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FHLB Affordable Housing CompetitionMarch 4, 2020 Workshop Night

Cost, Design, and Impacts to the Total Project Budget

Jonathan Lavash

Jonathan Lavash Project Management, LLC

The Project Delivery Team: Owner, Architect, Contractor

FHLB Competition – March 7, 2018 Workshop Night - JLPM, LLC. 2

Triple Project Constraints: Scope, Budget, and Schedule

FHLB Competition - March 7, 2018 Workshop Night - JLPM, LLC. 3

Project Delivery: Planning, Design, Construction


Project timeline

Planning- Site Selection- Highest and Best Use- Financial Planning- Regulatory Approvals

Design- Conceptual Design- Detailed Design- Construction Documents- Construction Administration

Construction- Subcontractor Procurement- Submittals and Purchasing- Production and Quality- Change Management

Changes to the Project: Influence and project cost


Value Management:Continuous Value Engineering Process


Typical Project Budget History Curve


Construction Costs and Total Project Budget

• Construction costs usually account for 70% to 80% of the total budget.

• Construction costs are part of the Hard Cost budget.

Total Project Budget

o Acquisition

o Hard Costs

o Soft Costs

o Owner’s Contingency


Development of the Total Project Budget


Hard Costs:

o Construction Estimate (From contractors, estimators, benchmarks, in-house resources)

o Owner furnished Items (Security and access systems, FFE)

Soft Costs:

o Architect’s proposal including consultants (or % of construction costs)

o Legal Feeso Accounting Feeso Owner’s Project

Managemento Clerk of the Works

o Financing Feeso Insuranceo Surveyingo Taxeso City Feeso Appraisalso Testing and Inspection

Owner’s contingency

• Contingency covers unknowns in the project:o Design development

o Economic development

o Scope development

o Unforeseen subsurface conditions

• Owners run contingency down during all stages:o Planning

o Design (Concept, Schematic, Development, Documents)

o Construction


Construction Costs:Masterformat of Construction Specification Institute


MASTERFORMAT 1995 EDITIONBefore November 2004, MasterFormat was composed of 16 Divisions:

Division 1 — General RequirementsDivision 2 — Site ConstructionDivision 3 — ConcreteDivision 4 — Masonry (Ex. Concrete block)Division 5 — Metals (Ex. Beams)Division 6 — Wood and PlasticsDivision 7 — Thermal and Moisture ProtectionDivision 8 — Doors and Windows

Division 9 — FinishesDivision 10 — SpecialtiesDivision 11 — EquipmentDivision 12 — FurnishingsDivision 13 — Special ConstructionDivision 14 — Conveying SystemsDivision 15 — Mechanical (Ex. Plumbing and HVAC)Division 16 — Electrical

Hard Cost Estimates: Actual Affordable Housing Example


Uses of Funds Analysis

Name

. Basis for estimates?

14,000 SF

DV Trade Item Amount % By Division $/SF

. 3 Concrete $129,816 5% 5% 3 $9.27

. 4 Masonry $8,002 0% 0% 4 $0.57

. 5 Metals $6,381 0% 0% 5 $0.46

. 6 Rough Carpentry $197,068 7% 9% 6 $14.08

. 6 Finish Carpentry $47,879 2% $3.42

. 7 Waterproofing $13,216 0% 7% 7 $0.94

. 7 Insulation $18,869 1% $1.35

. 7 Roofing $32,322 1% $2.31

. 7 Sheet Metal and Flashing $9,347 0% $0.67

. 7 Exterior Siding $116,237 4% $8.30

. 8 Doors $116,525 4% 6% 8 $8.32

. 8 Windows $55,836 2% $3.99

. 8 Glass $0 0% $0.00

. 9 Veneer Plaster $0 0% 11% 9 $0.00

. 9 Drywall $131,793 5% $9.41

. 9 Tile Work $73,297 3% $5.24

. 9 Acoustical $0 0% $0.00

. 9 Wood Flooring $0 0% $0.00

. 9 Resilient Flooring $44,601 2% $3.19

9 Carpet $0 0% $0.00

. 9 Paint & Decorating $51,844 2% $3.70

AM Fogarty Scheme A

Hard Cost Benchmarks:New York City Example
