Description
Management and control of activities to help set enterprise strategies and to determine an accurate product and service cost, improve business processes, eliminate waste, identify cost drivers, and plan operations.
1
Project Budget & Cost Management
September 15, 2008
Hamid Omidvar, AIA
Chief, Office of Planning & Development
Department of General Services Montgomery County Maryland
2
Meet the scope defined for the project
Scope
Project Cost and Budget Management
Meets and exceeds industry standard of quality
Quality
Budget
It is within the established budget
Schedule
It is designed and constructed within the established schedule
Sustainability & Safety
Meets sustainability and safety requirements
Communication
Project is well documented and communicated
The world of a successful project
Hamid Omidvar, 9.2008
3
•Low client satisfaction Project Cost and Budget Management • • • • Scope Budget Schedule Quality •High cost of project •Delay in the use of the facility If changed •Possible lower quality •Additional draw on scarce public resources •Reduced support/confidence of community and elected officials
Impact of change on projects
Hamid Omidvar, 9.2008
4
Project Cost and Budget Management
We have encountered significant challenges in recent years figuring out how much to budget for projects and how to contain costs once the project is launched.
Our challenge
Hamid Omidvar, 9.2008
5
Issue Number of projects are experiencing cost overrun and delay Decision Decided to review process and identify issues impacting our projects’ delivery
Project Cost and Budget Management
Action Reviewed our project management process Attended seminars and classes Studied other jurisdictions for their methodologies Consulted with experts in this field Gathered projects’ historical data & analyzed them
Result Identified Issues & Developed Solutions
Implementation
First chance to implement solution was in summer of 2007 for our FY09-14 CIP cycle Challenge We are facing new challenges and are continuously in search of better project delivery methods.
2005-2006 project management study
Hamid Omidvar, 9.2008
6
1. 2. 3.
Requirement Program of Requirements (POR) is well written (Building program) Cost estimates are accurate, Schedule is realistic Risk factors are recognized and successfully assessed Good project management skills Qualified AE with track record of design to budget is selected Good design and construction documents are produced Changes are minimum during design and construction Project costs and schedule are controlled in all phases of project Market is analyzed at the bid time 9. 3. 4. 5. 6. 7. 8. 1. 2.
Solution Standardize Program of Requirements Create a project cost and budget development system. Quantify risk factors and incorporate them as cost Train project managers in systematic project management Look for track record in A/E selection Develop design quality control system Develop change tracking system Professional cost estimates are produced in all phases of the project & maintain a cost data base system for projects Check with the local contractors and owners before bid
Project Cost and Budget Management
4. 5. 6. 7. 8.
9.
10. Qualified construction contractor with track record of construction to budget is selected 11. Good construction management and administration
10. More RFP (qualification) than IFB (low bid) for construction 11. Develop construction quality control system May 2005
Hamid Omidvar, 9.2008
2005-2006 project management study - characteristics of a successful project
7
Project Cost and Budget Management
How to develop an accurate and reliable cost estimate and project budget
Hamid Omidvar, 9.2008
8
Project Cost and Budget Management
Identify Cost (project) Risks Establish Scope Program of Requirements
Cost Estimate Program of Requirements Create project Budget
Budget Approval
Project Close out
Adjustments Adjustments needed needed
Develop Budget Control &
Budget & Expenditure Control
Implementation/ Expenditure Invoices
Risk Management Plan
8
Budget Management cycle in CIP
Hamid Omidvar, 9.2008
9
Typical Project Schedule Planning POR preparation Project Approval Design Bid Construction Post Construction
Project Cost and Budget Management
Conceptual Planning Schematic Design Design Development Construction Document
Note: Operating budgets are not included in this presentation
Project Phases & Budgeting
Hamid Omidvar, 9.2008
1 0
190%
180%
Long Branch Library Piccard Drive DPS
170%
grey Courthouse Germantown Indoor Pool germantown Library
Project Cost and Budget Management
160%
Rockville Library MCCF
150%
MCDC Reuse Strathmore Hall Glen Echo park III
140%
Glen Echo Arcade Driver Training Facility EOB Garage
130%
Brookville Service Park 1 Brookville Service Park 2 PSTA 1
120%
PSTA 2
6%
110%
Travillah F.S. MLK Pool Bethesda Outdoor Pool 4th District Police Station
17%
100%
Total
Planning
Schematic design
Design Development
Construction Documents
Bid
Final
10
2005-2006 study - Construction cost change per phase per selected projects
Hamid Omidvar, 9.2008
1 1
120
100
Request Construction Fund
Project Cost and Budget Management
80
Request Design Fund
60
40
Reliability of cost estimates
20
0 Planning Budget Approval Schematic Design Design Development Moderate Risk Construction Documents Low Risk Bid Final
High Risk
2005-2006 Study - Risk management in request of design and construction funds
Hamid Omidvar, 9.2008
1 2
Project Cost and Budget Management
Create a project cost and budget development system
12
Goal
Hamid Omidvar, 9.2008
1 3
Cost of design Cost of construction
General condition of construction Labor Material
Project Cost and Budget Management
Contractor’s overhead Contractor’s profit Contractor’s Insurance and bonds
Contingencies
Project’s unknowns or risks contingency Cost estimating contingency Design contingency Bid contingency Construction contingency Cost Escalation to mid point of construction
Cost of land Cost of furniture, equipment, move, IT, telecommunication, etc Cost of project management
13
Elements of project budget
Hamid Omidvar, 9.2008
1 4
Abb. LM OPB IC
Cost Elements Labor & material cost Overhead + Profit + Bond Initial Construction Cost Estimate LEED Contingency Cost of unknowns-Risks Design Contingency Escalation to mid point of construction Construction Contract Award Price Bid contingency Construction Contingency A/E and other needed consultants fee Project management fee Other costs (Furniture, move, etc.) Land costs Total Project Cost (PDF)
