{"id":2363,"date":"2018-01-19T08:52:27","date_gmt":"2018-01-19T03:22:27","guid":{"rendered":"https:\/\/www.onlinecivilforum.com\/site\/?p=2363"},"modified":"2022-12-13T11:33:29","modified_gmt":"2022-12-13T06:03:29","slug":"project-cost-estimating","status":"publish","type":"post","link":"https:\/\/onlinecivilforum.com\/site\/project-cost-estimating\/","title":{"rendered":"Project Cost Estimating"},"content":{"rendered":"

Project Cost Estimating <\/strong><\/h2>\n

Project Cost System <\/strong><\/h3>\n

During the design phase of a construction project, the Project Cost Estimating are continuously approximated and reviewed following each design change to ensure that they will not exceed the owners budget. This working budget is generally\u00a0 referred to as the engineers or architects estimate. Upon design completion,\u00a0 the\u00a0field cost-control\u00a0system\u00a0is\u00a0initiated\u00a0by\u00a0making a\u00a0 final,\u00a0 detailed cost\u00a0estimate of the entire work.\u00a0 The\u00a0construction contractor or\u00a0another\u00a0party\u00a0who will\u00a0be directly\u00a0involved\u00a0in the field operations\u00a0normally\u00a0prepares\u00a0this contractor. The\u00a0contractor estimate is then\u00a0reduced to\u00a0a\u00a0 working\u00a0construction\u00a0budget and\u00a0forms the\u00a0basis of\u00a0the construction\u00a0cost control system.<\/p>\n

During the construction process, cost accounting methods (discussed in Chapter 10) are used to retrieve actual construction expenses from ongoing construction operations. This information is then used for cost control purposes on the current project and for estimating the cost of future projects. Additionally, the cost system provides considerable information pertinent to project financial control This\u00a0chapter\u00a0discusses\u00a0cost-estimating procedures\u00a0and\u00a0how\u00a0the\u00a0final\u00a0project\u00a0budget is obtained.<\/p>\n

Preliminary Cost Estimates <\/strong><\/h3>\n

Preliminary estimates of future construction expenditures, made during the project planning and design phases, are necessarily approximate because they are compiled before the project is completely defined. Making such conceptual estimates is an art quite different from determining the final detailed estimate of construction costs.Fundamentally, all conceptual price estimates are based on some system of gross unit costs obtained from previous construction work. These unit costs are extrapolated forward in time to reflect current market conditions,\u00a0 project location,\u00a0 and\u00a0the\u00a0 particular character of\u00a0the\u00a0job\u00a0presently\u00a0under consideration. Some of the methods commonly used to prepare preliminary estimates include:<\/p>\n

Cost per Function Estimate <\/strong><\/h3>\n

This analysis is based on the estimated expenditure per unit of use, such as cost per patient, student, seat, or car space. Construction expense may also be approximated as the average outlay per unit of a plants manufacturing or production capacity. These parameters are generally used as a method of quickly\u00a0defining\u00a0facilities\u00a0costs\u00a0 at\u00a0 the\u00a0 inception\u00a0of\u00a0 a\u00a0 project when\u00a0only\u00a0raw\u00a0marketing\u00a0information\u00a0is known,\u00a0 such\u00a0as\u00a0 the\u00a0number\u00a0 of\u00a0 patients\u00a0 that\u00a0 a\u00a0 planned\u00a0 hospital will\u00a0 hold.\u00a0 This\u00a0broad\u00a0method\u00a0 of developing costs can also provide a powerful check on more detailed estimates once they have been generated.<\/p>\n

Index Number Estimate <\/strong><\/h3>\n

This method involves estimating the price of a proposed structure through updating the construction cost of a similar existing facility. It is done by multiplying the original construction cost of the existing structure by a national price index that has been adjusted to local conditions, such as weather, labor expense,\u00a0 materials\u00a0 costs,\u00a0 transportation,\u00a0 and\u00a0 site\u00a0 location.\u00a0 A\u00a0 price\u00a0 index\u00a0 is\u00a0 the\u00a0 ratio\u00a0 of\u00a0 present construction cost to the original construction outlay for the type of structure involved. Many forms of price indexes are available in various trade publications.<\/p>\n

