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Model Building Project Management for Construction

5. Cost Estimation

5.1 Costs Associated with Constructed Facilities

The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components.

The capital cost for a construction project includes the expenses related to the inital establishment of the facility:

  • Land acquisition, including assembly, holding and improvement
  • Planning and feasibility studies
  • Architectural and engineering design
  • Construction, including materials, equipment and labor
  • Field supervision of construction
  • Construction financing
  • Insurance and taxes during construction
  • Owner's general office overhead
  • Equipment and furnishings not included in construction
  • Inspection and testing
  • The operation and maintenance cost in subsequent years over the project life cycle includes the following expenses:
  • Land rent, if applicable
  • Operating staff
  • Labor and material for maintenance and repairs
  • Periodic renovations
  • Insurance and taxes
  • Financing costs
  • Utilities
  • Owner's other expenses
  • The magnitude of each of these cost components depends on the nature, size and location of the project as well as the management organization, among many considerations. The owner is interested in achieving the lowest possible overall project cost that is consistent with its investment objectives.
     
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    SKETCH-PLUS, a professional Model Building, committed to building quality scale models. We build architectural models for our clients to use in sales, as training aids, presentations, and displays.

     
    “No stream rises higher than its source. What ever man might build could never express or reflect more than he was. He could record neither more nor less than he had learned of life when the buildings were built.”
    Frank Lloyd Wright
    (1867 – 1959)
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