Value $/SF or $/CSI divisions ~18% of LM LM + OPB 3-9% of IC Silver to Gold 0-30% of IC 10% of IC x% of IC per year compound method IC+LD+RF+DC+E 0-3% of CCAP 10-15% of CCAP (New vs. Reno.) 7-12% of CCAP 2-4% of CCAP Project specific Project specific CCAP+BC+CC+AE+PM+O+L
Project Cost and Budget Management
LD RF DC E CCAP BC CC AE PM O L PC
14
Summary of costs included in the project budget workbook
Hamid Omidvar, 9.2008
1 5
Construction Escalation covers
•Increase in cost of materials and labor from the date of the cost estimate to the mid point of construction
Project Cost and Budget Management
•It is calculated by the county’s chosen indices provided by agencies such as ENR that monitor construction industry
Construction Escalation amount for a
5 years
$1,000,000
project 4
Year to mid point of constru ction
$ Escalation
3 2 5 1 1
Escalation Rate / Year
15
Construction Cost Escalation
Hamid Omidvar, 9.2008
1 6
Selected CIP projects budget comparison chart FY09
Library AE PM Other AE Construction Utility FFE Other LEED Risks Community Center 37 17 15 250 7 19 18 14 Fire Station 31 15 18 188 17 20 23 12 Bus depot Office Renovation Cost $1000 % of total $/SF $ 969 7.3% $ $ 440 3.3% $ $ 398 3.0% $ $ 6,512 48.8% $ $ 190 1.4% $ $ 500 3.7% $ $ 460 3.4% $ $ 374 2.8% $ $ 0.0% $ $ $ 775 225 5.8% $ 1.7% $ 5.8% $ 13.0% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 1,342 6.8% $ 42 $ 786 7.0% $ $ 536 2.7% $ 17 $ 393 3.5% $ $ 546 2.7% $ 17 $ 466 4.2% $ $ 9,006 45.3% $ 283 $ 4,791 42.8% $ $ 440 2.2% $ 14 $ 430 3.8% $ $ 400 2.0% $ 13 $ 500 4.5% $ $ 630 3.2% $ 20 $ 580 5.2% $ $ 542 2.7% $ 17 $ 309 2.8% $ $ 0.0% $ $ 0.0% $ 1,052 314 5.3% $ 33 $ 1.6% $ 10 $ 5.4% $ 34 $ 20.0% $ 125 $ 100.0% $ 623 $ 608 111 678 1,530 11,182 25,443 3.34 5% 5.4% $ 1.0% $ 6.1% $ 13.7% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 3,480 6.3% $ 29 $ 2,968 5.1% $ 7 $ 870 1.6% $ 7 $ 848 1.5% $ 2 $ 879 1.6% $ 7 $ 470 0.8% $ 1 $ 34,504 62.3% $ 283 $ 37,365 64.4% $ 92 $ 240 0.4% $ 2 $ 160 0.3% $ 0 $ 600 1.1% $ 5 $ 2,500 4.3% $ 6 $ 450 0.8% $ 4 $ 2,550 4.4% $ 6 $ 1,035 1.9% $ 8 $ 806 1.4% $ 2 $ 0.0% $ $ 0.0% $ 3,653 584 3,968 5,094 55,357 122,000 2.08 5% 6.6% $ 1.1% $ 7.2% $ 9.2% $ 100.0% $ 30 $ 5 $ 33 $ 42 $ 454 $ 3,177 456 3,707 3,038 58,045 408,000 1.57 5% 5.5% $ 0.8% $ 6.4% $ 5.2% $ 100.0% $ 8 1 9 7 142
Design Contingency Bid contingency Construction Contingency Escalation Total SF Year to mid point of construction Escalation rate
Project Cost and Budget Management
30 $ 9 $
24 $ 4 $ 27 $ 60 $ 439 $
$ 774 $ 1,733 $ 13,350 26,000 3.1 5%
30 $ 1,076 67 $ 3,980 513 $ 19,864 31,859 4.96 5%
16
Share of cost elements in total project cost
Hamid Omidvar, 9.2008
1 7
48.8% 50.0%
Typical project budget elements
Bid contingency, 1.7% Other AE, 3.0% Other, 3.4% PM, 3.3% FFE, 3.7% Construction Contingency, 5.8% LEED, 2.8% Utility 1.4% Risks 0.0%
45.0%
Project Cost and Budget Management
40.0% 35.0% 30.0% 25.0% 20.0% 13.0% 15.0% 10.0% 5.0% 0.0% 7.3%
Design Contingency 5.8% AE 7.3% Escalation 13.0% Construction, 48.8%
5.8%
5.8%
3.7%
3.4%
3.3%
3.0%
2.8%
1.7%
1.4%
0.0%
17
Share of cost elements in total project cost
Hamid Omidvar, 9.2008
1 8
Project expenditure & withholdings during various phases
Commitment to budget
Project Cost and Budget Management
Withholding of contingencies
Expenditure
18
Project cost…..Expenditure…..Contingencies
Hamid Omidvar, 9.2008
1 9
Project Cost and Budget Management
Project Cost & Budget Development Workbook
19
Project Budgeting Tools
Hamid Omidvar, 9.2008
2 0
Sample Project
Project Cost & Budget Workbook DRAFT
Project Information Project # Index Code project address Council District Council Representative Customer/ Using Agency Planning Area Project Category This CIP cycle This CIP FY Last CIP FY Executive Manager Design Manager Project Manager A/E Consultant Construction Contractor Property Size - Acres Programmable New- SF from POR Program to Gross Factor Estimated Gross New- SF Renovation Gross - SF Total project Gross - SF Is this a renovation project? (Y or N) 5234567 31004567 101 Rockviile pike 2 Name Using Department Planning Area Category FY 09-14 FY08 FY07 Hamid Omidvar Rassa Davoodpour Randall Hawkins TBD TBD 5 10,000 1.60 16,000 5,000 21,000 Y
FY 09-14
Project Cost and Budget Management
Office of Planning & Development - OPD Department of General Services - DGS
Last updated on:
September 15, 2008
Printed on:
August 22, 2008 Version 2008.8 Table of contents 01-Cover Sheet 02-Construction Cost Estimate 03-Permit fee 04-Risk Factors 05-DCD Best Cost Estimate 06-Cost Summary 07-Project Schedule and Expenditure 08-Expenditure and Appropriation Per FY 09-PDF Form 10-PDF Change Comparison
Project Budgeting Tools – PDF Preparation Workbook
Hamid Omidvar, 9.2008
2 1
Div. 02 03 04 05 06 07 08 09 10 11 12 13 14 21 22 23 25 26 27 28 31 32 33 TC
Sample Project
Initial Cost Estimate Cost Estimating Inc. August 15, 2008 DIVISION ACTIVITY Existing Conditions Concrete Masonry Metal Wood, Plastics, and composites Thermal and Moisture Protection Openings (Doors & Windows) Finishes Specialties Equipment Furnishings Special Construction Conveying Equipment Fire Suppression Plumbing HVAC Integrated Automation Electrical Communications Electronic Safety and Security Earthwork Exterior Improvement Site Utilities- SWM Total Initial Construction Cost Initial Construction cost w/o site Control values for cost per SF Notes:
Version 2008.8
Project # This Program DRAFT Cost C1 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 S1 S2 S3 0 196,835 275,569 275,569 39,367 157,468 236,202 157,468 78,734 39,367 39,367 78,734 78,734 157,468 157,468 944,808 78,734 314,936 39,367 39,367 118,101 314,936 118,101 3,936,702
3,936,702
5234567 FY 09-14 8% GC Overhead 0 17,321 24,250 24,250 3,464 13,857 20,786 13,857 6,929 3,464 3,464 6,929 6,929 13,857 13,857 83,143 6,929 27,714 3,464 3,464 10,393 27,714 10,393 346,430
343,693
10.0% Gen. Req. 0 19,684 27,557 27,557 3,937 15,747 23,620 15,747 7,873 3,937 3,937 7,873 7,873 15,747 15,747 94,481 7,873 31,494 3,937 3,937 11,810 31,494 11,810 393,670
389,344
5% GC profit 0 11,692 16,369 16,369 2,338 9,354 14,030 9,354 4,677 2,338 2,338 4,677 4,677 9,354 9,354 56,122 4,677 18,707 2,338 2,338 7,015 18,707 7,015 233,840
232,874
2% Perf. Bond 0 4,911 6,875 6,875 982 3,929 5,893 3,929 1,964 982 982 1,964 1,964 3,929 3,929 23,571 1,964 7,857 982 982 2,946 7,857 2,946 98,213
98,012
5% Est. Conting. 0 12,522 17,531 17,531 2,504 10,018 15,027 10,018 5,009 2,504 2,504 5,009 5,009 10,018 10,018 60,106 5,009 20,035 2,504 2,504 7,513 20,035 7,513 250,443
249,375
Total 0 262,965 368,151 368,151 52,593 210,372 315,558 210,372 105,186 52,593 52,593 105,186 105,186 210,372 210,372 1,262,231 105,186 420,744 52,593 52,593 157,779 420,744 157,779 5,259,297 4,522,996
