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Understanding and Managing Project Costs Session 2 Review of Session 1 Construction Phases Pre-design Design Bid/award Construction Post-construction The Sure-Fresh Project The Conceptual Estimate Estimated early in project development Limited accuracy Large contingency

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review of session 1
Review of Session 1
  • Construction Phases
    • Pre-design
    • Design
    • Bid/award
    • Construction
    • Post-construction
  • The Sure-Fresh Project

An AGC Construction Learning Tool

the conceptual estimate
The Conceptual Estimate
  • Estimated early in project development
  • Limited accuracy
    • Large contingency
  • Usually based on gross area multiplied by the unit price cost for similar projects
  • Helps the owner make basic decisions about the project

An AGC Construction Learning Tool

a simple conceptual estimate

Item

Type

Area

SF Cost

Total Cost

Building A

Office Building

20,000

$ 100.00

$2,000,000.00

Building B

Warehouse

65,000

$ 65.00

$4,225,000.00

Site Development

225,000

$ 2.00

$ 450,000.00

Site Utilities

225,000

$ 1.50

$ 337,500.00

Parking lots

50,000

$ 2.20

$ 110,000.00

Landscaping

90,000

$ 1.30

$ 117,000.00

$7,239,500.00

Contingency

20%

$1,447,900.00

Total Construction Costs

$8,687,400.00

A Simple Conceptual Estimate

An AGC Construction Learning Tool

surefresh conceptual estimate

Item

Description

Area

Unit

Unit Price

Cost

Site Development

Entire site, west of river

3,525,000

SF

$ .20

$ 705,000.

Bridges

2 each

7,200

SF

$100.00

$ 720,000.

Site Utilities

Entire site, west of river

3,525,000

SF

$ .10

$ 352,500.

Truck Access Paving

624,483

SF

$ 2.72

$1,698,594.

Parking Lots

+90,000 SF north site

141,750

SF

$ 2.09

$ 296,258.

Landscaping

75,474

SY

$ .81

$ 61,134.

Gatehouse 1

200

SF

$ 150.00

$ 30,000.

Gatehouse 1

200

SF

$ 150.00

$ 30,000.

Building A

Receiving Bldg

35,000

SF

$ 33.51

$1,172,850.

Building B

Warehouse

250,000

SF

$ 33.51

$8,377,500.

Building C

Warehouse

250,000

SF

$ 33.51

$8,377,500.

Building D

Warehouse

250,000

SF

$ 33.51

$8,377,500.

Office Building

25,000

SF

$ 103.43

$2,585,750.

Total Cost

$32,784,585.

20% Contingency

$ 5,556,917.

Total Budget

$39,341,502.

SureFresh Conceptual Estimate

An AGC Construction Learning Tool

creation of the surefresh budget
Creation of the SureFresh Budget
  • Project spread into three years for financing arrangements
  • Phase I:
    • Site work, gatehouses, bridges, Building A for offices, slabs of Buildings B, C, and D
  • Phase II:
    • Complete three warehouse buildings
  • Phase III:
    • Construction of new office building, remodel Building A

An AGC Construction Learning Tool

phase i budget

Phase 1

Item

Description

Area

Unit

Unit price

Cost

Site Development

Entire Site Area west of River

2,400,000

SF

$ 0.20

$ 480,000

Bridges

2 each @ 3600 SF ea

7200

SF

$ 100.00

$ 720,000

Site Utilities

Entire Site Area west of River

2,400,000

SF

$ 0.10

$ 240,000

Truck access pvg

624483

SF

$ 2.72

$ 1,698,594

Parking lots

51750

SF

$ 2.09

$ 108,158

Landscaping

65474

SY

$ 0.81

$ 53,034

Gatehouse 1

200

SF

$ 150.00

$ 30,000

Gatehouse 2

200

SF

$ 150.00

$ 30,000

Building A

Receiving Building

35,000

SF

$ 38.16

$ 1,335,565

Building B

Warehouse, Foundations/slab

250,000

SF

$ 12.00

$ 3,000,000

Building C

Warehouse, Foundations/slab

250,000

SF

$ 12.00

$ 3,000,000

Building D

Warehouse, Foundations/slab

250,000

SF

$ 12.00

$ 3,000,000

$13,695,350

20% Contingency

$ 2,739,070

Total budget, Phase 1

$16,434,42

Phase I Budget

An AGC Construction Learning Tool

phase ii budget

Item

Description

Area

Unit

Unit price

Cost

Building B

Warehouse Building Completion

250,000

$ 21.51

$ 5,377,500

Building C

Warehouse Building Completion

250,000

$ 21.51

$ 5,377,500

Building D

Warehouse Building Completion

250,000

$ 21.51

$ 5,377,500

$16,132,500

20% Contingency

$ 3,226,500

Total Budget, Phase II

$19,359,00

Phase II Budget

An AGC Construction Learning Tool

phase iii budget

Item

Description

Area

unit

Unit price

Cost

Building A

Remodel for Receiving

15,200

SF

$ 10.00

$ 152,000

Office Building:

Building

25000

SF

$ 103.43

$ 2,585,750

(north site)

