Qs Approach To Project Cost
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Project and Cost Management discusses quantity surveying, which is a cost management approach to project management. It provides a three sentence summary of the key aspects of quantity surveying including understanding costs, standard formats for organizing cost data, and identifying factors that drive building costs to aid in managing costs. The document discusses tools and strategies for establishing budgets, controlling costs, and addressing contingencies and escalation over the life of a project.
Qs Approach To Project Cost
- 1. Project and Cost Management A Quantity Surveying Approach Carin Rautenbach – Vice President John Merkler AIA – Executive Services Manager
- 2. Introduction Atkinsorganization Atkins Transport Design & Engineering Management & Equity Solutions Project Services Investments Rail H&T Faithful & Management Investments/ Water & Metronet Environment Gould Consultancy (World) Engineering Asset Solutions Management Lambert Smith Design Solutions Hanscomb Project Hampton Faithful Development Design & Programme & Management Gould (USA)
- 3. Introduction COMPANY HISTORY UNITED STATES WORDWIDE Atkins est. in 1938 A global company . . . Presence in more than 60 Locally based countries and 190 offices Hanscomb est. in 1946 worldwide 26 offices - Major Cities in Faithful&Gould est. in the USA 2,150 independent, 1947, acquired by Atkins professional consultants 1996 420 Independent, Worldwide professional consultants Atkins HF&G merged in in the United States June 2002 Core business PROJECT and COST MANAGEMENT World’s leading cost consultant with over 55 years experience
- 4. Ability to Influence Project Cost & Schedule
- 5. 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
- 6. Chain of Services Typical range of services Contract & Bid Analysis Work Scope & Award Planning Management Customer Products Pre-qualification Needs that meet & Inquiry Customers’ Management Needs
- 7. Chain of Services Our range of services Program and Contract & Bid Analysis Change Feasibility Procurement Work Scope and Award and Trend Analysis Strategy Planning Management Management Customer’s Risk Engineering Pre-qualification Cost and Final Accounts Needs Management Management and Inquiry Project and Asset Management Management Listings
- 8. 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
- 9. Essentials of Cost Management Cost Management isAligning: • 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
- 10. Alignment Scope Ongoing Effort Expectations Budget Projects need to start right to finish right
- 11. Defining Scope, Expectations and Budget SCOPE EXPECTATIONS BUDGET Program Aesthetics Initial Costs - Functional Space Program - Form & Massing - Site Acquisition - Blocking &Stacking - Image - Fees - Public Space - Community Requirements - Construction - Efficiency - Design Issues - Inflation and Market Conditions - Contingencies Geometric Drivers Quality - Other Costs - Wall Area Ratio - Systems - Degree of Articulation - Materials FutureOne-Time Costs - Workmanship - Replacements Volume Drivers - Alterations - Clear Ceiling Height Project Delivery - Salvage - Plenum Height - Phasing & Scheduling - Other ne-Time Costs O - Interstitial Needs - Continued Occupancy - Atria - Delivery System Facility Annual Costs - Light Shelves - Operations Systems Performance - Maintenance Facility Parameters - Functional Space Elements - Financing - HVAC SF/Ton - Building Management - Taxes - Watts/SF - Maintainability - Insurance - Plumbing Fixtures - Energy Consumption - Security - Ductwork Poundage - Sustainability - Other Annual Costs - Steel Pounds/SF - Etc. Facility Performance Functional Use Costs - Live Loads - Staffing - Expandability - Materials - Flexibility - Denial of Use - Security & Safety - Other Functional Use Costs - Access & Egress - Adjacencies - Natural Light External Requirements - Codes - Standards & Criteria
