Glossary of Technical Terms Used in HVAC & Ventilation Systems: Cost Model

Cost Model

Cost Models for Effective Construction Estimation and Control: The Building Exterior Envelope Example

Accurate cost estimation is the cornerstone of successful construction projects. This involves not only understanding the overall project budget but also dissecting the costs into manageable, meaningful segments. This is where cost models come into play.

One popular approach is to subdivide the total construction cost into costs for functional facility elements and systems. Instead of breaking down costs by individual trades (like the Unified Construction Index, or UCI, method), this model focuses on broader, interconnected elements.

Let's take the Building Exterior Envelope as an example. This functional element encompasses a variety of trades including:

  • Framing: Wood or steel framing that provides structural support.
  • Sheathing: Material like plywood or OSB that covers the framing and creates a smooth surface.
  • Insulation: Materials that provide thermal and acoustical insulation.
  • Exterior Cladding: The visible exterior finish like brick, siding, or stucco.
  • Windows and Doors: Openings for light, ventilation, and access.

By grouping these trades under the "Building Exterior Envelope" umbrella, we gain a holistic view of the costs associated with this essential building system. This model allows for easier comparison of different enclosure options, enabling more informed decision-making during the design phase.

Benefits of Using Cost Models:

  • Improved Cost Accuracy: By considering costs in broader system-based categories, this approach allows for a more comprehensive and accurate assessment of project expenses.
  • Enhanced Value Management: This model facilitates the comparison of different system options, leading to more informed value engineering decisions and potential cost savings.
  • Simplified Budgeting and Forecasting: By grouping costs in logical functional units, budgeting and forecasting become more straightforward and efficient.
  • Facilitated Communication and Collaboration: Sharing cost information becomes easier when using a common system-based framework.

Beyond the Building Exterior Envelope:

This cost model approach is applicable across the entire construction project, encompassing other key functional elements like:

  • Foundation and Sitework: Preparing the site, excavating, and laying the foundation.
  • Structural Systems: Designing and building the structural framework of the building.
  • Roofing System: Protecting the building from the elements with a roof structure, insulation, and covering.
  • HVAC System: Providing heating, ventilation, and air conditioning.
  • Electrical Systems: Installing power, lighting, and communication systems.
  • Plumbing Systems: Providing water and waste disposal.

By applying this systematic cost modeling approach, construction professionals can achieve greater accuracy in their cost estimations, streamline budgeting, and ultimately deliver projects that are more efficient and cost-effective.


Test Your Knowledge

Quiz: Cost Models for Effective Construction Estimation and Control

Instructions: Choose the best answer for each question.

1. What is the primary benefit of using cost models that subdivide costs into functional facility elements and systems?

a) It simplifies communication between architects and contractors. b) It provides a more comprehensive and accurate assessment of project expenses. c) It helps avoid cost overruns by setting strict budget limits. d) It facilitates the use of standardized pricing databases.

Answer

b) It provides a more comprehensive and accurate assessment of project expenses.

2. Which of the following is NOT a functional element included in the "Building Exterior Envelope" cost model?

a) Framing b) HVAC System c) Sheathing d) Insulation

Answer

b) HVAC System

3. How does the cost model approach help with value engineering decisions?

a) By setting a fixed budget for each element. b) By allowing the comparison of different system options and their associated costs. c) By requiring contractors to submit detailed cost breakdowns. d) By using standardized pricing databases to determine the cost of each element.

Answer

b) By allowing the comparison of different system options and their associated costs.

4. Which of the following is an advantage of using a system-based cost model for budgeting and forecasting?

a) It reduces the need for detailed cost breakdowns. b) It makes budgeting and forecasting more efficient and straightforward. c) It eliminates the need for regular cost updates. d) It ensures that all project costs are captured in the initial budget.

Answer

b) It makes budgeting and forecasting more efficient and straightforward.

5. Beyond the Building Exterior Envelope, which of the following is another functional element that can be categorized in a cost model?

a) Lighting Fixtures b) Electrical Wiring c) Roofing System d) Interior Paint

Answer

c) Roofing System

Exercise: Building Cost Model for a Small Office Building

Instructions:

Imagine you are designing a small office building. Using the cost model approach, break down the total construction cost into functional elements.

