Lecture 4

CEE 320, lecture and quizzes

During which stage of a project’s lifecycle does the

owner have the least ability to make design changes?
▪ A. Detailed Design

▪ B. Programming

▪ C. Schematic Design

▪ D. Construction

D → Construction

What is a Project Cost Estimate?

A Project Cost Estimate is

• an assessment of the cost to develop a project

• based upon the information and data available at the

time the estimate is rendered. 10-20% of the budget
Includes
▪ Land Acquisition

▪ Feasibility Studies

▪ Design Activities

▪ Construction Activities

▪ Project Financing

▪ Insurance & Taxes

▪ Inspection & Testing

Construction Cost Estimates Include

▪ Construction Activities (Direct Costs) – 70–80%

▪ Construction Financing – 5–10%

▪ Construction Insurance & Taxes – 2–5%

.

▪ Construction Inspection & Testing – 1–3%

A square-foot estimate is most likely used

for
A. Preliminary Estimate

B. A/E Estimate

C. Final Bid Estimate

D. Construction Estimate

A →.is a method used during the early stages of a project to provide a rough assessment of costs

A contractor who specializes in dormitory

construction will most likely be the low bidder

on future dormitory estimates when compared

to other non-specialized contractors.

True

Specialized contractors often have more accurate, efficient, and refined estimating processes for their niche

Estimating Concepts – Key Consideration

▪ Location

• Labor, Equipment, Materials

• Location Indices

▪ Time

• Inflation

• ENR Indexes

▪ Market Conditions