1

Project Budget & Cost Management

September 15, 2008

Hamid Omidvar, AIA

Chief, Office of Planning & Development
Department of General Services Montgomery County Maryland

Meet the scope defined for the project

Scope

Project Cost and Budget Management

Meets and exceeds industry standard of quality

Quality

Budget
It is within the established budget

Schedule
It is designed and constructed within the established schedule

Sustainability & Safety

Meets sustainability and safety requirements

Communication
Project is well documented and communicated

The world of a successful project

Hamid Omidvar, 9.2008

Low client satisfaction Project Cost and Budget Management Scope Budget Schedule Quality High cost of project Delay in the use of the facility If changed Possible lower quality Additional draw on scarce public resources Reduced support/confidence of community and elected officials

Impact of change on projects

Hamid Omidvar, 9.2008

Project Cost and Budget Management

We have encountered significant challenges in recent years figuring out how much to budget for projects and how to contain costs once the project is launched.

Our challenge
Hamid Omidvar, 9.2008

Issue Number of projects are experiencing cost overrun and delay Decision Decided to review process and identify issues impacting our projects delivery

Project Cost and Budget Management

Action Reviewed our project management process Attended seminars and classes Studied other jurisdictions for their methodologies Consulted with experts in this field Gathered projects historical data & analyzed them

Result Identified Issues & Developed Solutions

Implementation

First chance to implement solution was in summer of 2007 for our FY09-14 CIP cycle Challenge We are facing new challenges and are continuously in search of better project delivery methods.

2005-2006 project management study

Hamid Omidvar, 9.2008

6
1. 2. 3.

Requirement Program of Requirements (POR) is well written (Building program) Cost estimates are accurate, Schedule is realistic Risk factors are recognized and successfully assessed Good project management skills Qualified AE with track record of design to budget is selected Good design and construction documents are produced Changes are minimum during design and construction Project costs and schedule are controlled in all phases of project Market is analyzed at the bid time 9. 3. 4. 5. 6. 7. 8. 1. 2.

Solution Standardize Program of Requirements Create a project cost and budget development system. Quantify risk factors and incorporate them as cost Train project managers in systematic project management Look for track record in A/E selection Develop design quality control system Develop change tracking system Professional cost estimates are produced in all phases of the project & maintain a cost data base system for projects Check with the local contractors and owners before bid

Project Cost and Budget Management

4. 5. 6. 7. 8.

9.

10. Qualified construction contractor with track record of construction to budget is selected 11. Good construction management and administration

10. More RFP (qualification) than IFB (low bid) for construction 11. Develop construction quality control system May 2005
Hamid Omidvar, 9.2008

2005-2006 project management study - characteristics of a successful project

Project Cost and Budget Management

How to develop an accurate and reliable cost estimate and project budget

Hamid Omidvar, 9.2008

Project Cost and Budget Management

Identify Cost (project) Risks Establish Scope Program of Requirements

Cost Estimate Program of Requirements Create project Budget

Budget Approval

Project Close out

Adjustments Adjustments needed needed

Develop Budget Control &

Budget & Expenditure Control

Implementation/ Expenditure Invoices

Risk Management Plan

Budget Management cycle in CIP

Hamid Omidvar, 9.2008

Typical Project Schedule Planning POR preparation Project Approval Design Bid Construction Post Construction

Project Cost and Budget Management

Conceptual Planning Schematic Design Design Development Construction Document

Note: Operating budgets are not included in this presentation

Project Phases & Budgeting

Hamid Omidvar, 9.2008

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190%

180%

LongBranchLibrary PiccardDrive DPS

170%

greyCourthouse Germantown Indoor Pool germantown Library

Project Cost and Budget Management

160%

Rockville Library MCCF

150%

MCDCReuse Strathmore Hall GlenEchoparkIII

140%

GlenEchoArcade Driver TrainingFacility EOBGarage

130%

Brookville Service Park1 Brookville Service Park2 PSTA 1

120%

PSTA 2

6%
110%

TravillahF.S. MLKPool BethesdaOutdoor Pool 4thDistrict Police Station

17%

100%

Total

Planning

Schematic design

Design Development

Construction Documents

Bid

Final

10

2005-2006 study - Construction cost change per phase per selected projects
Hamid Omidvar, 9.2008