For each element listed below, write down at least 2 potential system options and their associated costs (you can use estimated ranges):

  • Foundation and Sitework
  • Structural Systems
  • Building Exterior Envelope
  • Roofing System
  • HVAC System
  • Electrical Systems
  • Plumbing Systems

Bonus: Discuss how using this cost model approach can help you make informed decisions about the design and construction of this office building.

Exercice Correction

This is a sample solution, your choices might be different based on specific requirements and local prices.

Foundation and Sitework

  • Option 1: Concrete Slab Foundation (estimated range $20,000 - $35,000)
  • Option 2: Crawl Space Foundation (estimated range $15,000 - $25,000)

Structural Systems

  • Option 1: Steel Frame (estimated range $40,000 - $60,000)
  • Option 2: Wood Frame (estimated range $30,000 - $45,000)

Building Exterior Envelope

  • Option 1: Brick Veneer with Insulated Siding (estimated range $60,000 - $80,000)
  • Option 2: Fiber Cement Siding with Insulated Sheathing (estimated range $50,000 - $70,000)

Roofing System

  • Option 1: Shingle Roof with Standard Insulation (estimated range $15,000 - $25,000)
  • Option 2: Metal Roof with High-Performance Insulation (estimated range $25,000 - $40,000)

HVAC System

  • Option 1: Split System Air Conditioner (estimated range $10,000 - $15,000)
  • Option 2: Heat Pump System (estimated range $15,000 - $25,000)

Electrical Systems

  • Option 1: Basic Wiring and Lighting (estimated range $15,000 - $25,000)
  • Option 2: Advanced Wiring with Smart Home Features (estimated range $25,000 - $40,000)

Plumbing Systems

  • Option 1: Standard Plumbing with Basic Fixtures (estimated range $10,000 - $15,000)
  • Option 2: Upgraded Plumbing with Energy-Efficient Fixtures (estimated range $15,000 - $25,000)

Discussion:

By using this cost model approach, you can:

  • Compare the cost of different system options: This helps to make informed decisions about which options offer the best value for your budget.
  • Identify potential cost savings: By comparing options, you may find areas where you can save money without sacrificing quality.
  • Communicate more effectively: Having a clear system-based breakdown of costs facilitates communication and collaboration with contractors and other stakeholders.
  • Make informed design choices: Understanding the cost implications of different design decisions can help you optimize the design for both functionality and budget.


Books

  • Construction Cost Estimating: This book covers various cost estimating methods, including detailed breakdowns for different functional elements.
    • Author: Robert E. Mayer
    • Publisher: McGraw-Hill Education
  • Cost Engineering in Construction: A comprehensive guide to cost estimation, control, and project management in construction.
    • Author: G. O. Ofori
    • Publisher: Routledge
  • Building Construction Illustrated: This book includes chapters on cost estimation and provides insights into the costs associated with different construction materials and techniques.
    • Author: Francis D. Ching
    • Publisher: Wiley

Articles

  • "Cost Modeling for Building Projects: A Framework for Better Decision-Making" - This article explores the benefits of system-based cost models and provides insights into their implementation.
    • Author: Richard A. Bell
    • Journal: Journal of Construction Engineering and Management (ASCE)
  • "Cost Estimating for Construction Projects: A Guide to Techniques and Best Practices" - This article delves into various cost estimating methods and discusses the importance of accuracy in construction project planning.
    • Author: David R. Riley
    • Journal: Construction Management and Economics
  • "Cost Control in Construction: A Practical Guide to Best Practices" - This article explores cost control strategies and how cost models can be used to monitor and manage project expenses.
    • Author: John S. Watson
    • Journal: Construction Innovation

Online Resources

  • CostX: This software platform provides tools for cost estimating, value engineering, and project management, including functionalities for developing cost models.
    • Website: https://www.costx.com/
  • RICS (Royal Institution of Chartered Surveyors): This professional organization provides resources and guidance on cost estimating, including best practices and industry standards.
    • Website: https://www.rics.org/
  • Construction Specifications Institute (CSI): CSI offers a wide range of resources on construction project specifications, cost estimating, and cost management.
    • Website: https://www.csinet.org/

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