Cost Planning. Project Kaleidoscope Drury University Larry Gleason CPMI

Transcription

1 Cost Planning Project Kaleidoscope Drury University 2003 Larry Gleason CPMI

2 Cost Management Cycle Planning & Preliminary Budgeting Post Construction Pre-Design & Programming Design & Construction

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4 Timing of Decisions Planning Pre-Design Design Construction

5 Balancing Interests BUDGET ADVOCATES PROGRAM ADVOCATES DESIGN ADVOCATES

6 SCUP Survey Results Key Issues/Concerns n Lack of reliable data n Lack of standardized formats for budget estimates n Confusion regarding description, identification and calculation of hard and soft costs n Lack of understanding as to how to effectively monitor and control budgets

7 Benefits of Cost Planning ngreater satisfaction with end results nbetter value for money nimproved building quality and performance nbudget and value accountability nimproved relationships between all project participants ndesign problems identified and solved earlier nearly identification of high-cost elements

8 Factors in Successful Cost Planning nconfirm that all project team members are speaking, and understand, a common language nmanage expectations. Acknowledge change is inevitable and establish contingencies and escalation in cost planning

9 Factors in Successful Cost Planning nestablish and document a solid base of prioritized needs nstudy as many feasible site and building alternatives as possible nestablish well defined, manageable project schedules ninsure the budget has the confidence and acceptance of all project team members

10 The Tower of Babble Reaching common ground for communicating cost data nconfirm that all project team members are speaking, and understand, a common language nfailure in cost management is often a failure in communication rather than a failure in application

11 The Tower of Babble Reaching common ground for communicating cost data n Life Cycle Cost v. Non-Building Cost v. Building Cost n Estimating v. Cost Management n Types and Levels of Estimates n Project Budget Chart of Accounts n Contingencies and Escalation

12 Life Cycle Cost v. Non-Building Cost v. Building Cost Operation Maintenanc e Replacements Site Development Alterations Administration Architectural Financing Financing Building Systems Taxes Legal Surveys Non-Building Costs Land Purc has e Fe e s Structural Building Costs Furniture & Equip. Building Systems Contingencies Etc. Mec hanic al Building Sys tems Life Cyc le Cos ts Non-Building Costs Ele c tric al Building Sys tems Building Cos ts

13 The Tower of Babble Reaching common ground for communicating cost data n Life Cycle Cost v. Non-Building Cost v. Building Cost n Estimating v. Cost Management n Types and Levels of Estimates n Project Budget Chart of Accounts n Contingencies and Escalation

14 The Tower of Babble Reaching common ground for communicating cost data n Life Cycle Cost v. Non-Building Cost v. Building Cost n Estimating v. Cost Management n Types and Levels of Estimates n Project Budget Chart of Accounts n Contingencies and Escalation

15 Types and Levels of Estimates norder of Magnitude ( Ballpark ) Estimates ncost Plan Estimates npreliminary Estimates ninterim Detailed Estimates nfinal Detailed Estimates

16 Types and Levels of Estimates norder of Magnitude ( Ballpark ) Estimates Based on Planning/Programming criteria. Measurement of occupancy content or gross floor areas. Priced with unit or square foot costs based on historical data Expected level of accuracy in a range of ± 20-25%

17 Types and Levels of Estimates ncost Plan Estimates Based on Planning/Programming criteria. Measurement of shell/functional areas or the development of cost models. Priced with unit or square foot costs, based on historical data, in Elemental format Expected level of accuracy in a range of ± 15-20%

18 Sources for cost data n Cost information from within the institution n Costs from similar institutions n Independent cost information services n Price books and manuals n Newsletters and magazines n Published indices n Consultants, Contractors, Suppliers / Manufacturers

19 The Tower of Babble Reaching common ground for communicating cost data n Life Cycle Cost v. Non-Building Cost v. Building Cost n Estimating v. Cost Management n Types and Levels of Estimates n Project Budget Chart of Accounts n Contingencies and Escalation

