AC & E Support Services
3203 Lighting St. Suite 114
Santa Maria, CA 93455
Phone: (805)349-0049 Fax: (805)349-0089

The Eight Most Frequently Ask Questions About A C & E
Support Services Estimates


1.0 What Is an Independent Estimate?

A C & E Support Services provide Construction Cost Analysis Services to the end user that reflect our best estimate of the potential construction cost of any given project. The end user can be assured that the final estimated cost outcome is the result of our independent analysis of material quantities and their associated labor costs, using the information provided to us by the Design Architects and Consulting Engineers

Typically we have a draft estimate review meeting with the Design Architects to clarify Engineering and Design details before submitting the estimate to the end user. The draft estimate will then be adjusted to reflect those clarifications.

The Independent Cost Estimate that we provide to the end user, is our best estimate, and is not influenced by the Architect / Designer or any other entity that may desire a particular projected cost outcome.


2.0 Where does A C & E Support Services Obtain Current Construction Cost Data?

We have developed our own proprietary software to generate the estimates. We purchase cost data from Saylor Publication Inc. We then convert LSI's data into our database system and adjust the material and labor costs data in our system to reflect current trends and market conditions

There are many factors that influence the cost adjustments that we make to the source data, for example: fuel and transportation cost; availability and cost of commodities such as steel, cement, forest products; increases in subcontractor labor costs; the location of the project; and most importantly, feed back from completed projects.

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3.0 How Accurate is the Estimate?

Our goal is to be within 7% of the lowest bid and 5% of the highest bid for a given project, with a total spread of about 12%.

There are situations where unforeseen market conditions, such as availability of materials, labor, and energy costs severely impact the actual cost of construction.

An example of this would be the impact of a natural disaster on the supply of construction materials or an increase in oil costs that impact the cost of asphalt. The time line of a project can impact the final cost of a project. For example, our estimate predicts that a project will start at a particular date and be completed within a certain period of time. Any changes in the projected time frame will have an impact on the final cost of a project vs. our estimate.

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4.0 Why Should I have A C & E Provide Me with an Independent Estimate?

The Project design decisions are made by the needs and wants of the end user. The end user needs to establish a realistic budget early in the design process and monitor the potential cost impact as the project design development process moves forward.

The utilization of the cost information that is provided to the Architect / Designer and end user will produce a more cost effective project within an established budget

In order to avoid an expensive redesign of the project, it is desirable to establish the cost feasibility factor early in the project design process. The Architect / Designer and end user can make adjustments to the scope of the project without incurring unecessary redesign costs.

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5.0 What Are the Five Levels of Project Estimates?

The Conceptual Estimate
The Conceptual Estimate is usually developed from an elevation and floor plan and written or verbal input from the Architect / Designer.

Several project options may be under consideration to meet the end user's requirements.

The line items (i.e.: Cost Centers) are developed by us, from the Architect / Designer input and from the material quantities and their associated costs. These line items are developed from "similar use" project estimates that are in our existing library.

The purpose of the Conceptual Estimate is to provide probable cost data to establish which design concept may be the most feasible. The Conceptual Estimate or estimates should be viewed as comparative estimates, although it is possible to establish a realistic project budget based on the Conceptual Design Estimates.

The Schematic Estimate
The Schematic Design is developed from the Conceptual Design that the Architect / Designer and end user have determined to be the most appropriate to meet the project requirements, including the conceptual budget.

The schematic estimates are usually developed from more refined elevations, floor plans, site plans, and written inputs from the Architect / Designer. The project at this stage of the process is more clearly defined than at the Conceptual Design Stage.

The purpose of a Schematic Design Estimate is to set a project budget and provide a cost base line for the Design Development and Construction document estimates.

The Design Development Estimate
The design development estimate is based on more detailed information from the Architect / Designer and the engineering consultants. The design development estimate can provide the Architect / Designer with value engineering (cost / benefit) information on specific systems such as Wood vs. Steel Construction and Heating & Cooling Systems

The Architect / Designer and the end user can use the cost data to make educated cost benefit decisions.

The design development estimate also tracks the cost of both design changes and design refinements from the Schematic Design phase.

The Construction Document Estimate
The construction documents provided to the estimator generally include all of the details about the project. The Construction Document Estimate is developed from the Plans & Specifications that will be provided to the General Contractor by the Architect / Designer and the end user for bidding purposes.

Final adjustments such as bid alternate's and construction time lines can be established and applied to the bid documents.

The Pre Bid Estimate
The pre Bid Estimate is the final estimate pass and is used to evaluate the Contractors Bid proposals prior to the signing of the Construction Contract Document by the end user.

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6.0 Do I need to have all of these Estimates?

No not necessarily.

Each project is different. The more complex the project the more decisions that have to be made by the Architect / Designer and the end user. On less complex projects such as custom residential construction, the Conceptual and Schematic design phases are often combined. The end user usually has an established not to exceed budget.

A Schematic Estimate provides the Architect / Designer and the end user a realistic budget to work with. Modifications to the project scope can be made by the Architect / Designer and the end user before Design Development & Construction Documents are fully developed.

Typically residential project estimates combine the Construction Document Estimate and Pre Bid Estimate so that the end user can obtain construction financing and compare the competing contractors' bid proposals, before signing the construction contract.

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7.0 What Are Estimate Line Items

Our estimates utilize the CSI Coding system (Construction Institute Standards). The system is divided into 16 categories or divisions.

The 16 divisions consist of the following:
1.0 General Conditions 9.0 Finishes
2.0 Site Work & Demolition 10.0 Specialties
3.0 Concrete 11.0 Equipment
4.0 Masonry 12.0 Furnishings
5.0 Steel & Metals 13.0 Special Construction
6.0 Carpentry 14.0 Conveying Systems
7.0 Thermal & Moisture Protection 15.0 Mechanical & Plumbing
8.0 Doors Windows & Glass 16.0 Electrical Work

Within each division there are a number of subcategory cost items with a numeric code and definition for each work item. The item coding is linked to the material cost of that item and the man-hours that are required to install that item.

The Estimated Labor costs are determined by the average labor cost of the associated Sub Contractor Trade, multiplied by the man-hour requirement.

Note: In A C & E's proprietary System there are 25 Sub Contractor Specialties (per California Contractors License Board Classifications)

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8.0 What are General Conditions?

General Conditions are the indirect costs of constructing a project; they include costs that are not directly associated with the physical construction.

For Example:
  • Project Supervision

  • Temporary Facilities
    for example: toilets, power, storage temporary fencing.

  • Labor that is directly supplied by the General Contractor
    for example: site clean up.

  • Design Contingencies
    for example: unforeseen engineering and design changes that become necessary due to field conditions.

  • Construction Contingencies
    for example: budget for owner-generated change orders.

  • Contractor Overhead & Profit
    for example: project administration, bonding, liability insurance, workman's comp insurance, and profit.

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