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120

100

Request Construction Fund

Project Cost and Budget Management

80

Request Design Fund

60

40

Reliability of cost estimates

20

0 Planning BudgetApproval SchematicDesign Design Development ModerateRisk Construction Documents LowRisk Bid Final

HighRisk

2005-2006 Study - Risk management in request of design and construction funds

Hamid Omidvar, 9.2008

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Project Cost and Budget Management

Create a project cost and budget development system

12

Goal
Hamid Omidvar, 9.2008

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Cost of design Cost of construction

General condition of construction Labor Material

Project Cost and Budget Management

Contractors overhead Contractors profit Contractors Insurance and bonds

Contingencies
Projects unknowns or risks contingency Cost estimating contingency Design contingency Bid contingency Construction contingency Cost Escalation to mid point of construction

Cost of land Cost of furniture, equipment, move, IT, telecommunication, etc Cost of project management

13

Elements of project budget

Hamid Omidvar, 9.2008

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Abb. LM OPB IC

Cost Elements Labor & material cost Overhead + Profit + Bond Initial Construction Cost Estimate LEED Contingency Cost of unknowns-Risks Design Contingency Escalation to mid point of construction Construction Contract Award Price Bid contingency Construction Contingency A/E and other needed consultants fee Project management fee Other costs (Furniture, move, etc.) Land costs Total Project Cost (PDF)

Value $/SF or $/CSI divisions ~18% of LM LM + OPB 3-9% of IC Silver to Gold 0-30% of IC 10% of IC x% of IC per year compound method IC+LD+RF+DC+E 0-3% of CCAP 10-15% of CCAP (New vs. Reno.) 7-12% of CCAP 2-4% of CCAP Project specific Project specific CCAP+BC+CC+AE+PM+O+L

Project Cost and Budget Management

LD RF DC E CCAP BC CC AE PM O L PC

14

Summary of costs included in the project budget workbook

Hamid Omidvar, 9.2008

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Construction Escalation covers

Increase in cost of materials and labor from the date of the cost estimate to the mid point of construction

Project Cost and Budget Management

It is calculated by the countys chosen indices provided by agencies such as ENR that monitor construction industry
Construction Escalation amount for a

5 years

$1,000,000
project 4

Year to mid point of constru ction

$ Escalation

3 2 5 1 1

Escalation Rate / Year

15

Construction Cost Escalation

Hamid Omidvar, 9.2008

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Selected CIP projects budget comparison chart FY09

Library AE PM Other AE Construction Utility FFE Other LEED Risks Community Center 37 17 15 250 7 19 18 14 Fire Station 31 15 18 188 17 20 23 12 Bus depot Office Renovation Cost $1000 % of total $/SF $ 969 7.3% $ $ 440 3.3% $ $ 398 3.0% $ $ 6,512 48.8% $ $ 190 1.4% $ $ 500 3.7% $ $ 460 3.4% $ $ 374 2.8% $ $ 0.0% $ $ $ 775 225 5.8% $ 1.7% $ 5.8% $ 13.0% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 1,342 6.8% $ 42 $ 786 7.0% $ $ 536 2.7% $ 17 $ 393 3.5% $ $ 546 2.7% $ 17 $ 466 4.2% $ $ 9,006 45.3% $ 283 $ 4,791 42.8% $ $ 440 2.2% $ 14 $ 430 3.8% $ $ 400 2.0% $ 13 $ 500 4.5% $ $ 630 3.2% $ 20 $ 580 5.2% $ $ 542 2.7% $ 17 $ 309 2.8% $ $ 0.0% $ $ 0.0% $ 1,052 314 5.3% $ 33 $ 1.6% $ 10 $ 5.4% $ 34 $ 20.0% $ 125 $ 100.0% $ 623 $ 608 111 678 1,530 11,182 25,443 3.34 5% 5.4% $ 1.0% $ 6.1% $ 13.7% $ 100.0% $ Cost $1000 % of total $/SF Cost $1000 % of total $/SF $ 3,480 6.3% $ 29 $ 2,968 5.1% $ 7 $ 870 1.6% $ 7 $ 848 1.5% $ 2 $ 879 1.6% $ 7 $ 470 0.8% $ 1 $ 34,504 62.3% $ 283 $ 37,365 64.4% $ 92 $ 240 0.4% $ 2 $ 160 0.3% $ 0 $ 600 1.1% $ 5 $ 2,500 4.3% $ 6 $ 450 0.8% $ 4 $ 2,550 4.4% $ 6 $ 1,035 1.9% $ 8 $ 806 1.4% $ 2 $ 0.0% $ $ 0.0% $ 3,653 584 3,968 5,094 55,357 122,000 2.08 5% 6.6% $ 1.1% $ 7.2% $ 9.2% $ 100.0% $ 30 $ 5 $ 33 $ 42 $ 454 $ 3,177 456 3,707 3,038 58,045 408,000 1.57 5% 5.5% $ 0.8% $ 6.4% $ 5.2% $ 100.0% $ 8 1 9 7 142

