Building Cost Estimates

1
Building Cost Estimates

• Jim Burton, Ph.D.
• Marketing Real Estate
• College of Business

2
Overview

• Costs Data Sources
• Cost Estimating Services
• Cost Estimating Methods
• Entrepreneurial Profit

3
Costs Data Sources

• Appraisers files
• Contract reporting services
• Cost estimating manuals
• Local building contractors
• Professional cost estimators

4
Cost estimating manuals

• Marshall Swift www.marshallswift.com
• Boeckh, www.boeckh.com
• F. W. Dodge Corp. www.fwdodge.com
• R. S. Means Co. www.rsmeans.com

5
Cost Estimating Methods

• Comparative-unit method, cost/SF, cost/Cu. Ft.,
  etc.
• Unit-in-place method, cost of building components
• Quantity survey method, builders detailed costs

6
Entrepreneurial Profit

• As a of direct costs
• of direct indirect costs
• of direct indirect costs land value
• of value of completed project

7
Comparative-unit Method

• Ignores lease-up costs
• Does not include some indirect costs
• Does not include Entrepreneurial Profit
• Requires perimeter adjustment
• Use local CPI multipliers
• Example Page 375

8
Unit-in-place method

• Also called segregated cost
• Some Building components
• Foundation
• Framing
• Roof
• Interior finish
• Adjust similar to comparative-unit method
• Example Page 378

9
Quantity Survey Method

• Contractors breakdown
• Labor materials
• Example Page 380