|Cost Management|
|Scheduling|
|Value Engineering|
PAGE INDEX:
Cost
Management - A Proactive Tool!
C3 Management Group, Inc. is the first firm in the Pacific Northwest to offer
clients the full services of Cost Management. Cost Management is a
comprehensive program of accurate cost estimating, Scheduling, plus project
management and tracking. An integration of value engineering and
constructability review techniques occur with each project to explore optimum solutions
for total cost control. Our cost managers provide ongoing, proactive
participation with the project team at all phases of planning, design and
construction. We target areas of potential cost overruns, constructability
issues, and can develop value-added alternatives to keep clients in control of
the project costs and overall project success.
Systems Approach
C3MG's cost management techniques utilize an approach, which summarizes the
construction project into 12 major building systems using the standard sixteen
16 CSI divisions as subcategories of each system.
The advantage of estimating a project in building systems is accurate data
collection and management of information. Building systems costs are narrowly
defined for each facility type and therefore have consistent cost ranges. CSI
cost ranges vary widely as specific selection of materials and trades vary. Not
all CSI trades are included in each project whereas the typical building
systems such as superstructure, floors and roof are consistently included in
each and every building project.
With consistently narrow ranges of historical cost data, C3MG can easily
determine which systems in a specific project are cost effective and which, if
any, are cost prohibitive. Through our cost management approach, cost control
during the planning and design phases is achieved by focusing and targeting for
optimum cost effectiveness of the building systems.
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Documentation
C3MG provides construction cost estimates during the programming, planning, predesign, schematic, design
development, and construction document phases of any project. In addition, C3MG
provides cost estimate review of other estimates as an independent and unbiased
party to ensure project costs are valid. Information is typically presented to
designers and owners in the following building systems:
Uniformat Building
Systems:
· 01 Foundations
· 02 Substructure
· 03 Superstructure
· 04 Exterior Closure
· 05 Roofing
· 06 Interior Construction
· 07 Conveying Systems
· 08 Mechanical Systems
· 09 Electrical Systems
· 10 General Conditions, Overhead & Profit
· 11 Equipment
· 12 Sitework
At
each successive design phase, C3MG provides a complete estimate based upon the
design documents, rather than attempting to "tack-on" evolving
detail. This method accurately reflects the scope presented at each phase of
the progressively complex design.
As with the schematic and design development phase estimates, C3MG provides a
complete estimate of the project at the construction document phase. Depending
on whether the contract is to be bid or negotiated, C3MG generates the estimate
in either a Uniformat and/or CSI format. This reporting flexibility enables the
designer to accomplish last-minute fine tuning based on the Uniformat output,
creating a highly cost sensitive project, yet enables the owner to accomplish a
trade by trade contract negotiation working from the knowledge of a contractor.
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The
C3MG database - our foremost reference
C3MG has on file cost data from over thirteen years and 2,500+ first hand
projects covering an entire spectrum of project types, from wastewater
treatment plants and underground utilities to hospitals and school facilities. When
cost models are generated for your project's, it is routine that C3MG's cost
engineer will have several similar projects from which to generate cost models
for typical cost comparisons.
Current material, equipment and labor costs are constantly updated using
project specific location information and stored in C3MG's cost database.
C3MG's cost management software quickly and easily manipulates this cost
database providing you with extremely usable, customized reports.
Although C3MG has a very extensive database, a well designed project in a
unique setting is certain to have obscure elements which require the cost
engineer to integrate external data. C3MG maintains an extensive network with
material and equipment vendors and subcontractors who to furnish quotes for
these items.
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Cost/Benefit
Analysis
A C3MG Cost/Benefit Analysis is a systematic evaluation of a capital project's
benefits to the owner/user as compared to its life cycle costs. Thoughtful
interpretation of the owner's organizational purpose or mission is extremely
important when creating a meaningful value analysis. It is necessary to
quantify both the tangible and intangible benefits of the project to make
useful recommendations on project alternatives.
C3MG believes there are a number of alternatives available to solve any capital
problem including:
·
Purchase
·
Lease
·
Construct
·
Lease Development
·
Remodel
·
Do Nothing
In
order for C3MG to determine the least costly means of solving a problem, it is
necessary to perform a financial analysis of alternatives. In order to perform
an analysis of financing capital alternatives, one must have an understanding
of financial decision-making techniques used to evaluate flows of money
associated with the alternative solutions and those solution's total costs - an
understanding C3MG's CPA's and CCE's have the experience and background to be
highly capable of applying to our client's projects. Techniques include Present
Value Analysis and Life Cycle Cost Analysis.
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Present
Value Analysis
A Present Value Analysis involves accounting for the time value of money over
the life of the project or over the life of the facility "need". The
underlying principle is that money spent (or saved) now is worth more than
money spent in the future. When projects span multiple years, it is necessary
to adjust costs that will be incurred in future periods to account for the time
value of money. This ensures that numbers are stated on a comparable basis when
looking at alternatives.
