A1
pdf
keyboard_arrow_up
School
University of Illinois, Urbana Champaign *
*We aren’t endorsed by this school
Course
320
Subject
English
Date
Feb 20, 2024
Type
Pages
7
Uploaded by HighnessScorpion13972
U
N I V E R S I T Y O F I
L L I N O I S A T U
R B A N A
-C
H A M P A I G N
D E P A R T M E N T O F C I V I L A N D E N V I R O N M E N T A L E N G I N E E R I N G CEE320
CONSTRUCTION
ENGINEERING
AND
MANAGEMENT F
ALL 2023 T
HE R
OCKFORD P
ROJECT
C
HAPTER 1
-
G
ETTING S
TARTED
DUE DATE: Thursday September 19
th
, 3:30 PM Instructor: Prof. Mani Golparvar (Newmark 3129D) E-mail:
mgolpar@illinois.edu
Office Hours:
Tue 2:00 pm –
3:00pm, Thu 2:00 pm –
3:00 pm, or by appointment
Contact Teaching Assistants: Yuna Jung; Junryu Fu
E-mails:
yoonhwa2@illinois.edu
; junryuf2@illinois.edu Office Hours:
Mon 12:30pm –
2:00pm, Wed 12:30 pm –
02:00 pm, or by appointment
Zoom:
https://illinois.zoom.us/j/82604875411?pwd=R3djVy9YSGpqZW5wclpBTUNWbnBJQT09 Lectures: Tue & Thu, 3:30 PM –
4:50 PM * Please see the Schedule of Sessions for details on location. Notes: 1. This is a TEAM
assignment. You can only discuss concepts
with other groups. No other discussions are allowed. DO NOT COPY answers from any sources such as Internet or Past Assignments.
2.
If you have a problem or question after reading the assignment, or in case of confidentiality issues, email your instructors team (e.g., Prof. Mani, Yuna, and Junryu)
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 2
of 7
Assignment 1 –
The Rockford Project GETTING STARTED Setting: The year is 2023. Claire Clever is a young lady who graduated from University of Illinois at Urbana-
Champaign School of Business just three years ago with an MBA degree and secured a position with a large marketing company. Initially, she liked her job very much, but it began to bore her. She was unhappy with her boss, who always refused to listen to her creative ideas. While sitting at her desk one day, Claire daydreamed about a new, more interesting career. Two weeks later Claire’s mother called to say that her Uncle Larry Lewker, from Rockford, Illinois, had passed away and that Claire had inherited most of his money. Claire couldn’t believe that she was going to receive part of Lewker’s inheritan
ce. She barely knew her uncle. However, the inheritance came with a condition –
that she would have to use the money to invest in a project that would help the people of Rockford. Then, all the profits from the project would be Claire’s. If she did not accept the conditions of the inheritance, she would not receive any of the money. She decided to accept the terms, in honor of her uncle’s last wishes.
Following her uncle’s funeral, held in Rockford, Claire decided to stay in town and determine what would be a beneficial project. To do so, Claire organized a public hearing in the town library to gather suggestions. As a result, Claire could clearly see that most citizens of Rockford desperately wanted a new shopping center. The town was lacking a modern facility that had ample parking and reflected the character of the town. With her head full of thoughts, Claire drove back to Chicago in order to quit her job. After emptying her apartment, she moved to Rockford to get started on her project. The idea of a medium-scale shopping mall with sufficient parking seemed to be very promising. The relevant question was: Would it also be a good investment? Claire needed experienced input about this project, as she lacked the necessary knowledge of the demand of the area and the economics behind the land development process. It was clear she needed a consultant. Claire remembered Heather, an old friend from high school, who was married to a land developer. She decided he was the right person to talk to. Bob Builder’s land development company, “Big Builders,” was not far away from Rockford. After having made an appointment with Bob on the phone, their conversation went like this: Bob: Now, Claire, tell me more about your plans for that mall. Claire: Since your office is just an hour away from Rockford, I was wondering if you ever heard about the demand for a shopping facility in that town.
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 3
of 7
Bob: Let me tell you Claire, if I weren’t so wrapped up with projects here in town, I might have started a project like you have in mind. Yes indeed, there is a demand for a mall in or around Rockford. So, Claire, what can I do for you? Claire: Well, I do understand that you are very busy, but do you think you could be my consultant in this mall project? See, I have experience in managing and marketing but, to be hon
est, I don’t know much about land development and construction. Bob: My first advice to you is that you follow the three basic rules of land development: first, location; second, location; and third, location. Claire: I got it! Bob: Good, good. Well, since I have developed a few shopping centers, I actually can be of some help to you. Bob agreed to take over this consulting job after negotiating his fee. The new business partners set another appointment to talk about the project in further detail. This conversation went as follows: Bob: Since our last meeting, I dug out some old documentation on previous malls I developed. It is always important to produce good documentation. It can be very handy, when doing a similar project, as is the case now. It helps me to formulate a preliminary estimate and the estimate itself will assist us in the determination of the project’s feasibility. Claire: But don’t you need some more information to compare the new with the old projects?
