OBJ 5.1 Flashcards
OBJECTIVE 5.1 Analyze construction cost estimates to confirm alignment with project design (A/E) As an architect, you will need to compare and modify a construction cost estimate based on the development of a project, including value engineering, substitution of materials, and alignment with the project documentation and requirements. You will need to utilize appropriate estimating techniques based on the project type, phase, delivery method, or other requirements.
Contingency
A contingency is an amount of money held in reserve in a construction budget to cover costs from unforeseen circumstances. Contingencies are risk management tools and are often expressed as a percent of the total construction cost.
Guaranteed Maximum Price (GMP)
A cost-type contract that binds the contractor to a price determined by an estimate. The contractor is responsible for any cost that overruns unless the scope of work is increased by a formal change order.
Value Engineering (VE)
An organized effort directed at analyzing designed building features, systems, equipment, and material selections for the purpose of achieving essential functions at the lowest life cycle cost consistent with required performance, quality, reliability, and safety.
Substitution
Submittal of a product other than one specifically allowed by the specifications. A substitution must be accompanied by a formal substitution request, with a statement from the contractor explaining the reason for the request, and describing how the proposed product meets the design intent.
Material Takeoff
Part of the cost estimating process, the estimator performs material takeoffs by using the drawings to quantify the different elements needed to construct the building (i.e., number of doors, volume of concrete, square footage of carpet, etc.).