- 13. Definition of Cost Site Costs Hard Costs Soft Costs Land Building Interiors Development Costs Design fees Land Cost Foundations Tenant Work Commission & Management fees Structure Artwork Fees TOTAL Legal fees Enclosure Furniture, Fixtures Title Insurance + + + = CAPITAL & Equipment Taxes & Levies COSTS Interior Finishes Transfer Taxes Telephone & Data Insurance Conveying Surveys Communications Owner’s HVAC & System Demolition administration Plumbing Sitework Leasing commissions Electrical Interim finance Moving Costs
- 14. Medical Center- Project Costs (Hard Cost)
- 15. Breakdown of Construction Costs Total Hard Costs Prime Contractor / CM Mark-up General Conditions Sub-Contractor Mark-up General Conditions Materials Installation Purchase Cost Taxes Labor Equipment Premiums Operations Equipment Shipping & Fringes Cost Rental Handling Taxes / Insurance Base Wages
- 16. Standard Formats
- 17. Estimating Formats • Standardized Format – Consistency – Data Base – Checklist • Classifications – Masterformat – UNIFORMAT – Contract Packages – Activities – Plan /Program areas
- 18. MasterFormat Divisions DIVISION 1 General Requirements 2 Sitework 3 Concrete 4 Masonry 5 Metals 6 Wood and Plastics 7 Thermal and Moisture Protection 8 Doors and Windows 9 Finishes 10 Specialties 11 Equipment 12 Furnishings 13 Special Construction 14 Conveying Systems 15 Mechanical 16 Electrical
- 19. 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
- 20. UNIFORMAT Elements • A10 Foundations • A20 Basement Construction • E10 Equipment • E20 Furnishings • B10 Superstructure • F10 Special Construction • B20 Exterior Closure • F20 Selective Building • B30 Roofing • G10 Site Preparation • C10 Interior Construction • G20 Site Improvements • C20 Staircases • G30 Site Mechanical Utilities • C30 Interior Finishes • D10 Conveying Systems • G40 Site Electrical Utilities • D20 Plumbing • G50 Other Site Construction • D30 HVAC • D40 Fire Protection • D50 Electrical
- 21. Where the Dollar Goes UNIFORMAT II Apartment Office Element Building Building (level 2) 15 st – 15st – 140,000SF 162,000SF (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
- 22. UNIFORMAT II and MasterFormat Shell & Substructure 07 Thermal & moisture protect MASTERFORMAT Categories 13 Special construction 14 Conveying systems 01 General conditions 08 Doors & windows 06 Wood-plastic 12 Furnishings 15 Mechanical 10 Specialties 11 Equipment 02 Site work 16 Electrical 03 Concrete 04 Masonry 09 Finishes 05 Metals UNIFORMAT II Categories Level 1 Level 2 Level 3 A 10 Foundations A 1010 Standard Foundations SUBSTRUCTURE A 1020 Other Foundations A 1030 Slab on Grade A A 20 Basement Construction 2010 Basement Excavation A A 2020 Basement Walls B 10 Superstructure B 1010 Floor Construction B 1020 Roof Construction SHELL B 20 Exterior Enclosure B 2010 Exterior Walls B B 2020 Exterior Windows B 2030 Exterior Doors B 30 Roofing B 3010 Roof Coverings B 3020 Roof Openings
- 26. 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
- 27. PARETO’S LAW OF DISTRIBUTION 100 90 PERCENTAGE OF COST 80 70 60 Best Value Focus 50 40 30 20 10 0 0 20 40 60 80 100 PERCENTAGE Of TOTAL FACILITY COMPONENTS
- 28. Focus on Interdisciplinary Areas Electrical Civil & structural Architectural Mechanical Owner’s requirements
- 29. Relationship of Time and Change Ability to Cost of High make changes making changes Degree of Change Best Opportunity for Improvement Low Planning Design Construction Time
- 30. Building Efficiency Example GFA Cost per SF Net Rentable Net Rentable Floor Area Ratio Floor Area Office Building A140,000 sf 85.00 80% 112,000 sf Office Building B140,000 sf 85.00 85% 119,000 sf What is the cost per SF of rentable area? A = $106.25 B = $100.00
- 31. Relationship Between Quality & Cost HIGH Bankrupt Zone TOTAL LIFE CYCLE COST COST QUALITY LIMITS FUTURE COSTS MAX INITIAL COSTS MIN LOW VC Tile Zone LOW MIN MAX HIGH QUALITY
- 32. Effect of Competition on Prices 1.25 1.15 Bid 1.05 Factor 0.95 0.85 0 2 4 6 8 10 12 14 16 18 20 Number of Bids Source: Area Cost Factor Study, U.S. Army Corps of Engineers
- 33. Market Conditions Comparison Between Bid Results and Fair Market Value Predatory Range +/- 40 10-20% above or 30 below FMV 20 10 Reasonable Supply & 0 Demand Range +/- 7% -10 -20 -30 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 YEAR
- 34. 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
- 35. 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).