5,250,000
Project Cost and Budget Management
% of total 0.00% 5.00% 7.00% 7.00% 1.00% 4.00% 6.00% 4.00% 2.00% 1.00% 1.00% 2.00% 2.00% 4.00% 4.00% 24.00% 2.00% 8.00% 1.00% 1.00% 3.00% 8.00% 3.00% 100.00%
$/SF 0.00 15.94 22.31 22.31 3.19 12.75 19.12 12.75 6.37 3.19 3.19 6.37 6.37 12.75 12.75 76.50 6.37 25.50 3.19 3.19 9.56 25.50 9.56 318.75 274.12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
$/CSI Divisions Method
Cost / GSF calculation chart GSF $/SF Major construction elements Structures 10,000 $ 200 New Construction-Office Ronovation-Office 5,000 $ 100 Parking Structure 1,500 $ 60 $ -
$Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,000,000 500,000 90,000 2,590,000 35,000 35,000 5,250,000
Total Structures Exterior elements Paved surface
16,500 5,000
$ $
360 7
$/SF Method
Total Exterior Total Initial Cost 5,000 43,000 $ $ 7 734
Project Budgeting Tools – PDF Preparation Workbook – Initial Construction Cost Estimate
Hamid Omidvar, 9.2008
Is Risk defined in the POR? Y or N
construction cost
acquisition
Utility cost
computers
equipment
Permit fee
telephone
Furniture
Site cost
Security
1 2 2.1 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.2
Project Cost and Budget Management
Building operation hours List of staff with their grades and positions organized per organization chart If growth is anticipated, it should be projected for 20 years at 5 years increments Signing Outdoor furniture and equipment Fencing Security A site map showing various elements Is this a MNCPP property? Is the site close to CSX track or related to CSX? Topography Geotechnical information Unsuitable soil Wetland and streams Wooded areas Historical aspects Availability of utilities: Gas
0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 1 1
Staff
Risk Factors
0.1 0.1
0.1
0 1 0.5 0.1 0.5 0.5 0.2 0.2 0.2 0.5 0.5 0.2 1 0.1 1 0.5 0.5 1 1 0.5 0.2 0.1 0 0.1 0.1 5
1
1 5 1 0.5
1 5 5 0.5 1
0.5 0.1
0.5
0.1
117 line
items
Project Budgeting Tools – PDF Preparation Workbook – Risk Factors Analysis
Hamid Omidvar, 9.2008
Signage 2
Printing
A/E fee
Survey
Move
E R
Sample Project
commissioning
enter 1 for risk
2 C2
1%
0%
1%
1%
1%
0%
1%
0%
1%
1%
0%
1%
0%
1%
2%
0% 0%
2%
2%
Cost estimate
Geotechnical
2 3
Sample Project
Time / Cost Schedule Table
DRAFT September 15, 2008 FY 09-14 Printed: Start Date 08/22/08 End Date Months 2007 FY0 8 7 8 J U L 2 1 2 2 2 2 1 1 2 1 2 4 5 3 3 3 2 3 6 2 1 21 0 9 0 1.00 A U G 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 12.00 1 2 3 4 5 6 4.00 2.00 2.00 4.00 2.00 3.00 2.00 2.00 4.00 3.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Notes: 5.00 1.00 9.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 5.00 6.00 7.00 7.00 8.00 4.00 3.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 9 S E P 10 O C T 11 N O V 12 D E C 2008 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N FY0 7 J U L 2009
This FY
First year of new CIP cycle
9
8 A U G 9 S E P 10 O C T 11 N O V 12 D E C 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N
Time Schedule
FROM TO Project Start / Planning Preparation of RFP A/E Advertisement / Selection / Contract Concept Plan, Schematic Design Design Development Construction Documents Permits Preparation of IFB Advertising / Review / Contract Land Cost (ALARF) Earthwork Existing Conditions Exterior Improvement Site Utilities- SWM Initial Construction cost w/o site UTILITY (WSSC, GAS, PEPCO) Telephone, Computers, Security, Fibernet Survey, Cost Est., Geotech, Test'g, Commis'g Reproduction, Advertising, Other PDS Furniture, Equipment, Signs & other costs Move and Occupancy PDS -Design Staff PDS -Design Other PDS -Construction Staff PDS -Construction Other Version 2008.8 Span 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.54 0 0 0 0 0 0 0 0 0 0
Project Cost and Budget Management
4/1/10
1/1/12
1.00 1.00 1.00 1.00 1.00 1.00
1.00
1.00
1.00
30
Number of months in progress>>>> From cost date to mid point of construction
Project Budgeting Tools – PDF Preparation Workbook – Expenditure Schedule
Hamid Omidvar, 9.2008
Sample project
DCD Best Cost Estimate Data updated on: February 22, 2007 PROJECT TASKS A/E fee % Staff fee % First cost 11.0000% 4.0000% 614,072 223,299 61,102 5,000 5,000 0 2,000 2,000 5,000 0 0 0 0 0 917,473 0 0 0 124,400 304,780 149,280 0 0 0 578,460 0 5,000 0 0 0 0 5,000 583,460 124,400 3,945,552 0 0 0 0 4,069,952 0 0 5,000 0 0 0 0 0 0 0 0 0 0 5,000 5,575,885
1 1 1 1 1 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1
2 4
$ $ LEED Silver 3.00% 1 18,422 0 1,833 0 0 0 0 0 0 0 0 0 0 0 20,255 0 0 0 3,732 9,143 4,478 0 0 0 17,354 0 0 0 0 0 0 0 17,354 3,732 118,367 0 0 0 0 122,099 0 0 0 0 0 0 0 0 0 0 0 0 0 0 159,708 Total Construction 8% 8% 0% 5% 5% 5% 5% 0% 5% 5% Risk Factor %
702,860 4,648,412 Cost of Risks 1.4% 1 31,625 11,165 3,147 250 0 0 100 0 0 0 0 0 0 0 46,286
0 0 0 0 0 0 0 0 0 0 0 0 0 0
>>
1 1 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1
0% 1%
7,263,936
5,582,468
6,140,715
507,497
Const. Contingency
558,247
5,074,971
CCAP
Project Budgeting Tools – PDF Preparation Workbook – Total Project Cost Estimate
Hamid Omidvar, 9.2008
2 5
Project XYZ
Category Agency Project category
5045671
7-34 (FY04)
DCD
Planning area
Previous PDF Page Number Planning Area
Department Name
Before and Estimate FY-0 FY-0 7 8 13 0 3 1,200 0 0 0 0 0 0 16 1,200
EXPENDITURE SCHEDULE ($000)
FY-0 12 357 0 61 7,219 1,479 9,116 FY-0 13 110 0 0 0 106 215 FY-0 14 0 0 0 0 0 0 Beyond 6 Years 0 0 0 0 0 0
Project Cost and Budget Management
Cost Element PDS Land Site + Utilities Construction Other Total G.O.Bonds CR General Federal Aid State Aid
Total 2,034 1,203 3,036 10,322 1,585 18,180 0 0 0 0
Months in design or con. Maintenance Energy Program-Staff Program-Other Cost Savings Offset Revenue Net Impact Work years
0 0 633 272 0 0 0 0 905 0 0 0
Total FY-0 FY-0 FY-0 6 Years 9 10 11 457 844 253 2,021 0 0 0 0 3,036 0 0 2,976 10,322 0 0 3,103 1,585 0 0 0 16,964 457 844 6,332 FUNDING SCHEDULE ($000) 0 0 0 0 ANNUAL OPERATING BUDGET IMPACT ($000) 0 0 0 0 12 12 12 12 0 633 0 0 0 0 0 0 0 272
0 12 0 0
10 2 186 80
12 0 223 96
12 0 223 96
905
0 MAP
0
0
0
266
319
319
APPROPRIATION AND EXPENDITURE DATA Date First Appropriation FY01 Initial Cost Estimate First Cost Estimate FY05 Current Scope FY05 Last FY's Cost Estimate FY07 Present Cost Estimate Appropriation Request Apprp Request Estimate Supplemental Approp Request Transfer Cumulative Appropriation Expenditures/ Encumbrances Unencumbered Balance Partial Closeout Through New Partial Closeout Total Partial Closeout FY03 FY04 FY07 FY08 FY06
0 0 0 16,300 18,180 1,206 362 1,200 18,180 16 18,164
N
NOTES
Project Budgeting Tools – PDF Preparation Workbook – Project Approval Forms (PDF)