Design Contingency Bid contingency Construction Contingency Escalation Total SF Year to mid point of construction Escalation rate

Project Cost and Budget Management

30 $ 9 $

24 $ 4 $ 27 $ 60 $ 439 $

$ 774 $ 1,733 $ 13,350 26,000 3.1 5%

30 $ 1,076 67 $ 3,980 513 $ 19,864 31,859 4.96 5%

16

Share of cost elements in total project cost

Hamid Omidvar, 9.2008

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48.8% 50.0%

Typical project budget elements

Bidcontingency,1.7% OtherAE,3.0% Other,3.4% PM,3.3% FFE,3.7% Construction Contingency, 5.8% LEED,2.8% Utility1.4% Risks 0.0%

45.0%

Project Cost and Budget Management

40.0% 35.0% 30.0% 25.0% 20.0% 13.0% 15.0% 10.0% 5.0% 0.0% 7.3%

Design Contingency 5.8% AE 7.3% Escalation 13.0% Construction,48.8%

5.8%

5.8%

3.7%

3.4%

3.3%

3.0%

2.8%

1.7%

1.4%

0.0%

17

Share of cost elements in total project cost

Hamid Omidvar, 9.2008

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Project expenditure & withholdings during various phases

Commitment to budget

Project Cost and Budget Management

Withholding of contingencies

Expenditure

18

Project cost..Expenditure..Contingencies
Hamid Omidvar, 9.2008

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Project Cost and Budget Management

Project Cost & Budget Development Workbook

19

Project Budgeting Tools

Hamid Omidvar, 9.2008

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Sample Project
Project Cost & Budget Workbook DRAFT
Project Information Project # Index Code project address Council District Council Representative Customer/ Using Agency Planning Area Project Category This CIP cycle This CIP FY Last CIP FY Executive Manager Design Manager Project Manager A/E Consultant Construction Contractor Property Size - Acres Programmable New- SF from POR Program to Gross Factor Estimated Gross New- SF Renovation Gross - SF Total project Gross - SF Is this a renovation project? (Y or N) 5234567 31004567 101 Rockviile pike 2 Name Using Department Planning Area Category FY 09-14 FY08 FY07 Hamid Omidvar Rassa Davoodpour Randall Hawkins TBD TBD 5 10,000 1.60 16,000 5,000 21,000 Y

FY 09-14

Project Cost and Budget Management

Office of Planning & Development - OPD Department of General Services - DGS

Last updated on:

September 15, 2008

Printed on:

August 22, 2008 Version 2008.8 Table of contents 01-Cover Sheet 02-Construction Cost Estimate 03-Permit fee 04-Risk Factors 05-DCD Best Cost Estimate 06-Cost Summary 07-Project Schedule and Expenditure 08-Expenditure and Appropriation Per FY 09-PDF Form 10-PDF Change Comparison

Project Budgeting Tools PDF Preparation Workbook

Hamid Omidvar, 9.2008

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Div. 02 03 04 05 06 07 08 09 10 11 12 13 14 21 22 23 25 26 27 28 31 32 33 TC

Sample Project
Initial Cost Estimate Cost Estimating Inc. August 15, 2008 DIVISION ACTIVITY Existing Conditions Concrete Masonry Metal Wood, Plastics, and composites Thermal and Moisture Protection Openings (Doors & Windows) Finishes Specialties Equipment Furnishings Special Construction Conveying Equipment Fire Suppression Plumbing HVAC Integrated Automation Electrical Communications Electronic Safety and Security Earthwork Exterior Improvement Site Utilities- SWM Total Initial Construction Cost Initial Construction cost w/o site Control values for cost per SF Notes:
Version 2008.8

