REE-4103 Lecture Notes - Lecture 28: Indirect Costs, Standard Cost Accounting
10 Feb 2018
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Document Summary
Building cost estimates: cost data sources, cost-estimating services, cost-index trending, cost-estimating methods, the comparative-unit method, the unit-in-place method, the quantity survey method, estimating entrepreneurial incentive. Cost data sources: construction contracts, building contractors, professional cost estimators. Interviewing local owners who recently built similar improvements. Cost-estimating services: many services publish data for estimating current cost of improvements, published/on-line cost manuals include, direct costs, some indirect costs. Indirect costs may be included in the unit cost or computed separately: unit costs vary with size. If the subject building is larger than the benchmark building, the unit cost is usually lower. Quantity survey method: produces a cost estimate based on a detailed inventory of the labor, materials, and equipment used in the subject improvements. Is the most comprehensive and accurate method of cost estimating: quantity survey method is time-consuming, costly, and frequently requires the services of an experienced cost estimator.