- 36. 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
- 37. 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
- 38. Facility Cost Plan Summary 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 ANALYSIS UNIFORMAT SYSTEM / ELEMENT DESCRIPTION BUILDING: REFERENCE COST b GSF b / GSF BUILDING b / 27 MEASURE UNIT VALUE c COST/UNIT b/c Cost per 1 2 Foundations Standard Foundations (A10) (A1010) 3,824,493 75,507 9.00 0.18 5.5% 0.1% Ground Floor Area SF Ground Floor Area SF 108,975 108,975 35.10 0.69 UNIFORMAT Gross Area 3 4 Other Foundations Slab on Grade (A1020) (A1030) 2,144,701 1,604,285 5.05 3.77 3.1% 2.3% Ground Floor Area SF Ground Floor Area SF 108,975 108,975 19.68 14.72 Cost per 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 System Unit 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% Key 39 40 TOTAL FACILITY COST - PROJECTED $ 122,646,026 $ 288.58 174.2% Occupants EA 1,800 $ 68,137 Parameter Key Parameters: 1 Gross Bldg. Area Measure SF Value 425,000 Area Analysis: Area (SF) Tracking 2 Ground Floor Area 3 Gross Enclosure Area SF SF 108,975 188,000 Basement 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
- 39. Integrated Cost Management Process Cost Plan Revised Cost Plan Revised Cost Plan by Discipline by Discipline by Discipline Architectural Architectural Architectural Market Market Cost Parameter Assessment, Cost Parameter Assessment, Cost Parameter Targets Targets Contingencies & Risks Targets Targets Contingencies & Risks Targets Targets Structural Structural Structural Constructibility, Historical Cost Parameter Massing, Quality & Historical Historical Cost Parameter Phasing & Quality & Benchmarks Cost Parameter Targets Targets Aesthetics & Performance Benchmarks Targets Targets Targets Targets Scope Expectations Benchmarks Scheduling Performance Image Mechanical Mechanical Mechanical Cost Parameter Cost Parameter Cost Parameter Targets Targets Targets Targets Targets Targets Cost Milestone Revised Milestone Revised Ongoing Advice Analysis& Cost Model Electrical Ongoing Advice Cost CostModel Electrical Cost CostModel Electrical Alignment Estimate Estimate Cost Parameter Cost Parameter Cost Parameter Targets Targets Targets Targets Targets Targets Equipment/Special Equipment/Special Equipment/Special Criteria & Site & Phasing & Life Cycle Materials & Life Cycle Standards Configuration Cost Parameter Schedule Performance & Cost Parameter Systems Performance & Cost Parameter Targets Targets Sustainability Targets Targets Sustainability Targets Targets Site Site Site Cost Parameter Cost Parameter Cost Parameter Alternates Targets Targets Concepts Systems Targets Targets Targets Targets Value Value Value Planning Engineering Engineering Delivery System Components Approaches Alternates Project History Concept Development & Schematic Design Development & Construction Planning and Programming Design Documents
- 40. Summary of Estimating Methods (1) Single Unit Rate (2) Parametric/Cost Modeling (3) System Elemental Cost Analysis (4) Quantity Survey Application of Cost Estimating Techniques Pre-Design Schematic Design Development Construction Documents Pre-Bid SUR Parametric System Quantity Survey
- 41. 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 ESTIMATE Original PDS Adjusted PDS Concept Concept Tentative (Rev.)Tentative (Rev.) 5% 7 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
