account for unforseen change requests by the client and other conditions?

Answer 32

Contingencies

Question 33

What is the amount of the total budget that should be allowed for contingencies?

Answer 33

5% to 10% - the earlier the project budget, the higher the contingency should be because there are more unknowns.

Question 34

What two additional items might a client consider adding to the budget?

Answer 34

Financing and Inflation

Question 35

What is debt service?

Answer 35

Long term interest, which is many cases is not included in the project budget because it is an ongoing cost, as are maintenance costs.

Question 36

How does an interior designer make an educated guess when calculating inflation?

Answer 36

Using past index and inflation rates and applying an estimate to the expected conditions of the construction will permit an educated guess.

Question 37

How is inflation typically estimated into the budget?

Answer 37

The present budget estimate is escalated to a time in the future at THE EXPECTED MIDPOINT of construction.

Question 38

With what budget type must a designer work backwards?

Answer 38

When a client has a fixed budget. The designer must subtract fees, taxes and similar costs to determine the amount for actual construction and furnishings.

Question 39

How does a designer come up with a budget when a client has no fixed budget?

Answer 39

The designer must determine the scope of the project and assign costs to the various individual elements to arrive at the final figure.

Question 40

What is budgeting?

Answer 40

Budgeting is an ongoing activity; it is revised at each phase of the project as more decisions are made.

Question 41

Budgets based on _____ are usually the first and most preliminary type of estimate done before much design work has started.

Answer 41

Size

Question 42

How are budgets based on size developed?

Answer 42

The anticipated square footage of the project is multiplied by a cost per square foot to arrive at a number. This may be based on the designer’s or client’s experience with similar projects, or they may come from contractors or cost books.

Question 43

When doing square footage costs, what must a designer know?

Answer 43

If it includes additional costs such as contractor’s overhead and profit, taxes and the like.

Question 44

What other units besides square feet can a project be budgeted for?

Answer 44

Hotel rooms, hospital beds, and similar functional units.

Question 45

When basing a budget on units (sq. ft, beds, rooms, etc), is is usually best to develop how many budgets?

Answer 45

Three based on low, medium and high cost per unit, so the client can see the probably range of money that will be required.

Question 46

What is the parameter method and what is it used for?

Answer 46

A produced which involves an expanded itemization of construction quantities and furnishings and assignment of unit costs to these quantities. This is used when the designer and client have a better idea of the exact scope of the work and the budget can be refine.

Question 47

What is the benefit of parameter budgeting?

Answer 47

Makes it 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 48

What is an example of parameter budgeting?

Answer 48

Floor finishes being broken down into wood floor, carpet, vinyl, etc. The areas are multiplied by an estimated cost per sf and the total budget for flooring is developed. The final manufacturer does not have to be selected. An average cost of flooring can be estimated and assigned to the total area of the project.

Question 49

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 of the alternative along the other side.

Answer 49

Matrix Costing

Question 50

A set amount of money estimated by the designer to cover a particular material, construction component, furnishing or piece of equipment when the cost for that material or item cannot be determined precisely at the time of estimating. It is a “best-guess” estimate or is based on cost from past projects.

Answer 50

Allowance

Question 51

How are allowances used in the specs later in the project?

Answer 51

As a “placeholder” so some amount of money is reserved for the item. The allowing is stated in the appropriate section of the specs, so all bidders are using the same amount in their bids.

Question 52

What must be done if the costs for an allowance are more or less than the original estimate?

Answer 52

The contract sum is adjusted accordingly by change order.

Question 53

How is the most precise kind of budget developed and at what state of design can it be done?

Answer 53

By counting actual quantities of materials and furnishings amd multiplying these quantities by firm, quoted costs. This cannot be done until late in the design and construction document phase of a project.

Question 54

How is the final cost of furnishings developed?

Answer 54

The designer develops a list of all the individual pieces of furniture along with window coverings, art and accessories. The exact mfg and model is known along with the finishes/fabrics, discounts, delivery costs, and required taxes. This is usually done by the dealer who develops the PO and finalizes the exact cost to the client. For smaller projects, the designer may supply the furniture.

Question 55

How can quantity takeoffs for construction be calculated?

Answer 55

For negotiated jobs, the contractor takes the CD’s and specs and makes a precise estimate, including overhead and profit. If the price it too high, the designer, owner and contractor need to work together to make adjustments meet the budget. With several bidding contractors, the final quoted costs are not known until the bids are in. The client may also hire an independent cost estimator to develop a budget before hiring a contractor.

Question 56

What resources can a designer use when estimating construction costs?

Answer 56

Cost Books, Computerized Cost Estimating Services, Work with G.C.’s

Question 57

What is good to remember when using cost estimating books and services?

Answer 57

Commercially available cost information is based on the average of many past construction projects from around the country. Local variations and special conditions may affect the costs of particular projects.

Question 58

What are two conditions that must be accounted for when developing any project budget?

Answer 58

Geographical Location and Inflation

Question 59

How can geographic location and inflation be adjusted for a project?

Answer 59

By using cost indexes that are published in a variety of sources that reflect the increase in material and labor costs for a given year for selected cities. The indexes can be used from one part of the country to another and escalate past costs to the expected midpoint of construction of the project being budgeted.

Question 60

If the cost index in a designer’s city is 1257 and the designer will be working on a project in another city with a cost index of 1308, and the expected construction cost is $1,250,000 based on prices for a designer’s city, what will the expected cost be in the other city?

Answer 60

Divide the higher index by the lower index: 1308/1257=1.041; Multiply this by the base cost: (1,250,000)(1.041) = $1,300,716

Question 61

Life-Cycle Cost Analysis (LCC)

Answer 61

A method for determining the total cost of a building or building component or system, taking into account the intial costs as well as the cost of financing, operation, maintenance and disposal. Any residual value is subtracted from other costs. The costs are estimated over the study period. All future costs are discounted back to a common time, usually the base date, to account for the time value of money.

