ALLOCATION OF CURRENT BUDGET
The management and design team worked together to
gather all items that have been considered for building
and visited and re-prioritized each, in light of the planned
proposed Master Plan. The following list is a snapshot list
of the recommended re- prioritized and categorized list.
COST ESTIMATE SUMMARY
The hard construction cost estimate for the proposed
Master Plan was developed by an independent cost
estimating firm and follows this narrative. It involves a
rigorous accounting of all design elements in the concept
design, both shown and un-shown, but known through
experience to eventually exist, through all its phases.
Although independent prices were not solicited from
local subcontractors, as they would be in a normal bid
process.
In addition, the design team will solicit the assistance of
local general contractors that have previous experience
in this type of work, to obtain independent probable
construction cost estimates for comparison. Rather than
submit a possibly over-anxious scenario which may not
be able to be replicated in the future, the consultant
analysis was used in the summary document.
The estimate begins with a summary of all the phases, in
the recommended order and schedule. Then, each phase
is broken down with its own summary sheet and detailed
estimate by system.
A 15% design and construction contingency is added
to the hard costs, including the contractor’s General
Conditions and Profit, also estimated at 15%. This
contingency is kept fairly high due to the level of
detail expected from a conceptual set of drawings.
The percentage is an industry norm for a set of
design drawings for a building of this size and level of
complexity. It may, of course, be reduced at the Owner’s
discretion, if there is a good outlook for a favorable buyout
after full drawings are completed during the bidding
and negotiation phase. The Contractor’s mark-ups are
what separate one bidder from the next, assuming
materials and labor has been calculated approximately
equally. Beyond the bare minimum level, these mark-ups
can always be negotiated to some extent, depending on
the current construction climate and risk and backlog.
The cost is also escalated for both materials and labor
per phase to allow for an estimated inflation rate. Also, a
3% allowance is added for additional cost incurred due
to the need to keep the existing facility functioning safely
and isolated as much as possible from construction areas.
These contingencies and allowances may be high or low
at various times and should therefore be considered as an
average.
Indirect costs, those that are not for actual materials and
labor but are part of the normal construction process,
are placeholders in the estimate as they are negotiated
at time of purchase. These mostly include insurance
costs for personal liability, property damage, material &
performance bonds.
Beyond these hard construction costs, all construction
projects also incur soft costs that must also be accounted
for in their funding. These include a variety of likely
development costs and fees that can vary greatly and are
therefore budgeted and tracked separately. The design
fees include not only the basic architectural services
(basic structural, mechanical, electrical and fire protection)
but also full-time representation during the construction
process as well as contribution from the large number of
specialty consultants that usually are required during the
design process. These include, but are not limited to the
following:
- Geotechnical Consultation (Soils)
- Land Surveying
- Environmental Consultant
- Civil Engineering • Traffic & Signalization
- Landscape Architecture
- Telephone & Data
- Glazing Consultant
- Interior Design
- Security Consultant (Surveillance and Hardware)
- Acoustical Consultant
- Sustainability Consultant (LEED)
- Vertical Circulation (Elevators) Consultant
- Life Safety Consultant
- Audio/Visual Consultant
- Architectural Lighting
- ADA Consultant
- Food Services Consultant
- Parking Specialty Consultant
- Artwork Selection & Procurement
- Graphic Design
- Waterproofing Consultant (Roofing/Caulking)
- Furniture & Fixtures Procurement
- Threshold Inspection
|
The cost estimation process for the Master Plan proposal
to date has proven to be a reasonable accounting of
hard costs and well within the norm to be able to make
rational planning and funding decisions.
ESTIMATE FORMAT The Uniformat cost classification format has been used
for the preparation of this estimate. It is followed by subcategory
which classifies costs by building system and or
construction trade.
BASIS FOR PRICING
Pricing shown reflects probable construction costs
obtainable in Southern Floridad area, on the date of
this statement of probable costs. The intention of this
estimate is to reflect fair market value for the construction
of this project. It is not a prediction of low bid. The fair
market value pricing is based upon competitive bidding,
a minimum of 3 bidders for all subcontracted work, and a
minimum of 3 bids from general contractors.
CONSTRUCTION SCHEDULE AND ESCALATION
The scheduled construction period for this project is
approximately 88 months. To be able to apply escalation
factors a possible scenario for this project has Phase
1 beginning 18 months from now with a 24 month
construction period. Phase 2 could begin 3 months after
the completion of Phase 1 with an 8 month construction
duration. Phase 3 could begin 3 months after the
completion of Phase 2 with a construction period of
12 months. Phase 4 could begin 3 months after the
completion of Phase 3 with a construction duration of
8 months. Phase 5A could commence 3 months after
the completion of Phase 4 with a construction period of
12 months. Phase 5B could begin 3 months after Phase
5A with a construction duration of 12 months. Phase 6
could begin 3 months after the completion of 5B with a
construction time of 12 months.
Potential escalation factors for the course of this project
might be 2% for the year 2011, 3% for the years 2012
through 2016, 4% for 2017 and 5% for the years 2018
through 2020.
Any costs for excessive overtime to meet stringent
milestone dates are not included in this estimate.
CONTRACTOR MARKUPS
Subcontractors’ markups have been included in each line
item unit price. These markups cover the cost of field
overhead, home office overhead and profit and can range
from 15% to 25% of the raw cost for that particular item
of work.
We have included 15% for General Contractor’s Overhead
(consisting of job site general conditions, home office
overhead, and bond) and Fee in this estimate.
CONTINGENCIES
Based on the project scope and the detail design shown
in the concept submittal documents, we have included
15% for Design Contingencies to the project summary.
A 3% Phasing Contingency has been added to the
summary sheet to cover the cost of temporary partitions,
multiple mobilizations and demobilizations, additional
cost of labor for work done other than during normal
working hours, as well as other costs incurred during a
phased construction project.
An Art Allowance of 1.5% has also been included on the
Summary Pages.
ITEMS AFFECTING THE COST ESTIMATE
Items which may changes the estimated construction cost
include, but are not limited to:
Modifications to the scope of work included in this
estimate Unforeseen subsurface conditions Special
Phasing requirements Restrictive technical specifications
or excessive contract conditions Non-competitive bid
conditions.
Sole source specifications of materials or products Bids
delayed beyond the projected schedule. |
