For this assessment, you will answer some basic questions to verify understanding of a series of cost estimate and then perform a value engineering exercise in relation to an existing cost estimate.
The resources can be viewed on this link:
1. Review each of the estimates provided with the link above. Because they represent different project types in different stages of project completion from multiple sources, they should give you a broad understanding of how estimates are similar or different given these different parameters.
2. Answer the following questions:
A. Review the Cost Estimate for the New Residence & Sound Studio. This new residence is new construction taking place within an existing multistory loft space. Assuming the contractor’s total overhead and profit is equal to the General Conditions plus their Profit, what percentage of the total Construction Cost (without the premium for unique construction location) does this overhead and profit represent? For the same estimate, there is a green wall included. Locate it; how many square feet is it?
B. Review the Concept Design Estimate for the Public Park. Note the Add
Alternates (sometimes referred to as “alternates”) in the latter half of the estimate. These items are noted “below the line,” and thus are not included in the current budget. Why do these “Add Alts” not only have quantities to be added, but also quantities to be deleted?
C. Review the two Cost Estimates for the Public Park. One is, as noted, for
concept design. The second is, as noted, for design development. Discuss what the possible rationale might be for why they are organized differently and what the respective advantages are of each method.
D. Review the Area Takeoffs for the Performing Arts Center. How many spread
footings are called for in the structural drawings for building’s foundation? How
many doors are accounted for on Level 5 (Followspot Level)? In the technical
drawings at the end of the set, how many linear feet of Tele/Data Duct Bank is
E. Review the two Cost Estimates for the Performing Arts Center. One is from
the cost estimator on the design team; one is from the Construction Manager at Risk. Both are for the same milestone (100% Schematic Design). For large scale projects, this parallel estimating process is a common way for the design team and owner to have a higher degree of cost certainty. There is a numeric comparison of the two estimates on the last page of the cost estimator’s estimate. Note three quantitative similarities between the two estimates. Note three quantitative differences between them. Note three similarities between the two estimates in terms of how they approach the estimate. Note three differences.
F. Review the two estimates for the Pier. One is for Concept Design, and is
broken down by regions within the design. A second is for Schematic Design,
which is broken down by CSI division (the most traditional way to organize an
estimate). Discuss the advantages of each organizational method.
3. Using the “Base Park Budget” Excel spreadsheet, create four lists similar to the “Value Engineering List for the Public Pier.”
A. For the first and second lists, your client has come into a windfall and can
increase the budget 10%. (Don’t worry, this will never happen in professional
practice). Create two different scenarios of how they could spend these funds
broken down by description, unit, unit cost, quantity, and total cost. You can
allocate these funds to as many or as few total items as you see fit. Use unit costs as given elsewhere in the document. Be sure to include any relevant deletions of existing conditions in parallel to those you add.
B. Your client has asked that they get “the biggest bang for their buck.” Discuss which of these scenarios addresses this concern most successfully and why.
C. For the third and fourth lists, your budget has been cut 10%. Again, develop two different scenarios of how to value engineer to the new target cost. Again, break them down per the above, and use unit costs found elsewhere in the document. Be sure to include any relevant additions in addition to those deletions you implement.
D. Your client asks you which of the two scenarios does a better job of insuring overall design quality despite these cuts. Discuss which of the scenarios does so and why.
4. Compile and submit your answers to the questions above and your four value engineering lists.