Construction Cost Comparison
A construction cost comparison can be used by both construction companies and property owners to make sure the prices quoted for construction services are fair and accurate. A construction cost comparison puts the total cost of projects of a similar size and scope and a similar location up against a proposed project. The construction cost comparison can show whether a quoted price is in line with what should be expected.
The construction cost comparison also takes into account the type of services required by the contractor, depending the delivery method selected for the construction project. During the traditional bid process, the construction cost comparison covers the amount it would cost a general contractor to build a project, pay its employees and make a small percentage of profit. The estimate covers the cost of items like concrete for the foundation, cables for electrical wiring, flooring, plumbing, carpentry and HVAC (heating, ventilation and air conditioning). In this case, the comparison does not cover the cost of building or project design, as an architect has been hired by the property owner through a separate contract process.
With the design-build process, the construction cost comparison is more comprehensive and is more involved. In this process, an architect and general contractor combine as a team and present a building or project design and construction contractor services in one proposal. The design-build process is used by those who believe an architect-contactor team with a past history of working together would be more efficient and, as a result, cheaper than an architect and contractor working together for the first time.
The construction cost comparison as part of a construction manager at-risk (CM at-risk) project falls in between the two. The architect is hired separately from the general contractor, but the contractor is involved in the project from the pre-construction process all the way through completion. The estimate comes in the form of a guaranteed maximum price, which covers all services rendered from pre-construction through the building process.
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