qs approach to project cost

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Project and Cost Management A Quantity Surveying Approach Carin Rautenbach – Vice President John Merkler AIA – Executive Services Manager

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Presented to the San Francisco chapter of the Construction Specification Institute

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Page 1: Qs Approach To Project Cost

Project and Cost Management

A Quantity Surveying Approach

Carin Rautenbach – Vice PresidentJohn Merkler AIA – Executive Services Manager

Page 2: Qs Approach To Project Cost

Transport

Rail H&T

Design & Engineering Solutions

Management &Project Services

Management Consultancy

Asset Management

Project Development

Atkins

Equity Investments

Investments/Metronet

LambertSmith

Hampton

Water & Environment

Engineering Solutions

Design Solutions

Design & Programme Management

Atkins organization

Introduction

Faithful & Gould

(World)

HanscombFaithful

& Gould(USA)

Page 3: Qs Approach To Project Cost

UNITED STATES

A global company . . . Locally based

26 offices - Major Cities in the USA

420 Independent, professional consultants

in the United States

WORDWIDE

Presence in more than 60 countries and 190 offices worldwide

2,150 independent, professional consultants Worldwide

COMPANY HISTORY

Atkins est. in 1938

Hanscomb est. in 1946

Faithful&Gould est. in 1947, acquired by Atkins

1996

Atkins HF&G merged in June 2002

Core business PROJECT and COST MANAGEMENT

World’s leading cost consultant with over 55 years experience

Introduction

Page 4: Qs Approach To Project Cost

Ability to Influence Project Cost & Schedule

Page 5: Qs Approach To Project Cost

What is Quantity Surveying?

Quantity Surveying is in reality, a way of looking at a project through a Cost Management model that is quite specific

Page 6: Qs Approach To Project Cost

Chain of Services

Customer Needs

Products that meet

Customers’ Needs

Contract & Work Scope

Planning

Pre-qualification & Inquiry

Management

Bid Analysis & Award

Management

Typical range of services

Page 7: Qs Approach To Project Cost

Chain of Services

Customer’s Needs

Final Accountsand AssetListings

FeasibilityAnalysis

Risk Management

Program and Procurement

Strategy

Engineering Management

Cost and Project

Management

Changeand Trend

Management

Contract & Work Scope

Planning

Pre-qualification and Inquiry

Management

Bid Analysis and Award

Management

Our range of services

Page 8: Qs Approach To Project Cost

Elements of Quantity Surveying

• Alignment & Essentials of Cost Management

• Understanding Costs• Standard Formats• Identifying Cost Drivers• How to Manage Costs

– It all starts with a good budget– Integrated cost management approach– Careful use of historical information– Intelligent Value analysis/engineering– Sensitivity to life cycle costs & sustainability– Design/Pricing Contingency

• Helpful Hints• Industry Trends• Recent Examples – UC Irvine; D/B Hospital

Page 9: Qs Approach To Project Cost

Essentials of Cost Management

Cost Management is Aligning:

• Scope - Measurable and quantifiable aspects of the facility

• Expectations - Quality and performance expectations of the client

• Budget - The cost of the facility

and Maintaining Alignment over Time

Page 10: Qs Approach To Project Cost

Alignment

Projects need to start right to finish right

Expectations

Scope

Budget

Ongoing Effort

Page 11: Qs Approach To Project Cost

Defining Scope, Expectations and Budget

SCOPE EXPECTATIONS BUDGETProgram- Functional Space Program- Blocking & Stacking- Public Space- Efficiency

Geometric Drivers- Wall Area Ratio- Degree of Articulation

Volume Drivers- Clear Ceiling Height- Plenum Height- Interstitial Needs- Atria- Light Shelves

Facility Parameters- HVAC SF/Ton- Watts/SF- Plumbing Fixtures- Ductwork Poundage- Steel Pounds/SF- Etc.

Aesthetics- Form & Massing- Image- Community Requirements- Design Issues

Quality- Systems- Materials- Workmanship

Project Delivery- Phasing & Scheduling- Continued Occupancy- Delivery System

Systems Performance- Functional Space Elements- Building Management- Maintainability- Energy Consumption- Sustainability

Facility Performance- Live Loads- Expandability- Flexibility- Security & Safety- Access & Egress- Adjacencies- Natural Light

External Requirements- Codes- Standards & Criteria

Initial Costs- Site Acquisition- Fees- Construction- Inflation and Market Conditions- Contingencies- Other Costs

Future One-Time Costs- Replacements- Alterations- Salvage- OtherOne-Time Costs

Facility Annual Costs- Operations- Maintenance- Financing- Taxes- Insurance- Security- Other Annual Costs

Functional Use Costs- Staffing- Materials- Denial of Use- Other Functional Use Costs

Page 12: Qs Approach To Project Cost

Understanding Costs

Page 13: Qs Approach To Project Cost

Site Costs Hard Costs Soft Costs

Land

Building

Interiors Development Costs

+

+ +

=

TOTALCAPITALCOSTS

Definition of Cost

Tenant Work

Artwork

Furniture, Fixtures & Equipment

Telephone & Data Communications System

Foundations

Structure

Enclosure

Interior Finishes

Conveying

HVAC & Plumbing

Electrical

Land Cost Commission & Fees

Title Insurance

Transfer Taxes

Surveys

Demolition

Sitework

Design fees

Management fees

Legal fees

Taxes & Levies

Insurance

Owner’s administration

Leasing commissions

Interim finance

Moving Costs

Page 14: Qs Approach To Project Cost

Medical Center- Project Costs

(Hard Cost)

Page 15: Qs Approach To Project Cost

Breakdown of Construction Costs

GeneralConditions

Purchase Cost Taxes

Shipping & Handling

Materials

Premiums Fringes

Base Wages

Taxes / Insurance

Labor

Operations Cost

Equipment Rental

Equipment

Installation

Sub-ContractorMark-up

PrimeContractor /

CM Mark-up

TotalHard Costs

GeneralConditions

Page 16: Qs Approach To Project Cost

Standard Formats

Page 17: Qs Approach To Project Cost

Estimating Formats

• Standardized Format– Consistency– Data Base– Checklist

• Classifications– Masterformat– UNIFORMAT– Contract Packages– Activities– Plan /Program areas

Page 18: Qs Approach To Project Cost

MasterFormat Divisions

DIVISION 1 General Requirements2 Sitework3 Concrete4 Masonry5 Metals6 Wood and Plastics7 Thermal and Moisture Protection8 Doors and Windows9 Finishes10 Specialties11 Equipment12 Furnishings13 Special Construction14 Conveying Systems15 Mechanical16 Electrical