20 Project Budget Chart of Accounts n Land/Building Preparation (Non-Building Cost except as noted) Acquisition Cost Land Surveys Hazardous Materials Surveys Geotechnical Investigations Environmental Impact Historic Preservation Demolition (Building Cost) Clearing and Grubbing (Building Cost)

21 Project Budget Chart of Accounts n Administration (Non-Building Cost) Appraisal Fees Internal Staff Costs Advertising Printing Legal Fees Building Permits Builders Risk Insurance Finance Costs Construction Contingency Ground Breaking

22 Project Budget Chart of Accounts n Professional Consulting Services (Non-Building Cost except as noted) Architectural/Engineering Fees and Reimbursables Preconstruction CM Fees and Reimbursables Programming Fees Special Inspections Soil and Material Testing (Building Cost)

23 Project Budget Chart of Accounts n Construction (Building Cost) Sitework Foundations Floor System Columns Roof System Exterior Wall Exterior Glazing Interior Wall Doors Specialties Equipment Conveying Systems Plumbing Fire Protection Heating, Ventilating & Air Conditioning Electrical General Conditions, Overhead and Profit Management Fees Design Contingency Escalation

24 Project Budget Chart of Accounts n Occupancy Costs (Non-Building Cost) Movable Fixtures, Furnishings and Equipment Artwork Relocation Cabling not included in Electrical Occupancy Permit Open House/Dedication

25 The Tower of Babble Reaching common ground for communicating cost data n Life Cycle Cost v. Non-Building Cost v. Building Cost n Estimating v. Cost Management n Types and Levels of Estimates n Project Budget Chart of Accounts n Contingencies and Escalation

26 Contingencies and Escalation Sample Continge ncies 18% Design Contingency 13% 8% 3% Construction Contingency Design Contract Concept Schematic Development Documents Construction

27 Predesign: Charting the Course nstudy as many feasible site and building alternatives as possible nestablish well defined, manageable project schedules nestablish and document a solid base of prioritized needs ninsure the budget has the confidence and acceptance of all project team members

28 Predesign: Charting the Course ntoo high a budget will kill a project now - too low a budget will kill it later

29 Predesign: Charting the Course npredesign process and product noperational planning in Predesign narchitectural/engineering Program nplanning alternatives - Predesign or Design? nrisk factors: Schedule and timing, planning without design, market factors

30 Predesign process and product n Predesign is highly focused project planning intended to improve the outcome of design and construction n Predesign follows strategic and operational planning by users and precedes design n The result of predesign is a Program that also may include conceptual planning alternatives n Predesign can typically be accomplished for 0.5% or less of the design and construction cost

31 Predesign process and product

32 A/E Program nproblem seeking, not problem solving nan organized process identifying prioritized space and quality needs ndifferent levels of detail depending on how the information is to be used nthe foundation upon which concepts and analysis are based

33 A/E Program Steps in systematic facilities programming n Orientation n Initial Data Collection and Analysis n Space Standards n Building Design Criteria n Preliminary Evaluation/Reconciliation n Adjacency Requirements n Final Summaries and Documentation

34 Predesign: Charting the Course npredesign process and product noperational planning in Predesign narchitectural/engineering Program nplanning alternatives - Predesign or Design? nrisk factors: Schedule and timing, planning without design, market factors

35 Predesign: Charting the Course npredesign process and product noperational planning in Predesign narchitectural/engineering Program nplanning alternatives - Predesign or Design? nrisk factors: Schedule and timing, planning without design, market factors

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37 Cost Management Cycle Planning & Preliminary Budgeting Post Construction Pre-Design & Programming Design & Construction

38 Design & Construction: Staying the Course nestablish clear responsibilities among the owner, users and designers and require that adherence to program and budget be a team effort nuse quality control of contract documents and management of change during construction

39 Design & Construction: Staying the Course n Design within program boundaries n Cost control procedures and decisions n Interim detailed estimates n Cost checking and feedback - value management n Quality control procedures n Design schedule impact on cost management n Construction delivery methods n Construction economics n Cost Management during Construction