CEE422-FA23-Assg1-Sol

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University of Illinois, Urbana Champaign *

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Civil Engineering

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Feb 20, 2024

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University of Illinois at Urbana-Champaign Assignments Department of Civil and Environmental Engineering Fall 2023 CEE 422-Construction Cost Analysis Assignment # 1 - Solution Page 1 of 4 Assignment # 1 - Solution (Rough Estimating and Cost Indexes) RS Means 2023 was used in this assignment Exercise 1 (3 points) Location Year Cost ($) New London, Connecticut 2016 4,940,000 Daytona Beach, Florida 2023 ? Decatur, Illinois 2020 ? Part (a) Using Historical & City Cost Indexes from RS Means 2023 (pages 786 and 794): Cost in New London, Connecticut (2016) = $4,940,000 Cost in New London, Connecticut (2023) = $4,940,000 x (318.8/207.3) = $7,597,067.05 Cost in Daytona Beach, Florida (2023) = $7,597,067.05 x (87.9/101.4) = $6,585,623.21 Part (b) Using Historical Cost Indexes & City Cost Indexes from RS Means 2023 (pages 786, 794 and 797): Cost in New London, Connecticut (2016) = $4,940,000 Cost in New London, Connecticut (2020) = $4,940,000 x (234.6/207.3) = $5,590,564.40 Cost in Decatur , Illinois (2020) = $5,590,564.40 x (101.2/101.4) = $5,579,537.65 Exercise 2 (3 points) Method Used: Weighted Unit Cost Project Total Project Cost Size (sf) Unit Cost 1 $46,478,500 223,000 $208.42 2 $13,609,300 96,500 $141.03 Smallest unit cost 3 $23,087,100 100,960 $228.68 Largest unit cost 4 $12,107,360 65,500 $184.85 5 $38,645,500 176,000 $219.58 6 $31,266,510 193,000 $162.00 Average Cost per sf = Σ (unit cost)/Total number of projects = $1,144.55 / 6 = $190.76/sf UC = ($ 228.68 + [4 x $190.76] + $ 141.03 ) / 6 = $188.79/sf Conceptual Cost Estimate for 210,000 sf warehouse = 210,000 sf x $188.79/sf = $39,645,900 Note for Students : Curve Fitting was accepted as an alternative method (i.e., we did not deduct marks if you used curve fitting). However, the best method to use for the given data is weighted unit cost, because if you analyze the given data, you can see that there are other variables (other than size) that affected the unit cost.
University of Illinois at Urbana-Champaign Assignments Department of Civil and Environmental Engineering Fall 2023 CEE 422-Construction Cost Analysis Assignment # 1 - Solution Page 2 of 4 Exercise 3 (4 points) Input Data Table 1: Input parameters Requirements Value Reason Usable Floor Area (s.f): 51,454.5 Usable Area is the total area of the building measured from wall-to-wall, multiplied by the number of floors. A half floor only is used for the basement (as per model guidelines). Average Floor to Floor Height (ft.): 12 Given. Number of Floors: 5 Given (basement is included). Percent of Area as Office: 62.56% = (Total area excluding warehouse, computer/computational labs, and experimental lab)/(Total area) x100 (walls included) This is not the only correct answer. Any reasonable answer given with a reasonable answer given with a reasonable rationale is considered correct. See note below. ** Percent of Area as Wet Labs: 0% No wet labs. Wet labs are chemistry/biology labs. This is not the only correct answer. It was acceptable, if you assumed that the experimental lab is a wet lab.** Percent of Area as Dry Labs: 18.22% The computer/computational and experimental labs are dry labs. This is not the only correct answer. It was acceptable if you assumed that the experimental lab is a wet lab.** Percent of Area Heated: 82.40% Total area excluding warehouse. Percent of Area Cooled: 82.40% Total area excluding warehouse. Number of Building Corners: 10 From the given layout. Substructure Strength Index: 2 The live load for regular office buildings is about 60psf to 90psf (light office, heavy concrete roof). For this problem, 1 OR 2 are acceptable answers, as they both deal with an office. But 2 is more preferable and closer to the accurate estimate as it is a 4-story building with labs. We have also accepted 3 as an answer (i.e., did NOT make a mark deduction, since it’s a 4-story building with large warehouse spaces). If you chose a value greater than 3 or equal to zero, a mark deduction was applied. For example, 7 is NOT acceptable because it deals with heavy manufacturing (mfg) space. Superstructure Strength Index: 2 Same as above. Exterior Finish Quality/Duty Index: 9 Given (composition, stone face) Interior Finish Quality/Duty Index: 8 Given (heavy duty, attractive) Mechanical Services Quality/Duty Index: 7 Given (heavy duty, ordinary hazard)
