Estimates

Designing Project Budgets

Eric Anderson, AIAFarmingdale State College

Main Entry: bud·getPronunciation: 'b&-j&tFunction: noun

Etymology: Middle English bowgette, from Middle French bougette, diminutive of bouge leather bag, from Latin bulga, of Celtic origin; akin to Middle Irish bolg bag; akin to Old English belg bag -- more at BELLY Date: 15th century1 chiefly dialect : a usually leather pouch, wallet, or pack; also : its contents2 : STOCK, SUPPLY3 : a quantity (as of energy or water) involved in, available for, or assignable to a particular situation; also : an account of gains and losses of such a quantity4 a plan for the coordination of resources and expenditures c : the amount of money that is available for, required for, or assigned to a particular purpose

Main Entry: es·ti·matePronunciation: 'es-t&-"mAtFunction: transitive verb

Etymology: Latin aestimatus, past participle of aestimare to value, estimateDate: circa 15321 archaic a : ESTEEM b : APPRAISE2 a : to judge tentatively or approximately the value, worth, or significance of b : to determine roughly the size, extent, or nature of c : to produce a statement of the approximate cost of3 : JUDGE, CONCLUDE

R.S. Means Building Glossary

Budget: A rough estimate of the value of a portion of, or total cost of, a construction project.

Estimate: The anticipated cost of materials, labor, equipment, or any combination of these for a proposed construction project.

Sources of Information

Cost date from previous projects Estimating guides - published and

online Local contractors Quantity surveyors and estimators Personal experience

Cost Planning Types

Order of MagnitudeUnit cost estimates

– By function– By building type– By construction assembly

Cost Planning

We always must have :Building TypeProgram or Gross AreaSite

Cost Planning

A cost plan or budget should include:Design costsConstruction costsFixtures, Furnishings, and Equipment

costsProject Management costs

Cost Planning

Design Costs Basic Services Additional Services Reimbursable

Expenses Special Consultants

Cost Planning

Construction CostsConceptual SF Building Type By elements Uniformat Allowances AlternatesEstimates By unit price (take-off) Union vs..

Open Shop Allowances Alternates

Cost Planning

FFE Costs Furnishing Toilet and Kitchen

Accessories Sign Systems Specialized

Equipment Artwork

Cost Planning

Project Management Costs

General Conditions/ Overhead & Profit

Surveying Geotechnical Services Plan Review Permits Testing and

Inspection

Cost Planning

We adjust budgets: Contingencies by

conditions Other factors

We adjust estimates with:

Contingencies by phase

Escalation to the mid-point of construction

Other factors

Contingencies for Budgets

By conditions:Site Constraints: -5 to 15%Labor Availability : -5 to 10% Material Availability: 0 to 10%Document Quality: 0 to 20%

Contingencies for Estimates

By phase:Concept and Schematic: 15%Design Development : 10% Escalation to the mid-point of

constructionOther factors

Escalation

Inflation rate affecting the estimate between the time it is prepared and the midpoint of the projected construction schedule

Cost Projections + Contingencies + Escalation

Project BudgetProject Budget

Cost Projections + Contingencies + Escalation

Project BudgetProject Budget

Elements of a Budget

DRVC Budget Planner

Ohio State Architect’s OfficeCapital Budget Planning Tool

Cost Planning Samples

High

Median

Low

Develop Budget Ranges