Renovation & Addition
Reading, MA
Jan 7, 2002
NOTE: Construction escalation not included in final project cost due to it being included in the $3.8 million estimating contingency in project cost. [-BuildingPride]
This Schematic Design Cost Estimate was produced from drawings, specifications and other documentation dated December 18, 2002 prepared by Flansburgh Associates and their design team and forwarded to Atkins Hanscomb Faithful & Gould (formally known as Hanscomb Inc) on the same date. Design and engineering changes occurring subsequent to the issue of these documents have not been incorporated in this estimate.
This estimate is based upon the measurement of quantities where possible. For the remainder, parametric measurements were used in conjunction with references from similar projects recently estimated by Atkins HF&G
This estimate reflects the fair construction value for the construction of this project and should not be construed as a prediction of low bid. Prices are based on probable local prevailing union wage construction costs at the time the estimate was prepared, however an escalation line item is included to project the current costs to the projected construction start approximately 12 months from the date of this report. Pricing assumes a procurement process with competitive bidding for every portion of the construction work, which is to mean a minimum of 4 bids including for all subcontractors and materials/equipment suppliers. If fewer bids are solicited or received, prices can be expected to be higher. Please note that this estimate assumed competitive bid by general contractors. Should a CM/GMP procurement route be selected we anticipate that the total construction cost will increase by approximately 5%.
Subcontractor's markups have been included in each line item unit price. Markups cover the cost of field overhead, home office overhead and subcontractor’s profit. Subcontractor's markups typically range from 5% to 15% of the unit price depending on market conditions.
General Contractor’s general conditions’ cost is calculated on a percentage basis. General Contractor’s overhead and fees is based on a percentage of the total direct (trade) costs plus general conditions, and covers the contractor’s bond, insurance, site office overheads, building permit applications, and profit.
Unless identified otherwise, the cost of such items as shift premiums, and allowances for temporary occupancy permits, police details or street/sidewalk permits are excluded.
We have included a Design Contingency/Design Reserve percentage to cover cost increases that will occur during design elaboration or unforeseen design issues. As the design develops, the design contingency is reduced, and is eliminated at the final Construction Document estimate.
A Construction Contingency or GMP contingency is excluded from this estimate. However, in finalizing the project budget, it is recommended that the Owner should add a construction contingency to the Total Estimated Construction Cost in anticipation of change orders likely to occur during construction.
Items not included in this estimate are:
Such items include, but are not limited to the following:
Atkins HF&G requests that the Owner and Architect carefully review this estimate, including all line item descriptions, unit prices, clarifications, exclusions, inclusions and assumptions, contingencies, escalation, and markups to ensure that requirements have been correctly identified. If this estimate does not correspond to the Owner’s budgetary objectives, Atkins HF&G strongly suggests that evaluations of other design alternatives/project procurement options should be made before proceeding further.
Atkins HF&G has prepared this estimate in accordance with generally accepted principles and practices to reflect the fair market value of the project. This estimate is made on the basis of the experience, qualifications, and the best judgment of professional consultants who are familiar with the construction industry.
However, Atkins HF&G has no control over the method of determining prices adopted by any individual general contractor, subcontractor or supplier. Atkins HF&G cannot control the cost of labor and materials, the bidding environment or other market conditions, and it is not possible to provide any guarantee that proposals, bids, or actual construction costs will not deviate from this or subsequent cost estimates.
Any requests for modifications to this document must be made to Atkins HF&G within ten (10) days of receipt. Otherwise, it will be understood that the contents are fully concurred with and accepted. Notifications of any apparent errors or omissions should be made to Atkins HF&G as soon as they are discovered.