August 10, 2010Dick Simmons, Instructor

•Simple cost estimating system

•Based on square footage

• Gross Living Area

•Is Replacement Cost

• Replacement Cost v. Reproduction Cost

• What does replacement cost assume

• Current designs

• Contemporary techniques and typical materials

• Functional Obsolescence is minimized (except for super-adequacies)

Section A – Square Foot Method

MARSHALL AND SWIFT RESIDENTIAL COST HANDBOOK

Layout

Table of Contents•Introduction

•General Introduction•Square Foot Method Introduction•Basic Residential Illustrations•Quality Description•Square Foot Method Refinements and Adjustments•Garage Illustrations•Square Foot Method Example and Procedure

•Section A (Single Family Residences – Low Quality through Excellent Quality)•Basic Description and Large-Residence Adjustments•Illustrations•Cost Tables•Refinements

•Section A also covers •Manufactured Housing•Multiples, Town and Row Houses•Urban Row Houses•Special Studies and Old Residences

Table of Contents - continued•Section B (Segregated Costs)•Section C (Yard Costs/Unit In-Place)•Section D (Useful Information)

•Covering information pertaining to •Soft Costs•Time Frames•Construction terms•Etc.

•Section E (Depreciation)•Section F (Quarterly Multipliers)•Section G (Index/Glossary)

“….costs that the contractor incurs during the period of construction of the residence”

•Plans and specifications, surveys nominal building permits

•Normal Interest on only the actual building funds

•Materials and Labor

•Normal site preparation

•Utilities from the structure to the lot line

•Contractors overhead and profit

What the Costs Contain

•Cost of the land

•Piling and hillside foundations (priced separately)

•Costs of land planning (subdivisions)

•Discounts and bonuses paid for financing

•Yard improvements • Septic Systems

• Walls and fencing

• Landscaping and yard lighting

• Poles and other recreation facilities

•Off-site Costs: sidewalks, curbs and gutters, utilities, park fees, etc.

•Marketing Costs

•Contingency Reserves – covering unknown future events

What is Not Included

Site-Built – “…for the most part are constructed at the permanent building site.” Synonym: “Stick Built”

Manufactured – “houses…built on a steel undercarriage with necessary wheel assembly, to be transported to a permanent building site.”

Modular – “Although a modular house can be transported on a steel undercarriage, the undercarriage is not a permanent…component.” Is placed on a foundation.

Panelized – “or prefabricated houses consist of packaged, factory- built components and are site assembled.”

Condominium – “development is a form of ownership, and the building should be priced according to its type and quality.”

Square Foot Method Types of Residences

Styles of Homes

1. A description of the quality

2. What the various components are constructed of -

1. Foundation

2. Floor structure

3. Floor insulation

4. Floor cover

5. Exterior wall

6. Roof

7. Interior Finish

8. Heating/cooling

9. Basement finish

10. Garages

3. Large Residence Multipliers

4. How To Use Illustrations

5. Summary

Quality Sections - Introduction

Quality – Low Cost

Quality - Fair

Quality - Average

Quality - Good

Quality – Very Good

Quality - Excellent

COST INFORMATION CONTAINED IN EACH SECTION

Basic Square Foot Costs and Square Foot Adjustments

Refinements

Garages Costs

This all relates to the form

Square Foot Costs

Applying this to the Real World

•Location – North Attleboro, MA

•Style – Garrison Colonial

•Quality - Good

•GLA – First Floor – 1,041 s.f.

•GLA – Second Floor – 1,008 s.f.

•Basement – 938 s.f., Unfinished

•Rooms – 7 rooms, 3 bedrooms, 2.5 baths

• Baths three fixtures each, Lav. 2 fixtures

•1 Fireplace

•Attached Garage – 576 s.f.

•Open Porch – 63 s.f.

•Wood Deck – 200 s.f.

•Appliances – Dishwasher, 3 exhaust fans, 1 fan and hood, a range and oven

•Floor cover: 1,569 s.f. carpet, 128 s.f. ceramic tile, 224 s.f. linoleum

•Heating/Cooling: Forced Hot Water, three window air conditioning units.

•Condition – Average

•Age – 15 years

You are performing a cost analysis on the following property:

Worksheets