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Job:02-30056 Title: RP-Interior Design Reference and Specification
#175 Dtp:216 Page:15
Job:02-30056 Title: RP-Interior Design Reference and Specification
#175 Dtp:216 Page:14
(RAY)
001-017_30056.indd 15 3/4/13 7:19 PM
Starting an Interior Project
15
Text
SCOPE OF PROJECT
As the design of a small project is further developed, it is important to work with a contractor
who will estimate the project costs based on drawings and specications that the designer
provides. For small projects, estimates should not be based on square footage, but rather,
should identify and price all construction materials and labor costs. For medium to large proj-
ects, either a cost estimator or a construction manager will prepare the budget. Cost estima-
tors are hired exclusively to put together construction estimates. Construction managers are
contractors/builders that are hired early in the design process to manage the cost of a project
through the design phases. These experts typically have signicant market experience and
can establish a project budget based on a dollar value per square foot; however, the budget
should always be tested against a detailed breakdown based on project scope. For very large
projects, it is standard to request several estimates to test the market value of the project.
When large discrepancies appear in prices, quantity surveyors might be hired to verify material
quantities. Price variations are more symptomatic of different material quantities than of dif-
ferent unit prices, and the quantity surveyor can help resolve these disputes.
municates the scope of the work and the level of finishes. Project budgets are divided into hard
include, but are not limited to, designer’s fees, consultant’s
projects, it may not be realistic to have an estimator or a contractor on board at the initial stage.
are several types of contingencies, whose percentages of the total estimate will change as the
that are not known
cies should be. As the design is further documented, this per-
centage decreases—until the category disappears at the end
in construction. Change orders typically occur due to a change
in scope, schedule, or a combination of the two. These contin
-
dition of the existing building. Generally, the older the building,
due
to time lapses from the initial pricing study to actual construc
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BUDGET TERMINOLOGY
Change Order Document submitted by the contractor indicating a change in
the cost, schedule, or scope of service required to complete
a project.
Competitive Bid Open request for bids on a project based on completed con-
struction documents and specifications. Whether the client is a
government agency, institution, or private business owner, the
job is typically awarded to the lowest bidder.
Guaranteed Maximum Price
(GMP)
Cost for construction, guaranteed by a construction manager
based on incomplete design documents. Given the risk of pric-
ing with incomplete documents, the client and construction
manager must agree to the timing of the GMP. If set too early
in the process, the scope can easily shift, and change orders
will upset the GMP.
Invitation to Bid Request for prequalified contractors to bid on a project based
on completed construction documents and specifications.
Value Engineering (VE) Effort to reduce project costs by eliminating or downgrading
items that add costs without benefiting a particular function
oransweringthe programreuirements.Vreuiresthein-
volvement of the client, construction manager/contractor, and
designer.
Job:02-30056 Title: RP-Interior Design Reference and Specification
#175 Dtp:216 Page:15
Job:02-30056 Title: RP-Interior Design Reference and Specification
#175 Dtp:216 Page:14
(RAY)
001-017_30056.indd 15 3/4/13 7:19 PM