The CostProGram
From CostPro, the Cost Professionals
Chris Caligari, President     Diana Rubino, VP, Director of Marketing
April 4, 2008
In This Issue
About our Principals
Trivia Question
Square Foot Estimating & Resources
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About Our Principals 

Photo of Chris Caligari

Chris Caligari

Chris was born in Liverpool, England. After studying mathematics at the University of WalesInstitute of Science & Technology, Cardiff, he became a Quantity Surveyor, continuing his professional studies at Southampton College of Technology's School of Building. He gained an international pedigree after joining the London-based Murdoch Green Partnership where he worked for the company on four continents and helped establish a North American branch office.

Chris is a keen golfer, and an accomplished chess master. He has represented the US in play against England, Germany, Israel and Uruguay.
 
Cranston Building
Diana Rubino
 
Diana is CostPro's Director of Marketing. She's also studying for a Master's degree in Heritage Studies at Plymouth State University, Plymouth, NH, and participates in archaeological excavations as part of the coursework.

An active SMPS member since 1989, Diana served two terms as Treasurer of the Boston Chapter. She is a member of the Boston Society of Architects.

She has also written several  historical novels, which have been published by British publisher Domhan Books.

Trivia Question:
 Win a $20 Amazon.com Gift Certificate!
 
Hint: The answer to this question is in the current BSA Currents article.  The first responder will receive a $20 gift certificate to Amazon.com.
 
Question:
 
When is opening day at Fenway Park for the Red Sox this year?
 
 
Please click here to Email your answer.
 
Dear Friends, 

This is our very first E-newsletter, in celebration of our 13th anniversary as CostPro. We hope you find it enjoyable and informative. We want to take this opportunity to thank our clients for their loyalty over the years, and for helping us grow. We enjoy our long-term relationships, and always appreciate the chance to build new ones.
Sincerely,
Diana, Chris, and the CostPro Team
Price it Right:
 
Square Foot Estimating & Resources
 
Often in the early stages of a project, an owner asks for a budget. With limited information and time it is tempting to turn to published sources and prepare a budget on a square foot basis. A number of books are published annually, specifically for this purpose. These include the following:
 
◦   RSMeans Square Foot Costs  (Means Square Foot Costs) by Robert A. Bastoni, John H. Chiang, Robert J. Kuchta, and Robert C. McNichols
◦  Light Commercial Cost Data (Means Light Commercial Cost Data) by Howard M. Changler
◦  BNI Building News Square Foot Costbook (Square Foot Costbook) by BNI Building News 
◦  Commercial Square Foot Building Costs by Jim Horvath, Stan Strychaz, Ian Haigh, Matt Kimmel by Saylor Publications
 
These books can be valuable tools when used correctly with skill and care to set or validate a budget. They can also lead to disaster if not used properly. It is important to understand what they represent.
 
Understand the Book and its Cost Models
 
The costs shown in these books are national-average probable costs, assuming average quality materials, for projects constructed in the year prior to publication. They are usually based on a specific model of construction. Pricing adjustments are required to make use of the costs in New England. The area factor given in the book for project location must be added, along with escalation to construction mid-point. This transports a duplicate of the book cost model to your location and construction time, but that is not enough. It is only the beginning.
 
Construction of the book cost model in New England is not allowed, so it cannot be duplicated. New England has much more stringent requirements to meet than the national average. Energy codes, seismic codes and building codes dictate many costly components be added to the book cost model. Four-inch-thick foundation walls are not acceptable, deeper footings are required for frost protection, additional insulation and vapor barriers are required in slab, walls and roof, more steel is needed for seismic bracing, smoke vents may be necessary, handicap lifts may be required for accessibility codes, low flow and energy saving plumbing, mechanical and electrical fixtures are mandated. All of these adjustments must be made before the cost model has any validity at all in New England. The cost of items required by code but excluded by books like R.S. Means is significant.
 
It is also important to realize that the book cost model is incomplete. It is intended as a skeleton framework upon which to build by adding project specific items. The cost model does not include any sitework at all. It does not include bringing utilities to the building. Many systems and technologies are excluded from the cost model. Cost models often have extremely simple mechanical systems without DDC controls. They do not include any allowance at all for a design and price reserve or other project contingencies. The cost of items necessary to a project but excluded by books like R.S. Means is also significant.
 
Using the Book and its Cost Models Correctly - a Checklist
 
◦  Be sure to measure using the same method as the book you use.
◦  Measure the area accurately.
◦  Apply realistic net-gross multipliers when pricing program costs.
◦  Adjust the cost model for time, location, codes and project specifics.
◦  Don't forget to add a sitework estimate including utilities.
 
 
How Far Can You Go Wrong?
 
To give you an idea of how far some book cost models depart from the reality of New England construction, and how much these adjustment premiums can be, a high school auditorium was budgeted from R.S. Means at $120.80/sf by the Town prior to our involvement. Our estimate was over $300.00/sf and we were asked to reconcile the differences. Starting from the R.S. Means book cost model and applying all of the needed adjustments and systems modifications brought the R.S. Means price up to $295.18/sf. Other budgeted program had to be cut to make up the overrun. In another instance we are providing litigation support services on a project where the designer used R.S. Means square foot costs to estimate all the way through construction documents, only to see bids come in far higher. So much so that he was fired and a lawsuit begun by his client. It is extremely dangerous to blindly rely on this data right out of the book without appropriate adjustment.
 
A More Accurate Methodology
 
There really is no such thing as a square foot cost for any building other than as a matter of historic record after it is complete. It is better and more accurate to prepare a simple Uniformat systems cost plan. A systems estimate is the only reliable way to generate an accurate square foot cost that accounts for all the variables that affect cost. There is no other way to accurately take into account the impacts of structural spans, wall heights, load factors, footprint shapes, roof pitches, heating & cooling loads, and levels of proposed finishes. Only after you cost out all the component parts of your building can you generate a meaningful and useful square foot cost. It is usually faster and easier to do this than to go through the laborious process of correctly adjusting a standard book cost model that bears little resemblance to the building you are designing.
We hope you enjoyed our newsletter and would like to continue receiving it monthly. Please don't hesitate to call or drop us a line if you'd like any further information or have any questions.  Have ideas for topics you'd like to see explored? Email us.
We look forward to hearing from you!
Tel: 617/576-5878