CM Project Advisors fully understand the complex and critical process of developing a good cost estimate. Our cost estimates are developed in the required format and are based on quantity take offs from the drawings and a thorough review of the specifications. In case the design is not fully developed, we build the cost estimating function by coordinating with the Architects and Engineers and also by researching similar projects completed by us in the past to have an approximate idea about the cost which is verified by qualified contractors. The line items of the estimate are grouped together under standard CSI divisions with a summary sheet showing the overall trade numbers. We base our pricing strategy on current market prices and the prevailing trends. We maintain an in house database of material prices which is regularly updated to reflect changes in the prices of various materials. The labor component of the cost is developed from the productivity of the crew doing the work and prevailing labor rates. Based on the location of the job, we use the current labor rates for various trades in that area to figure out the labor cost of work. In cost estimating, using the above methods and after calculating the bare construction costs, we apply industry standard mark-ups to reach the total project cost. Based on our experience, we also include an escalation factor to predict the project cost at construction. All this helps the client make an informed decision about the total cost of the project. The types of Cost Estimating:
- Order of Magnitude
- Feasibility Study
- Schematic Design
- Design Development
- Bid Stage – usually 95% CDs
- 100 % Construction Documents
There are substantive information in the design development stages and without too many changes or additions can become the definitive estimates as 100 percent of the design is completed, established Scope of Work (SOW) is confirmed and the material and labor breakdowns are verified. Going forward cost controls can be properly monitored from the Budget or Cost Estimating function. Tracking the costs by divisions can be easily monitored by the stakeholders. At every stage of the design, we look for any scope changes which may escalate the cost. We also keep an eye on the market for any dramatic change in material costs which may have an adverse effect on the cost. As each trade is awarded, the contract values are compared to the budget or estimate and constantly updated as work-in-place occurs, usually on a monthly basis.
For other services see Owner Representation, Project Scheduling, Cost Estimating and Controls.