A01ulhaq3 Construction Cost Analysis
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University of Illinois Urbana Champaign Assignment
Department of Civil and Environmental Engineering Fall2023
CEE 422 Construction Cost Analysis
Assignment # 1
(Rough Estimating and Cost Indexes)
"I pledge to uphold the CEE Honor Code.”
Mohammed Mujthaba Ajazul Haq
ulhaq3@illinois.edu
Q 1) Exercise 1 (3 points)
Over 7 years ago your company built a restaurant in New London, Connecticut. It was completed
in 2016 with a total cost of $4,940,000. You were awarded a contract for a similar restaurant.
(Almost same design) that you are building this year (2023) in Daytona Beach, Florida. a) What is the estimated cost of the restaurant? b) If in 2020 you had built a similar restaurant in Decatur, Illinois, what would have been the
cost of it?
Solution
: -
a)
DAYTONA BEACH, FLORIDA.
1)
Time adjustment using the Historical Cost Indexes
INDEX New London, Connecticut: - 207.3
INDEX Daytona Beach, Florida: - 318.8
Cost in Year A = Cost in Year B X Index A
Index B
I assumed the basic cost of restaurant of New London, Connecticut 2016 $4940000
= 4940000 = x X 207.3
318.8
= $7597067.035
2)
Location adjustment using the City Cost Indexes:
City A Cost (Unknown) = City B Cost (Known) X City A Index
City B Index
= x = 7597067.035 X 87.9
101.4
= $6585623.21
Assignment # 1 – Solution Page | 1
University of Illinois Urbana Champaign Assignment
Department of Civil and Environmental Engineering Fall2023
CEE 422 Construction Cost Analysis
b) DECATUR, ILLINOIS
1)
Time adjustment using the Historical Cost Indexes
INDEX New London, Connecticut: - 207.3
INDEX Decatur, Illinois: - 234.6
Cost in Year A = Cost in Year B X Index A
Index B
= 4940000 = x X 207.3
234.6
= $5590564.399
2)
Location adjustment using the City Cost Indexes:
City A Cost (Unknown) = City B Cost (Known) X City A Index
City B Index
= x =5590564.399 X 101.2
101.4
= $5579537.645
Assignment # 1 – Solution Page | 2
University of Illinois Urbana Champaign Assignment
Department of Civil and Environmental Engineering Fall2023
CEE 422 Construction Cost Analysis
Q 2) Exercise 2 (3 points)
You are doing a rough cost estimate for a warehouse. The estimated gross area of the warehouse is 210,000 sf. You have historical cost data from similar previous projects (shown below). Based on these data, what is your estimate for this warehouse? State which estimating method you have
used.
Project
Total Project Cost Size (sf) 1
$46,478,500 223000
2
$13,609,300 96500
3
$23,087,100 100960
4
$12,107,360 65500
5
$38,645,500 176000
6
$31,266,510 193000
Solution
: -
Project
Total Project Cost Size (sf) Cost Per Square ft
1
$46,478,500 223000
$
208.42
2
$13,609,300 96500
$
141.03
Smallest Unit Cost
3
$23,087,100 100960
$
228.68
Largest Unit Cost
4
$12,107,360 65500
$
184.85
5
$38,645,500 176000
$
219.58
6
$31,266,510 193000
$
162.00
Formula: - UC = A
+
4
B
+
C
6
UC = forecast unit cost of proposed project
A = minimum unit cost of previous projects
B = average unit cost of previous projects
C = maximum unit cost of previous projects
Average: - ∑ (Unit Cost)/total no of Projects =
1144.56
6
= 190.7
Assignment # 1 – Solution Page | 3
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