Abstract:Most public agency engineers would place saving projects costs as a prime objective during the project development and delivery process. This paper argues that maximizing cost certainty rather than minimizing project cost is the more appropriate objective. The paper bases this assertion on the analysis of 1,267 projects from four states with a total construction value of $3.14 billion. The study compared the relationship between the design fee expressed as a percentage of estimated construction cost and cost g… Show more
“…However, the consultant still underestimated the number of hours that it would take to complete the project by 23%. Project 2 was an in-house project where the original DOT estimated number of workhours needed to complete the preconstruction phase was significantly less than the actual number of hours needed to complete the pre-construction phase (800 hours vs 2188 hours) which represent a 65% difference [4] . It is important to put those percentages in terms of money.…”
Section: Case Studiesmentioning
confidence: 99%
“…Table 2, includes the proposed topics and is followed by a description of each topic. According to the NCHRP 15-51 Guidebook [4] , there are other cost estimating approaches to calculate PCS costs. Most (highway transportation) agencies typically use one of the following three methods:…”
Section: Proposed Pcs Curriculummentioning
confidence: 99%
“…In order to validate the importance of estimating preconstruction costs, two case studies were selected [4] . The Office of Bridges and Structures at Iowa DOT provided information on two final bridge design projects that have been constructed.…”
Section: Case Studiesmentioning
confidence: 99%
“…Traditionally, the total design services fee is calculated either as a percentage of anticipated construction costs or by square footage. Few owners appear to place importance of appropriately funding the preconstruction phase and thus by estimating the design services fee using a percentage of construction costs or by square footage, they inadvertently cap the design effort [4] . To estimate the number of hours that design professionals can spend on a given project, architects and engineers divide the total preconstruction budget by their hourly rate.…”
Section: Introductionmentioning
confidence: 99%
“…The pre-construction costs that students are asked to determine include but are not limited to the following: permitting costs, cost of surveying utility locations, environmental, geotechnical and other analysis as appropriate, preparing contract documents (conceptual, preliminary and final construction documents), advertising for bid, holding a pre-bid conference, receiving and analyzing bids, etc. [3] In the National Cooperative Highway Research Program (NCHRP) Project 15-51: Preconstruction Services Cost Estimating Guidebook, PCS are classified in four development phases [4] , which are the following: Planning, Programming and Preliminary Design, Final Design, and Advertise and Bid, see Figure 1. The Planning phase consists in the determination of the project's purpose and need, also the type of project, new or improvements.…”
The need to effectively manage costs during the construction phase of a project to meet budget constraints is widely understood by both practitioners and academics. Most, if not all, Construction Engineering and Management undergraduate and graduate programs require that students complete construction cost estimating courses as part of their core curriculum. However, the value of estimating the owner's planning, design, and procurement costs during the preconstruction period is not typically included in the Construction Engineering and Management curriculum. Preconstruction costs are usually defined as all work required to develop and advertise construction documents to a point where the construction contract can be awarded. Final project construction documents literally define the level of required construction quality and as such, must also be of adequate quality to achieve the construction project's ultimate success. Thus, failing to provide an adequate and sufficient preconstruction budget constrains the necessary resources to fully develop these documents and may unintentionally constrain the document development process causing planners and designers to match their level of effort to the amount of time permitted by the budget. Not only may the quality of the construction documents be negatively impacted but design factors of safety may be unnecessarily increased due to a lack of time to do detailed design analyses. It can also, eventually, have an impact in design issues related to serviceability, operation, or maintenance. Lastly, the increased use of alternative project delivery methods, such as Design-Build and Construction Manager-atRisk, have created a need to teach preconstruction cost estimating in academic programs to ensure that graduates have the necessary knowledge and skills to effectively manage construction projects delivered using both traditional and alternative methods. This paper contributes to the body of knowledge by demonstrating the importance of accurately estimating owner's preconstruction costs and proposing a framework to assist engineering educators to integrate the subject into the required curriculum in Construction Engineering and Management programs.
“…However, the consultant still underestimated the number of hours that it would take to complete the project by 23%. Project 2 was an in-house project where the original DOT estimated number of workhours needed to complete the preconstruction phase was significantly less than the actual number of hours needed to complete the pre-construction phase (800 hours vs 2188 hours) which represent a 65% difference [4] . It is important to put those percentages in terms of money.…”
Section: Case Studiesmentioning
confidence: 99%
“…Table 2, includes the proposed topics and is followed by a description of each topic. According to the NCHRP 15-51 Guidebook [4] , there are other cost estimating approaches to calculate PCS costs. Most (highway transportation) agencies typically use one of the following three methods:…”
Section: Proposed Pcs Curriculummentioning
confidence: 99%
“…In order to validate the importance of estimating preconstruction costs, two case studies were selected [4] . The Office of Bridges and Structures at Iowa DOT provided information on two final bridge design projects that have been constructed.…”
Section: Case Studiesmentioning
confidence: 99%
“…Traditionally, the total design services fee is calculated either as a percentage of anticipated construction costs or by square footage. Few owners appear to place importance of appropriately funding the preconstruction phase and thus by estimating the design services fee using a percentage of construction costs or by square footage, they inadvertently cap the design effort [4] . To estimate the number of hours that design professionals can spend on a given project, architects and engineers divide the total preconstruction budget by their hourly rate.…”
Section: Introductionmentioning
confidence: 99%
“…The pre-construction costs that students are asked to determine include but are not limited to the following: permitting costs, cost of surveying utility locations, environmental, geotechnical and other analysis as appropriate, preparing contract documents (conceptual, preliminary and final construction documents), advertising for bid, holding a pre-bid conference, receiving and analyzing bids, etc. [3] In the National Cooperative Highway Research Program (NCHRP) Project 15-51: Preconstruction Services Cost Estimating Guidebook, PCS are classified in four development phases [4] , which are the following: Planning, Programming and Preliminary Design, Final Design, and Advertise and Bid, see Figure 1. The Planning phase consists in the determination of the project's purpose and need, also the type of project, new or improvements.…”
The need to effectively manage costs during the construction phase of a project to meet budget constraints is widely understood by both practitioners and academics. Most, if not all, Construction Engineering and Management undergraduate and graduate programs require that students complete construction cost estimating courses as part of their core curriculum. However, the value of estimating the owner's planning, design, and procurement costs during the preconstruction period is not typically included in the Construction Engineering and Management curriculum. Preconstruction costs are usually defined as all work required to develop and advertise construction documents to a point where the construction contract can be awarded. Final project construction documents literally define the level of required construction quality and as such, must also be of adequate quality to achieve the construction project's ultimate success. Thus, failing to provide an adequate and sufficient preconstruction budget constrains the necessary resources to fully develop these documents and may unintentionally constrain the document development process causing planners and designers to match their level of effort to the amount of time permitted by the budget. Not only may the quality of the construction documents be negatively impacted but design factors of safety may be unnecessarily increased due to a lack of time to do detailed design analyses. It can also, eventually, have an impact in design issues related to serviceability, operation, or maintenance. Lastly, the increased use of alternative project delivery methods, such as Design-Build and Construction Manager-atRisk, have created a need to teach preconstruction cost estimating in academic programs to ensure that graduates have the necessary knowledge and skills to effectively manage construction projects delivered using both traditional and alternative methods. This paper contributes to the body of knowledge by demonstrating the importance of accurately estimating owner's preconstruction costs and proposing a framework to assist engineering educators to integrate the subject into the required curriculum in Construction Engineering and Management programs.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.