Page 19: Qs Approach To Project Cost

Example - Exterior Wall System Detail

03450 - Plant-Precast Architectural Concrete

04230 - Concrete Masonry Units

07210 - Building Insulation

Three sections from three separate Divisions are required

Page 20: Qs Approach To Project Cost

UNIFORMAT Elements

• A10 Foundations• A20 Basement

Construction• B10 Superstructure

• B20 Exterior Closure

• B30 Roofing• C10 Interior

Construction• C20 Staircases• C30 Interior Finishes

• D10 Conveying Systems

• D20 Plumbing• D30 HVAC• D40 Fire Protection

• D50 Electrical

• E10 Equipment• E20 Furnishings• F10 Special

Construction• F20 Selective Building

• G10 Site Preparation

• G20 Site Improvements

• G30 Site Mechanical Utilities

• G40 Site Electrical Utilities

• G50 Other Site Construction

Page 21: Qs Approach To Project Cost

Where the Dollar Goes

UNIFORMAT II Element (level 2)

ApartmentBuilding15 st –

162,000SF

OfficeBuilding

15st – 140,000SF(shell & core)

A.10 Foundations $ 0.98 $ 1.52

A.20 Basement Construction -- --

B.10 Superstructure 11.41 15.38

B.20 Exterior Closure 8.53 11.77

B.30 Roofing 0.24 0.35

C.10 Interior Construction 13.16 2.74

C.20 Staircases 1.15 1.54

C.30 Interior Finishes 9.74 9.35

D.10 Conveying 5.31 6.14

D.20 Plumbing 8.30 1.48

D.30 HVAC 9.63 11.82

D.40 Fire Protection 1.95 2.81

D.50 Electrical 6.23 8.80

F.10 Special Construction 1.33 --

Z. General Conditions 11.70 11.06

( Sitework Excluded) $ 89.67/SF $ 84.76/SF

Page 22: Qs Approach To Project Cost

UNIFORMAT II and MasterFormat Shell & Substructure

01

Ge

ne

ral c

on

diti

on

s0

2 S

ite w

ork

03

Co

ncr

ete

04

Ma

son

ry0

5 M

eta

ls0

6 W

oo

d-p

last

ic0

7 T

he

rma

l & m

ois

ture

pro

tect

08

Do

ors

& w

ind

ow

s0

9 F

inis

he

s1

0 S

pe

cia

ltie

s11

Eq

uip

me

nt

12

Fu

rnis

hin

gs

13

Sp

eci

al c

on

stru

ctio

n1

4 C

on

veyi

ng

sys

tem

s1

5 M

ech

an

ica

l1

6 E

lect

rica

l

Level 1 Level 2 Level 3A 10 Foundations A 1010 Standard Foundations

A 1020 Other FoundationsA 1030 Slab on Grade

A 20 Basement ConstructionA 2010 Basement ExcavationA 2020 Basement Walls

B 10 Superstructure B 1010 Floor ConstructionB 1020 Roof Construction

B 20 Exterior Enclosure B 2010 Exterior WallsB 2020 Exterior WindowsB 2030 Exterior Doors

B 30 Roofing B 3010 Roof CoveringsB 3020 Roof Openings

AS

UB

ST

RU

CT

UR

E

BS

HE

LL

UNIFORMAT II Categories

MA

ST

ER

FO

RM

AT

Cat

egor

ies

Page 23: Qs Approach To Project Cost

Hospitality Estimate- Uniformat

Page 24: Qs Approach To Project Cost

Hospitality Estimate- Masterformat

Page 25: Qs Approach To Project Cost

Identifying Cost Drivers

Page 26: Qs Approach To Project Cost

Factors Driving Building Costs

• Key Issues– The Pareto Principle – “The few affect the many”– Overlaps between disciplines– Timing and opportunity

• Driving Factors– Geographical and Site– Design – Shape, size, height & efficiency– Qualitative– Legal and Administrative– Market and External Economic– Unknowns – Contingency, escalation & risk

Page 27: Qs Approach To Project Cost

PARETO’S LAW OF DISTRIBUTION

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

PERCENTAGE Of TOTAL FACILITY COMPONENTS

PE

RC

EN

TAG

E O

F C

OS

T

Best Value Focus

Page 28: Qs Approach To Project Cost

Focus on Interdisciplinary Areas

Civil & structural

ArchitecturalMechanical

Electrical

Owner’s requirements

Page 29: Qs Approach To Project Cost

Relationship of Time and Change

Cost of making changes

Best Opportunity for Improvement

Time

HighAbility to

make changes

Degree ofChange

LowPlanning Design Construction

Page 30: Qs Approach To Project Cost

Building Efficiency Example

A = $106.25B = $100.00

GFA Cost per SF Net Rentable Floor Area Ratio

Office Building A140,000 sf 85.00 80%Office Building B140,000 sf 85.00 85%

What is the cost per SF of rentable area?

Net Rentable Floor Area

112,000 sf119,000 sf

Page 31: Qs Approach To Project Cost

Relationship Between Quality & Cost

MAX

MIN

HIGH

COST QUALITY LIMITS

LOWLOW MIN MAX HIGH

QUALITY

INITIAL COSTS

FUTURE COSTS

TOTAL LIFE CYCLE COST

VC Tile Zone

Bankrupt Zone

Page 32: Qs Approach To Project Cost

Effect of Competition on Prices

0.85

0.95

1.05

1.15

1.25

0 2 4 6 8 10 12 14 16 18 20

Source: Area Cost Factor Study, U.S. Army Corps of Engineers

Number of Bids

Bid Factor

Page 33: Qs Approach To Project Cost

Predatory Range +/- 10-20% above or below FMV

Reasonable Supply & Demand Range +/- 7%

-30

-20

-10

0

10

20

30

40

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

YEAR

PE

RC

EN

TAG

EMarket Conditions

Comparison Between Bid Results and Fair Market Value

Page 34: Qs Approach To Project Cost

Contingencies and Escalation

• Contingencies are real costs - just not identified…. yet

• Contingency is risk dependent• Contingency is dependent on development of

design• Where possible allocate contingency where

costs will occur• Clarify contingency/allowance for changes

with all parties• Be sure that the owner is carrying a project

contingency• Escalation will happen - Plan for it• Be careful that multiple contractors are not

overlapping

Page 35: Qs Approach To Project Cost

Design/Pricing Contingency

Why do we need a design/pricing contingency?