For application to construction cost estimates, project costs are inflated to
the midpoint of the construction schedule for that element of work. For
application to the comprehensive cost/benefit analysis, life cycle and finance
costs will be inflated on a sliding scale through time to the endpoint of the
facility "life".
Life Cycle Cost
Analysis
A C3MG Life Cycle Cost Analysis compares total costs of alternative solutions
by calculating the initial capital costs of the project and the anticipated
operating, maintenance, and future facility capital costs. C3MG then
incorporates a discount rate which reflects the time value of money in conjunction
with an economic life span which is set according to the project owner's
facility agenda.
A broad range of considerations: Life cycle costs are often misunderstood
to be exclusively a function of mechanical and electrical equipment energy and
capital costs. C3MG's experience tracking life cycle costs shows us that while
granted - M/E costs take an important share of the life cycle costs - there are
other important issues as well. These include architectural considerations
which impact replacement costs and energy consumption; programming
considerations which impact facility use, wear, and tear; and landscape and
architectural considerations which impact maintenance labor costs.
An integration of disciplines: Because of the broad range of considerations
that go into the preparation of a thorough life cycle cost analysis, careful
orchestration of the project's cost manager, programmer, building designer,
landscape architect, and mechanical and electrical engineers is required. Our
leadership capabilities ensure that appropriate input from all of the relevant
consultants will be included, so C3MG is able to provide meaningful feedback
throughout the planning and design process. This enables our clients to produce
planning documents which are highly life-cycle cost sensitive.
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C3MG Estimate vs.
Average Bid
C3MG contends that a cost management firm's key
qualification is its ability to estimate construction costs accurately. The narrower the range between estimated and
actual costs for a given scope, the higher quality the estimate. 80% of C3MG's work is for repeat
clients. Our clients return because our
product is completed and delivered on schedule and, on the money! Evidenced in the table below, C3MG's cost
estimates fall within 2-4% of average bid results - a performance record worthy
of the most cost-sensitive owner's confidence.
|
Project Name & Location
|
C3MG Estimate
|
Avg. Bid
|
Variance
|
|
Port of Seattle SeaTac Main Terminal Expansion,
Phase I SeaTac International Airport
|
$3,645,163
|
$3,508,000
|
+3.91%
|
|
WWU Ridgeway Commons Dining Facility
|
$1,736,598
|
$1,673,683
|
+3.76%
|
|
UW Music Building Remodel
|
$552,598
|
$533,000
|
+3.68%
|
|
King County North SeaTac Park Phase I
|
$3,707,949
|
$3,577,365
|
+3.65%
|
|
U.S. Coast Guard Alameda Seawall
|
$7,685,000
|
$7,422,345
|
+3.54%
|
|
Scio School District Centennial Elementary
& Middle School Improvements
|
$207,800
|
$200,964
|
+3.40%
|
|
CWU Science Facility
|
$30,307,400
|
$29,331,000
|
+3.33%
|
|
WWU Science Facility One
|
$16,280,900
|
$15,765,665
|
+3.27%
|
|
Edmonds School District No. 15 Martha Lake
Elementary School
|
$5,454,280
|
$5,284,300
|
+3.22%
|
|
State of Washington Department of
Corrections Center 512-Bed Housing Center
|
$11,095,659
|
$10,756,000
|
+3.16%
|
|
Snohomish School District No. 201 Central
Elementary School
|
$3,393,016
|
$3,294,707
|
+2.98%
|
|
Port of Seattle Terminal 30
|
$5,798,755
|
$5,639,943
|
+2.82%
|
|
Seattle School District No. 1 Dunlop
Elementary School
|
$10,695,665
|
$10,420,324
|
+2.64%
|
|
Mobilization & Training Equipment Sites
(MATES)
|
$14,406,389
|
$13,824,253
|
4.21%
|
|
King County (Metro) Alki Interurban CSO Project
West Seattle Tunnel
|
$23,874,977
|
$23,307,048
|
+2.44%
|
|
WSU Consolidated Information Center
|
$11,635,000
|
$11,171,667
|
4.15%
|
|
City of Federal Way Civic Theater
|
$1,755,435
|
$1,716,833
|
+2.25%
|
|
EWU Science Building, Phase I
|
$6,267,700
|
$6,134,804
|
+2.17%
|
|
UW Southwest Campus Utilities Extension
Tunnel
|
$7,216,091
|
$7,100,742
|
+1.62%
|
|
King County Richmond Beach Pump Station
|
$10,806,518
|
$11,319,037
|
-4.53%
|
|
Seatte School District No. 1 Whittier
Elementary School
|
$9,329,620
|
$9,197,175
|
+1.44%
|
|
WWU Haggard Hall Renovation and Addition
|
$10,485,434
|
$10,053,071
|
4.30%
|
|
Clallam Transit Authority AOM Facilities
|
$4,771,589
|
$4,705,713
|
+1.40%
|
|
Clallam Transit System
Maintenance/Operations/Admin.
