Construction Cost

Site Zoning Vignette and Multiple Choice

Construction Cost

Postby lvstar » Tue Jan 02, 2018 9:48 pm

Hi,
I’m getting a little confused of the construction cost.
Does the Site Improvements belong to construction cost?
Also, during the programming phase, does the contractor’ profit belongs to the construction cost? I thought since it’s early on the process and the contractors profit is not determined yet it may not be included.
Please advise!
Many thanks!
lvstar
 
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Re: Construction Cost

Postby Babyranie » Wed Jan 03, 2018 8:37 am

here are my take on this:
total construction cost=building costs+site development costs+material+labor+contingency+GC's overhead and profit.

site improvement should be included in construction cost.
contractor's overhead and profit are included in construction cost.
contractor's overhead and profit can be estimated for 5-40% of construction costs.
but during programming phase, construction cost estimate is based on unit cost method, so GC's profit is not a concern for this type of method.
Babyranie
 
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Re: Construction Cost

Postby Anob » Wed Jan 03, 2018 10:59 am

I think word use is the issue here I think. When you say "Site Improvement" work do you mean work needed to be ready for construction (raw land development
or brownfield sites) where special loans and funds might be needed (A&D loans & superfund). If you do this would be part of the project cost not the construction cost.
This portion of the work is done in the pre-design phase and not necessarily part of the contractors profit unless the contractor is doing everything.
Anob
 
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