Project # This Program DRAFT Cost C1 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 C2 S1 S2 S3 0 196,835 275,569 275,569 39,367 157,468 236,202 157,468 78,734 39,367 39,367 78,734 78,734 157,468 157,468 944,808 78,734 314,936 39,367 39,367 118,101 314,936 118,101 3,936,702
3,936,702

5234567 FY 09-14 8% GC Overhead 0 17,321 24,250 24,250 3,464 13,857 20,786 13,857 6,929 3,464 3,464 6,929 6,929 13,857 13,857 83,143 6,929 27,714 3,464 3,464 10,393 27,714 10,393 346,430
343,693

10.0% Gen. Req. 0 19,684 27,557 27,557 3,937 15,747 23,620 15,747 7,873 3,937 3,937 7,873 7,873 15,747 15,747 94,481 7,873 31,494 3,937 3,937 11,810 31,494 11,810 393,670
389,344

5% GC profit 0 11,692 16,369 16,369 2,338 9,354 14,030 9,354 4,677 2,338 2,338 4,677 4,677 9,354 9,354 56,122 4,677 18,707 2,338 2,338 7,015 18,707 7,015 233,840
232,874

2% Perf. Bond 0 4,911 6,875 6,875 982 3,929 5,893 3,929 1,964 982 982 1,964 1,964 3,929 3,929 23,571 1,964 7,857 982 982 2,946 7,857 2,946 98,213
98,012

5% Est. Conting. 0 12,522 17,531 17,531 2,504 10,018 15,027 10,018 5,009 2,504 2,504 5,009 5,009 10,018 10,018 60,106 5,009 20,035 2,504 2,504 7,513 20,035 7,513 250,443
249,375

Total 0 262,965 368,151 368,151 52,593 210,372 315,558 210,372 105,186 52,593 52,593 105,186 105,186 210,372 210,372 1,262,231 105,186 420,744 52,593 52,593 157,779 420,744 157,779 5,259,297 4,522,996
5,250,000

Project Cost and Budget Management

% of total 0.00% 5.00% 7.00% 7.00% 1.00% 4.00% 6.00% 4.00% 2.00% 1.00% 1.00% 2.00% 2.00% 4.00% 4.00% 24.00% 2.00% 8.00% 1.00% 1.00% 3.00% 8.00% 3.00% 100.00%

$/SF 0.00 15.94 22.31 22.31 3.19 12.75 19.12 12.75 6.37 3.19 3.19 6.37 6.37 12.75 12.75 76.50 6.37 25.50 3.19 3.19 9.56 25.50 9.56 318.75 274.12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

$/CSI Divisions Method

Cost / GSF calculation chart GSF $/SF Major construction elements Structures 10,000 $ 200 New Construction-Office Ronovation-Office 5,000 $ 100 Parking Structure 1,500 $ 60 $ -

$Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,000,000 500,000 90,000 2,590,000 35,000 35,000 5,250,000

Total Structures Exterior elements Paved surface

16,500 5,000

$ $

360 7

$/SF Method
Total Exterior Total Initial Cost 5,000 43,000 $ $ 7 734

Project Budgeting Tools PDF Preparation Workbook Initial Construction Cost Estimate
Hamid Omidvar, 9.2008

Is Risk defined in the POR? Y or N

construction cost

acquisition

Utility cost

computers

equipment

Permit fee

telephone

Furniture

Site cost

Security

1 2 2.1 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.2

Project Cost and Budget Management

Building operation hours List of staff with their grades and positions organized per organization chart If growth is anticipated, it should be projected for 20 years at 5 years increments Signing Outdoor furniture and equipment Fencing Security A site map showing various elements Is this a MNCPP property? Is the site close to CSX track or related to CSX? Topography Geotechnical information Unsuitable soil Wetland and streams Wooded areas Historical aspects Availability of utilities: Gas

0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 1 1

Staff

Risk Factors

0.1 0.1

0.1

0 1 0.5 0.1 0.5 0.5 0.2 0.2 0.2 0.5 0.5 0.2 1 0.1 1 0.5 0.5 1 1 0.5 0.2 0.1 0 0.1 0.1 5

