Cost Estimating

Project Budget

In addition to developing complete project estimates, our cost estimating services also include reviewing cost loaded CPM schedules and proposed major change orders; evaluating value engineering proposals; preparing independent cost evaluations on selected change orders and assisting with change order negotiations, if necessary.

Developing a Cost Model and Estimate

A cost model is an organized breakdown of the project budget into logical, identifiable and trackable parts. Typically cost models can be defined by areas, building systems, CSI divisions, funding source or any combination of these.

Developing cost models by a combination of categories can help us look at the project in various ways. This provides proper perspective in our overall cost management efforts. The model can break the budget into very small components. In case of budget noncompliance, it is easier for the project manager to identify the reason for noncompliance: ” by identifying the area with cost overruns, or ” by identifying the system with cost overruns and the specific system or systems within a specific area or areas that are the causes of the budget overrun Isolation of the budget problem can help resolve it efficiently. It can help avoid cutting costs in the wrong place or make up for a budget overrun, and the original goal and intent of the project can be maintained.

At the end of each phase of design, Vanir can provide an independent cost estimate or verification of the architect’s cost estimate. A written report detailing the estimate and delineating all variances with the original budget will be submitted to the owner.

Conceptual Estimate

A conceptual estimate is utilized during the master planning, programming or budgeting stage of new facilities construction. For the master planning, programming phase, estimators review the program, site conditions and use the cost models, construction cost of similar facilities, to prepare the estimate. Estimate level is general and based on cost per building square foot.

For budgeting, estimators use the available sketches, site plan, floor plan, elevation section, and outline specification to prepare the estimate. Estimate level is somehow detailed with some quantities defined and some cost per square foot units. Estimate format can be in CSI or System. System format is preferred.

Schematic Design Estimate

A schematic design estimate is prepared from schematic documents and is more detailed and quantitative than conceptual estimates. Most of the quantities are developed from plans and specifications. The rest of the quantities are based on the estimator’s assumptions. Based on the level of documents, estimate/design contingencies will be revised. CSI and/or System format are used at this level. FGE recommends that the estimates should be prepared and sorted in both formats.

Design Development Estimate

The design development estimate is prepared from design development documents. Plans and specifications should be detailed enough that all of the quantities can be developed from them. Therefore the estimate is more detailed and quantitative than the schematic design estimate. Use of cost per unit should be minimum and detailed material, labor, equipment unit costs can be used for most items. Based on the level of documents, estimate/design contingencies should be reduced. CSI format is preferred at this level of estimating.

Construction Documents Estimate

Construction documents estimate is the final estimate before the project is submitted for bids. This estimate could be prepared at different levels of completion of construction documents (i.e., 50%, 75% etc.). Plans and specifications should be complete and all of the quantities should be developed from them. Detailed material, labor, equipment unit costs should be utilized. Estimate/design contingencies should be deleted or reduced to a minimum. CSI format is preferred for estimating at this level.

If construction documents being revised before bid or addendum being issued during the bidding phase, an estimate update or review of the changes, with potential cost impact, is recommended.