Understanding the value of a locally researched detailed construction cost database is important to any real property owner, architect, engineer, or builder.
CREATION
A significant amount of time and experience is needed to develop a verifiable unit price cost database that reflected local market conditions and can be easily used and maintained. The process is complex and involves significant deep and breadth of knowledge and capability, including cost research, cost engineering, data architecture and database expertise, and an understanding of repair, renovation, maintenance, and new construction techniques, materials, and equipment.
An actionable local market detailed line-item unit price cost database (UPB), unlike national average cost database, assures a clear understanding of local market costs and conditions and the diversity of trades and associated costs for “fringes”. Construction techniques commonly used for each type of construction activity are carefully considered as well as associated productivity.
A fuller understanding of locally researched detailed construction cost data BEFORE procurement and project execution best communicates a shared understanding of the required Detailed Scope of Work, and plays a critical role in mitigating change orders, disputes, and cost overruns.
Input prices:
Labor • Surveys local labor markets as well as the most current local federal and state labor data.
Materials • Surveys of commodities, local building materials supply, and building product manufacturers.
Equipment • Surveys construction equipment rental rates, operating costs, and transportation costs.
VALUE
When integrated with robust LEAN planning, procurement, and project delivery mechanisms and solid teaming arrangements, a locally researched cost database has proven to consistently deliver quality projects of all types, on time and on budget.
On a detailed line-time locally researched construction cost data based can prove the specification of the hundreds, if not thousands of detailed tasks and associated component of labor, material, and equipment, for a typical repair, renovation, and new build activity.
It is important to recognize the importance of detailed line item UPBs and furthermore that 1.) not all UPBs provide the same value, and 2.) national average cost databases do not provide the equivalent cost representation whether “location indexes” or “location factors” are used.