Question 62

Costs estimated over a length of time when determining Life-Cycle Cost Analysis.

Answer 62

Study Period

Question 63

Rate used to convert future costs to their equivolent present value, in Life-Cycle Cost Analysis

Answer 63

Discount Rate

Question 64

What does Life-Cycle Cost Analysis allow?

Answer 64

Allows two or more alternatives to be evaluated and their total costs to be compared. This is especially useful when calculating energy conservation measures.

Question 65

What are some of the specific cost associated with Life-Cycle Cost Analysis?

Answer 65

Intial Costs (cost of acquiring and installing element), Operational Costs (elec, water, etc), Maintenance Costs (repair costs), Replacement Costs (if any), Finance Costs, Taxes (if any for initial costs and operating costs). All costs are for the length of the study period. The costs are estimated, discounted to their present value, and added together. Any residual value is discounted to its present value and then subtracted from the total to get the final life-cycle cost of the element.

Question 66

The remaining value of the element at the end of the study period based on resale value, salvage value in place, or scrap value. Used when calculating LCC.

Answer 66

Residual Value

Question 67

What is the difference between LCC and LCA?

Answer 67

LCC (Life-Cycle Cost Analysis) A method for determining the total cost of a building or building component or system, taking into account the intial costs as well as the cost of financing, operation, maintenance and disposal. Any residual value is subtracted from other costs. The costs are estimated over the study period. All future costs are discounted back to a common time, usually the base date, to account for the time value of money. LCA (Life-Cycle Assessment) provides the methodology to evaluate the environmental impact of using a particular material or product in a building. This is associated wih sustainable design.

Question 68

What are the two major parts of a project schedule?

Answer 68

Design Time and Construction and Installation Time

Question 69

Who is responsible for developing the schedule for the design of the job and the production of contract documents (as well as scheduling the ordering, delivery, and installation of furniture if that is part of the designer’s agreement with the client)?

Answer 69

The Interior Designer

Question 70

Who is responsible for construction scheduling?

Answer 70

The contractor, however, the design professional must be able to estimate the entire project schedule so the client has a general idea of the total time that may be required to complete the project.

Question 71

What should a designer recommend if the client must move by a certain date and the normal design and construction sequences make this impossible?

Answer 71

The designer may suggest a fast-track schedule or some other approach to meeting the deadline.

Question 72

What factors affect the time required for the various design phases?

Answer 72

The size and complexity of the project, the number of people working on the project, the ability and design methodology of the project team, the type of client and the decision-making and approval processes of the client, and fixed dates such as move-in, agency approval, or lease expiration

Question 73

What should a design do when estimating the construction schedule during the programming phase?

Answer 73

The designer should make it very clear to the client that it is only an estimate and that the designer cannot guarantee any time frames for the construction schedule. The actual construction schedule is established by the contractor.

Question 74

What methods can be used to schedule both design and construction?

Answer 74

The bar chart (aka Gantt chart), the critical path method (CPM chart), Program Evaluation and Review Technique (PERT chart), or a full wall schedule.

Question 75

The most common and easiest method used to schedule both design and construction. The various activities of the schedule are listed along the vertical axis, and a timeline is extended along the horizontal axis. Each activity is given a starting and finishing date, and overlaps are indicated by overlapping bars for each activity. Bar charts are simple to make and understand and are suitable for small to midsize projects. However, they cannot show all the sequences and dependencies of one activity or another.

Answer 75

Bar Chart (Gantt Chart)

Question 76

Which method of scheduling is the easiest and most commonly used as well as simple to make and suitable to small to midsized projects?

Answer 76

Bar Chart (Gantt Chart)

Question 77

A chart that graphically depicts all the tasks required to complete a project, the sequence in which they must occur, their duration, the earliest or latest possible starting time, and the earliest or latest possible finishing time. It also defines the sequence of critical tasks or task that must be started and finished exactly on time if the total schedule is to be met. Each arrow in the CPM chart represents an activity with a beginning and end point (represented by the numbered circles), and no activity can begin until all activities leading into the circle have been completed. The heavy line shows the critical path, or the sequence of events that must happen as scheduled if the deadline is to be met. The numbers under the activities give the duration of the activity in days. The noncritical activities can begin or finish earlier or later (within limits) without affecting the final completion date. For large or complex projects using this method, computer programs can be used to develop and update the schedule. This is similar to the PERT chart but uses different charting methods.

Answer 77

Critical Path Method (CPM Chart)

Question 78

Which method of scheduling defines the sequence of tasks that must be started or finished exactly on time to meet the total schedule?

Answer 78

Critical Path Method (CPM Chart)

Question 79

This is similar to the CPM technique but uses different charting methods. Schedules can be produced manually or using numberous available software programs which simplify the process, especially for complex projects that span a long period of time.

Answer 79

Program Evaluation and Review Technique (PERT Chart)

Question 80

Technique for developing a schedule while at the same time involving all methods of the design and construction team (including the client). With this process, vertical lines are drawn 5 inches apart on an entire wall, with the spavce between each line representing one week. The project manager develops a preliminary list of project tasks and names of individuals who may be responsible for completing the tasks. Each task is written on (2) 3x5 index cards with one labeled “start” and one labeled “finish”. The names of all the people responsible for the tasks are places along the left edge of the chart. Each person is asked to place the start and finish cards where they think they activity should be placed in the total schedule, to indicate the time they need alloted for the task. This large, interactive schedule serves as a starting point for discussion among everyone on the project team. Cards can be moved around easily and once everyone agrees, the schedule can be copied in a smaller format and used by everyone on the team.

Answer 80

Full Wall Schedule