qs approach to project cost
DESCRIPTION
Presented to the San Francisco chapter of the Construction Specification InstituteTRANSCRIPT
Project and Cost Management
A Quantity Surveying Approach
Carin Rautenbach – Vice PresidentJohn Merkler AIA – Executive Services Manager
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Introduction
Faithful & Gould
(World)
HanscombFaithful
& Gould(USA)
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
Ability to Influence Project Cost & Schedule
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
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
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
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
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
Alignment
Projects need to start right to finish right
Expectations
Scope
Budget
Ongoing Effort
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
Understanding Costs
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
Medical Center- Project Costs
(Hard 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
Standard Formats
Estimating Formats
• Standardized Format– Consistency– Data Base– Checklist
• Classifications– Masterformat– UNIFORMAT– Contract Packages– Activities– Plan /Program areas
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
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
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
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
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
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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
Hospitality Estimate- Uniformat
Hospitality Estimate- Masterformat
Identifying Cost Drivers
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
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
Focus on Interdisciplinary Areas
Civil & structural
ArchitecturalMechanical
Electrical
Owner’s requirements
Relationship of Time and Change
Cost of making changes
Best Opportunity for Improvement
Time
HighAbility to
make changes
Degree ofChange
LowPlanning Design Construction
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
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
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
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
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
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).
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
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
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
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
(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
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
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
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
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%
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
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LIFE
CY
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TSLife Cycle Costing Example
LEED Checklist Excerpted from LEED Green Building Rating System™
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
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
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
Understanding CostsUC Irvine
Replacement Hospital Project – Recent Example
UCI Replacement Hospital
Change Order Review scope - ”…manage what?”
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”
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
Alignment
Projects need to start right to finish right
Expectations
Scope
Budget
Ongoing Effort
Project and Cost Management
A Quantity Surveying Approach
Carin Rautenbach – Vice PresidentJohn Merkler AIA – Executive Services Manager
Market Inflation Indices(Based on a 100 Value in 1977)
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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
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19
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19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
CPI Basic Means Index
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
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
Facility Value Target
01 02 03 04 05 06 07 08 09 10 11
Fo
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Su
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Ro
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Inte
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Co
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yin
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Mec
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Ele
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Gen
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Sit
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Sensible Trade-Offs
Traditional Design-Bid-Build Delivery
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
Construction Manager at Risk Delivery
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.
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.
Design – Build Delivery
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.
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.
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.
Price Index / Cost Index
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
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Historical Cost Model