1 5 1 0.5

1 5 5 0.5 1

0.5 0.1

0.5

0.1

117 line

items

Project Budgeting Tools PDF Preparation Workbook Risk Factors Analysis

Hamid Omidvar, 9.2008

Signage 2

Printing

A/E fee

Survey

Move

E R

Sample Project

commissioning

enter 1 for risk

2 C2

1%

0%

1%

1%

1%

0%

1%

0%

1%

1%

0%

1%

0%

1%

2%

0% 0%

2%

2%

Cost estimate

Geotechnical

2 3
Sample Project
Time / Cost Schedule Table
DRAFT September 15, 2008 FY 09-14 Printed: Start Date 08/22/08 End Date Months 2007 FY0 8 7 8 J U L 2 1 2 2 2 2 1 1 2 1 2 4 5 3 3 3 2 3 6 2 1 21 0 9 0 1.00 A U G 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 12.00 1 2 3 4 5 6 4.00 2.00 2.00 4.00 2.00 3.00 2.00 2.00 4.00 3.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Notes: 5.00 1.00 9.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 5.00 6.00 7.00 7.00 8.00 4.00 3.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 9 S E P 10 O C T 11 N O V 12 D E C 2008 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N FY0 7 J U L 2009

This FY

First year of new CIP cycle

9
8 A U G 9 S E P 10 O C T 11 N O V 12 D E C 1 J A N 2 F E B 3 M A R 4 A P R 5 M A Y 6 J U N

Time Schedule
FROM TO Project Start / Planning Preparation of RFP A/E Advertisement / Selection / Contract Concept Plan, Schematic Design Design Development Construction Documents Permits Preparation of IFB Advertising / Review / Contract Land Cost (ALARF) Earthwork Existing Conditions Exterior Improvement Site Utilities- SWM Initial Construction cost w/o site UTILITY (WSSC, GAS, PEPCO) Telephone, Computers, Security, Fibernet Survey, Cost Est., Geotech, Test'g, Commis'g Reproduction, Advertising, Other PDS Furniture, Equipment, Signs & other costs Move and Occupancy PDS -Design Staff PDS -Design Other PDS -Construction Staff PDS -Construction Other Version 2008.8 Span 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.54 0 0 0 0 0 0 0 0 0 0

Project Cost and Budget Management

4/1/10

1/1/12

1.00 1.00 1.00 1.00 1.00 1.00

1.00

1.00

1.00

30
Number of months in progress>>>> From cost date to mid point of construction

Project Budgeting Tools PDF Preparation Workbook Expenditure Schedule

Hamid Omidvar, 9.2008

Sample project
DCD Best Cost Estimate Data updated on: February 22, 2007 PROJECT TASKS A/E fee % Staff fee % First cost 11.0000% 4.0000% 614,072 223,299 61,102 5,000 5,000 0 2,000 2,000 5,000 0 0 0 0 0 917,473 0 0 0 124,400 304,780 149,280 0 0 0 578,460 0 5,000 0 0 0 0 5,000 583,460 124,400 3,945,552 0 0 0 0 4,069,952 0 0 5,000 0 0 0 0 0 0 0 0 0 0 5,000 5,575,885
1 1 1 1 1 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1

2 4

$ $ LEED Silver 3.00% 1 18,422 0 1,833 0 0 0 0 0 0 0 0 0 0 0 20,255 0 0 0 3,732 9,143 4,478 0 0 0 17,354 0 0 0 0 0 0 0 17,354 3,732 118,367 0 0 0 0 122,099 0 0 0 0 0 0 0 0 0 0 0 0 0 0 159,708 Total Construction 8% 8% 0% 5% 5% 5% 5% 0% 5% 5% Risk Factor %

702,860 4,648,412 Cost of Risks 1.4% 1 31,625 11,165 3,147 250 0 0 100 0 0 0 0 0 0 0 46,286
0 0 0 0 0 0 0 0 0 0 0 0 0 0

<<Raw Const. Cost Design Contingency 10% 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13,838 33,904 15,376 0 0 0 63,118 0 0 0 0 0 0 0 63,118
1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Years to mid construction 0.88 Bid Contingency 2.0% 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,044 7,459 3,383 0 0 0 13,886 0 0 0 0 0 0 0 13,886
0 0 0 0 0 0 0 0 0 0 0 0 0 0

Project # This Program Subtotal COST

500726 FY08-Off year Expenditure before FY06

DCD Version 2007.3

Construction Contingency 10% 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15,527 38,040 17,252 0 0 0 70,818 0 0 0 0 0 0 0 70,818

