Archive for February, 2011
February 26th, 2011 | 
Author: Florida Construction Management – Cost Estimates
In our earlier article on the Bill of Quantities, we itemized several areas of use for the subject document; all of which we believe to be of critical importance to the developer, owner or contractor. We now wish to expand on how the related Estimate of Cost could be employed in determining when or whether to build.
The quantity surveyor’s respective pricing based on current and future costs would form the initial basis of determining when or whether it is feasible to build. The primary driving forces for development include location, zoning, demand and reasonable financial return on investment. The current economic climate dictates that even the developer with very deep pockets, strictly temper his or her enthusiasm by applying all the principles of Time Value of Money.
The priced Bill of Quantities may be used for establishing Estimates of Cost for respective elements of the proposed development, thereby allowing for phased construction at a predetermined price acceptable to the authorities having jurisdiction over the work. The developer would prefer to earn early and reasonable return on investment, whereas a city, town or village would rather increase tax base by improving an empty lot with a structure; both goals could provide for a favorable compromise to a particularly unique investor.
Here are some of the relevant benefits to be derived from having or being able to obtain an Cost Estimate:
When: By establishing a time and period for construction, commitment to price for delivery and installation at a future date could be obtained now.
Whether: Response to requests for estimates of cost may help a developer or owner in determining whether they wish to proceed with a project due to cost constraints.
Phasing: If acceptable to the Authorities Having Jurisdiction (“AHJ”), the developer or owner would be able to schedule the work to match their cash flow, which should be based on agreed estimates of cost for construction at a predetermined date. Phasing should be negotiated to initially provide the structural frame including stairs and conveying systems core, waterproof skin and exterior finishes of the building. Subsequent installation of slab-on-grade; water; sewer; fire sprinkler; heating, ventilating and air-conditioning; electrical and interior finishes could be based on tenant occupancy and as required by the AHJ.
Basis for Change: The Cost Estimate should be the basis for all changes.
If you would like us to help with your Cost Estimates or need Florida Construction Management Services, please complete the form below and a professional will contact you to discuss your specific needs:
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We provide Construction Cost Estimating Services and Florida Construction Management Services in the entire state of Florida including the following large Florida counties: Seminole County, Broward County, Sarasota County, Manatee County, Marion County, Polk County, Leon County, Brevard County, Duval County, Escambia County, Palm Beach County, Hillsborough County, Collier County, Pinellas County, Lee County, Alachua County, Orange County, Volusia County, Miami-Dade County, Pasco County and others.
We offer Florida Construction Management Services and Construction Cost Estimates services all over Florida including the following metro areas: Tampa, St. Petersburg, Titusville, Jacksonville, Cape Coral, Pensacola, Punta Gorda, Ft. Walton Beach, Naples, Winter Haven, Palm Bay, Fort Lauderdale, Daytona Beach, Ocala, West Palm Beach/Boca Raton, Miami, Orlando, Gainesville, Sarasota / Bradenton, Melbourne, Lakeland, Clearwater, Fort Pierce/Port St. Lucie, Fort Myers, Tallahassee, Panama City and surrounding areas.
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Florida Construction Bill of Quantities
The Bill of Quantities is an itemized listing, preferably in the CSI format, of all materials, labor, equipment and related incidentals required to construct the work represented in the construction documents.
The quantity surveyor doing the ‘take-off’ should be thoroughly knowledgeable with the relevant scope of work; most importantly by maintaining an up to the minute communication link with manufacturers and suppliers; the surveyor should be aware of any recent or contemplated changes that could impact availability and price currently or in the future. This is the stage when any items in the construction documents that have been made obsolete by supply-side changes need to be addressed with the owner and the design professionals.
The Bill of Quantities may be used for budgeting, obtaining bids, establishing contract amount, complementing the contract documents and determining cash flow.
- Budgeting: As part of their scope of work, the quantity surveyor would be required to price the Bill of Quantities based on current or future costs, as the owner’s needs dictate.
- Obtaining Bids: Specific sections of the Bill of Quantities may be utilized by the owner for obtaining competitive proposals.
- Establishing Contract Amount: The respective proposals received in response to measured items in the Bill of Quantities could become the basis of any related contract amount.
- Complementing the Contract Documents: The Bill of Quantities priced by the contractor as required in the bid package, would be part of and hence complementary to the contract documents.
- Determining Cash Flow: Utilizing the dollar amounts from the priced Bill of Quantities that was part of the bid package would be the best means of establishing and adjusting cash flow.
If the quantities are reasonably accurate as they should be if prepared by a capable quantity surveyor, both the owner and contractor are on the same page with respect to the basis and understanding of the documents, which should ensures an amicable financial adjustment necessitated by any changes to the work.
If you need Florida Construction Management Services or would like us to help with your Florida Bill of Quantities, please complete the form below and a professional will contact you to discuss your specific needs:
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We provide Construction Bill of Quantities Services and Florida Construction Management Services in the entire state of Florida including the following large Florida counties: Marion County, Polk County, Leon County, Brevard County, Seminole County, Broward County, Sarasota County, Manatee County, Duval County, Escambia County, Palm Beach County, Hillsborough County, Collier County, Pinellas County, Lee County, Alachua County, Orange County, Volusia County, Miami-Dade County, Pasco County and others.
We offer Florida Construction Management Services and Construction Bill of Quantities services all over Florida including the following metro areas: Tampa, Pensacola, Punta Gorda, Ft. Walton Beach, St. Petersburg, Titusville, Jacksonville, Cape Coral, Naples, Winter Haven, Daytona Beach, Ocala, West Palm Beach/Boca Raton, Palm Bay, Fort Lauderdale, Miami, Orlando, Gainesville, Clearwater, Fort Pierce/Port St. Lucie, Sarasota / Bradenton, Melbourne, Lakeland, Fort Myers, Tallahassee, Panama City and surrounding areas.