- 42. Historical Cost Model Database BUILDING COST SUMMARY - ALL PROJECTS (Adjusted to April 2001) Project Description: Elementary Schools Bid Date 11/96 8/95 10/93 1/97 9/94 Adjusted Adjusted Project Type: School Constr Time 14 15 14 14 16 Average Average Market good good excellent good good of All of All UNIFORMAT Example 1 Adjusted Example 2 Adjusted Example 3 Adjusted Example 4 Adjusted Example 5 Adjusted 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) ($/Parameter) BUILDING: b 1.14 b 1.18 b 1.32 b 1.13 b 1.21 1 Foundations (A10) 506,192 7.47 485,255 6.83 397,823 7.80 561,768 8.13 385,840 7.01 7.45 Ground Floor Area 74,780 SF 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 Ground Floor Area 74,780 SF 4.38 3 Other Foundations (A1020) - - - - - - - - - - - Ground Floor Area 74,780 SF - 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 Ground Floor Area 74,780 SF 3.07 5 Basement Construction (A20) - - - - - - - - - - - Ground Floor Area 74,780 SF - 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 Ground Floor Area 74,780 SF 7.45 7 Superstructure (B10) 400,900 5.92 408,714 5.75 291,566 5.72 461,841 6.69 305,582 5.55 5.92 Gross Bldg. Area 74,780 SF 5.92 8 Exterior Enclosure (B20) 537,917 7.94 504,529 7.10 391,216 7.67 563,351 8.16 360,819 6.55 7.48 Gross Enclosure Area 30,646 SF 18.25 9 Roofing (B30) 273,275 4.03 278,601 3.92 198,747 3.90 329,125 4.77 208,301 3.78 4.08 Roof Surface Area 77,492 SF 3.94 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 Gross Bldg. Area 74,780 SF 17.49 11 Interior Construction (C10) 560,523 8.27 571,448 8.04 346,508 6.79 587,025 8.50 405,890 7.37 7.80 Gross Bldg. Area 74,780 SF 7.80 12 Stairs (C20) - - - - - - - - - - - Gross Bldg. Area 74,780 SF - 13 Interior Finishes (C30) 394,833 5.83 483,034 6.80 258,438 5.07 413,501 5.99 361,149 6.56 6.05 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 13.84 15 Conveying Systems (D10) 7,288 0.11 7,430 0.10 5,300 0.10 7,633 0.11 5,555 0.10 0.11 Total No. of Stops 1 EA 7,901 16 Plumbing (D20) 447,800 6.61 456,528 6.43 325,675 6.38 468,973 6.79 341,331 6.20 6.48 No. of Fixtures 144 EA 3,365 17 HVAC (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 Tons (or MBH) 208 EA 5,689 18 Fire Protection (D40) 151,800 2.24 154,759 2.18 110,401 2.16 158,977 2.30 115,708 2.10 2.20 Protected Area 74,780 SF 2.20 19 Electrical (D50) 859,866 12.69 859,866 12.10 859,866 16.86 859,866 12.45 859,866 15.62 13.94 Gross Bldg. Area 74,780 SF 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 Connected KW 660 KW 299 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 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 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 Gross Bldg. Area 74,780 SF 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 Accomodation Units 700 EA $ 8,675 28 SITEWORK & UTILITIES: - - - - - - - 29 Site Preparation (G10) 467,598 6.90 657,181 9.25 375,979 7.37 482,827 6.99 527,489 9.58 8.02 Gross Site Area 620,000 SF 0.96 30 Site Improvements (G20) 85,122 1.26 99,695 1.40 88,977 1.74 87,894 1.27 71,129 1.29 1.39 Gross Site Area 620,000 SF 0.17 31 Site 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 Gross Site Area 620,000 SF 0.55 32 Site Electrical Utilities (G40) - - - - - - - - - - - Gross Site Area 620,000 SF - 33 Other Site Construction (G50) - - - - - - - - - - - Gross