Hamid Omidvar, 9.2008
2 6
Sample project project Sample
CSI Division Division % % of of total total Cost Cost CSI
02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33 SiteUtilitiesUtilities-SWM SWM Site ExteriorImprovement Improvement Exterior Earthwork Earthwork Electronic Safety and Security Electronic Safety and Security Communications Communications Electrical Electrical Integrated Automation Integrated Automation HVAC HVAC
2.33% 2.33% 2.09% 2.09% 12.20% 12.20% 1.50% 1.50% 3.21% 3.21% 6.56% 6.56% 2.68% 2.68%
Project Cost and Budget Management
02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33
Plumbing Plumbing 3.77% FireSuppression Suppression 3.77% Fire $149,280 SiteUtilitiesUtilities-SWM SWM $149,280 Site 5.35% ConveyingEquipment Equipment 5.35% Conveying Exterior Improvement Exterior Improvement 2.14% Special Construction 2.14% Special Construction $124,400 Earthwork $124,400 Earthwork 3.29% Furnishings 3.29% Furnishings $108,228 ElectronicSafety Safety and Security $108,228 Electronic 1.79% Equipment and Security 1.79% Equipment $97,032 Communications $97,032 Communications 1.50% Specialties 1.50% Specialties Electrical 1.20% Electrical Finishes 1.20% Finishes $69,664 IntegratedAutomation Automation 3.21% $69,664 Integrated Openings(Doors (Doors& &Windows) Windows) 3.21% Openings HVAC 1.50% Thermaland andMoisture MoistureProtection Protection HVAC 1.50% Thermal Plumbing 2.11% Wood, Plastics, and composites Plumbing 2.11% Wood, Plastics, and composites $175,404 FireSuppression Suppression 1.22% Metal $175,404 Fire 1.22% Metal ConveyingEquipment Equipment Masonry Conveying Masonry $99,520 Special Construction 6.16% Concrete $99,520 Special Construction 6.16% Concrete 2.68% $153,012 Furnishings Existing Conditions 2.68% $153,012 Existing Conditions Furnishings
CSI Division Division Cost Cost CSI
15.17% 15.17% 9.23% 9.23%
$304,780 $304,780
$567,264 $567,264 $705,348 $705,348 $429,180 $429,180 $248,800 $248,800
9.10% 9.10%
Equipment 2.00% 0.00% Equipment 0.00% 2.00% Specialties Specialties Finishes Finishes Openings(Doors (Doors& &Windows) Windows) Openings Thermaland andMoisture MoistureProtection Protection Thermal Wood,Plastics, Plastics,and andcomposites composites Wood, Metal Metal Masonry Masonry Concrete Concrete ExistingConditions Conditions Existing
0 0
$83,348 4.00% $83,348 4.00% $69,664 $69,664 $55,980 $55,980
6.00% 6.00%
8.00% 8.00%
10.00% 10.00%
12.00% 12.00%
14.00% 14.00%
16.00% 16.00%
$149,280 $149,280 $69,664 $69,664 $98,262 $98,262 $56,823 $56,823 $422,960 $422,960 $286,120 $286,120 $124,400 $124,400
100,000 100,000 200,000 200,000 300,000 300,000 400,000 400,000 500,000 500,000 600,000 600,000 700,000 700,000 800,000 800,000
Project Budgeting Tools – PDF Preparation Workbook – Base Cost Analysis
Hamid Omidvar, 9.2008
2 7
Project Cost and Budget Management
Budget Management and Cost Control
Hamid Omidvar, 9.2008
2 8
Project Cost and Budget Management
Montgomery County Manual for Planning, Design, & Construction Of Sustainable Buildings Montgomery County
Manual for Planning, Design, & Construction Of Sustainable Buildings
Version 2008.7 Department of General Services (DGS) Version 2008.7 Montgomery County Maryland 101 Monroe Street Rockville, Maryland 20850
Available on County’s web site
www.montgomerycountymd.gov
Design Manual, Design Quality Control
May 2006
Hamid Omidvar, 9.2008
2 9
Montgomery County Maryland Manual for Planning, Design, Montgomery County Maryland Manual for Planning, and Construction of of Sustainable Buildings Design, and Construction Sustainable Buildings
Procedure 4 I. General 4 A. General Scope of the Work 4 Deliverables/ Submittals 5 II. Drawing Requirements 5 A. Production 5 B. Electronic File Format and CADD 7 III. Specification Requirements 9 A. Format 9 IV.Cost Estimating Requirements 10 A. General 10 B. Format 11 V. Presentation Requirements 12 A. Renderings 12 B. Slide Show 12 C. Material Boards and Samples 12 D. Model Requirements 12 VI. Design Quality Control (DQC) Requirements 13 A. General 13 B. Submittal Tracking Plan 14 C. Scope Tracking System: 14 D. Coordination Plan: 14 E. Space Calculation Charts: 14 F. Review Process 14 G. Minutes of Meetings 16 H. Decision Log 17 I. Project Schedule 17 J. Schedule Log 17 K. Construction Cost Change Log 18 Department of General Services -DGS PROJECT PHASES 18 2008.7 VII. Phases 18 A. General 18 B. Conceptual Planning Phase 18 C. Schematic Design Phase 18 D. Design Development Phase 19 E. Construction Documents Phase 19 F. Bidding and Negotiations Phase 19 G. Construction Phase 19 Design Quality Control ? Project Phases and Deliverables Page 2 of 69 Design Quality Control ? Project Phases and Deliverables 1 of 69 Version 2008.7 PartPage 1?Section C Version 2008.7 Part 1?Section C
Project Cost and Budget Management
Design Quality Control Project Phases and Deliverables
Design Quality Control
Hamid Omidvar, 9.2008
3 0
Montgomery County Maryland Manual for Planning, Design, and Construction of Sustainable Buildings
Design Quality Control (DQC) Requirements
Project Cost and Budget Management
Documents: • Scope change Log • Schedule change Log • Construction Cost Change Log • Decisions Log • Submittal Tracking Log • Documents/ design Coordination Log • Space Calculation Charts • Minutes of Meetings
Review Process: • Progress Review Meeting • Informal Reviews • Quality Control Review • Architectural Review Committee
Design Quality Control ? Project Phases and Deliverables Version 2008.7
Page x of 69 Part 1?Section C
Design Manual, Design Quality Control
May 2006
Hamid Omidvar, 9.2008
3 1
Project Cost and Budget Management
In a free market economy, you can not dictate costs Owner will ultimately pay at least the true cost of the project at market prices However, it is possible to manage risks and anticipate market trends and fluctuations to reduce the magnitude of cost overrun impact.
31
Lessons learned
Hamid Omidvar, 9.2008
3 2
Meet the scope defined for the project
Scope
Project Cost and Budget Management
Thank you
Budget
It is within the established budget
Meets and exceeds industry standard of quality
Quality
Schedule
It is designed and constructed within the established schedule
Sustainability & Safety
Meets sustainability and safety requirements
Communication
Project is well documented and communicated
The world of a successful project
Hamid Omidvar, 9.2008
doc_904931588.pdf
Management and control of activities to help set enterprise strategies and to determine an accurate product and service cost, improve business processes, eliminate waste, identify cost drivers, and plan operations.