University of Illinois at Urbana-Champaign Assignments Department of Civil and Environmental Engineering Fall 2023 CEE 422-Construction Cost Analysis Assignment # 1 - Solution Page 3 of 4 Electrical Services Quality/Duty Index: 10 Given (max light, attractive) Escalation Factor (1995 US$ Base): 1.916 Index for year 2015/Index for year 1995 = 206.2/107.6 (Numbers were obtained from RS Means 2023– Historical Cost Indexes, p. 797) Location Factor: US Average US Average was selected because further (and more accurate) adjustment will be made after obtaining the total cost estimate. Productivity Factor: Fair (1.10) Assumed ** Note: This model is developed by the AACEI. So, generally, you need to follow the guidelines provided by AACEI for the use of this model. According to the guidelines of the model, “the sum of the %'s for (office + wet lab + dry lab) must NOT exceed 100%. Space not allocated to office or lab is assumed to be largely open for warehouse or industrial usage”. In the above solution, we assumed that the finishes of warehouses won’t be as high quality as office space. That’s why we excluded warehouses from the percentage of office space. However, we have included restrooms, cubicle areas, kitchens, and conference rooms as office space. The rationale here is that spaces like restrooms, cubicle areas, kitchens, and conference rooms are NOT warehouses or spaces for industrial usage. Usually, spaces like restrooms, cubicle areas, kitchens, and conference rooms will be finished of comparable quality to offices (If they will be finished of similar quality as offices, then why not include them as office space?!). Accordingly, 62.56% of the building’s area is office space. Note, however, that we did NOT make any mark reduction if you computed the office area differently (provided that you have explained your assumptions and rationale and that the assumptions/rationale were reasonable). Generally, it’s up to you to make a valid/reasonable assumption as an estimator. The key point is to state your assumptions clearly, explain your rationale for making the assumptions, and have a reasonable rationale. Output of the Model (Based on Values given in Table 1) Results: CSI Account Description Estimated Cost Cost per Sq.Ft. % of Total Cost Foundations $120,427.00 $2.34 1.08 Substructures $62,047.00 $1.21 0.55 Superstructures $1,350,599.00 $26.25 12.06 Exterior Closures $842,027.00 $16.36 7.52 Roofing $210,135.00 $4.08 1.88 Interior Construction $2,673,466.00 $51.96 23.87 Elevators $378,553.00 $7.36 3.38 Mechanical $2,227,277.00 $43.29 19.89 Electrical $1,543,656.00 $30.00 13.78 Specialties $188,164.00 $3.66 1.68 Architect/Design Fee $1,603,495.00 $31.16 14.32 TOTAL: $11,199,846.00 $217.67 100
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University of Illinois at Urbana-Champaign Assignments Department of Civil and Environmental Engineering Fall 2023 CEE 422-Construction Cost Analysis Assignment # 1 - Solution Page 4 of 4 Input Parameters: Description: Value: Description: Value: Description: Value: Total Floor Area [s.f.] 51454.5 Ave. Floor Height [ft.] 12.00 Number of Floors 5 % as Office Space 63% % as Wet Labs 0% % as Dry Labs 18% % Heated 82% % Cooled 82% Building Corners 10 Substructure Strength 2 Superstructure Strength 2 Exterior Finish 9 Interior Finish 8 Mechanical Services 7 Electrical Services 10 Escalation Factor 1.92 Location Factor 1.00 Productivity Factor 1.10 Cost adjustment for location Location factor for Chicago, IL = 115.7 (from RS Means, p. 831) Cost estimate for US Average (2015) = $11,199,846.00 (from the output of the model, above) Cost estimate for Chicago, IL (2015) = $11,199,846.00 x (115.7/100) = $12,958,221.82 Common Mistakes Exercise 2 1. Wrong choice of method. You need to use ‘weighted unit cost’ or ‘curve fitting’ method. Using RS Means is incorrect, because you are specifically asked in the question to use the data given: the question states “based on these data”. Note that when you choose to use the ‘curve fitting’ method, it is essential to plot all the points and find the best fit line. Exercise 3 1. Not including all the four floors and the basement while computing Usable Floor Area (it’s a four-story building with a basement). As per model instructions, to calculate floor area, “include all floors in multi-story buildings, except use 1/2 the measured area for basement levels”. 2. Excluding corridor areas from the office area. 3. Using incorrect percentages for the wet and dry labs. By definition, wet labs are chemical and biological labs, while dry labs are electronic labs. The computer/computational labs are dry labs. For this solution, it was assumed that the experimental lab is a dry lab as well (it was acceptable if you assumed that the experimental lab is a wet lab). Therefore, the percentage of wet lab = 0%, and the percentage of dry lab = 18.22%. 4. Wrong sub/superstructure strength value. Only 1, 2 or 3 were considered acceptable answers. See “Reason” column in Table 1. 5. No adjustments for time (escalation factor) and/or location Regarding cost adjustment for time, calculate the “escalation factor” based on the historical cost indexes (from RS Means). Some students computed the escalation factor but failed to input it in the system. The correct answer can ONLY be resulted when you enter the escalation factor in the system. Manual application (i.e., outside of the system) of the escalation factor doesn’t yield the correct answer. However, there was NO mark deduction, if you manually applied escalation factor to the output from AACEI. Regarding cost adjustment for location, after you get the total cost estimate (from the output of the model), make the necessary adjustment using the location factors (from RS Means). Note that the hint in the question clearly states: “you may need to make further cost adjustment for location”. In general, make sure to take the hints given into account.