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Cost Escallation 2.60% 1 15,254 5,385 1,518 121 115 0 48 46 115 0 0 0 0 0 22,601 5.60% 0 0 5.60% 8,435 20,666 9,372 0 0 0 38,473 5.60% 0 0 247 0 0 0 247 38,720 5.60% 7,810 247,714 0 0 0 0 255,524 5.60% 0 0 247 0 0 0 0 0 0 0 0 0 0 247 317,092

TOTAL Project

Planning, Design, Supervision (PDS)

D1 D3 D2 D4 D5 D6 D7 D8 D9 D10 D11 D12 D13 D14 D A/E Fee Design and Construction Management Staff Permits Survey Cost Estimate Geotechnical Services Printing Advertising Testing Commissioning fee Traffic Study Other Other Other Other

0%

Project Cost and Budget Management

5%

679,372 239,849 67,600 5,371 5,115 0 2,148 2,046 5,115 0 0 0 0 0 1,006,616 0 0 0 179,227 439,105 199,141 0 0 0 817,473 0 5,000 247 0 0 0 5,247 822,720 165,951 5,263,402 0 0 0 0 5,429,353 0 0 5,247 0 0 0 0 0 0 0 0 0 0 5,247 7,263,936 <<CCAP - Design contg.

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

679,372 239,849 67,600 5,371 5,115 0 2,148 2,046 5,115 0 0 0 0 0 1,006,616 0 0 0 179,227 439,105 199,141 0 0 0 817,473 0 5,000 247 0 0 0 5,247 822,720 165,951 5,263,402 0 0 0 0 5,429,353 0 0 5,247 0 0 0 0 0 0 0 0 0 0 5,247 GRAND TOTAL

LAND

L1 Land Cost (ALARF) L2 Other L Subtotal Land

0 0

0 0

0 0

0 0

0 0

0 10,251 25,114 0 0 0 0 35,364 0 0 0 0 0 0 0 35,364 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 81,651 Design Contingency

1 1 1 1 1 1

SITE IMPROVEMENT
S1 S2 S3 S4 S5 S6 S U1 U2 U3 U4 U5 U6 U Earthwork Exterior Improvement Site Utilities- SWM Other Other Other SITE IMPROVEMENTS Subtotal
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

6%

UTILITIES

WSSC Connection fee Electrical connection fee Gas connection fee Fibernet infrastructure Other Other UTILITIES Subtotal

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

1 1 1 1 1 1

0% 6% 0% 0%

SU SITE IMPROVEMENTS & UTILITIES Subtotal

CONSTRUCTION
C1 C2 C4 C5 C6 C7 C O1 O2 O3 O4 O5 O6 O7 O8 O9 O10 O11 O12 O13 O T Existing Conditions General construction Other Other Other Other CONSTRUCTION Subtotal 12,813 406,392 0 0 0 0 419,205 0 0 0 0 0 0 0 0 0 0 0 0 0 0 482,323
1 1 1 1 1 1

0% 0% 0% 0% 0% 0% 0% 0%

2,819 89,406 0 0 0 0 92,225 0 0 0 0 0 0 0 0 0 0 0 0 0 0 106,111

14,376 455,972 0 0 0 0 470,348 0 0 0 0 0 0 0 0 0 0 0 0 0 0 541,166

1 1 1 1 1 1

OTHER

Furniture Equipment Move Telephone system Security system Fibernet Computers and IT Signs/wayfinding Other Other Other Other Other OTHER Subtotal TOTAL PROJECT COST Project Budget Panel >>>>>>

1 1 0 0 0 0 0 0 0 0 0 0 0

1 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0

1 1 1 1 1 1 1 1 1 1 1 1 1

0% 1%

7,263,936
5,582,468

6,140,715

507,497

Const. Contingency

558,247

5,074,971

CCAP

Project Budgeting Tools PDF Preparation Workbook Total Project Cost Estimate
Hamid Omidvar, 9.2008

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Project XYZ
Category Agency Project category

5045671
7-34 (FY04)

DCD
Planning area

Previous PDF Page Number Planning Area

Department Name
Before and Estimate FY-0 FY-0 7 8 13 0 3 1,200 0 0 0 0 0 0 16 1,200

EXPENDITURE SCHEDULE ($000)