• At early stages (schematics), many decisions have yet to be made

• Specification yet to be defined• Building code changes/interpretations• Consultants who come in later (MEP) tend to

add requirement.• Owners requirements may change/develop.• Market conditions – shortage of competition.• Existing buildings – examination and testing

incomplete.• Definition of bid packaging/phasing.• Front end requirements ( liquidated

damages).

Page 36: Qs Approach To Project Cost

How to Manage Costs

• It all starts with a good budget• Integrated cost management

approach• Careful use of historical

information• Intelligent Value

analysis/engineering• Sensitivity to life cycle costs &

sustainability

Page 37: Qs Approach To Project Cost

It All Starts with a Good Budget• A Good Budget Should:

• Reflect scope• Reflect quality/performance

expectations• Reflect owners value objectives• Be achievable and accepted• Be defensible• Contain “bridge” to ongoing cost

control• Be based on techniques and data

available• Contain adequate reserves

• Avoid

• Socially acceptable budgets• Playing it safe

Page 38: Qs Approach To Project Cost

Facility Cost Plan Summary

UNIFORMAT Cost per Gross Area

UNIFORMAT Cost per System Unit

Key Parameter Tracking

Project Description: Federal Level Office Building Bid Date: 12/02

Project Type: Office Construction time(Months): 36

Gross Building Area:(GSF) 425,000 Market Conditions: good

UNIFORMAT TOTAL COST PER % OF ELEMENTAL ANALYSISSYSTEM / ELEMENT DESCRIPTION REFERENCE COST GSF BUILDING MEASURE UNIT VALUE COST/UNIT

BUILDING: b b / GSF b / 27 c b / c

1 Foundations (A10) 3,824,493 9.00 5.5% Ground Floor Area SF 108,975 35.10 2 Standard Foundations (A1010) 75,507 0.18 0.1% Ground Floor Area SF 108,975 0.69 3 Other Foundations (A1020) 2,144,701 5.05 3.1% Ground Floor Area SF 108,975 19.68 4 Slab on Grade (A1030) 1,604,285 3.77 2.3% Ground Floor Area SF 108,975 14.72 5 Basement Construction (A20) - - 0.0% Ground Floor Area SF 108,975 - 6 Substructure - Sub-Total (A) 3,824,493 9.00 5.5% Ground Floor Area SF 108,975 35.10 7 Superstructure (B10) 9,664,210 22.74 13.9% Gross Bldg. Area EA 425,000 22.74 8 Exterior Enclosure (B20) 17,374,453 40.88 25.0% Gross Enclosure Area EA 188,000 92.42 9 Roofing (B30) 1,058,767 2.49 1.5% Roof Surface Area SF 138,059 7.67

10 Shell - Sub-Total (B) 28,097,431 66.11 40.5% Gross Bldg. Area SF 425,000 66.11 11 Interior Construction (C10) 3,665,491 8.62 5.3% Gross Bldg. Area SF 425,000 8.62 12 Stairs (C20) 320,250 0.75 0.5% Gross Bldg. Area SF 425,000 0.75 13 Interior Finishes (C30) 4,197,176 9.88 6.0% Gross Bldg. Area SF 425,000 9.88 14 Interiors - Sub-Total (C) 8,182,917 19.25 11.8% Gross Bldg. Area SF 425,000 19.25 15 Conveying Systems (D10) 1,445,000 3.40 2.1% Total No. of Stops EA 48 30,104 16 Plumbing (D20) 1,481,286 3.49 2.1% No. of Fixtures EA - - 17 HVAC (D30) 9,876,438 23.24 14.2% Tons (or MBH) EA 2,100 4,703 18 Fire Protection (D40) 989,900 2.33 1.4% Protected Area SF 425,000 2.33 19 Electrical (D50) 9,890,639 23.27 14.3% Gross Bldg. Area SF 425,000 23.27 20 Electrical Service & Distribution (D5010) 2,949,820 6.94 4.3% Connected KW KW 8,000 369 21 Lighting & Branch Wiring (D5020) 3,857,838 9.08 5.6% Gross Bldg. Area SF 425,000 9.08 22 Communications & Security (D5030) 2,171,737 5.11 3.1% Gross Bldg. Area SF 425,000 5.11 23 Other Electrical Systems (D5040) 911,244 2.14 1.3% Gross Bldg. Area SF 425,000 2.14 24 Services - Sub-Total (D) 23,683,263 55.73 34.1% Gross Bldg. Area SF 425,000 55.73 25 Equip. & Furnishings - Sub-Total (E) 1,667,099 3.92 2.4% Gross Bldg. Area SF 425,000 3.92 26 Spec. Construct. & Demo - Sub-Total (F) 3,932,792 9.25 5.7% Gross Bldg. Area SF 425,000 9.25 27 TOTAL BUILDING 69,387,994$ 163.27$ 100.0% Occupants EA 1,800 38,549$ 28 SITEWORK & UTILITIES:29 Site Preparation (G10) 2,105,133 4.95 3.0% Gross Site Area SF 522,720 4.03 30 Site Improvements (G20) 3,812,500 8.97 5.5% Gross Site Area SF 522,720 7.29 31 Site Mechanical Utilities (G30) 473,000 1.11 0.7% Gross Site Area SF 522,720 0.90 32 Site Electrical Utilities (G40) 539,635 1.27 0.8% Gross Site Area SF 522,720 1.03 33 Other Site Construction (G50) 4,714,207 11.09 6.8% Gross Site Area SF 522,720 9.02 34 TOTAL SITEWORK & UTILITIES: (G) 11,644,476 27.40 16.8% Gross Site Area SF 522,720 22.28 35 General Conditions, Overhead & Profit @ 16.3% 13,232,602 31.14 19.1%

36 TOTAL FACILITY COST - CURRENT 94,265,072$ 221.80$ 135.9% Occupants EA 1,800 52,369$ 37 Contingencies (Pricing, Phasing, Constr.) 18.0% 16,933,778 39.84 24.4%

38 Escalation 10.3% 11,447,176 26.93 14.0%

3940 TOTAL FACILITY COST - PROJECTED 122,646,026$ 288.58$ 174.2% Occupants EA 1,800 68,137$

Key Parameters: Measure Value Area Analysis: Area (SF)1 Gross Bldg. Area SF 425,000 2 Ground Floor Area SF 108,975 Basement3 Gross Enclosure Area SF 188,000 Ground Floor 108,975 4 Percent Fenestration % 36% Upper Floors 312,025 5 Roof Surface Area SF 138,059 Penthouses 4,000 6 Total No.of Conveying Stops STOPS 48 Other Areas - 7 Tons Cooling (or MBH Htg) TONS 2,100 8 No. of Plumbing Fixtures EA Gross Floor Area 425,000 9 Fire Protected Area SF 425,000 10 Connected KW KW 8,000 11 Occupants EA 1,800 12 Floor to Floor Height (Avg.) LF 13 13 Gross Site Area SF 522,720

