Hospital Construction Cost

The hospital construction cost is the overall amount a contractor will need to pay in order to complete a hospital construction project to its design specifications. The hospital construction cost includes 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. Determining the hospital construction cost can be an in-depth, complex process as it requires a complete overview of all costs related to a project.

The hospital construction cost will likely be more than the construction cost of a regular office building because of the complex nature of such a project. Hospitals require more wiring for electronics than a typical building, require their own power generators to be used in the event of an emergency and have rooms, like operating rooms, that are unlike those found in any other project.

Determining the hospital construction cost is a job normally handled by an estimator or accountant assigned by a general contractor to a specific project. No two estimates are the same, as requirements differ from one project to another. Construction estimating software can help guide the estimator or accountant down the right track.

During the traditional bid process, the hospital construction cost 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, construction estimator software 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.

In the design-build process, the work done to determine the hospital construction cost 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 hospital construction cost used 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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