Bob: That is why you are here. I need to know from you what kind of mall you had in mind and what your financial situation looks like. Claire: I would like the shopping mall to be comprised of smaller retailers. A customer should have the impression that he or she is strolling down a town street with small and medium sized shops, of course all under one roof. It is also important that this place provides sufficient parking without offering the customer an unsightly view of a big parking lot. I want to provide attractive architecture and landscaping rather than just constructing a big ugly cubicle. Bob: It seems that you really trying to preserve the town’s character. That is good. In terms of square feet, what size of floor space are we looking at? Claire: Oh, I haven’t really thought about that. How much will it be if, let’s say, we have forty smaller and twenty bigger stores? Bob: (making some calculations on the corner of his newspaper) I would say we are looking at about 400,000SF
. That is a nice number to work with and sh
ouldn’t be too far outside the “downtown area.”
Claire: Yes, and I have already looked around town for a piece of property. Well, I actually have a certain spot in mind, but I just don’t know if we can build there.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 4
of 7
Claire described the location of the land to Bob. The next day he found out that it really was an appropriate location, who the landowner was, and what the conditions and the zoning codes were. They agreed to meet again the next week.
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 5
of 7
Assignment 1 Imagine you work in the office of “Big Builders” and Bob asks you to work on the Rockford Project. Prepare a professional memo
for him stating the costs for the items listed below as well as the total project cost for the shopping facility in Rockford in the correct year
. Use the information provided in the text you have read before, and the additional information given below. You know that Big Builders has developed an essentially similar shopping facility in Plainfield in 2012. You obtained the company
’s records from Bob and found that the actual costs for this shopping center were: Table 1. Numbers are from the 2012 project in Plainfield, IL. No. Item Estimated Cost 1 Land $ 4,820,100 2 Site development $ 1,840,940 3 Utilities (Water and Sewer) $ 5,210,050 4 Electrical reticulation $ 803,000 5 Shopping facility (120,000 SF)
$ 13,001,215 6 Parking lot (350 spaces)
$ 2,590,280 7 Landscaping $ 700,430 8 Various Fees $ 18,934,216 Total project cost $ 47,900,231 The following construction cost indices were researched and will help determine the adjustment in price due to the difference in time and location of the two projects: Year Plainfield Rockford 2012 0.87 0.95 2022 1.83 1.61 Consider the following facts: •
Claire was able to purchase the land for $5,450,000
in 2023 (as opposed to $4,820,100). •
Construction is expected to start in 2024
. •
Assume a linear relationship of the costs based on the area of the floor plan. •
The site selected will allow for 500
parking spaces and the cost of the parking lot is proportional to the number of parking spaces. •
For the last half-year or so, there has been an extreme shortage of companies specialized in installing electrical reticulations. Hence, it will be very difficult to find a subcontractor bidding a low price. Assume the unit cost of electrical reticulation in Rockford in the year 2022 was 1.59
times
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 6
of 7
the unit cost of Plainfield in 2012. In addition, you know that the costs for electrical reticulation are directly proportional to the floor space. •
Landscaping costs are about 19.1%
of the parking lot’s construction cost due to Claire’s concern about the appearance of the shopping facility in the community. •
Claire received an estimate for site development, which stated: “The site work should cost $3,890,000
at 2022 prices. You need to add an inflation allowance of 1.26%
per year to this estimate if construction is to take place later than 2023
.”
•
For an annual inflation rate between 2022 and 2024, assume a rate of 1.26%
per year. •
The item "various fees" will be 21.65%
of the construction cost. Your memo should include: •
A table of the itemized costs •
The Rockford project total in 2024 dollars (note: Land cost -while purchased in 2023- should also be in 2024
’s dollars). •
Any additional assumptions •
A paragraph that answers the following questions: o
How accurate do you think your cost estimate is likely to be? o
What additional information do you need to improve the accuracy of your estimate? o
What information do you need if you are to give Claire an indication as to the feasibility of the venture from a technical and financial point of view? Attached to your memo: •
Calculations of the itemized costs to be attached to the memo and the memo to offer a table summarizing the itemized cost.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
CEE320: Construction Engineering and Management Assignment 1 Fall 2023 Page 7
of 7
Assignment 1 Rubric (100 points) Note: No specific penalty for not showing calculations for this assignment, but if they do not have the right numbers then there is not much credit that can be given. Timeliness and Professionalism (15 points) 15 Professional presentation (memo to go with the submission) Calculations (70 points) 70 Calculation of Itemized Costs Recommendations (15 points) 5 How accurate do you think your cost estimate is likely to be? 5 What additional information do you need to improve accuracy of your estimate? 5 What information do you need if you are to give Claire an indication as to the feasibility of the venture from a technical and financial point of view?