Site Area 620,000 SF - 34 TOTAL 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 Gross Site Area 620,000 SF 1.68 35 General 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 - 36 TOTAL 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 Accomodation Units 700 EA $ 10,692 37 Contingency @ - - - - - - - - - - - - 38 Escalation @ - - - - - - - - - - - - 39 - - - - - - - 40 TOTAL 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 Accomodation Units 700 EA $ 10,692 41 TOTAL 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 Value 1 Gross Bldg. Area SF 77,200 84,000 67,500 78,300 66,900 74,780 2 Ground Floor Area SF 77,200 84,000 67,500 78,300 66,900 74,780 3 Gross Enclosure Area SF 31,000 33,731 28,000 32,500 28,000 30,646 4 Percent Fenestration % 12% 12% 15% 12% 15% 13% 5 Roof Surface Area SF 80,000 87,047 69,948 81,140 69,326 77,492 6 Total No.of Conveying Stops STOPS 1 1 1 1 1 1 7 Tons Cooling (or MBH Htg) TONS 200 240 200 200 200 208 8 No. of PlumbingFixtures EA 150 160 130 150 130 144 9 Fire Protected Area SF 77,200 84,000 67,500 78,300 66,900 74,780 10 Connected KW KW 650 750 600 700 600 660 11 Accomodation Units EA 750 800 600 750 600 700 12 Floor to Floor Height (Avg.) LF 12 12 12 12 12 12 13 Gross Site Area SF 600,000 750,000 580,000 600,000 570,000 620,000 14 Gross Bldg. Area per Accomod Unit SF/EA 103 105 113 104 112 107
- 43. 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
- 44. Sensitivity to Life Cycle Impact Transportation Construction 18% 2% Other Support Costs 5% 1% School Allotment 1% Textbooks Furnishings / Fitout 4% Benefits / Overhead Fees 1% 14% Other Project Costs 1% ConstructionContingency 1% Major Capital Replacements 5% Maintenance 3% Support Staffing 11% Energy 2% Educational Staffing 31%
- 45. Life Cycle Costing Example 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 Present Discount Rate : 8% Date: 12/17/97 Costs Worth Costs Worth Costs Worth Costs Worth Life Cycle (Yrs.) 30 Initial/Collateral Costs INITIAL / COLLATERAL COSTS A. Equipment 1,212,354 1,212,354 2,803,000 2,803,000 B. Screening 55,501 55,501 40,000 40,000 C. Plant Space 128,000 128,000 D. 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 PW REPLACEMENT / SALVAGE (Single Expenditures) Year Facto r A. Rooftop Units (70%) 8 0.540 770,000 416,007 B. Rooftop Units (70%) 16 0.292 770,000 224,756 COSTS C. Rooftop Units (70%) 24 0.158 770,000 121,428 D. Fan Coils(100%) 15 0.315 408,888 128,899 E. Central Plant Equipment 20 0.215 600,000 128,729 F. G. Total Replacement/Salvage Costs $762,191 $257,627 Annual Costs Differential PW Escal. Rate Facto r ANNUAL COSTS A. Maintenance - Rooftops 1% 12.496 75,360 941,693 B. Maintenance - Fan Coils 1% 12.496 37,680 470,847 C. Maintenance - Central Plant & Distrib. 1% 12.496 28,800 359,883 D. Energy 3% 15.631 468,000 7,315,296 192,000 3,001,147 E. 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 COSTS 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:
- 46. LEED Checklist Excerpted from LEED Green Building Rating System™
- 47. 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
- 48. 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
- 49. 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
- 50. Understanding Costs UC Irvine Replacement Hospital Project – Recent Example
- 51. UCI Replacement Hospital Change Order Review scope - ”…manage what?”
