Week 2 Contracts, Bonds, and Insurance Specifications

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Week 2Contracts, Bonds, and InsuranceSpecificati
ons

• CNT342 Construction Costs and Bid
• Fall 2001
• Purdue School of Engineering

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80,000SF Office Estimate

• Range of conceptual estimate 5.9 mil 9.8
  mil
• 7 estimates _at_ 6.54 mil (mid-rise) and 4 _at_ 6.55
  mil (Low-rise) out of the 21 submitted
• The submitted estimates were all based on same
  cost data
• Estimates vary due to location, owners
  preference
• Rough figures of plumbing (4 of project cost),
  HVAC (9), electrical (8) costs

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Parametric Estimating

• Commonly used in building construction
• ENR occasionally publishes examples in some of
  its Quarterly Cost Roundup issues
• R.S.Means publishes Means Square Foot Costs
  annually which includes unit costs for a number
  of building types as well as for individual
  constructions tasks

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Parametric Estimating II

• Relates all costs of a project to just a few
  physical measures, or parameters, that reflect
  the size or scope of the project
• Warehouse - the parameter would be gross
  enclosed floor area
• With good historical records on comparable
  structures, parameter costing can give reasonable
  levels of accuracy for preliminary estimates

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45,000 SF Elementary School

• 140 x 321, 12 high, 4 foundation wall, 4
  SOG, Concrete Block w/ face brick, Metal deck w/
  open web steel joist
• General Condition and Profit at 15
• 1/2 year escalation at 2.5 / year
• Fixed Equipment Sound System 7,000, Smoke
  Detector 9 _at_ 128
• Site Development Landscaping 12,000, Site
  Works 5,000, Site Utility 40,000, Flag Pole
  1,400, Car Park 60 _at_ 500
• Site Ac/Dem 50,000, Movable Equipment 600
• Professional Fee s7, Contingencies 10,
  Administrative 2 of total construction cost

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Types of Agreements

• Lump-sum agreement
• Unit-price agreement
• Cost plus fee agreement
• Percentage fee
• Fixed fee
• Fixed fee with GMP
• Sliding scale fee
• Fixed fee with a bonus and penalty

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Agreement Provisions

• Scope of the work
• Time of completion
• Contract sum
• Progress payments
• Retained percentage
• Schedule of values
• Work in place and stored materials
• Acceptance and final payment

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Construction Bonds

• Bid Bond
• Performance Bond
• Payment Bond
• 0.3 2 of the penal amount of bond

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Construction Insurance

• Workers Compensation Insurance
• Builders Risk Insurance

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Specifications

• Invitation to bid
• Instructions to bidders
• Bid forms
• Form of owner-contractor agreement
• Form of bid bond
• Form of performance bonds
• Alternates
• General conditions of the contract
• Supplementary general conditions
• Technical Trade Sections