Unit Area Cost Estimate <\/strong><\/h3>\n

This method of estimating facilities costs is an approximate cost obtained by using an estimated price for\u00a0 each\u00a0 unit\u00a0 of\u00a0 gross\u00a0 floor\u00a0 area.\u00a0 The\u00a0 method\u00a0 is\u00a0 used\u00a0 frequently\u00a0 in\u00a0 building\u00a0and\u00a0 residential\u00a0 home construction. It provides an accurate approximation of costs for structures that are standardized or have a large sampling of historical cost information from similar structures. This type of estimate is used often in the industry to compare the relative worth of various facilities. Unit Volume Cost Estimate.This estimate is based on an approximated expenditure for each unit of the total volume enclosed. This estimating method works well in defining the costs of warehouses and industrial facilities.<\/p>\n

Panel Unit Cost Estimate <\/strong><\/h3>\n

This\u00a0 analysis\u00a0 is\u00a0 based\u00a0 on\u00a0 unit\u00a0 costs\u00a0 per\u00a0 square\u00a0 unit\u00a0 area\u00a0 of\u00a0 floors,\u00a0 unit\u00a0 length\u00a0 of\u00a0 perimeter\u00a0 walls, partition walls, and unit roof area. Generall\u00a0this form of estimating is used to improve the preceding estimates once additional detailed information about the facility is known.<\/p>\n

Parameter Cost Estimate <\/strong><\/h3>\n

This\u00a0estimate\u00a0 involves\u00a0unit\u00a0 costs,\u00a0 called\u00a0parameter\u00a0 costs,\u00a0 for\u00a0each\u00a0 of\u00a0several\u00a0 different building components\u00a0or\u00a0 systems.\u00a0 The\u00a0prices\u00a0 of\u00a0site\u00a0 work,\u00a0 foundations,\u00a0 floors,\u00a0 exterior walls,\u00a0 interior walls, structure, roof, doors, glazed openings, plumbing, heating and ventilating, electrical, and other items are determined separately by the use of estimated parameter costs. These unit expenses can be based on dimensions or quantities of the components themselves or on the common measure of building square footage.<\/p>\n

\u00a0Detailed Estimate for The Proposed New Construction\u00a0 of Residential Building<\/a><\/strong><\/span><\/p>\n

Partial Takeoff Estimate <\/strong><\/h3>\n

This\u00a0analysis\u00a0uses\u00a0quantities\u00a0of\u00a0major\u00a0work items taken\u00a0from\u00a0 partially\u00a0completed\u00a0 design documents. These are priced using estimated unit prices for each work item taken off. During the design stage, this type of estimate is considered to provide the most accurate preliminary costs. Yet the feasibility of this method is highly dependent on the availability of completed design documents. Generally this estimate cannot\u00a0be\u00a0 made\u00a0until\u00a0 well\u00a0into\u00a0 the\u00a0design\u00a0 process.\u00a0 Hence\u00a0it\u00a0 is\u00a0often\u00a0 used\u00a0to\u00a0 refine\u00a0the\u00a0 previously discussed estimating methods.<\/p>\n","protected":false},"excerpt":{"rendered":"

Project Cost Estimating Project Cost System During the design phase of a construction project, the Project Cost Estimating are continuously approximated and reviewed following each design change to ensure that they will not exceed the owners budget. This working budget is generally\u00a0 referred to as the engineers or architects estimate. Upon design completion,\u00a0 the\u00a0field cost-control\u00a0system\u00a0is\u00a0initiated\u00a0by\u00a0making …<\/p>\n","protected":false},"author":2264,"featured_media":2364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"two_page_speed":[],"footnotes":""},"categories":[23],"tags":[63,231,358],"class_list":["post-2363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estimation-and-costing","tag-estimating","tag-project","tag-project-cost-estimating"],"yoast_head":"\nProject Cost Estimating<\/title>\n<meta name=\"description\" content=\"Project Cost EstimatingProject Cost SystemDuring the design phase of a construction project, the Project Cost Estimating\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/onlinecivilforum.com\/site\/project-cost-estimating\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Project Cost Estimating\" \/>\n<meta property=\"og:description\" content=\"Project Cost Estimating Project Cost System During the design phase of a construction project, the project costs are continuously approximated and reviewed following each design change to ensure that they will not exceed the owners budget. 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