FY-0 12 357 0 61 7,219 1,479 9,116 FY-0 13 110 0 0 0 106 215 FY-0 14 0 0 0 0 0 0 Beyond 6 Years 0 0 0 0 0 0

Project Cost and Budget Management

Cost Element PDS Land Site + Utilities Construction Other Total G.O.Bonds CR General Federal Aid State Aid

Total 2,034 1,203 3,036 10,322 1,585 18,180 0 0 0 0

Months in design or con. Maintenance Energy Program-Staff Program-Other Cost Savings Offset Revenue Net Impact Work years

0 0 633 272 0 0 0 0 905 0 0 0

Total FY-0 FY-0 FY-0 6 Years 9 10 11 457 844 253 2,021 0 0 0 0 3,036 0 0 2,976 10,322 0 0 3,103 1,585 0 0 0 16,964 457 844 6,332 FUNDING SCHEDULE ($000) 0 0 0 0 ANNUAL OPERATING BUDGET IMPACT ($000) 0 0 0 0 12 12 12 12 0 633 0 0 0 0 0 0 0 272

0 12 0 0

10 2 186 80

12 0 223 96

12 0 223 96

905

0 MAP

266

319

319

APPROPRIATION AND EXPENDITURE DATA Date First Appropriation FY01 Initial Cost Estimate First Cost Estimate FY05 Current Scope FY05 Last FY's Cost Estimate FY07 Present Cost Estimate Appropriation Request Apprp Request Estimate Supplemental Approp Request Transfer Cumulative Appropriation Expenditures/ Encumbrances Unencumbered Balance Partial Closeout Through New Partial Closeout Total Partial Closeout FY03 FY04 FY07 FY08 FY06

0 0 0 16,300 18,180 1,206 362 1,200 18,180 16 18,164

NOTES

Project Budgeting Tools PDF Preparation Workbook Project Approval Forms (PDF)
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Sample project project Sample

CSI Division Division % % of of total total Cost Cost CSI

02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33 SiteUtilitiesUtilities-SWM SWM Site ExteriorImprovement Improvement Exterior Earthwork Earthwork Electronic Safety and Security Electronic Safety and Security Communications Communications Electrical Electrical Integrated Automation Integrated Automation HVAC HVAC
2.33% 2.33% 2.09% 2.09% 12.20% 12.20% 1.50% 1.50% 3.21% 3.21% 6.56% 6.56% 2.68% 2.68%

Project Cost and Budget Management

02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 21 21 22 22 23 23 25 25 26 26 27 27 28 28 31 31 32 32 33 33

Plumbing Plumbing 3.77% FireSuppression Suppression 3.77% Fire $149,280 SiteUtilitiesUtilities-SWM SWM $149,280 Site 5.35% ConveyingEquipment Equipment 5.35% Conveying Exterior Improvement Exterior Improvement 2.14% Special Construction 2.14% Special Construction $124,400 Earthwork $124,400 Earthwork 3.29% Furnishings 3.29% Furnishings $108,228 ElectronicSafety Safety and Security $108,228 Electronic 1.79% Equipment and Security 1.79% Equipment $97,032 Communications $97,032 Communications 1.50% Specialties 1.50% Specialties Electrical 1.20% Electrical Finishes 1.20% Finishes $69,664 IntegratedAutomation Automation 3.21% $69,664 Integrated Openings(Doors (Doors& &Windows) Windows) 3.21% Openings HVAC 1.50% Thermaland andMoisture MoistureProtection Protection HVAC 1.50% Thermal Plumbing 2.11% Wood, Plastics, and composites Plumbing 2.11% Wood, Plastics, and composites $175,404 FireSuppression Suppression 1.22% Metal $175,404 Fire 1.22% Metal ConveyingEquipment Equipment Masonry Conveying Masonry $99,520 Special Construction 6.16% Concrete $99,520 Special Construction 6.16% Concrete 2.68% $153,012 Furnishings Existing Conditions 2.68% $153,012 Existing Conditions Furnishings

CSI Division Division Cost Cost CSI

15.17% 15.17% 9.23% 9.23%

$304,780 $304,780

$567,264 $567,264 $705,348 $705,348 $429,180 $429,180 $248,800 $248,800

9.10% 9.10%

Equipment 2.00% 0.00% Equipment 0.00% 2.00% Specialties Specialties Finishes Finishes Openings(Doors (Doors& &Windows) Windows) Openings Thermaland andMoisture MoistureProtection Protection Thermal Wood,Plastics, Plastics,and andcomposites composites Wood, Metal Metal Masonry Masonry Concrete Concrete ExistingConditions Conditions Existing
0 0