- 52. 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”
- 53. 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
- 54. Alignment Scope Ongoing Effort Expectations Budget Projects need to start right to finish right
- 55. Project and Cost Management A Quantity Surveying Approach Carin Rautenbach – Vice President John Merkler AIA – Executive Services Manager
- 56. Market Inflation Indices (Based on a 100 Value in 1977) 300.00 CPI Basic Means Index 250.00 200.00 150.00 100.00 50.00 1980 1988 1998 1977 1978 1979 1981 1982 1983 1984 1985 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 -
- 57. Index History (Yearly Percent Change) 16.00% 14.00% 12.00% 10.00% GDP CPI Basic Means Index 8.00% 6.00% 4.00% 3% 2.00% 0.00% -2.00% Recession Recession -4.00% 1978 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1979 1999
- 58. Integrated Cost Management Process - Planning & Programming Cost Plan by Discipline Architectural Cost Parameter Targets Targets Structural Cost Parameter Historical Targets Targets Scope Expectations Benchmarks Mechanical Cost Parameter Targets Targets Cost Analysis & Cost Model Electrical Alignment Cost Parameter Targets Targets Equipment/Special Criteria & Site & Standards Configuration Cost Parameter Targets Targets Site Cost Parameter Alternates Targets Targets Value Planning Delivery Approaches Planning and Programming
- 59. Facility Value Target 01 Foundations 02 Substructure 03 Superstructure Sensible Trade-Offs 04 Exterior Closures 05 Roofing 06 Interior Construction 07 Conveying 08 Mechanical 09 Electrical 10 General Conditions 11 Sitework
- 61. 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
- 62. Construction Manager at Risk Delivery
- 63. 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.
- 64. 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.
- 65. Design – Build Delivery
- 66. Advantage and Disadvantages of Delivery Systems Traditional Design-Bid Build ISSUES ADVANTAGES DISADVANTAGES Cost and Budget “Best price” potential. Cost not finalized until Management Perception of “best price”. bids. Cost overruns after bid require expensive redesign. Bidders may seek to “get low” by omitting work not clearly shown. Schedule Impact Delivery schedule Construction difficult to and Management stipulated in start contract. before design is finished. Extended/compressed schedules may add cost
- 67. Advantage and Disadvantages of Delivery Systems Construction Manager at Risk ISSUES ADVANTAGES DISADVANTAGES Cost and Budget Cost “guarantee” prior to After GMP, costs may Management design completion. increase Improved perception of due to detailing not control. correctly Cost saving incentives are • reflected in the GMP. feasible. CM may “expand” budget to create opportunity for future savings”. Schedule Impact Construction can start Schedule changes during and Management before construction difficult to design is complete. implement. Cost of impact of extended/compressed
- 68. Advantage and Disadvantages of Delivery Systems Design-Build ISSUES ADVANTAGES DISADVANTAGES Cost and Budget Early cost guarantee. Fair price competition difficult Management Price tends to match to quality. verify. Can obtain best price for Cost impact of risk issues performance. 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 Construction can start Schedule changes at any and Management after point
- 69. Price Index / Cost Index
- 70. Historical Cost Model BUILDING COST SUMMARY Project 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 ANALYSIS SYSTEM / ELEMENT DESCRIPTION REFERENCE COST GSF BUILDING MEASURE UNIT VALUE COST/UNIT BUILDING: b b / GSF b / 27 c b/c 1 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 26 Spec. 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 Units EA 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 Units EA 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 Units EA 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 Floors 5 Roof Surface Area SF 80,000 Penthouses 6 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 -