Understanding and Managing Project Costs Session 1

1. Understanding and Managing Project CostsSession 1

2. Introductions • Participant Introductions • Name • Experience in the construction industry • Current position, company, and project • Experience using construction cost management An AGC Construction Learning Tool

3. Course Overview • Introduction to how project costs are estimated • Examine how to control construction costs • Examine how to report and analyze construction costs • Examine how to plan the project to facilitate cost control An AGC Construction Learning Tool

4. Course Overview (2) • Examine how to control labor costs • Examine how to manage subcontractors to avoid cost impact • Examine loss prevention techniques • Prepare cost control strategies • Discuss post-project evaluation An AGC Construction Learning Tool

5. The “Birth” of a Job • Why is the job being built? • What is the scope of the project • Who is the “Owner” of the job? • Who designed the job? • How much should it cost? • How long should it take to construct? An AGC Construction Learning Tool

6. The Construction Process TR 1-5 An AGC Construction Learning Tool

7. The Pre-Design Phase • Project budget • Master schedule • Program (Project physical parameters) • Amount of area • Types of space • Building type • Starting point for the designer An AGC Construction Learning Tool

8. The Design Phase • Schematic (conceptual) Design: • Floor plans, elevation sketches, site plans • Design Development • Progression of design; includes structural, electrical, and mechanical • Construction Documents: • Completion of details, production of drawings and specifications An AGC Construction Learning Tool

9. The Bid • Occurs after completion of construction documents • Could be negotiated, select list, or public bid • Every contractor has his/her own procedures for compiling the bid An AGC Construction Learning Tool

10. Examine Documents • Determine whether to bid the project: • Size of project • Type of work • Geographical location • Owner, architect, engineers • Quality of documents • Project schedule • Other requirements An AGC Construction Learning Tool

11. Estimating Process • Understand construction documents • Site visit • Subcontractor call list • Quantity take-off • Pricing • Determine general conditions costs An AGC Construction Learning Tool

12. Estimating Process (2) • Compile bid summary sheet • Receive and analyze subcontract bids • Add appropriate mark-ups • Complete the bid • Complete bid form • Submit bid An AGC Construction Learning Tool

13. The Rest of the Process • Selection and award of the contract • The construction phase • Actual construction of the project • Post-construction phase • Move-in • Maintenance and operating instructions • Warranty period An AGC Construction Learning Tool

14. Construction Contract Types • Lump sum basis • Unit-price contract • Guaranteed maximum price (GMP) • Often with “not-to-exceed” amount • Design-Build • Includes design of the project with construction An AGC Construction Learning Tool

15. The SureFresh Project • Drawings included • Project elements: • Site excavation and grading • Two bridges • Two gatehouses • Office/receiving warehouse • Foundations and slabs for three warehouses • Paving and landscaping An AGC Construction Learning Tool

16. Using on the Job What You Have Learned Today • Jobsite assignment • Find out about the history of your project • What involvement did the contractor have in the design phase, if any? • How was the estimate accomplished? • To get ready for Session 2: • Read Session 2 in the Participants Manual • Bring an engineer’s scale and an architect’s scale to the next session. An AGC Construction Learning Tool

17. An AGC Construction Learning Tool