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This article provides an overview of the architect's responsibilities in estimating construction costs, including types of estimates, factors affecting cost, and the architect's role in the estimating process.
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Review of Plans & Estimating • Introduction • Architect’s Responsibilities • Types of Estimates • Factors Affecting Cost • Film • Project: Roof Plan
The architect’s estimate includes the following: • Designed items • Specified items • Owner’s labor & materials • The architect’s estimate does not include the following: • Professional fees • Land costs
Estimating • Introduction • As part of professional services architects and consultants prepare estimates of construction cost. • These estimates are NOT guaranteed because of the many factors that are beyond their control, such as..
Estimating • Manufacturers, suppliers & distributors influence the price of materials and equipment • Unions influence labor costs • Individual contractors determine how they will prepare their bids • Market forces of supply & demand affect competition
Estimating • Architect’s Responsibility • Current AIA agreement forces architect to design to the owner’s budget • Study the program and budget to see if they are in line and inform the owner • Provide the owner with a preliminary budget estimate based on area, volume or other unit cost • SF cost for a building type • High ceiling heights (gyms, auditoriums) use volume • Cost per room (hotels) or per bed (unit cost)
Estimating • SD Phase • Provide an estimate based on square footage • Advise owner of a contingency due to lack of detail 10% to 20% • DD Phase • Provide an updated estimate based on material, finish and equipment selections • CD Phase • Advise owner of necessary changes to earlier estimates; especially market conditions • Since CD’s take time to produce market conditions may change forcing owner’s to alter the program or the cost of labor/materials to change
Estimating • Fixed Limit of Cost • Sometimes a owner will have a limit of construction spending • This sometimes requires alternates & unit pricing • The owner needs to relinquish control of scope and quality to the architect • If the bids exceed the limit.. • Waive the limit and accept the bid • Re-bid the project (market conditions) • Abandon the project; terminate the architect • Reduce scope, quality or both and re-bid
Types of Estimates • Area / Volume Estimates • Subsystem Estimates • Detailed Estimates
Area / Volume Estimates • Area / Volume Estimates • Consult sources like Means, Dodge Reports, Building Design & Construction • Performed usually during SD; contingency
Subsystem Estimates • Subsystem Estimates • Performed when more detailed information becomes available. • Subsystem method involves units or assemblies. This allows architects to make basic decisions about various building components on a square foot basis. • Subsystems include Foundations, substructure, enclosure, roofing, etc
Detailed Estimates • Requires detailed calculations of the amount of each type of material and labor necessary. • Unit costs are applied to the calculated quantities to give direct cost • Indirect costs are then added such as overhead (insurance, payroll taxes, administrative expenses, etc.), contractor profit and general conditions (permits, tests, etc.)
Factors Affecting Cost • Legal and Administrative Requirements • Legal factors – liquidated damages • Owner requirements – bonds, insurance • Project Complexity • Large buildings cost less per unit area than small ones • Compact buildings cost less that those with large footprints • Materials and Methods • Special building types with specific requirements may be more costly than buildings with many typical details or have regular repetitive layouts
Project Location • Labor and material cost varies • Construction Schedule • Short schedules may cost less • Short schedules may cost more • Bidding • Competition
Assignments • Make sure to have read Lessons 1-4 • Quiz #3 • Project: Roof Plan