Design phase cost estimating

The owners of construction projects have need for accurate cost estimates prior to the completion of project design. These estimates will allow the owner to obtain financing and maximize the utility of his building within budget constraints. The contractor and construction management firms which prepare these cost estimates must understand the nature of design development. They must also have access to an adequate historical data base and to a methodology for predicting the project requirements based on incomplete design information. This additional dimension requires a structured estimating methodology. The study presented herein establishes a framework in which design phase cost estimates can be prepared. The historical data collection format is one which can be readily implemented by any company which is willing to adopt the suggested cost coding. The data collection format is based upon current contractor data collection techniques, and also permits the estimate data to be supplied in a form more acceptable to the project designers. An estimating structure which matches available design data with the estimate format is presented. Each estimate throughout the project design will contain indirect project costs and contingency elements, in addition to direct project costs. Each of these items is discussed separately within a comprehensive coverage of design phase cost estimate preparation. An application is included to show the use of the data structure.