Construction Cost Systems
Construction cost systems help a contractor determine how much they will need to pay in order to complete a commercial construction project to its design specifications. Construction cost systems detail the total price of all aspects of construction, from the purchasing of materials to permitting, insurance, paying for blueprints, the hiring of subcontractors and the amount paid to construction workers. Construction cost systems also help in the monitoring of possible cost overruns, which can derail a project.
Monitoring construction cost systems is a job normally handled by a specialist assigned by a general contractor to a specific project. No two projects are the same, as requirements differ from one project to another, which makes this major step even more important.
During the traditional bid process, the information needed from construction cost systems relates to construction only. There is information in a construction cost guide the cost of items like concrete for the foundation, cables for electrical wiring, flooring, plumbing, carpentry and HVAC (heating, ventilation and air conditioning). In the design-build process, developing a tally from construction cost systems 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 outcome determined by construction cost systems 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.
Construction cost systems software has largely replaced large books when it comes to determining the cost of construction, as they are able to complete the process more quickly and efficiently. There are a number of programs that can break down cost estimates into subsections, as well as delivering the overall total price.
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