|
$4,771,589
|
$4,705,713
|
+1.40%
|
|
Camas School District No. 117 Skyridge
Middle School
|
$10,864,000
|
$10,750,000
|
+1.06%
|
|
Seattle School District No. 1 Latona
Elementary School
|
$8,915,352
|
$8,864,711
|
+0.57%
|
|
Arlington School District No. 16 Arlington
Intermediate School
|
$4,471,004
|
$4,452,984
|
+0.40%
|
|
City of Portland Southwest Community Center
and Family Aquatics Center
|
$8,593,845
|
|
#DIV/0!
|
|
U.S. Army Corps of Engineers Chief Joseph
Dam
|
$1,864,759
|
$1,858,050
|
+0.36%
|
|
King County Goodwill Games Aquatic Center
|
$10,311,125
|
$10,285,808
|
+0.25%
|
|
King County Cedar Hills Landfill Area 4
Closure
|
$5,600,675
|
$5,589,070
|
+0.21%
|
|
Western State Hospital Renovation
|
$8,079,382
|
$7,447,866
|
8.48%
|
|
BCC Learning Resource Center
|
$7,942,220
|
$8,339,975
|
-4.77%
|
|
City of Seattle Cedar River Watershed
Public Facilities
|
$2,866,115
|
$2,861,140
|
+0.17%
|
|
Vashon School District Vashon Elementary
School
|
$7,527,046
|
$6,768,719
|
11.20%
|
|
Gray's Harbor PUD No. 1 Administration
Building
|
$1,481,773
|
$1,482,133
|
-0.02%
|
|
North Kitsap School District No. 400
Kingston Junior High School
|
$5,116,599
|
$5,118,441
|
-0.04%
|
|
WSU Bohler Gymnasium Addition
|
$6,830,000
|
$7,435,000
|
-8.14%
|
|
Bellevue Community College Archives
Building, Bellevue Washington
|
$6,560,000
|
$7,168,667
|
-8.49%
|
|
City of Edmonds Public Safety Building
& Fire Station Replacements
|
$6,511,880
|
$6,130,800
|
6.22%
|
|
Longview School District No. 122 Robert
Gray Elementary
|
$6,497,150
|
$6,174,000
|
5.23%
|
|
Edmonds School District No. 15 Hazelwood
Elementary School
|
$3,736,475
|
$3,739,595
|
-0.08%
|
|
Bellevue Community College Bookstore &
Student Services
|
$3,094,594
|
$3,102,500
|
-0.25%
|
|
State of Washington Department of
CorrectionsCedar Creek Corrections Center
|
$1,377,994
|
$1,382,909
|
-0.36%
|
|
State of Washington Plaza Garage and OB2
Repairs
|
$5,900,000
|
$5,504,720
|
7.18%
|
|
Edmonds School District No. 15 Mountlake
Terrace High School
|
$19,609,607
|
$19,686,500
|
-0.39%
|
|
WSU Child Care Facility
|
$1,231,214
|
$1,240,200
|
-0.72%
|
|
Thurston County Wastewater Treatment Plant
|
$5,469,000
|
$5,180,286
|
5.57%
|
|
U.S. Navy P-305 Child Development Center
|
$2,317,000
|
$2,337,009
|
-0.86%
|
|
State of Washington Dept. of Natural
Resources Building
|
$37,320,818
|
$37,643,666
|
-0.86%
|
|
Seattle Center Children's Theater
|
$5,300,351
|
$5,537,586
|
-4.28%
|
|
U.S. Army Corps of Engineers Aerial
Delivery Facility McChord AFB
|
$3,991,378
|
$4,027,208
|
-0.89%
|
|
Northshore School District No.
417Northshore Elementary School No. 20
|
$6,887,049
|
$6,961,435
|
-1.07%
|
|
Latona Elementary School
|
$9,343,636
|
$9,445,336
|
-1.08%
|
|
City of Redmond Fire Station No. 16 and
Maint. Facility
|
$2,012,335
|
$2,035,584
|
-1.14%
|
|
State of Washington DOC Monroe Cellhouses
III and IIIA
|
$4,716,887
|
$5,132,833
|
-8.10%
|
|
WSU Engineering Teaching Research
Laboratory
|
$17,787,147
|
$18,027,460
|
-1.33%
|
|
State of Washington DSHS Green Hill
Juvenile Campus
|
$29,900,000
|
$30,307,400
|
-1.34%
|
|
Port of Seattle Main Terminal Lighting
Improvements
|
$1,521,209
|
$1,543,109
|
-1.42%
|
|
WSDOT/WSP Bellingham Headquarters
|
$4,322,099
|
$4,539,190
|
-4.78%
|
|
|