1
Project Budget & Cost Management
September 15, 2008
Hamid Omidvar, AIA
Chief, Office of Planning & Development
Department of General Services Montgomery County Maryland
2
Meet the scope defined for the project
Scope
Project Cost and Budget Management
Meets and exceeds industry standard of quality
Quality
Budget
It is within the established budget
Schedule
It is designed and constructed within the established schedule
Sustainability & Safety
Meets sustainability and safety requirements
Communication
Project is well documented and communicated
The world of a successful project
Hamid Omidvar, 9.2008
3
•Low client satisfaction Project Cost and Budget Management • • • • Scope Budget Schedule Quality •High cost of project •Delay in the use of the facility If changed •Possible lower quality •Additional draw on scarce public resources •Reduced support/confidence of community and elected officials
Impact of change on projects
Hamid Omidvar, 9.2008
4
Project Cost and Budget Management
We have encountered significant challenges in recent years figuring out how much to budget for projects and how to contain costs once the project is launched.
Our challenge
Hamid Omidvar, 9.2008
5
Issue Number of projects are experiencing cost overrun and delay Decision Decided to review process and identify issues impacting our projects’ delivery
Project Cost and Budget Management
Action Reviewed our project management process Attended seminars and classes Studied other jurisdictions for their methodologies Consulted with experts in this field Gathered projects’ historical data & analyzed them
Result Identified Issues & Developed Solutions
Implementation
First chance to implement solution was in summer of 2007 for our FY09-14 CIP cycle Challenge We are facing new challenges and are continuously in search of better project delivery methods.
2005-2006 project management study
Hamid Omidvar, 9.2008
6
1. 2. 3.
Requirement Program of Requirements (POR) is well written (Building program) Cost estimates are accurate, Schedule is realistic Risk factors are recognized and successfully assessed Good project management skills Qualified AE with track record of design to budget is selected Good design and construction documents are produced Changes are minimum during design and construction Project costs and schedule are controlled in all phases of project Market is analyzed at the bid time 9. 3. 4. 5. 6. 7. 8. 1. 2.
Solution Standardize Program of Requirements Create a project cost and budget development system. Quantify risk factors and incorporate them as cost Train project managers in systematic project management Look for track record in A/E selection Develop design quality control system Develop change tracking system Professional cost estimates are produced in all phases of the project & maintain a cost data base system for projects Check with the local contractors and owners before bid
Project Cost and Budget Management
4. 5. 6. 7. 8.
9.
10. Qualified construction contractor with track record of construction to budget is selected 11. Good construction management and administration
10. More RFP (qualification) than IFB (low bid) for construction 11. Develop construction quality control system May 2005
Hamid Omidvar, 9.2008
2005-2006 project management study - characteristics of a successful project
7
Project Cost and Budget Management
How to develop an accurate and reliable cost estimate and project budget
Hamid Omidvar, 9.2008
8
Project Cost and Budget Management
Identify Cost (project) Risks Establish Scope Program of Requirements
Cost Estimate Program of Requirements Create project Budget
Budget Approval
Project Close out
Adjustments Adjustments needed needed
Develop Budget Control &
Budget & Expenditure Control
Implementation/ Expenditure Invoices
Risk Management Plan
8
Budget Management cycle in CIP
Hamid Omidvar, 9.2008
9
Typical Project Schedule Planning POR preparation Project Approval Design Bid Construction Post Construction
Project Cost and Budget Management
Conceptual Planning Schematic Design Design Development Construction Document
Note: Operating budgets are not included in this presentation
Project Phases & Budgeting
Hamid Omidvar, 9.2008
1 0
190%
180%
Long Branch Library Piccard Drive DPS
170%
grey Courthouse Germantown Indoor Pool germantown Library
Project Cost and Budget Management
160%
Rockville Library MCCF
150%
MCDC Reuse Strathmore Hall Glen Echo park III
140%
Glen Echo Arcade Driver Training Facility EOB Garage
130%
Brookville Service Park 1 Brookville Service Park 2 PSTA 1
120%
PSTA 2
6%
110%
Travillah F.S. MLK Pool Bethesda Outdoor Pool 4th District Police Station
17%
100%
Total
Planning
Schematic design
Design Development
Construction Documents
Bid
Final
10
2005-2006 study - Construction cost change per phase per selected projects
Hamid Omidvar, 9.2008
1 1
120
100
Request Construction Fund
Project Cost and Budget Management
80
Request Design Fund
60
40
Reliability of cost estimates
20
0 Planning Budget Approval Schematic Design Design Development Moderate Risk Construction Documents Low Risk Bid Final
High Risk
2005-2006 Study - Risk management in request of design and construction funds
Hamid Omidvar, 9.2008
1 2
Project Cost and Budget Management
Create a project cost and budget development system
12
Goal
Hamid Omidvar, 9.2008
1 3
Cost of design Cost of construction
General condition of construction Labor Material
Project Cost and Budget Management
Contractor’s overhead Contractor’s profit Contractor’s Insurance and bonds
Contingencies
Project’s unknowns or risks contingency Cost estimating contingency Design contingency Bid contingency Construction contingency Cost Escalation to mid point of construction
Cost of land Cost of furniture, equipment, move, IT, telecommunication, etc Cost of project management
13
Elements of project budget
Hamid Omidvar, 9.2008
1 4
Abb. LM OPB IC
Cost Elements Labor & material cost Overhead + Profit + Bond Initial Construction Cost Estimate LEED Contingency Cost of unknowns-Risks Design Contingency Escalation to mid point of construction Construction Contract Award Price Bid contingency Construction Contingency A/E and other needed consultants fee Project management fee Other costs (Furniture, move, etc.) Land costs Total Project Cost (PDF)
Value $/SF or $/CSI divisions ~18% of LM LM + OPB 3-9% of IC Silver to Gold 0-30% of IC 10% of IC x% of IC per year compound method IC+LD+RF+DC+E 0-3% of CCAP 10-15% of CCAP (New vs. Reno.) 7-12% of CCAP 2-4% of CCAP Project specific Project specific CCAP+BC+CC+AE+PM+O+L
