Construction Cost Estimates

Question 1

Programming

Answer 1

Project comparison method
The cost of the new project is estimated using the costs of past projects of similar scope and function. This method is often used when setting a budget or determining a project’s feasibility. Accurate within 15% to 25%

Question 2

Preliminary design

Answer 2

Area method
This type of estimate is usually prepared when preliminary design is completed and the architect has a fairly good idea of the size of the project, its functional components, and the general level of quality or complexity. With this method of estimation, an average cost per unit of area (or volume) may be used, but the actual area (or volume) is more precisely known than in the project comparison method. Accurate within 5% to 15%

Question 3

Sd

Answer 3

Assembly method
During schematic design, when more is known about the space requirements and general configuration of the building and site, budgeting can be based on major subsystems. Historical cost information on each type of subsystem can be applied to the design. Accurate within 10%

Question 4

DD and CD

Answer 4

Parameter method
Typically used during the design development phase and early stages of construction document production. It involves an expanded itemization of construction quantities and assignment of unit costs to these quantities. For example, instead of using one conglomerated sum for floor finishes, the cost is broken down into carpeting, vinyl tile, wood strip flooring, unfinished concrete, and so forth.

Question 5

Bidding

Answer 5

Unit cost method
The project is broken down into its individual building components and the labor needed to install them. Contractors typically use this method of estimating when they are determining a bid or negotiated price for the project. It is the most accurate method, but it can only be used when the construction drawings and specifications are complete or mostly complete and all the requirements of the project are known.