Post date: Jan 29, 2016 3:16:39 AM
Cost control is of utmost importance to most clients. If the costs are allowed to run wild, then the profit disappears and the purpose of the project vanishes. Every architect must know something about cost control.
At the earliest stages, cost estimating is done by using the total area of a building and multiplying by a dollar per square foot number for a comparable building. Means publishes annual compendiums of cost data to aid the industry in estimating costs. The numbers can be adjusted by time and inflation rates, by location, and by building type and quality. I have shared a spreadsheet for computing cost for a building concept. This document is based on the cost estimating method explained by William M. Pena in his book Problem Seeking.
One of the key concepts to grasp is that the construction cost is different from project cost. Construction cost is the cost to build the building based on materials cost, labor costs, sales tax, and management fees for construction. Project cost includes the construction cost and adds the cost of professional design fees, the cost of money itself as interest on loans, and other expenses. Some costs, such as building permit fees, could be included in either area depending upon the custom of the developer or other factors. Project cost is always more than construction cost. Every project on which I have participated has at some time had confusion over construction cost and project cost. A contractor will start talking construction cost and the owner is thinking of project costs. At some point they all realize that the number being batted around is much too low for the project cost. The architect often gets the blame for a cost overrun but in reality the mistake was not making clear to all parties the difference between the two costs.
Why am I presenting this to you when the COSC students are responsible for this? Because ultimately you, as architect, are responsible. You need to know how to compute the cost, and what are the appropriate questions. You need to be able to get the answer if your consultant is tardy or unable to deliver. You need to look at their numbers and know whether they are accurate or at least in the ballpark.