Life Cycle Costs in Building Analysis

Owner Expectations

• Owners with a fixed budget are more likely to expect completed projects at or below target costs.

Factors Affecting Construction Costs

• Various factors can impact construction project costs, including changes in design, materials, or labor costs, and unexpected site conditions.

Architect's Role in Cost Estimation

• The architect plays a crucial role in considering construction cost estimate adjustment factors to ensure accurate cost estimates.

Risks in Construction Projects

• One frequently experienced risk in construction projects is cost overruns.

Functional Program Validation

• If a functional program is not validated against the construction cost estimate, it can result in project delays or cost overruns.

Factors Impacting Construction Costs

• The location of the project can significantly impact the cost of a construction project.

Using Historic Cost Data

• When using historic cost data for a project, architects should adjust it for inflation and location-specific factors.

Minimizing Construction Costs

• The objective is to minimize construction costs while maintaining quality by optimizing design, materials, and construction methods.

Embodied Energy Cost Analysis

• The purpose of Embodied Energy Cost Analysis is to assess the environmental impact of a building's materials and construction processes.
• Architects should develop knowledge and skills in Embodied Energy Cost Analysis to design more sustainable buildings.

Life Cycle Costing

• Life cycle costing involves calculating the total cost of a building over its entire life cycle, including construction, operation, and maintenance costs.
• The formula for calculating the total cost of a building is: Total Cost = Initial Cost + Operating Cost + Maintenance Cost.
• Architects should discuss life cycle costs with clients during the schematic design phase.
• One of the three types of costs in life cycle costing is NOT external costs.

Value Engineering

• The purpose of value engineering in a construction project is to optimize the design and materials to reduce costs while maintaining quality.

Quantity Surveyors

• One disadvantage of using quantity surveyors for cost estimating is that they may not fully understand the project's design and functional requirements.
• One advantage of obtaining expert advice from independent professional experts (quantity surveyors) is that they provide objective and unbiased cost estimates.

Project Phases

• During the design development phase, the architect refines the building's scope, design, quality, and details to ensure they will not exceed the limits of the construction cost budget.
• During the construction documents phase, the architect updates the construction cost estimate based on the construction documents.

Bidding and Negotiation

• During the bidding and negotiation phase, the architect should consider detailed cost information, including unit prices and quantities.

Disadvantages of Cost Information

• One disadvantage of obtaining cost information from construction managers and other development/construction experts is that they may have biased estimates.

Using Quantity Surveyors

• Architects should use the services of a quantity surveyor during the design development phase to obtain accurate and unbiased cost estimates.

Contract Administration

• During the contract administration phase, the architect is responsible for determining the amounts owing to the contractor under the contract.

Schedule of Values

• The schedule of values method is well-suited for assessing the contractor's schedule of values.

Construction Price Index Data

• Construction price index data is useful for tracking changes in construction costs over time and adjusting cost estimates accordingly.

Contingencies

• The purpose of contingencies in a budget estimate is to account for unexpected expenses or changes in the project scope.

Cost Estimating Data

• The recommended approach for using cost estimating data is to use current, location-specific data, adjusted for inflation.

Checklist for the Management of the Architectural Project

• The purpose of the Checklist for the Management of the Architectural Project is to ensure that architects consider all aspects of project management, including cost estimation and control.