$83,348 4.00% $83,348 4.00% $69,664 $69,664 $55,980 $55,980

6.00% 6.00%

8.00% 8.00%

10.00% 10.00%

12.00% 12.00%

14.00% 14.00%

16.00% 16.00%

$149,280 $149,280 $69,664 $69,664 $98,262 $98,262 $56,823 $56,823 $422,960 $422,960 $286,120 $286,120 $124,400 $124,400
100,000 100,000 200,000 200,000 300,000 300,000 400,000 400,000 500,000 500,000 600,000 600,000 700,000 700,000 800,000 800,000

Project Budgeting Tools PDF Preparation Workbook Base Cost Analysis

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Project Cost and Budget Management

Budget Management and Cost Control

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Project Cost and Budget Management

Montgomery County Manual for Planning, Design, & Construction Of Sustainable Buildings Montgomery County
Manual for Planning, Design, & Construction Of Sustainable Buildings

Version 2008.7 Department of General Services (DGS) Version 2008.7 Montgomery County Maryland 101 Monroe Street Rockville, Maryland 20850

Available on Countys web site

www.montgomerycountymd.gov

Design Manual, Design Quality Control

May 2006
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Montgomery County Maryland Manual for Planning, Design, Montgomery County Maryland Manual for Planning, and Construction ofof Sustainable Buildings Design, and Construction Sustainable Buildings
Procedure 4 I. General 4 A. General Scope of the Work 4 Deliverables/ Submittals 5 II. Drawing Requirements 5 A. Production 5 B. Electronic File Format and CADD 7 III. Specification Requirements 9 A. Format 9 IV.Cost Estimating Requirements 10 A. General 10 B. Format 11 V. Presentation Requirements 12 A. Renderings 12 B. Slide Show 12 C. Material Boards and Samples 12 D. Model Requirements 12 VI. Design Quality Control (DQC) Requirements 13 A. General 13 B. Submittal Tracking Plan 14 C. Scope Tracking System: 14 D. Coordination Plan: 14 E. Space Calculation Charts: 14 F. Review Process 14 G. Minutes of Meetings 16 H. Decision Log 17 I. Project Schedule 17 J. Schedule Log 17 K. Construction Cost Change Log 18 Department of General Services -DGS PROJECT PHASES 18 2008.7 VII. Phases 18 A. General 18 B. Conceptual Planning Phase 18 C. Schematic Design Phase 18 D. Design Development Phase 19 E. Construction Documents Phase 19 F. Bidding and Negotiations Phase 19 G. Construction Phase 19 DesignQualityControl ProjectPhasesandDeliverables Page2of69 Design QualityControl ProjectPhasesandDeliverables 1of69 Version 2008.7 PartPage 1Section C Version2008.7 Part1SectionC

Project Cost and Budget Management

Design Quality Control Project Phases and Deliverables

Design Quality Control

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MontgomeryCountyMarylandManualforPlanning,Design, andConstructionofSustainableBuildings

Design Quality Control (DQC) Requirements

Project Cost and Budget Management

Documents: Scope change Log Schedule change Log Construction Cost Change Log Decisions Log Submittal Tracking Log Documents/ design Coordination Log Space Calculation Charts Minutes of Meetings

Review Process: Progress Review Meeting Informal Reviews Quality Control Review Architectural Review Committee

DesignQualityControl ProjectPhasesandDeliverables Version2008.7

Pagexof69 Part1SectionC

Design Manual, Design Quality Control

May 2006
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Project Cost and Budget Management

In a free market economy, you can not dictate costs Owner will ultimately pay at least the true cost of the project at market prices However, it is possible to manage risks and anticipate market trends and fluctuations to reduce the magnitude of cost overrun impact.

31

Lessons learned
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Meet the scope defined for the project

Scope

Project Cost and Budget Management

Thank you
Budget
It is within the established budget

Meets and exceeds industry standard of quality

Quality

Schedule
It is designed and constructed within the established schedule

Sustainability & Safety

Meets sustainability and safety requirements

Communication
Project is well documented and communicated

The world of a successful project

Hamid Omidvar, 9.2008