Project Costs & Budgeting

Question 1

3 general methods of refining a project budget

Answer 1

Parameter method
Matrix costing
Unit cost method

Question 2

Parameter method

Answer 2

typically used during the dd phase and early stages of cd production; involves an expanded itemization of construction quantities and assignment of unit costs to these quantities

Question 3

Matrix costing

Answer 3

matrix shows the various alternatives along one side and the individual elements that combine to produce the total cost of the alternatives on the other side
-general overhead: the cost to run a constructing business and involves rent, secretarial help, heat, and other recurring costs
-project overhead: the most it takes to complete a job, not including labor, materials, or equipment; includes temp offices, tele/data service, sanitary facilities, trash removal insurance, permits, and temp utilities
-profit and overhead can total 15-40% of construction cost

Question 4

Unit cost method

Answer 4

project broken down into its individual building components and the labor needed to install them; typically used by contractors for bidding; most accurate but only used when cd’s and specs are done
-includes material and labor costs; cost of equip, fees, and services necessary to complete the project; the contractor’s overhead and profit

Question 5

Life cycle cost analysis, costs involved in the analysis

Answer 5

initial costs
operational costs
maintenance costs
replacement costs
finance costs
taxes
residual value

not the same as a life-cycle assessment

Question 6

Value engineering

Answer 6

Process of analyzing a particular material, assembly, system, or even an entire design to see whether the same functional requirements can be met in a less expensive way, or whether a product or system of higher quality can be found for the same cost

Question 7

6 phases of value engineering

Answer 7

-gather information to better understand the project
-perform functional analysis to understand and clarify the required functions
-generate alternatives on how to accomplish the required functions
-synthesize ideas and select the ones that are feasible for development into value improvements
-select the nest alternative for improving value
-present the recommendations of the project stakeholders