ARE 5.0 Construction & Evaluation Exam Solved 100% Correct!!

(3) ways cost estimates can be performed during Programming - 1. Unit cost system. 2. Historical data on similar types of projects. 3. Cost per square foot. Cost estimating method used during the Schematic Design - Preliminary (rough) estimates are based on pricing major elements, such as structural system selected and the MEP systems used. Cost estimating method used during the Design Development - Detailed pricing based on the actual components being considered, including windows, curtain walls, finishes and equipment. Cost estimating method used during the Construction Documents - Complete and final pricing of the project, based on direct quotes from suppliers, installers, sub-contractors and manufacturers. Requires great deal of effort and can only be done once nearly everything in the building has been specified. This pricing is a final check before construction begins/allows for revision to the design as needed to meet the budget. Factors that can have an effect on cost estimates - 1. Availability of labor & material, labor rates, material prices, resources to produce the material, convenience of transportation, location (more remote = more costly), less predictable costs of rural areas. 2. High Interest Rates = less housing construction = lower material prices Increased cost of living = increased union wages and higher labor costs Typical profit margin factored into the Construction Cost estimate - 15-20% for smaller projects 10-15% for larger projects 5-10% for ver large projects Typical fees of Engineering Consultants (Struc., MEP, Civil) - Mechanical: 15% Electrical: 12.5%Civil: 10.5% Structural: 9.4% (% Construction Cost) ENR 20 Cities Building Cost Index - Cost estimating with Parameter Costs can be adapted to a city by using ______ or adding an inflation factor. A Pro-forma is a financial analysis of the building project, showing costs and return on investment. This report is typically done by the client at the beginning of the project to determine if the project will be profitable. - What is Pro-forma? Who does it? During what phase of the project is it typically done? General Obligation Bond - Municipal bond issues when a state or local government wants to raise money for a project. Shareholders (investors) are guaranteed to be repaid using future tax revenues.