Your client requests a construction estimate for budget approval but design is only 30% complete. The architect indicates the building will be approximately 25,000 square feet. Which estimating approach provides the most appropriate level of accuracy?
Correct Answer
A) Square foot method with 20% contingency
At 30% design completion, the square foot method with higher contingency is most appropriate. Detailed takeoffs aren't possible with incomplete drawings, while the square foot method can provide reasonable budget estimates with adequate contingency for design development.
Why This Is the Correct Answer
At 30% design completion, detailed drawings and specifications are not available, making the square foot method the most practical approach. This method uses cost per square foot based on similar building types and can provide reasonable budget estimates even with limited design information. The 20% contingency appropriately accounts for the uncertainty inherent in early design phases and potential scope changes as the design develops.
Why the Other Options Are Wrong
Option C: Detailed quantity takeoff with 15% contingency
The assemblies method requires more detailed information about building systems and components than is typically available at 30% design completion. While more detailed than square foot pricing, it still needs substantial design development to be accurate.
Option D: Unit price method with 25% contingency
The unit price method requires detailed quantities of specific work items to be known, which are not available at 30% design completion. Additionally, 25% contingency is excessive and may lead to unrealistic budget expectations.
Memory Technique
Think '30% = 3 words = Square Foot Method' - the simpler the design info, the simpler the estimating method should be
Reference Hint
Look up estimating methods and design phases in construction management or cost estimating chapters of your reference materials
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