Project Cost and Budget Management
LD RF DC E CCAP BC CC AE PM O L PC
14
Summary of costs included in the project budget workbook
Hamid Omidvar, 9.2008
1 5
Construction Escalation covers
•Increase in cost of materials and labor from the date of the cost estimate to the mid point of construction
Project Cost and Budget Management
•It is calculated by the county’s chosen indices provided by agencies such as ENR that monitor construction industry
Construction Escalation amount for a
5 years
$1,000,000
project 4
Year to mid point of constru ction
$ Escalation
3 2 5 1 1
Escalation Rate / Year
15
Construction Cost Escalation
Hamid Omidvar, 9.2008
1 6
Selected CIP projects budget comparison chart FY09
Library AE PM Other AE Construction Utility FFE Other LEED Risks Community Center 37 17 15 250 7 19 18 14 Fire Station 31 15 18 188 17 20 23 12 Bus depot Office Renovation Cost $1000 % of total $/SF $ 969 7.3% $ $ 440 3.3% $ $ 398 3.0% $ $ 6,512 48.8% $ $ 190 1.4% $ $ 500 3.7% $ $ 460 3.4% $ $ 374 2.8% $ $ 0.0% $ $ $ 775 225 5.8% $ 1.7% $ 5.8% $ 13.0% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 1,342 6.8% $ 42 $ 786 7.0% $ $ 536 2.7% $ 17 $ 393 3.5% $ $ 546 2.7% $ 17 $ 466 4.2% $ $ 9,006 45.3% $ 283 $ 4,791 42.8% $ $ 440 2.2% $ 14 $ 430 3.8% $ $ 400 2.0% $ 13 $ 500 4.5% $ $ 630 3.2% $ 20 $ 580 5.2% $ $ 542 2.7% $ 17 $ 309 2.8% $ $ 0.0% $ $ 0.0% $ 1,052 314 5.3% $ 33 $ 1.6% $ 10 $ 5.4% $ 34 $ 20.0% $ 125 $ 100.0% $ 623 $ 608 111 678 1,530 11,182 25,443 3.34 5% 5.4% $ 1.0% $ 6.1% $ 13.7% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 3,480 6.3% $ 29 $ 2,968 5.1% $ 7 $ 870 1.6% $ 7 $ 848 1.5% $ 2 $ 879 1.6% $ 7 $ 470 0.8% $ 1 $ 34,504 62.3% $ 283 $ 37,365 64.4% $ 92 $ 240 0.4% $ 2 $ 160 0.3% $ 0 $ 600 1.1% $ 5 $ 2,500 4.3% $ 6 $ 450 0.8% $ 4 $ 2,550 4.4% $ 6 $ 1,035 1.9% $ 8 $ 806 1.4% $ 2 $ 0.0% $ $ 0.0% $ 3,653 584 3,968 5,094 55,357 122,000 2.08 5% 6.6% $ 1.1% $ 7.2% $ 9.2% $ 100.0% $ 30 $ 5 $ 33 $ 42 $ 454 $ 3,177 456 3,707 3,038 58,045 408,000 1.57 5% 5.5% $ 0.8% $ 6.4% $ 5.2% $ 100.0% $ 8 1 9 7 142
Design Contingency Bid contingency Construction Contingency Escalation Total SF Year to mid point of construction Escalation rate
Project Cost and Budget Management
30 $ 9 $
24 $ 4 $ 27 $ 60 $ 439 $
$ 774 $ 1,733 $ 13,350 26,000 3.1 5%
30 $ 1,076 67 $ 3,980 513 $ 19,864 31,859 4.96 5%
16
Share of cost elements in total project cost
Hamid Omidvar, 9.2008
1 7
48.8% 50.0%
Typical project budget elements
Bid contingency, 1.7% Other AE, 3.0% Other, 3.4% PM, 3.3% FFE, 3.7% Construction Contingency, 5.8% LEED, 2.8% Utility 1.4% Risks 0.0%
45.0%
Project Cost and Budget Management
40.0% 35.0% 30.0% 25.0% 20.0% 13.0% 15.0% 10.0% 5.0% 0.0% 7.3%
Design Contingency 5.8% AE 7.3% Escalation 13.0% Construction, 48.8%
5.8%
5.8%
3.7%
3.4%
3.3%
3.0%
2.8%
1.7%
1.4%
0.0%
17
Share of cost elements in total project cost
Hamid Omidvar, 9.2008
1 8
Project expenditure & withholdings during various phases
Commitment to budget
Project Cost and Budget Management
Withholding of contingencies
Expenditure
18
Project cost…..Expenditure…..Contingencies
Hamid Omidvar, 9.2008
1 9
Project Cost and Budget Management
Project Cost & Budget Development Workbook
19
Project Budgeting Tools
Hamid Omidvar, 9.2008
2 0
Sample Project
Project Cost & Budget Workbook DRAFT
Project Information Project # Index Code project address Council District Council Representative Customer/ Using Agency Planning Area Project Category This CIP cycle This CIP FY Last CIP FY Executive Manager Design Manager Project Manager A/E Consultant Construction Contractor Property Size - Acres Programmable New- SF from POR Program to Gross Factor Estimated Gross New- SF Renovation Gross - SF Total project Gross - SF Is this a renovation project? (Y or N) 5234567 31004567 101 Rockviile pike 2 Name Using Department Planning Area Category FY 09-14 FY08 FY07 Hamid Omidvar Rassa Davoodpour Randall Hawkins TBD TBD 5 10,000 1.60 16,000 5,000 21,000 Y
FY 09-14
Project Cost and Budget Management
Office of Planning & Development - OPD Department of General Services - DGS
Last updated on:
September 15, 2008
Printed on:
August 22, 2008 Version 2008.8 Table of contents 01-Cover Sheet 02-Construction Cost Estimate 03-Permit fee 04-Risk Factors 05-DCD Best Cost Estimate 06-Cost Summary 07-Project Schedule and Expenditure 08-Expenditure and Appropriation Per FY 09-PDF Form 10-PDF Change Comparison
Project Budgeting Tools – PDF Preparation Workbook
Hamid Omidvar, 9.2008
2 1
Div. 02 03 04 05 06 07 08 09 10 11 12 13 14 21 22 23 25 26 27 28 31 32 33 TC
Sample Project
Initial Cost Estimate Cost Estimating Inc. August 15, 2008 DIVISION ACTIVITY Existing Conditions Concrete Masonry Metal Wood, Plastics, and composites Thermal and Moisture Protection Openings (Doors & Windows) Finishes Specialties Equipment Furnishings Special Construction Conveying Equipment Fire Suppression Plumbing HVAC Integrated Automation Electrical Communications Electronic Safety and Security Earthwork Exterior Improvement Site Utilities- SWM Total Initial Construction Cost Initial Construction cost w/o site Control values for cost per SF Notes:
Version 2008.8
Project # This Program DRAFT Cost C1 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 S1 S2 S3 0 196,835 275,569 275,569 39,367 157,468 236,202 157,468 78,734 39,367 39,367 78,734 78,734 157,468 157,468 944,808 78,734 314,936 39,367 39,367 118,101 314,936 118,101 3,936,702
3,936,702
5234567 FY 09-14 8% GC Overhead 0 17,321 24,250 24,250 3,464 13,857 20,786 13,857 6,929 3,464 3,464 6,929 6,929 13,857 13,857 83,143 6,929 27,714 3,464 3,464 10,393 27,714 10,393 346,430
343,693
10.0% Gen. Req. 0 19,684 27,557 27,557 3,937 15,747 23,620 15,747 7,873 3,937 3,937 7,873 7,873 15,747 15,747 94,481 7,873 31,494 3,937 3,937 11,810 31,494 11,810 393,670
389,344
5% GC profit 0 11,692 16,369 16,369 2,338 9,354 14,030 9,354 4,677 2,338 2,338 4,677 4,677 9,354 9,354 56,122 4,677 18,707 2,338 2,338 7,015 18,707 7,015 233,840
232,874
2% Perf. Bond 0 4,911 6,875 6,875 982 3,929 5,893 3,929 1,964 982 982 1,964 1,964 3,929 3,929 23,571 1,964 7,857 982 982 2,946 7,857 2,946 98,213
98,012
5% Est. Conting. 0 12,522 17,531 17,531 2,504 10,018 15,027 10,018 5,009 2,504 2,504 5,009 5,009 10,018 10,018 60,106 5,009 20,035 2,504 2,504 7,513 20,035 7,513 250,443
249,375
Total 0 262,965 368,151 368,151 52,593 210,372 315,558 210,372 105,186 52,593 52,593 105,186 105,186 210,372 210,372 1,262,231 105,186 420,744 52,593 52,593 157,779 420,744 157,779 5,259,297 4,522,996
5,250,000