Page 39: Qs Approach To Project Cost

Integrated Cost Management Process

Scope

Criteria &Standards

Cost Planby Discipline

Cost Analysis & Alignment

Scope

Cost Model

Expectations

Criteria &Standards

Site & Configuration

ValuePlanning

Planning and Programming

MilestoneCost

Estimate

Massing,Aesthetics &

Image

Revised Cost Model

Quality &Performance

Phasing &Schedule

Life Cycle Performance & Sustainability

ValueEngineering

System

Alternates

Concept Development & Schematic Design

Concepts

Ongoing Advice

HistoricalBenchmarks

MilestoneCost

Estimate

Constructibility,Phasing & Scheduling

Revised Cost Model

Quality &Performance

Materials &Systems

Life Cycle Performance & Sustainability

ValueEngineering

Components

Design Development & Construction Documents

Systems

HistoricalBenchmarks

HistoricalBenchmarks

Delivery

Approaches

Alternates

MarketAssessment,

Contingencies & Risks

Architectural

Cost Targets

Parameter Targets

Structural

Cost Targets

Parameter Targets

Mechanical

Cost Targets

Parameter Targets

Electrical

Cost Targets

Parameter Targets

Equipment/Special

Cost Targets

Parameter Targets

Site

Cost Targets

Parameter Targets

MarketAssessment,

Contingencies & Risks

Revised Cost Planby Discipline

Ongoing Advice

Architectural

Cost Targets

Parameter Targets

Structural

Cost Targets

Parameter Targets

Mechanical

Cost Targets

Parameter Targets

Electrical

Cost Targets

Parameter Targets

Equipment/Special

Cost Targets

Parameter Targets

Site

Cost Targets

Parameter Targets

Revised Cost Planby Discipline

Architectural

Cost Targets

Parameter Targets

Structural

Cost Targets

Parameter Targets

Mechanical

Cost Targets

Parameter Targets

Electrical

Cost Targets

Parameter Targets

Equipment/Special

Cost Targets

Parameter Targets

Site

Cost Targets

Parameter Targets

ProjectHistory

Page 40: Qs Approach To Project Cost

(1) Single Unit Rate(2) Parametric/Cost Modeling(3) System Elemental Cost Analysis(4) Quantity Survey

Application of Cost Estim ating Techniques

Pre-Design Schematic Design Development Construction Documents Pre-B id

SUR

Parametric

System

Quantity Survey

Summary of Estimating Methods

Page 41: Qs Approach To Project Cost

Cost Management Tracking Example

PROJECT COST COMPARISON SUMMARY

PROJECT: MODERNIZATION OF USCS/ICC/CW BUILDINGS COMPLEX PROJECT NO: IDC28143/IDC28144/IDC28145 SHEET NO: 1A of 3

LOCATION: WASHINGTON, D.C. COST MANAGER: HANSCOMB INC.

A/E ESTIMATEOriginal PDS Adjusted PDS Concept Concept Tentative (Rev.) Tentative (Rev.)75%

Construction Cost (ECCA) Option "A" Option "A" Pre-VE After VE Pre VE After VE Intermediate Final

(Level 2) Date: Jan.1992 Date: 12/6/94 Date: 07/10/95 Date: 10/10/95 Date: 11/14/95 Date: 11/28/95 Date: 12/18/95 Date:5/9/96

01 FOUNDATIONS $0 $0 $0 $0 $0 $0 $0

02 SUBSTRUCTURE $5,000 $0 $0 $0 $0 $0 $0 03 SUPERSTRUCTURE $385,000 $310,105 $307,585 $844,847 $844,847 $1,349,596 $1,585,575 04 EXTERIOR CLOSURE $3,029,927 $4,715,882 $4,610,867 $6,680,867 $6,974,868 $5,618,130 $6,105,491

05 ROOFING $2,937,360 $4,330,642 $4,330,642 $3,530,665 $3,530,665 $1,748,414 $1,654,206

06 INTERIOR CONSTRUCTION $36,603,983 $18,051,709 $15,079,374 $21,301,147 $21,103,312 $24,972,056 $27,880,252 07 CONVEYING SYSTEMS $2,097,500 $1,389,000 $1,321,791 $1,708,610 $1,708,610 $1,773,203 $1,862,732

08 MECHANICAL $27,926,204 $28,706,881 $27,213,152 $21,973,075 $21,994,952 $24,526,254 $23,523,509

09 ELECTRICAL $17,566,534 $24,187,059 $22,691,650 $21,106,943 $21,606,943 $20,298,145 $21,178,345 10 GENERAL CONDITIONS AND PROFIT $15,591,418 $15,321,706 $14,225,258 $15,986,755 $16,016,755 $15,802,655 $17,077,336

11 EQUIPMENT $548,800 $814,013 $814,013 $995,113 $995,113 $1,496,265 $1,434,306

12 SITEWORK $6,042,481 $13,255,375 $12,182,236 $15,279,927 $16,142,148 $8,281,772 $8,114,647

SUBTOTAL $112,734,207 $111,082,372 $102,776,568 $109,407,949 $110,918,213 $105,866,490 $110,416,399

DESIGN CONTINGENCY Incl. in 01-12 $11,108,237 $10,277,657 $10,940,795 $11,091,821 $7,939,987 $0

SUBTOTAL $112,734,207 $122,190,609 $113,054,225 $120,348,744 $122,010,034 $113,806,477 $110,416,399 ESCALATION : $26,632,920 $10,031,849 $9,281,752

TO START OF CC# 1 - 9/96 $206,739 $206,739 $180,888 $105,399 TO START OF CC# 2 - 2/97 $2,080,767 $2,561,242 $1,779,027 $1,020,008

TO START OF CC# 3 - 12/97 $4,459,648 $5,489,433 $3,860,835 $2,749,961

SUBTOTAL (ECCA) - CC # 1, 2 and 3 $139,367,127 $130,588,000 $132,222,458 $122,335,977 $127,095,898 $130,267,448 $119,627,227 $114,291,767 (including reimbursable items)

CONSTRUCTION CONTINGENCY @ 7% $6,799,995 $9,141,000 $9,255,572 $8,563,518 $8,896,713 $9,118,721 $8,373,906 $8,000,424

ESTIMATED CONSTRUCTION COST (ECC) $146,167,122 $139,729,000 $141,478,030 $130,899,495 $135,992,611 $139,386,170 $128,001,133 $122,292,191

