A01ulhaq3 Construction Cost Analysis1
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University of Illinois Urbana Champaign Department of Civil and Environmental Engineering
CEE 422 Construction Cost Analysis
Assignment
Fall 2023
Assignment # 1 – Solution
Page | 1
Assignment # 1
(Rough Estimating and Cost Indexes)
"I pledge to uphold the CEE Honor Code.”
Mohammed Mujthaba Ajazul Haq
ulhaq3@illinois.edu
Q
1)
Exercise
1
(3
points)
Over 7 years ago your company built a restaurant in New London, Connecticut. It was completed
in 2016 with a total cost of $4,940,000. You were awarded a contract for a similar restaurant. (Almost same design) that you are building this year (2023) in Daytona Beach, Florida.
a) What is the estimated cost of the restaurant?
b) If in 2020 you had built a similar restaurant in Decatur, Illinois, what would have been the cost of it?
Solution
: -
a) DAYTONA BEACH, FLORIDA.
1)
Time adjustment using the Historical Cost Indexes INDEX New London, Connecticut: - 207.3
INDEX Daytona Beach, Florida: - 318.8
Cost in Year A = Cost in Year B X 𝐼𝑛𝑑𝑒𝑥
𝐴
𝐼𝑛𝑑𝑒𝑥 𝐵
I assumed the basic cost of restaurant of New London, Connecticut 2016 $4940000
= 4940000 = x X 207.3
318.8
= $7597067.035
2)
Location adjustment using the City Cost Indexes: City A Cost (Unknown) = City B Cost (Known) X 𝐶𝑖𝑡𝑦
𝐴
𝐼𝑛𝑑𝑒𝑥
𝐶𝑖𝑡𝑦 𝐵 𝐼𝑛𝑑𝑒𝑥
= x = 7597067.035 X 87.9
101.4
= $6585623.21
University of Illinois Urbana Champaign Department of Civil and Environmental Engineering
CEE 422 Construction Cost Analysis
Assignment
Fall 2023
Assignment # 1 – Solution
Page | 2
b) DECATUR, ILLINOIS
1)
Time adjustment using the Historical Cost Indexes INDEX New London, Connecticut: - 207.3
INDEX Decatur, Illinois: - 234.6
Cost in Year A = Cost in Year B X 𝐼𝑛𝑑𝑒𝑥
𝐴
𝐼𝑛𝑑𝑒𝑥 𝐵
= 4940000 = x X 207.3
234.6
= $5590564.399
2)
Location adjustment using the City Cost Indexes: City A Cost (Unknown) = City B Cost (Known) X 𝐶𝑖𝑡𝑦
𝐴
𝐼𝑛𝑑𝑒𝑥
𝐶𝑖𝑡𝑦 𝐵 𝐼𝑛𝑑𝑒𝑥
= x =5590564.399 X 101.2
101.4
= $5579537.645
University of Illinois Urbana Champaign Department of Civil and Environmental Engineering
CEE 422 Construction Cost Analysis
Assignment
Fall 2023
Assignment # 1 – Solution
Page | 3
Q
2) Exercise
2
(3
points)
You are doing a rough cost estimate for a warehouse. The estimated gross area of the warehouse
is 210,000 sf. You have historical cost data from similar previous projects (shown below). Based
on these data, what is your estimate for this warehouse? State which estimating method you have
used.
Project
Total Project Cost
Size (sf)
1
$46,478,500
223000
2
$13,609,300
96500
3
$23,087,100
100960
4
$12,107,360
65500
5
$38,645,500
176000
6
$31,266,510
193000
Solution
: -
Project
Total Project Cost
Size (sf)
Cost Per Square ft
1
$46,478,500
223000
$
208.42
2
$13,609,300
96500
$
141.03
Smallest Unit Cost
3
$23,087,100
100960
$
228.68
Largest Unit Cost
4
$12,107,360
65500
$
184.85
5
$38,645,500
176000
$
219.58
6
$31,266,510
193000
$
162.00
Formula: - UC = 𝑨+𝟒𝑩+𝑪
𝟔
UC = forecast unit cost of proposed project
A = minimum unit cost of previous projects
B = average unit cost of previous projects
C = maximum unit cost of previous projects
Average: - ∑ (Unit Cost)/total no of Projects
1144.56
=
6
= 190.7
UC = 𝟏𝟒𝟏.𝟎𝟑+𝟒(𝟏𝟗𝟎.𝟕𝟔)+𝟐𝟐𝟖.𝟔𝟖
𝟔
UC = 188.8
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