Project Cost and Budget Management
% of total 0.00% 5.00% 7.00% 7.00% 1.00% 4.00% 6.00% 4.00% 2.00% 1.00% 1.00% 2.00% 2.00% 4.00% 4.00% 24.00% 2.00% 8.00% 1.00% 1.00% 3.00% 8.00% 3.00% 100.00%
$/SF 0.00 15.94 22.31 22.31 3.19 12.75 19.12 12.75 6.37 3.19 3.19 6.37 6.37 12.75 12.75 76.50 6.37 25.50 3.19 3.19 9.56 25.50 9.56 318.75 274.12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
$/CSI Divisions Method
Cost / GSF calculation chart GSF $/SF Major construction elements Structures 10,000 $ 200 New Construction-Office Ronovation-Office 5,000 $ 100 Parking Structure 1,500 $ 60 $ -
$Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,000,000 500,000 90,000 2,590,000 35,000 35,000 5,250,000
Total Structures Exterior elements Paved surface
16,500 5,000
$ $
360 7
$/SF Method
Total Exterior Total Initial Cost 5,000 43,000 $ $ 7 734
Project Budgeting Tools – PDF Preparation Workbook – Initial Construction Cost Estimate
Hamid Omidvar, 9.2008
Is Risk defined in the POR? Y or N
construction cost
acquisition
Utility cost
computers
equipment
Permit fee
telephone
Furniture
Site cost
Security
1 2 2.1 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.2
Project Cost and Budget Management
Building operation hours List of staff with their grades and positions organized per organization chart If growth is anticipated, it should be projected for 20 years at 5 years increments Signing Outdoor furniture and equipment Fencing Security A site map showing various elements Is this a MNCPP property? Is the site close to CSX track or related to CSX? Topography Geotechnical information Unsuitable soil Wetland and streams Wooded areas Historical aspects Availability of utilities: Gas
0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 1 1
Staff
Risk Factors
0.1 0.1
0.1
0 1 0.5 0.1 0.5 0.5 0.2 0.2 0.2 0.5 0.5 0.2 1 0.1 1 0.5 0.5 1 1 0.5 0.2 0.1 0 0.1 0.1 5
1
1 5 1 0.5
1 5 5 0.5 1
0.5 0.1
0.5
0.1
117 line
items
Project Budgeting Tools – PDF Preparation Workbook – Risk Factors Analysis
Hamid Omidvar, 9.2008
Signage 2
Printing
A/E fee
Survey
Move
E R
Sample Project
commissioning
enter 1 for risk
2 C2
1%
0%
1%
1%
1%
0%
1%
0%
1%
1%
0%
1%
0%
1%
2%
0% 0%
2%
2%
Cost estimate
Geotechnical
2 3
Sample Project
Time / Cost Schedule Table
DRAFT September 15, 2008 FY 09-14 Printed: Start Date 08/22/08 End Date Months 2007 FY0 8 7 8 J U L 2 1 2 2 2 2 1 1 2 1 2 4 5 3 3 3 2 3 6 2 1 21 0 9 0 1.00 A U G 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 12.00 1 2 3 4 5 6 4.00 2.00 2.00 4.00 2.00 3.00 2.00 2.00 4.00 3.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Notes: 5.00 1.00 9.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 5.00 6.00 7.00 7.00 8.00 4.00 3.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 9 S E P 10 O C T 11 N O V 12 D E C 2008 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N FY0 7 J U L 2009
This FY
First year of new CIP cycle
9
8 A U G 9 S E P 10 O C T 11 N O V 12 D E C 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N
Time Schedule
FROM TO Project Start / Planning Preparation of RFP A/E Advertisement / Selection / Contract Concept Plan, Schematic Design Design Development Construction Documents Permits Preparation of IFB Advertising / Review / Contract Land Cost (ALARF) Earthwork Existing Conditions Exterior Improvement Site Utilities- SWM Initial Construction cost w/o site UTILITY (WSSC, GAS, PEPCO) Telephone, Computers, Security, Fibernet Survey, Cost Est., Geotech, Test'g, Commis'g Reproduction, Advertising, Other PDS Furniture, Equipment, Signs & other costs Move and Occupancy PDS -Design Staff PDS -Design Other PDS -Construction Staff PDS -Construction Other Version 2008.8 Span 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.54 0 0 0 0 0 0 0 0 0 0
Project Cost and Budget Management
4/1/10
1/1/12
1.00 1.00 1.00 1.00 1.00 1.00
1.00
1.00
1.00
30
Number of months in progress>>>> From cost date to mid point of construction
Project Budgeting Tools – PDF Preparation Workbook – Expenditure Schedule
Hamid Omidvar, 9.2008
Sample project
DCD Best Cost Estimate Data updated on: February 22, 2007 PROJECT TASKS A/E fee % Staff fee % First cost 11.0000% 4.0000% 614,072 223,299 61,102 5,000 5,000 0 2,000 2,000 5,000 0 0 0 0 0 917,473 0 0 0 124,400 304,780 149,280 0 0 0 578,460 0 5,000 0 0 0 0 5,000 583,460 124,400 3,945,552 0 0 0 0 4,069,952 0 0 5,000 0 0 0 0 0 0 0 0 0 0 5,000 5,575,885
1 1 1 1 1 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1
2 4
$ $ LEED Silver 3.00% 1 18,422 0 1,833 0 0 0 0 0 0 0 0 0 0 0 20,255 0 0 0 3,732 9,143 4,478 0 0 0 17,354 0 0 0 0 0 0 0 17,354 3,732 118,367 0 0 0 0 122,099 0 0 0 0 0 0 0 0 0 0 0 0 0 0 159,708 Total Construction 8% 8% 0% 5% 5% 5% 5% 0% 5% 5% Risk Factor %
702,860 4,648,412 Cost of Risks 1.4% 1 31,625 11,165 3,147 250 0 0 100 0 0 0 0 0 0 0 46,286
0 0 0 0 0 0 0 0 0 0 0 0 0 0
>>
1 1 0 0 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1
0% 1%
7,263,936
5,582,468
6,140,715
507,497
Const. Contingency
558,247
5,074,971
CCAP
Project Budgeting Tools – PDF Preparation Workbook – Total Project Cost Estimate
Hamid Omidvar, 9.2008
2 5
Project XYZ
Category Agency Project category
5045671
7-34 (FY04)
DCD
Planning area
Previous PDF Page Number Planning Area
Department Name
Before and Estimate FY-0 FY-0 7 8 13 0 3 1,200 0 0 0 0 0 0 16 1,200
EXPENDITURE SCHEDULE ($000)
FY-0 12 357 0 61 7,219 1,479 9,116 FY-0 13 110 0 0 0 106 215 FY-0 14 0 0 0 0 0 0 Beyond 6 Years 0 0 0 0 0 0
Project Cost and Budget Management
Cost Element PDS Land Site + Utilities Construction Other Total G.O.Bonds CR General Federal Aid State Aid
Total 2,034 1,203 3,036 10,322 1,585 18,180 0 0 0 0
Months in design or con. Maintenance Energy Program-Staff Program-Other Cost Savings Offset Revenue Net Impact Work years
0 0 633 272 0 0 0 0 905 0 0 0
Total FY-0 FY-0 FY-0 6 Years 9 10 11 457 844 253 2,021 0 0 0 0 3,036 0 0 2,976 10,322 0 0 3,103 1,585 0 0 0 16,964 457 844 6,332 FUNDING SCHEDULE ($000) 0 0 0 0 ANNUAL OPERATING BUDGET IMPACT ($000) 0 0 0 0 12 12 12 12 0 633 0 0 0 0 0 0 0 272
0 12 0 0
10 2 186 80
12 0 223 96
12 0 223 96
905
0 MAP
0
0
0
266
319
319
APPROPRIATION AND EXPENDITURE DATA Date First Appropriation FY01 Initial Cost Estimate First Cost Estimate FY05 Current Scope FY05 Last FY's Cost Estimate FY07 Present Cost Estimate Appropriation Request Apprp Request Estimate Supplemental Approp Request Transfer Cumulative Appropriation Expenditures/ Encumbrances Unencumbered Balance Partial Closeout Through New Partial Closeout Total Partial Closeout FY03 FY04 FY07 FY08 FY06
