Budget Process

Once an estimate has been prepared, it must be presented to the owner and the design team. If the estimate is accepted, then the design process can continue. If the estimate is rejected, then further review of the costs will need to take place by the design team and the CM/GC. Value engineering, as discussed in the next section, may have to be initiated. If the estimate is much greater then the owner's budget, then a change of scope may have to be evaluated. However, the downside of this approach is that inflationary factors may be working against the cost. It behooves the design team and the CM/GC to find a solution to the cost problem immediately.

CSI Number

Item

Value

Cost/S.F.

Bid Value

Difference

Comments

02000

Sitework

02150

Landscapinq

02360

Pile Foundations

03300

Concrete

04200

Brick/Masonry

05100

Structural Steel

05500

Misc. Metals

06100

Rough Carpentry

06400

Architectural Millwork

07100

Thermal and Moisture Protection

07250

Waterproofing

07500

Roofinq/Claddinq

07900

Caulinq/Joint Sealer

08100

Doors/Frames and Hardware

08300

Entrances and Storefront

08800

Glass/Glazinq

09250

Gypsum Drywall

09300

Ceramic Tile

09500

Acoustic Ceilinqs

09680

Carpet

09900

Paintinq

10000

Specialities

11000

Equipment

14000

Elevators (Conveyinq Systems)

21000

Fire Protection

22000

Plumbinq

23000

HVAC

26000

Electrical/Fire Alarm

Subtotal

General Conditions

Subtotal

Insurance

Subtotal

Bond

Subtotal

Fee

TOTAL

Cost breakdown based on CSI format.

Exhibit 17-10

Cost breakdown based on CSI format.

Exhibit 17-11

HVAC CSI detailed break down.

233616

236200

238233 232129 235700

232129

233400 230548

230593

233113 230713

233113

233713

233313 233713 230800

230800

232100 220700

220800

232513 230923 230933

230933

230993

Description Equipment

VAV Boxes

Air Conditioning Units

Finned Tube Radiation Condensate Pumps Heat Exchanger_

Condensate Return Unit

Fans

Vibration Isolaters Rigging

Balancing

Duct Work and Insulation

Duct Work_

Duct Work Insulation

Kitchen Exhaust Duct Work

Outlets

Fire/Smoke Dampers

Louvers_

Commissioning_

Air Flush Out

Piping and Pipe Insulation

Piping Work_

Pipe Insulation_

Commissioning

Chemical Cleaning

BMS and Control Wiring

Control Equipment_

Control Wiring

Commissioning Allowances

TOTAL

Cost

1,500

15,000

15,000

7,000

Comments

0-5% drawing

Exhibit 17-12

Cost estimate phases.

If the estimate is in line with the owner's budget, then the design team proceeds to the next design phase. As indicated in Exhibit 17-12, a revised cost estimate must be prepared after each design phase of the project (schematic design, design development, and construction documents) to make sure the project is on the proper cost track. As more definitive design information is submitted, the cost estimates will be more accurate.

The true test of the validity of the estimate will come once the project is submitted to the subcontractors (see Chapter 16) for bidding. An 80% cost estimate is indicated in Exhibit 17-13. Note that where design of an element has not been clearly defined, an allowance has been indicated. An allowance is an estimate based on the available information prepared by the design team at the time of the estimate.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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