Cost per SM $1,253.16 $1,159.46 $1,204.57 $1,234.63 $1,133.79 $1,083.22 Gross Floor Area (M2) 112,897 112,897 112,897 112,897 112,897 112,897

CONSTRUCTION CONTRACT No. 1 (ECC) $7,907,207 $7,955,000 $9,362,167 $9,362,167 $10,119,187 $7,890,514

CONSTRUCTION CONTRACT No. 2 (ECC) $53,613,049 $55,208,000 $50,209,613 $51,295,552 $47,334,557 $51,156,045

CONSTRUCTION CONTRACT No. 3 (ECC) + SITE $84,646,866 $76,566,000 $76,420,830 $78,728,451 $70,547,388 $63,245,632

Page 42: Qs Approach To Project Cost

Historical Cost Model Database

Project Description: Elementary SchoolsBid Date 11/96 8/95 10/93 1/97 9/94 AdjustedProject Type: School Constr Time 14 15 14 14 16 Average

Market good good excellent good good of AllUNIFORMAT Example 1AdjustedExample 2AdjustedExample 3AdjustedExample 4AdjustedExample 5Adjusted

SYSTEM / ELEMENT DESCRIPTION REFERENCE TOTAL COST $/sf by: TOTAL COST $/sf by: TOTAL COST $/sf by: TOTAL COST $/sf by: TOTAL COST $/sf by: ($/SF)

BUILDING: b 1.14 b 1.18 b 1.32 b 1.13 b 1.21

1Foundations (A10) 506,192 7.47 485,255 6.83 397,823 7.80 561,768 8.13 385,840 7.01 7.45 2 Standard Foundations (A1010) 302,142 4.46 277,228 3.90 219,741 4.31 348,071 5.04 230,305 4.18 4.38 3 Other Foundations (A1020) - - - - - - - - - - - 4 Slab on Grade (A1030) 204,050 3.01 208,027 2.93 178,081 3.49 213,698 3.09 155,535 2.82 3.07 5Basement Construction (A20) - - - - - - - - - - - 6 Substructure - Sub-Total (A) 506,192 7.47 485,255 6.83 397,823 7.80 561,768 8.13 385,840 7.01 7.45 7Superstructure (B10) 400,900 5.92 408,714 5.75 291,566 5.72 461,841 6.69 305,582 5.55 5.92 8Exterior Enclosure (B20) 537,917 7.94 504,529 7.10 391,216 7.67 563,351 8.16 360,819 6.55 7.48 9Roofing (B30) 273,275 4.03 278,601 3.92 198,747 3.90 329,125 4.77 208,301 3.78 4.08 10 Shell - Sub-Total (B) 1,212,092 17.89 1,191,845 16.78 881,529 17.28 1,354,317 19.61 874,703 15.88 17.49 11Interior Construction (C10) 560,523 8.27 571,448 8.04 346,508 6.79 587,025 8.50 405,890 7.37 7.80 12Stairs (C20) - - - - - - - - - - - 13Interior Finishes (C30) 394,833 5.83 483,034 6.80 258,438 5.07 413,501 5.99 361,149 6.56 6.05 14 Interiors - Sub-Total (C) 955,356 14.10 1,054,482 14.84 604,946 11.86 1,000,526 14.49 767,040 13.93 13.84 15Conveying Systems (D10) 7,288 0.11 7,430 0.10 5,300 0.10 7,633 0.11 5,555 0.10 0.11 16Plumbing (D20) 447,800 6.61 456,528 6.43 325,675 6.38 468,973 6.79 341,331 6.20 6.48 17HVAC (D30) 1,049,400 15.49 1,283,824 18.07 763,206 14.96 1,099,017 15.91 799,895 14.53 15.79 18Fire Protection (D40) 151,800 2.24 154,759 2.18 110,401 2.16 158,977 2.30 115,708 2.10 2.20 19Electrical (D50) 859,866 12.69 859,866 12.10 859,866 16.86 859,866 12.45 859,866 15.62 13.94 20 Electrical Service & Distribution (D5010) 182,120 2.69 185,670 2.61 132,452 2.60 190,731 2.76 138,819 2.52 2.64 21 Lighting & Branch Wiring (D5020) 286,132 4.22 291,709 4.11 208,098 4.08 344,610 4.99 218,101 3.96 4.27 22 Communications & Security (D5030) 205,778 3.04 209,789 2.95 149,658 2.93 269,384 3.90 156,852 2.85 3.13 23 Other Electrical Systems (D5040) 185,836 2.74 189,458 2.67 135,155 2.65 194,623 2.82 141,652 2.57 2.69 24 Services - Sub-Total (D) 2,516,154 37.14 2,762,407 38.89 2,064,449 40.47 2,594,466 37.57 2,122,355 38.54 38.52 25 Equip. & Furnishings - Sub-Total (E) 211,210 3.12 215,327 3.03 153,609 3.01 221,196 3.20 193,191 3.51 3.17 26 Spec. Construct. & Demo - Sub-Total (F) 28,500 0.42 29,055 0.41 20,727 0.41 29,848 0.43 21,724 0.39 0.41 27 TOTAL BUILDING 5,429,504$ 80.14 5,738,371$ 80.78 4,123,083$ 80.83 5,762,121$ 83.44 4,364,853$ 79.27 80.89 28 SITEWORK & UTILITIES: - - - - - - 29Site Preparation (G10) 467,598 6.90 657,181 9.25 375,979 7.37 482,827 6.99 527,489 9.58 8.02 30Site Improvements (G20) 85,122 1.26 99,695 1.40 88,977 1.74 87,894 1.27 71,129 1.29 1.39 31Site Mechanical Utilities (G30) 301,500 4.45 353,117 4.97 242,426 4.75 311,319 4.51 214,147 3.89 4.51 32Site Electrical Utilities (G40) - - - - - - - - - - - 33Other Site Construction (G50) - - - - - - - - - - - 34TOTAL SITEWORK & UTILITIES: (G) 854,220 12.61 1,109,993 15.63 707,382 13.87 882,041 12.77 812,765 14.76 13.93 35General Conditions, Overhead & Profit @ 5.1%322,647 4.76 351,639 4.95 248,027 4.86 341,154 4.94 265,852 4.83 4.87 36TOTAL FACILITY COST - CURRENT 6,606,371$ 97.51 7,200,003$ 101.36 5,078,492$ 99.56 6,985,316$ 101.15 5,443,470$ 98.86 99.69 37Contingency @ - - - - - - - - - - - 38Escalation @ - - - - - - - - - - - 39 - - - - - - 40TOTAL FACILITY COST - PROJECTED 6,606,371$ 97.51 7,200,003$ 101.36 5,078,492$ 99.56 6,985,316$ 101.15 5,443,470$ 98.86 99.69 41TOTAL FACILITY COST/SF - PROJECTED 85.57$ 97.51 85.71$ 101.36 75.24$ 99.56 89.21$ 101.15 81.37$ 98.86 99.69

