Woo’s question #8

Woo’s question #8

Postby chillout » Tue May 10, 2016 5:45 pm

Woo’s question #8
After you have prepared a program for the project, the Owner asks you to confirm that their budget is adequate. Which of the following is NOT a regional factor that would affect your estimate?
1. Wage factors in the San Jaoquin valley
2. Gas prices in the state of California
3. Permit and other approval costs of local agencies having jurisdiction
4. Equipment rental rates in the city of Fresno

(Answer given : 3 - this is not part of construction cost)


Are 1, 2 & 4 factored into the Architect’s estimate during the programming phase because they fall within the category of inflation rates?
And 3 would not be a consideration at this (early) phase of the project?
I am unclear with the statement that '3 is not part of the construction cost' as permits and approval costs do become part of the contract sum.

I have limited work experience and may be incorrect with the above assumptions. Any thoughts? Thanks.
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Re: Woo’s question #8

Postby Coach » Tue May 10, 2016 8:31 pm

Well, he's wrong.
The owner's budget is for the Cost of the Work (as defined in B101) not construction cost.
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Re: Woo’s question #8

Postby chillout » Thu May 12, 2016 3:52 pm

That makes sense. Thanks.
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Re: Woo’s question #8

Postby hnQ_9999 » Tue May 02, 2017 1:26 pm

i think no.3 is out simply bec
permit fee does not have regional
factor. They maybe differ per location
but no factor involved like the other
choices.
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