Site Development

1125000

SF

$ 0.20

$ 225,000

Site Utilities

1125000

SF

$ 0.10

$ 112,500

Asphalt paved parking lots

90000

SF

$ 2.09

$ 188,100

Landscaping

10000

SY

$ 0.81

$ 8,100

$ 3,271,450

20% Contingency

$ 654,290

Total Budget, Phase III

$ 3,925,740

Phase III Budget

An AGC Construction Learning Tool

the detailed estimate
The Detailed Estimate
  • Identifies activity elements
  • Quantifies activity elements
  • The more detailed the estimate, the more accurate the estimate
    • As the documents increase in detail, the estimate increases in detail, and the necessary contingency decreases

An AGC Construction Learning Tool

unit abbreviations and formulas

Unit

Abbrev

Use

Formula

Cubic Yards

CY

Concrete

Soil Materials

(Length ‘ X Width’ X Depth ‘ ) / 27

Square Yards

SY

Paving

Surface Area

( Length ‘ X Width ‘) / 9

Square Yds. Of Contact Area

SFCA

Formwork

(Length ‘ X Height ‘ of formed area) X 2 sides

Square Feet

SF

Area

(Length ‘ x Width ‘)

Lineal Feet

LF

Measured Length

Ton

Ton

Rock Material

Weight for material (tons/CY = (Weight of Material/Cy)/2,000)

Ton

Ton

Reinforcing Steel

#4 = .668 lbs/lf; # 5 = 1.043 lbs/ lf; #6 = 1.502 lbs/lf

Unit abbreviations and formulas

An AGC Construction Learning Tool

solution the detailed estimate

Item

Cost Item

Quantity

Unit

Grade Beams

Form Beam Sides

30,000

SFCA

Reinforcing Steel

23.7

Tons

Place Concrete

611

CY

Chamfer Strips

2500

LF

Float Top

2500

SF

Embeds

1250

Ea

Slab on Grade

Fine Grade

250,000

SF

CompactedBase course

3,361

CY

Vapor Barrier

282,500

SF

Reinforcing Steel

183.7

Tons

Edge Form

2500

LF

Screeds

5000

LF

Expansion Joint

4861

LF

Finish

250,000

SF

Cure

250,000

SF

Box-out Columns

108

SF

Solution: The Detailed Estimate

An AGC Construction Learning Tool

solution concrete recap
Solution: Concrete Recap

An AGC Construction Learning Tool

selecting subcontract bids
Selecting Subcontract Bids
  • Bid analysis is necessary to determine:
    • Lowest prices including full scope
    • No duplications
    • No “holes”
    • Responsible subcontractors

An AGC Construction Learning Tool

combination bid analysis

Bidder

09200

09250

09300

09500

09680

09200/

09250

09200/ 09250/ 09500

09300

09680

Galloy Plaster

$13450

Jim’s Plaster

$12400

GB, Inc.

$35000

Bamberger Walls & Clgs

$32000

Gary’s Tile

$10000

Gary’s Ceilings

$35000

Carpet Univ

$14500

Fred’s Walls

$45000

Ed’s Walls

$44900

Big Stuff, Inc.

$82000

Carpet Galaxy

$23500

Low Bids

$12400

$32000

$10000

$35000

$14600

$44900

$82000

$23500

9200,09250

$44400

$44900

09200, 09250, 09500

$79400

$82000

09300,09680

$24600

$23500

Combination Bid Analysis

An AGC Construction Learning Tool

solution subcontractor selection activity

Section

Description

Bidder

Price

02350

Piles/Caissons

Northwest Caisson

$1,220,990

02500

Asphalt Paving

Statewide Paving

$1,730,000

02900

Landscaping

Mulchers

LGL Sprinkler

$ 42,000

$ 35,000

03450

P/C Deck Panels

PC Precast

$ 85,000

05100

Structural Steel

Steel Struct, Inc.

$ 175,000

05200

Metal Joists

Steel Struct, Inc.

05300

Metal Deck

Steel Struct, Inc.

06400

Arch. Woodwork

Chris’s Cabinets

$ 7,200

07200

Insulation

Quick Insulation

$ 35,000

07500

Membrane Roofing

Local Roofing

$ 89,916

07600

Flashing

Local Roofing

08310

Overhead Doors

Door & Window Co

$ 18,000

08800

Glazing/Windows

Door & Window Co

09250

Gypsum Drywall

Universal Finishes

$ 7,300

09650

Floor Covering

Universal Finishes

09900

Painting

Universal Finishes

15000

Mechanical

Charlie’s Plumbing

$ 249,000

16000

Electrical

Ellen’s Electrical

$ 309,000

Total Subcontracts

$4,003,406

Solution:Subcontractor Selection Activity

An AGC Construction Learning Tool

using on the job what you have learned today
Using on the Job What You Have Learned Today
  • Jobsite Assignment
    • Look at the original estimate for your project
      • How is it organized?
      • How was the data generated?
      • How were subcontractors selected?
      • Is there a correlation between subcontractor selection and subcontractor problems on the job?
      • Is the estimate organized into crew activities?

An AGC Construction Learning Tool

using on the job what you have learned today18
Using on the Job What You Have Learned Today
  • To Get Ready for Session 3
    • Read Session 3, Participant’s Manual
    • Become familiar with your firm’s cost control system.

An AGC Construction Learning Tool