What type of construction cost data do you use?
Current, actionable construction cost data is a core component of efficient life-cycle management of the built environment and LEAN construction planning, procurement, and project delivery. With less than 5% of the real property owners, architects, engineers, and builders using detailed, line item, locally researched cost data, is the endemic level of economic and environmental waste really surprising?
Detailed Cost Data – Repair, renovation, maintenance, and new unit costs are based on discrete work activity tasks (along with their labor, crew, productivity, material, equipment and location requirements) that represent applicable construction standards/specifications. Rates for labor, materials, and equipment based on surveys and/or cost data from actual vendors, suppliers, builders, contractors, and follow industry standards. Each work activity granular, and an based upon core assumptions. Separate line items are included for removal, demolition, and installation. Cost derived in this manner, from a robust, locally researched unit price book should track actual project costs by +/- 5%.
Parametric Cost Data- Replacement unit costs are based on less detailed, somewhat representative models that demonstrate what a finished task/project may approximately cost. While rates for labor, materials, and equipment are based on surveys and/or cost data from actual vendors, suppliers, builders, contractors, and construction projects and follow industry and statistical standards, so derived costs are likely to represent actual projects within a range of +/- 30%-40%.
Partial/Incomplete Cost Data – While an attempt is made to gather information for Rates for applicable labor, materials, and equipment based on surveys or cost data from actual vendors, suppliers, builders, contractors, and construction projects, unit costs are not based upon detailed work activity breakouts and do not demonstrate the incorporation of all activities that result in a finished component replacement. Cost data may also be derived from national average cost resources that do not accurately account for significant variations in labor, material, equipment, crew composition, or productivity.
Ad hoc Cost Data – Details on the methodology and assumptions that go into a repair, renovation, maintenance, or new construction task are not clearly defined. Rates for labor, materials, and equipment not based on statistically significant and/or valid surveys or cost data from actual vendors, suppliers, builders, contractors, and construction projects. Industry and statistical standards are not used. All necessary work activity tasks (along with their labor, material and equipment requirements) that result in a finished activity/task are not represented.
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. We help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture and client-specific programs centered upon delivering customer value, driven by, proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.
