Solution of Assignment # 1

CVG4173 Solution of Assignment # 1 1 Civil Engineering CVG 4173 Construction Management Due on: 03/10/2023 Solution of Assignment # 1 Approximate Cost Estimate Question 1: Use the time and location indices to estimate the cost of a building that contains 42,500 ft 2 of floor area. The building is to be constructed 24 months from now in city A. the cost of a similar type of building that contained 53,125 ft 2 was completed 30 months ago in City C for a cost of $8,375,500. Consider I A to be 1.701; I C as 1.134 and i to be 2.0%. Solution of Question 1: Proposed structure information: Size: 42,500 ft 2 Location: City A Start of construction: 24 months from now Previous structure information: Size: 53,125 ft 2 Location: City C Completion date: 30 months Adjustment factors: Size adjustment = 42,500 / 53,125 = 0.80 Location adjustment = 1.701 / 1.134 = 1.5 Time adjustment = (1 + 2%) 4.5 = 1.093 Cost of proposed project: Cost = $8,375,000 x 0.8 x 1.5 x 1.093 = $10,986,689

CVG4173 Solution of Assignment # 1 2 Question 2: 1. Calculate the weighted unit cost per square foot for the project data shown below and determine the cost of a 27,000 ft 2 project. Project Total Cost Size ft 2 1 $14,730,000 25,800 2 $15,370,000 29,000 3 $12,810,000 21,000 4 $11,840,000 18,500 5 $13,570,000 23,000 2. Determine the relationship between unit cost and size for the project data shown above to estimate the cost of a 22,500 ft 2 project. Solution of Question 2: Solution of Part 1 Project # Total Cost ($) Gross Area (ft 2 ) 1 $14,730,000.00 25,800.00 2 $15,370,000.00 29,000.00 3 $12,810,000.00 21,000.00 4 $11,840,000.00 18,500.00 5 $13,570,000.00 23,000.00 Project # Total Cost ($) Gross Area (ft 2 ) Cost / ft 2 1 $14,730,000.00 25,800.00 $570.93 2 $15,370,000.00 29,000.00 $530.00 Minimum 3 $12,810,000.00 21,000.00 $610.00 4 $11,840,000.00 18,500.00 $640.00 Maximum 5 $13,570,000.00 23,000.00 $590.00 Average cost: $588.19 Weighted unit cost: $587.13 Cost of 27,000ft 2 is: $15,852,420.00 Solution of Part 2 Assume a first order relationship, therefore the general equation is: Y = mX + b

CVG4173 Solution of Assignment # 1 4 Question 4: The cost information of an old process unit that has a capacity of 5,400 ft 3 /hr and a total cost of $8,500,000 is used to find the cost of a new unit that has a capacity of 8,500 ft 3 /hr. Assuming the total cost of the new unit is $12,000,000 you are required to state: 1. The method and equation that you will use to find that cost, 2. The value of the corresponding factor, 3. Is the value calculated in (2) within the accepted range? Solution of Question 4: 1) The method is the order of magnitude, and the equation is: Cost of process Unit A = (Cost of Process Unit B) x [(Capacity of Process Unit A) / (Capacity of process unit B)] m 2) The value of the factory (m) is: 0.760 3) Yes, the calculated value is within the range of 0.5 < m < 0.9