Parameters: Measure Value Value Value Value Value Value1Gross Bldg. Area SF 77,200 84,000 67,500 78,300 66,900 74,780 2Ground Floor Area SF 77,200 84,000 67,500 78,300 66,900 74,780 3Gross Enclosure Area SF 31,000 33,731 28,000 32,500 28,000 30,646 4Percent Fenestration % 12% 12% 15% 12% 15% 13%5Roof Surface Area SF 80,000 87,047 69,948 81,140 69,326 77,492 6Total No.of Conveying Stops STOPS 1 1 1 1 1 1 7Tons Cooling (or MBH Htg) TONS 200 240 200 200 200 208 8No. of PlumbingFixtures EA 150 160 130 150 130 144 9Fire Protected Area SF 77,200 84,000 67,500 78,300 66,900 74,780 10Connected KW KW 650 750 600 700 600 660 11Accomodation Units EA 750 800 600 750 600 700 12Floor to Floor Height (Avg.) LF 12 12 12 12 12 12 13Gross Site Area SF 600,000 750,000 580,000 600,000 570,000 620,000 14Gross Bldg. Area per Accomod UnitSF/EA 103 105 113 104 112 107

BUILDING COST SUMMARY - ALL PROJECTS (Adjusted to April 2001)

Ground Floor Area 74,780SF 7.45 Ground Floor Area 74,780SF 4.38 Ground Floor Area 74,780SF - Ground Floor Area 74,780SF 3.07 Ground Floor Area 74,780SF - Ground Floor Area 74,780SF 7.45 Gross Bldg. Area 74,780SF 5.92

Gross Enclosure Area 30,646SF 18.25 Roof Surface Area 77,492SF 3.94 Gross Bldg. Area 74,780SF 17.49 Gross Bldg. Area 74,780SF 7.80 Gross Bldg. Area 74,780SF - Gross Bldg. Area 74,780SF 6.05 Gross Bldg. Area 74,780SF 13.84 Total No. of Stops 1EA 7,901 No. of Fixtures 144EA 3,365 Tons (or MBH) 208EA 5,689 Protected Area 74,780SF 2.20 Gross Bldg. Area 74,780SF 13.94 Connected KW 660KW 299 Gross Bldg. Area 74,780SF 4.27 Gross Bldg. Area 74,780SF 3.13 Gross Bldg. Area 74,780SF 2.69 Gross Bldg. Area 74,780SF 38.52 Gross Bldg. Area 74,780SF 3.17 Gross Bldg. Area 74,780SF 0.41 Accomodation Units 700 EA 8,675$

- Gross Site Area 620,000SF 0.96 Gross Site Area 620,000SF 0.17 Gross Site Area 620,000SF 0.55 Gross Site Area 620,000SF - Gross Site Area 620,000SF - Gross Site Area 620,000SF 1.68

- Accomodation Units 700EA 10,692$

- - -

Accomodation Units 700EA 10,692$ -

($/Parameter)

AdjustedAverageof All

Page 43: Qs Approach To Project Cost

Hospital Cost Model

Based on Historical Data from Other Hospitals

• Compare/benchmark other hospitals• Adjust for OSHPD V non-OSHPD criteria• Adjust for location• Adjust for central plant V no central plant• Adjust for size factor• Adjust for phasing/links• Adjust for time/escalation• Adjust for unique costs• Adjust for shelled space• Adjust for medical equipment with hard cost

Page 44: Qs Approach To Project Cost

Sensitivity to Life Cycle Impact

Energy 2%

Educational Staffing 31%

Support Staffing11%

Furnishings / Fitout 4%

Fees 1%

Construction Contingency 1%Other Project Costs 1%

School Allotment1%Textbooks1%

Benefits / Overhead14%

Other Support Costs2%

Major Capital Replacements5%

Maintenance 3%

Transportation5%

Construction 18%

Page 45: Qs Approach To Project Cost

Life Cycle Cost Analysis Alternative 1 Alternative 2 Alternative 3 Alternative 4

General Purpose Worksheet Individual Rooftop Central Plant with

Units 4 - Pipe Fan Coil Units

Study Title: HVAC System Analysis Estimated Present Estimated Present Estimated Present Estimated PresentDiscount Rate : 8% Date: 12/17/97 Costs Worth Costs Worth Costs Worth Costs WorthLife Cycle (Yrs.) 30

Initial/Collateral CostsA. Equipment 1,212,354 1,212,354 2,803,000 2,803,000B. Screening 55,501 55,501 40,000 40,000C. Plant Space 128,000 128,000D.E.F.G.

Total Initial/Collateral Costs $1,267,855 $1,267,855 $2,971,000 $2,971,000

Difference ($1,703,145)Replacement/Salvage P W

(Single Expenditures) Year Factor

A. Rooftop Units (70%) 8 0.540 770,000 416,007B. Rooftop Units (70%) 16 0.292 770,000 224,756C. Rooftop Units (70%) 24 0.158 770,000 121,428D. Fan Coils(100%) 15 0.315 408,888 128,899E. Central Plant Equipment 20 0.215 600,000 128,729F.G.

Total Replacement/Salvage Costs $762,191 $257,627Annual Costs Differential P W

Escal. Rate Factor

A. Maintenance - Rooftops 1% 12.496 75,360 941,693B. Maintenance - Fan Coils 1% 12.496 37,680 470,847C. Maintenance - Central Plant & Distrib. 1% 12.496 28,800 359,883D. Energy 3% 15.631 468,000 7,315,296 192,000 3,001,147E.F.G.

