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– To adjust for size, use table in Figure 5-3 page L7-1, or page 108 of the book• compute the size factor = proposed area/typical area• From the graph, get the cost multiplier at the size
factor• multiply the cost by the cost multiplier.
– project quality: figure 4-4.– location: taken into consideration by location indices.
Figure 5-3 Project size multiplier
– time: cost need to be projected to payment time fig 4.5 page L-68
Present cost at city (X) =
former cost at (X) x present historical index at (X)
former index at (X)
cost at any city at a given time/historical cost index at that city at that time = constant
For example, a building that cost $1,000,000 in Seattle in 1965 will cost in 2003 in Seattle= 1,000,000 (100/16.6) = $ 6,024,096
Historical Cost Index (page L-68)
Pay attention to location factors if needed.– other factors: economic situation, relationship with
Conceptual Estimate (ROM)Conceptual Estimate (ROM)• Also called rough order of magnitude (ROM).• Commonly used to determine approximate costs of projects
or subsystems within a project, most commonly in building construction.
• Can be quite general or very detailed, according to the level of details shown in the drawings, if any.
• Similar to any pre-construction estimate, prepared by the owner, designer, and/or CM.
• Can be done in minutes and provide accuracy in the 20% range.
• Can be done in many ways. A base cost is obtained, from guides?, and then modified for location, size, and time if necessary