Facilities Project Budgets and Construction Cost Estimates

Project engineers and managers in capital construction projects are responsible for preparing project schedules and budgets, and monitoring progress. Facilities operations personnel need to budget for recurring service and maintenance costs, yet there are often competing interests that make this a challenge.

Learn how to prepare a comprehensive budget, understand how contractors estimate projects, recognize the merits and concerns with various project delivery methods, manage schedule and cost changes to schedule, review plans and specifications to identify potential cost drivers, and evaluate and present cost data to upper management.

• Owner’s project representatives
• University project managers
• Government procurement personnel
• Capital budgeting administrators
• Facilities operations supervisors
• Architects and project team members
• Mechanical and electrical engineers
• Construction managers and contractors

Welcome and Introduction

Facilities Project Budgets

• Components of Total Cost
  • Construction cost
  • Architects, engineers, and consultants
  • Owner's representatives
  • Internal operations
  • Furniture, furnishing, and equipment (FF&E)
  • Testing and abatement
  • Contingency
• Related projects

Operations and Maintenance

• APPA maintenance
• APPA cleanliness
• APPA grounds 
• Routine maintenance
• Utility consumption
• Capital maintenance
• Deferred maintenance

Project Delivery Methods

• General contractor (GC)
• Construction manager (CM)
  • Guaranteed maximum price (GMP)
• Design / build
• Integrated project delivery (IPD)
• Lean construction

Contract Relationships

• Owner agreements
• Construction phasing
• Sub-contractors
• Testing
• Direct purchasing
• Assigned vendors
• Release of retainage
• Warranty types and duration
• Bonding and liquidated damages

Scope for Conceptual Estimates

• Size and population 
• Use and hazard type 
• Fit and finish
• Supporting infrastructure 
• Stakeholder inclusion 
• Design documentation 

Project Scheduling Primer

• Project phase sequence
• Funding authorization
• Schedule format and critical path
• Schedule task relationships
• Project schedule case study 
• Substantial completion
• Turnover and operations

Construction Front-end Costs

• General conditions and general requirements
• Pre-construction investigations
• Overhead and profit
• Fees and insurance
• Contingencies
• Payment terms / cash flow
• Contractor risk

CSI Division Breakdown

• Division 1 – General requirements
• Division 3 – Concrete
• Division 4 – Masonry
• Division 5 – Metals
• Division 6 – Carpentry
• Division 7 – Thermal and moisture protection
• Division 8 – Doors and windows
• Division 9 – Finishes 
• Division 10 – Specialties
• Division 11 – Equipment
• Division 22 – Plumbing 
• Division 23 – HVAC
• Division 26 – Electrical
• Division 31 – Earthwork

Plans and Specs. Review

• Design process tools
• Sample checklist overview
• Quality assurance activities
• Comparison projects and benchmarks

Change Management

• Forms
• AIA documents
  • Architect’s supplemental instructions (ASI)
  • Proposal request (PR)
  • Request for information (RFI)
  • Construction change directive (CCD)
  • Change orders (CO)
• Project substitutions
• Change management elements 

Financial Analysis

• Comparison of measures
  • Simple payback
  • Net present value 
• Life cycle cost analysis 
• Green building guidelines
  • Life cycle assessment
  • Life cycle inventory 

Estimating Considerations

• The bid process
• Cost estimating data libraries
• Material quantity takeoffs
• Unit costs and allowances
• Supplier substitutions
• Labor rates and location factors
• Transportation and deliveries
• Overtime and schedule mitigation
• General requirements and safety

"Overall a great course with something for every level of experience." 
—Dean, Director of Parks and Recreation, City of Appleton, Wisconsin

"I liked all the content, especially the rule of thumb discussions and information that allows you to have discussions with contractors regarding bid, etc."
—Richard, Police Facilities Manager, City of Milwaukee, Wisconsin

"Was not expecting hearing from a GC, Arch, PM — this was very interesting hearing (sometimes differing) points of view and their specific challenges." 
—Kevin, University of Illinois at Chicago, Chicago, Illinois

"Will use to look at proposals to see if enough has been budgeted for, and justify what the various costs are being applied to."
—Saeng, United States Olympic Committee, Colorado Springs, Colorado

"Sessions made me think in ways that I have not thought of in a while." 
—David, Senior Design Manager, Blain Supply, Inc., Janesville, Wisconsin

"Good info. Nice to be able to ask questions and learn from others' experiences."
—Kim, Principle Engineer, Metro Transit, Roseville, Minnesota

Arch Currie

Arch Currie, AIA, is a registered Architect, LEED AP BD+C, and Certified Historic Architect. His company, No Left Turn, located in Norwalk Connecticut, consults to Designers, Owners, Contractors, and others involved with facilities and Capital Programs. His practice calls upon his years of experience as Director of Project Management at Yale University, as well as leadership roles at Ellerbe Becket Architects & Engineers, Beyer Blinder Belle Architects, and Newman Architects. Arch is a graduate of the School of Architecture at McGill University in Montreal.

Thomas Giola

Tom Giola is the Vice President of Standard Builders Inc. in Newington, Conn., a self -performing construction management and general contracting company that specializes in occupied renovations serving the institutional, corporate and healthcare Markets. Giola has been active in the construction industry for over 35 years. He has a bachelor’s in civil engineering, is a LEED Accredited Professional, and is ASHE Certified in Healthcare Construction. He has managed new construction and renovation projects of all types from residential additions, public roadways, commercial buildings, retail centers and clinical renovations within active operating room suites, ranging in size to over 430,000 sq. ft. with budgets to $98 million.

Mark Malkin

Mark P. Malkin, PE is a Program Director in the UW-Madison Department of Engineering Professional Development (EPD). He is a registered Professional Engineer with over 25 years of combined experience in university construction project management and HVAC systems design. His course offerings in the Facilities segment of EPD include HVAC and plumbing fundamentals, building and property maintenance code review, and design and operation of science labs, data centers, museums and libraries. Mark received his bachelor’s in Mechanical Engineering from Cornell University, and his master’s in Mechanical Engineering from UW-Madison.