Total Annual Costs $543,360 $8,256,989 $258,480 $3,831,876

Total Life Cycle Costs (Present Worth) $10,287,035 $7,060,504

Life Cycle Cost PW Difference $3,226,531

Discounted Payback (Alt. 2,3,4 vs. Alt. 1) 3.9

Total Life Cycle Costs - Annualized Per Year: $913,771 Per Year: $627,166 Per Year: Per Year:

INIT

IAL

/ C

OLL

ATE

RA

L C

OS

TSR

EP

LAC

EM

EN

T /

SA

LVA

GE

C

OS

TSA

NN

UA

L C

OS

TS

LIFE

CY

CLE

C

OS

TSLife Cycle Costing Example

Page 46: Qs Approach To Project Cost

LEED Checklist Excerpted from LEED Green Building Rating System™

Page 47: Qs Approach To Project Cost

Industry Trends

• Variety of delivery systems• New risk sharing approaches• Increasing interest in

sustainability/green• Increase in security measures• Protectionist legislation to protect

certain industries (steel, concrete, lumber)

• Demand for speed • Outsourcing of management skills• Local Factors

Page 48: Qs Approach To Project Cost

Industry Trends (cont.)

• Sector Corrections –• Volume up

Medical, schools, housing• Volume down

Office, hi-tech, most other sectors

• Materials/Union Wages• Union wage rates are increasing 3-4% per annum. • Materials are pretty erratic with some exceptions.

• Awareness of bidding climate

Page 49: Qs Approach To Project Cost

Helpful Cost Management Hints

• The budget must be aligned • Apportion budgets by discipline …and

manage them• Manage scope• Manage quality and performance• Define and adhere to key parameter

measures • “Buy in” to all estimates – share

responsibility• If necessary, get a second opinion• Use value engineering/value analysis • Be willing to learn lessons and share

results

Page 50: Qs Approach To Project Cost

Understanding CostsUC Irvine

Replacement Hospital Project – Recent Example

Page 51: Qs Approach To Project Cost

UCI Replacement Hospital

Change Order Review scope - ”…manage what?”

Page 52: Qs Approach To Project Cost

UCI Replacement Hospital

• Design/Build Hospital project– Estimating & D/B oversight initial charge

• Charge from Campus for Cost Management– Real time review – but comprehensive– Transparent process – OSHPD aware– Organize Project Managers – Integrate “field” & design

• Importance to Campus– Audit trail– Simple organization - One source of

information– Understanding of “where the money went”

Page 53: Qs Approach To Project Cost

UCI Replacement Hospital

• How UCI chose to Manage Cost – Replacement Hospital– I/M system integration – “Prolog” based

• HP Database + UCI Database = Collaboration– PM meetings – monthly scope/OSHPD/field review– Integrating “all” contracts – D/B + others + UCI

provided material– Reporting - integrated– Document Control – RFI/Bulletin/Ltr of

Instruction/CO’s

Page 54: Qs Approach To Project Cost

Alignment

Projects need to start right to finish right

Expectations

Scope

Budget

Ongoing Effort

Page 55: Qs Approach To Project Cost

Project and Cost Management

A Quantity Surveying Approach

Carin Rautenbach – Vice PresidentJohn Merkler AIA – Executive Services Manager

Page 56: Qs Approach To Project Cost

Market Inflation Indices(Based on a 100 Value in 1977)

-

50.00

100.00

150.00

200.00

250.00

300.00

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

CPI Basic Means Index

Page 57: Qs Approach To Project Cost

Index History(Yearly Percent Change)

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

GDP CPI Basic Means Index

3%

Recession Recession

Page 58: Qs Approach To Project Cost

Integrated Cost Management Process - Planning & Programming

Cost Planby Discipline

Cost Analysis &

Alignment

Scope

Cost Model

Expectations

Criteria &Standards

Site & Configuration

ValuePlanning

Planning and Programming

HistoricalBenchmarks

DeliveryApproaches

Alternates

Architectural

Cost Targets

Parameter Targets

Structural

Cost Targets

Parameter Targets

Mechanical

Cost Targets

Parameter Targets

Electrical

Cost Targets

Parameter Targets

Equipment/Special

Cost Targets

Parameter Targets

Site

Cost Targets

Parameter Targets

Page 59: Qs Approach To Project Cost

Facility Value Target

01 02 03 04 05 06 07 08 09 10 11

Fo

un

dat

ion

s

Su

bst

ruct

ure

Su

per

stru

ctu

re

Ext

erio

r C

losu

res

Ro

ofi

ng

Inte

rio

r C

on

stru

ctio

n

Co

nve

yin

g

Mec

han

ical

Ele

ctri

cal

Gen

eral

Co

nd

itio

ns

Sit

ewo

rk

Sensible Trade-Offs

Page 60: Qs Approach To Project Cost

Traditional Design-Bid-Build Delivery

Page 61: Qs Approach To Project Cost

Fundamental Approach• Prime contracts directly with owner• A/E selected by qualifications or

qualifications/price.• A/E prepares design to 100%.• Open bidding to general contractors

(may be prequalified).• Awarded of contract to lowest

responsive bidder• Construction start after award of

contract.

Traditional Design-Bid-Build Delivery

Page 62: Qs Approach To Project Cost

Construction Manager at Risk Delivery

Page 63: Qs Approach To Project Cost

Construction Manager at Risk Delivery

Approach

• CM (at risk) has direct contract with owner, as does A/E.

• A/E selected by qualifications or qualifications/price.

• CM (at risk) selected on qualifications or qualifications and fee for general conditions and profit.

• CM (at risk) responsible for work scheduling and means/methods.

• Construction can start prior to design completion with early packages.

Page 64: Qs Approach To Project Cost

Construction Manager at Risk Delivery

Variations

• CM (PM) can be retained in an agency relationship to coordinate process.

• GMP can be followed with CM (at risk) open bidding to subcontractors.

Final price can “float” up to GMP.Or “shared savings” up to GMP with owner.Or a firm fixed price can be negotiated.

Page 65: Qs Approach To Project Cost

Design – Build Delivery

Page 66: Qs Approach To Project Cost

Advantage and Disadvantages of Delivery Systems

Traditional Design-Bid BuildISSUES ADVANTAGES DISADVANTAGES

Cost and Budget Management

·  “Best price” potential.·  Perception of “best price”.

·   Cost not finalized until bids.·   Cost overruns after bid require expensive redesign.·   Bidders may seek to “get low” by omitting work not clearly shown.

Schedule Impact and Management

·   Delivery schedule stipulated in contract.

·    Construction difficult to start before design is finished.·    Extended/compressed schedules may add cost and not be evident.·    Schedule changes after award difficult to implement.

Page 67: Qs Approach To Project Cost

Advantage and Disadvantages of Delivery Systems

Construction Manager at RiskISSUES ADVANTAGES DISADVANTAGES

Cost and Budget Management

·   Cost “guarantee” prior to design completion.·  Improved perception of control.·  Cost saving incentives are feasible.

·   After GMP, costs may increase due to detailing not correctly • reflected in the GMP.·   CM may “expand” budget to create opportunity for future savings”.

