2020 Guide to Construction Cost Estimating provides a road map for applying best management practices necessary to drive financial visibility and transparency.
Introduction
Locally researched detailed line item unit price construction data provided the highest level of verifiable and transparent information. Since other levels or types of cost estimating can’t meet this level, care should be given as to what form of cost data is being use. Other, less stringent forms of cost estimating include the following: national average line item cost data (with or without adjustment or localization factors), system or assembly level cost data, or building level and/or other forms of parametric cost data. liability insurance and allowance for small tools and consumables. Material costs are either
Labor
Based upon contract requirements, local labor costs may be sourced from published Davis Bacon Wage Rates, or published or researched local prevailing wage rates with appropriate inclusion markups for worker compensation, unemployment, liability insurance and allowance for small tools and consumables. In the public sector contracts may require Davis Bacon Wage Rates or prevailing wage rates, or both, with the usage of the higher of the two. Markups include worker compensation and unemployment per state in which work is performed. Liability insurance based upon local contractor rates is also added as a percentage. Finally, a percentage of labor is added for small tools and consumables based upon the labor category. The base rate does not include overhead and profit, however, can be added if needed.
In addition, highly specialized subcontract items may require travel and per-diem expenses for mechanics.
The labor-hours expressed in this database are average Installation time, using an efficiency level that is consistent with the particular trade.
Material Costs
Material costs are local for commodities such as concrete, asphalt and aggregate. Other material costs are based upon either local costs, national or regional costs. Many items that are researched do not vary nationally due to the national pricing by many vendors and manufacturers. Some costs are regional and are priced for large areas of the country such as western, central and eastern states. Depending upon each contract, the best pricing is provided for the needs of the customer. If regional or national prices are used, these are checked against local pricing to assure that the local costs do not significantly vary. Material costs are either local, regional or national depending upon the location. Sales tax is generally not added unless requested. Material prices must consider local areas as remote areas or congested inner-city regions can cause significant variance.
Equipment Costs
Equipment costs are either local rates or a national rate for
each piece of equipment used in crews performing the task based upon daily usage.
Overhead and profit markups are not included in the pricing, but can be added
electronically to the database as needed.
General Conditions
General overhead and profit can be added by percentage if
desired. The rate added is up to the client. This can be done electronically.
In addition, some general provision items are included in Division 1 that can
be added to the estimate such as construction trailers, cleanup and temporary
power.
Costs can vary depending upon a number of variables. Here’s how
we have handled the main factors affecting costs.
Quality / Quantity
The prices for materials and the workmanship are based upon normal construction standards. Many material prices can also be adjusted for quantity as an adjustment factor in the database. The are provided in the form of line item modifiers. Modifiers are add or deduct cost from the parent line item.
via Four BT, LLC, the AEC industry’s innovative integrated project delivery, detailed locally researched construction cost data, and SAAS technology solutions provider. Integrating powerful, proven project planning, procurement, and execution methods to help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes. We focus upon supporting a collaborative culture and client-specific programs centered upon delivering customer value, driven by, proven LEAN processes, actionable data, enabling cloud technology, ongoing training, and continuous improvement.