0 0 0 16,300 18,180 1,206 362 1,200 18,180 16 18,164
N
NOTES
Project Budgeting Tools – PDF Preparation Workbook – Project Approval Forms (PDF)
Hamid Omidvar, 9.2008
2 6
Sample project project Sample
CSI Division Division % % of of total total Cost Cost CSI
02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33 SiteUtilitiesUtilities-SWM SWM Site ExteriorImprovement Improvement Exterior Earthwork Earthwork Electronic Safety and Security Electronic Safety and Security Communications Communications Electrical Electrical Integrated Automation Integrated Automation HVAC HVAC
2.33% 2.33% 2.09% 2.09% 12.20% 12.20% 1.50% 1.50% 3.21% 3.21% 6.56% 6.56% 2.68% 2.68%
Project Cost and Budget Management
02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33
Plumbing Plumbing 3.77% FireSuppression Suppression 3.77% Fire $149,280 SiteUtilitiesUtilities-SWM SWM $149,280 Site 5.35% ConveyingEquipment Equipment 5.35% Conveying Exterior Improvement Exterior Improvement 2.14% Special Construction 2.14% Special Construction $124,400 Earthwork $124,400 Earthwork 3.29% Furnishings 3.29% Furnishings $108,228 ElectronicSafety Safety and Security $108,228 Electronic 1.79% Equipment and Security 1.79% Equipment $97,032 Communications $97,032 Communications 1.50% Specialties 1.50% Specialties Electrical 1.20% Electrical Finishes 1.20% Finishes $69,664 IntegratedAutomation Automation 3.21% $69,664 Integrated Openings(Doors (Doors& &Windows) Windows) 3.21% Openings HVAC 1.50% Thermaland andMoisture MoistureProtection Protection HVAC 1.50% Thermal Plumbing 2.11% Wood, Plastics, and composites Plumbing 2.11% Wood, Plastics, and composites $175,404 FireSuppression Suppression 1.22% Metal $175,404 Fire 1.22% Metal ConveyingEquipment Equipment Masonry Conveying Masonry $99,520 Special Construction 6.16% Concrete $99,520 Special Construction 6.16% Concrete 2.68% $153,012 Furnishings Existing Conditions 2.68% $153,012 Existing Conditions Furnishings
CSI Division Division Cost Cost CSI
15.17% 15.17% 9.23% 9.23%
$304,780 $304,780
$567,264 $567,264 $705,348 $705,348 $429,180 $429,180 $248,800 $248,800
9.10% 9.10%
Equipment 2.00% 0.00% Equipment 0.00% 2.00% Specialties Specialties Finishes Finishes Openings(Doors (Doors& &Windows) Windows) Openings Thermaland andMoisture MoistureProtection Protection Thermal Wood,Plastics, Plastics,and andcomposites composites Wood, Metal Metal Masonry Masonry Concrete Concrete ExistingConditions Conditions Existing
0 0
$83,348 4.00% $83,348 4.00% $69,664 $69,664 $55,980 $55,980
6.00% 6.00%
8.00% 8.00%
10.00% 10.00%
12.00% 12.00%
14.00% 14.00%
16.00% 16.00%
$149,280 $149,280 $69,664 $69,664 $98,262 $98,262 $56,823 $56,823 $422,960 $422,960 $286,120 $286,120 $124,400 $124,400
100,000 100,000 200,000 200,000 300,000 300,000 400,000 400,000 500,000 500,000 600,000 600,000 700,000 700,000 800,000 800,000
Project Budgeting Tools – PDF Preparation Workbook – Base Cost Analysis
Hamid Omidvar, 9.2008
2 7
Project Cost and Budget Management
Budget Management and Cost Control
Hamid Omidvar, 9.2008
2 8
Project Cost and Budget Management
Montgomery County Manual for Planning, Design, & Construction Of Sustainable Buildings Montgomery County
Manual for Planning, Design, & Construction Of Sustainable Buildings
Version 2008.7 Department of General Services (DGS) Version 2008.7 Montgomery County Maryland 101 Monroe Street Rockville, Maryland 20850
Available on County’s web site
www.montgomerycountymd.gov
Design Manual, Design Quality Control
May 2006
Hamid Omidvar, 9.2008
2 9
Montgomery County Maryland Manual for Planning, Design, Montgomery County Maryland Manual for Planning, and Construction of of Sustainable Buildings Design, and Construction Sustainable Buildings
Procedure 4 I. General 4 A. General Scope of the Work 4 Deliverables/ Submittals 5 II. Drawing Requirements 5 A. Production 5 B. Electronic File Format and CADD 7 III. Specification Requirements 9 A. Format 9 IV.Cost Estimating Requirements 10 A. General 10 B. Format 11 V. Presentation Requirements 12 A. Renderings 12 B. Slide Show 12 C. Material Boards and Samples 12 D. Model Requirements 12 VI. Design Quality Control (DQC) Requirements 13 A. General 13 B. Submittal Tracking Plan 14 C. Scope Tracking System: 14 D. Coordination Plan: 14 E. Space Calculation Charts: 14 F. Review Process 14 G. Minutes of Meetings 16 H. Decision Log 17 I. Project Schedule 17 J. Schedule Log 17 K. Construction Cost Change Log 18 Department of General Services -DGS PROJECT PHASES 18 2008.7 VII. Phases 18 A. General 18 B. Conceptual Planning Phase 18 C. Schematic Design Phase 18 D. Design Development Phase 19 E. Construction Documents Phase 19 F. Bidding and Negotiations Phase 19 G. Construction Phase 19 Design Quality Control ? Project Phases and Deliverables Page 2 of 69 Design Quality Control ? Project Phases and Deliverables 1 of 69 Version 2008.7 PartPage 1?Section C Version 2008.7 Part 1?Section C
Project Cost and Budget Management
Design Quality Control Project Phases and Deliverables
Design Quality Control
Hamid Omidvar, 9.2008
3 0
Montgomery County Maryland Manual for Planning, Design, and Construction of Sustainable Buildings
Design Quality Control (DQC) Requirements
Project Cost and Budget Management
Documents: • Scope change Log • Schedule change Log • Construction Cost Change Log • Decisions Log • Submittal Tracking Log • Documents/ design Coordination Log • Space Calculation Charts • Minutes of Meetings
Review Process: • Progress Review Meeting • Informal Reviews • Quality Control Review • Architectural Review Committee
Design Quality Control ? Project Phases and Deliverables Version 2008.7
Page x of 69 Part 1?Section C
Design Manual, Design Quality Control
May 2006
Hamid Omidvar, 9.2008
3 1
Project Cost and Budget Management
In a free market economy, you can not dictate costs Owner will ultimately pay at least the true cost of the project at market prices However, it is possible to manage risks and anticipate market trends and fluctuations to reduce the magnitude of cost overrun impact.
31
Lessons learned
Hamid Omidvar, 9.2008
3 2
Meet the scope defined for the project
Scope
Project Cost and Budget Management
Thank you
Budget
It is within the established budget
Meets and exceeds industry standard of quality
Quality
Schedule
It is designed and constructed within the established schedule
Sustainability & Safety
Meets sustainability and safety requirements
Communication
Project is well documented and communicated
The world of a successful project
Hamid Omidvar, 9.2008
doc_904931588.pdf