Schedule Impact and Management

·   Construction can start before design is complete.· Cost of impact of extended/compressed schedule can be addressed prior to GMP.

·    Schedule changes during construction difficult to implement.

Page 68: Qs Approach To Project Cost

Advantage and Disadvantages of Delivery Systems

Design-BuildISSUES ADVANTAGES DISADVANTAGES

Cost and Budget Management

·   Early cost guarantee.·  Price tends to match quality.·  Can obtain best price for performance.

·   Fair price competition difficult to verify.·   Cost impact of risk issues may not be evident in initial pricing.·  Owner overemphasis on price as a selection criterion may force the design-builder to compromise quality to reduce price.

Schedule Impact and Management

·   Construction can start after very preliminary design.· Generally considered as most beneficial schedule approach.

·    Schedule changes at any point after pricing difficult to implement.

Page 69: Qs Approach To Project Cost

Price Index / Cost Index

Page 70: Qs Approach To Project Cost

BUILDING COST SUMMARYProject Description: Elementary School, Virginia - Example 1 Bid Date: 11/96

Project Type: School Construction time(Months): 14

Gross Building Area:(GSF) 77,200 Market Conditions: good

UNIFORMAT TOTAL COST PER % OF ELEMENTAL ANALYSISSYSTEM / ELEMENT DESCRIPTION REFERENCE COST GSF BUILDING MEASURE UNIT VALUE COST/UNIT

BUILDING: b b / GSF b / 27 c b / c1 Foundations (A10) 506,192 6.56 9.3% Ground Floor Area SF 77,200 6.56 2 Standard Foundations (A1010) 302,142 3.91 5.6% Ground Floor Area SF 77,200 3.91 3 Other Foundations (A1020) - - 0.0% Ground Floor Area SF 77,200 - 4 Slab on Grade (A1030) 204,050 2.64 3.8% Ground Floor Area SF 77,200 2.64 5 Basement Construction (A20) - - 0.0% Ground Floor Area SF 77,200 - 6 Substructure - Sub-Total (A) 506,192 6.56 9.3% Ground Floor Area SF 77,200 6.56 7 Superstructure (B10) 400,900 5.19 7.4% Gross Bldg. Area SF 77,200 5.19 8 Exterior Enclosure (B20) 537,917 6.97 9.9% Gross Enclosure AreaSF 31,000 17.35 9 Roofing (B30) 273,275 3.54 5.0% Roof Surface Area SF 80,000 3.42

10 Shell - Sub-Total (B) 1,212,092 15.70 22.3% Gross Bldg. Area SF 77,200 15.70 11 Interior Construction (C10) 560,523 7.26 10.3% Gross Bldg. Area SF 77,200 7.26 12 Stairs (C20) - - 0.0% Gross Bldg. Area SF 77,200 - 13 Interior Finishes (C30) 394,833 5.11 7.3% Gross Bldg. Area SF 77,200 5.11 14 Interiors - Sub-Total (C) 955,356 12.38 17.6% Gross Bldg. Area SF 77,200 12.38 15 Conveying Systems (D10) 7,288 0.09 0.1% Total No. of Stops EA 1 7,288 16 Plumbing (D20) 447,800 5.80 8.2% No. of Fixtures EA 150 2,985 17 HVAC (D30) 1,049,400 13.59 19.3% Tons (or MBH) EA 200 5,247 18 Fire Protection (D40) 151,800 1.97 2.8% Protected Area SF 77,200 1.97 19 Electrical (D50) 859,866 11.14 15.8% Gross Bldg. Area SF 77,200 11.14 20 Electrical Service & Distribution (D5010) 182,120 2.36 3.4% Connected KW KW 650 280 21 Lighting & Branch Wiring (D5020) 286,132 3.71 5.3% Gross Bldg. Area SF 77,200 3.71 22 Communications & Security (D5030) 205,778 2.67 3.8% Gross Bldg. Area SF 77,200 2.67 23 Other Electrical Systems (D5040) 185,836 2.41 3.4% Gross Bldg. Area SF 77,200 2.41 24 Services - Sub-Total (D) 2,516,154 32.59 46.3% Gross Bldg. Area SF 77,200 32.59 25 Equip. & Furnishings - Sub-Total (E) 211,210 2.74 3.9% Gross Bldg. Area SF 77,200 2.74 26Spec. Construct. & Demo - Sub-Total (F) 28,500 0.37 0.5% Gross Bldg. Area SF 77,200 0.37 27 TOTAL BUILDING 5,429,504$ 70.33$ 100.0% Accommodation UnitsEA 750 7,239$ 28 SITEWORK & UTILITIES: - 29 Site Preparation (G10) 467,598 6.06 8.6% Gross Site Area SF 600,000 0.78 30 Site Improvements (G20) 85,122 1.10 1.6% Gross Site Area SF 600,000 0.14 31 Site Mechanical Utilities (G30) 301,500 3.91 5.6% Gross Site Area SF 600,000 0.50 32 Site Electrical Utilities (G40) - - 0.0% Gross Site Area SF 600,000 - 33 Other Site Construction (G50) - - 0.0% Gross Site Area SF 600,000 - 34 TOTAL SITEWORK & UTILITIES: (G) 854,220 11.07 15.7% Gross Site Area SF 600,000 1.42 35 General Conditions, Overhead & Profit @ 5.1% 322,647 4.18 5.9%36 TOTAL FACILITY COST - CURRENT 6,606,371$ 85.57$ 121.7% Accommodation UnitsEA 750 8,808$ 37 Contingency @ - - 0.0%38 Escalation @ - - 0.0%39

40 TOTAL FACILITY COST - PROJECTED 6,606,371$ 85.57$ 121.7% Accommodation UnitsEA 750 8,808$

Parameters: Measure Value Area Analysis: Area (SF)1 Gross Bldg. Area SF 77,200 2 Ground Floor Area SF 77,200 Basement - 3 Gross Enclosure Area SF 31,000 Ground Floor 77,200 4 Percent Fenestration % 12% Upper Floors5 Roof Surface Area SF 80,000 Penthouses6 Total No.of Conveying Stops STOPS 1 Other Areas - 7 Tons Cooling (or MBH Htg) TONS 200 8 No. of Plumbing Fixtures EA 150 Gross Floor Area 77,200 9 Fire Protected Area SF 77,200 10 Connected KW KW 650 11Accommodation Units EA 750 12 Floor to Floor Height (Avg.) LF 12 13 Gross Site Area SF 600,000 14 Gross Bldg. Area/Accomod UnitSF/EA 103

-

Historical Cost Model