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TRANSCRIPT
SOURCES, USES AND APPLICATION OF
CONSTRUCTION PRICING DATA
Rory Woolsey, CEP
October 21, 2014
SOURCES, USES AND APPLICATION OF CONSTRUCTION PRICING DATA
1. Pricing OVERVIEW: Construction Pricing Tools
a) Sources and Uses
b) The Process for Applying Data
c) The Baseline of the Pricing Source
d) Adjusting to Your Project
2. Example Pricing SOURCES:
a) The Means Basis
b) The Gordian Basis
3. Example of Pricing USES:
a) Budget Estimating
b) Job Order Contracting
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FACILITIES CONSTRUCTION PRICING.HOW DO WE PRICE THIS PROJECT?
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FACILITIES CONSTRUCTION PRICING.CHALLENGES TO PRICING FACILITIES PROJECTS
1. Ongoing operations
2. Time
3. Match existing
4. The Customer
5. Small Quantities
6. Environmental Issues
7. Weather
8. Noise
9. Dust Control
10. Safety
11. Tie into existing
12. Access/ Egress
13. Code issues; fire, seismic, ADA
14. Unknowns
15. No Record Drawings (or not updated)
FACILITIES CONSTRUCTION PRICING.MANY SOURCES OF PRICING DATA
• BNI
• RSMeans
• The Guide
• The Gordian CTC
• Trade Service
• Sweets cost guide
• Marshall Swift
• Saylor
• Engineering News Record
• Design Construction Data
• Own cost records - historical
• Suppliers
• Vendors
• Subcontractors
• Commodity pricing
FACILITIES CONSTRUCTION PRICING.MANY USES OF PRICING DATA
1. Budgetary Estimating
2. Labor Hours and Scheduling
3. Sanity Checking in Hard Bidding Projects
4. Bidding (filling holes)
5. Change Order Pricing and Negotiation
6. Unit Price Contracts / JOC
7. Value Engineering
8. Facilities Maintenance Budgeting
9. Checking Subcontractor Quotes
10. Life Cycle Analysis - Present Value
11. Buildings Valuation & Replacement
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FACILITIES CONSTRUCTION PRICING.APPLICATION OF PRICING SOURCES:
PROCESS IS THE SAME
1. Scope of Work (Critical Step!!)
2. Quantify the Scope
3. Pricing Construction
4. Validate/ Check the Results
ALL DATA SOURCES HAVE A BASELINEWHAT IS THE BASIS OR BASELINE OF DATA??
1. Time: Now or Historical
2. Location: National, Local or Site Specific
3. AE Scope: Specification
4. Context Scope: Site conditions represented
5. Execution Scope: Means and Methods
6. Cost Inclusions: Direct and Indirect
7. Bare: To what degree marked up
Know the BASIS of the Resource Being Used
WHAT IS THE BASIS OF THE DATAPRICING FACILITIES PROJECTS
I. Direct Costs Material Labor (plus Labor Burden; futa, suta, fica, wci) Equipment Subcontractor
II. Site Overhead (5% to 15% of Total)
III. Home Office Overhead (Variable 5% to 10%)
IV. Profit (Variable 5% to 15%)
V. Sales Taxes
VI. Performance Bond
VII. Estimate Contingency (Variable 5% to 20%)
TEMPERING ADJUSTING THE BASIS DATA TO FIT USE
1. Construction Cost Indices
2. Location Indices
3. Labor Hours
4. Local Material Pricing
5. Experience
6. History
7. Productivity
8. Line item modifiers
9. Coefficients (i.e. JOC)
EXAMPLE PRICING DATA SOURCE
RSMeans Data
Getting to Know the Pricing Resource
ALL DATA SOURCES HAVE A BASELINE THE RSMeans DATA BASIS:
1. Trusted: Source for Estimating for 70 Years
2. Location: National with city index adjustment
3. Average: Materials & labor averaged
4. Specification: No product names, general spec
5. Context Scope: Site conditions average
6. Execution Scope: Crews with assumed approach- Flexible
7. Cost Inclusions: Very bare or Subcontractor bare
8. Flexible/ Bendable: Create, adjust, massage
9. Detailed: All back up given, Can get complex
EXAMPLE PRICING DATA SOURCE
Gordian Data
Getting to Know the Pricing Resource
ALL DATA SOURCES HAVE A BASELINETHE GORDIAN CTC DATA BASIS:
1. Trusted: Source for Job Order Contracting for 25 Years
2. Location: Location Specific, entity specific
3. Local: Materials & labor from local market
4. Specification: Detailed tech specification, site specific
5. Context Scope: Site conditions average
6. Execution Scope: Clearly defined at line item level
7. Cost Inclusions: Bare
8. Rigid: Less bending, more specific, defined clearly at line item level, line item specific modifiers
9. Assemblies Oriented: Nuts and bolts built into the line items and defined at the line item level
10.Contractor’s say: Less details to deal with, More “chunks”
EXAMPLE USES OF DATA SOURCE
Job Order Contracting
Getting to Know the Uses of Data
JOB ORDER CONTRACTING 101
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THE PROCESS - HOW IS WORK DONE?
• Joint Scope Meeting With the Owner, Contractor, and Others to define the Detailed Scope of Work
• The Owner Issues Request for Proposal for the Agreed Upon Detailed Scope of Work
• Proposal Development
– Typical Proposal Due Date will be 2 weeks from RFP
• Proposal Review
• Issuance of Job Order
• Total Time Goal: Average 3-5 weeks
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