FREQUENTLY ASKED QUESTIONS

Iterative estimating is the overall process of refining design decisions and reflecting these decisions in increasingly accurate cost spreadsheets.

Iterative estimating provides: 

• real-time relevant costing within the context of design decisions 

• rapid revisions to reports 

• tracking of all changes 

• inclusions, exclusions and allowances for review.

The iterative process recognizes that design is a fluid process, and one that best proceeds within the context of costs. Iterative estimating includes standard estimating methods such as on-screen-takeoff, databases, spreadsheets. However the traditional takeoff of components and assemblies occurs only when these items have been specified by the owner/designer. This traditional method is ‘nested’ within a mathematical modelling program. Until decisions have been made, the program generates all components automatically. The mathematical model generates these components according to standard construction methods and costs for the region. The process is entirely one of ‘inclusion’ and further refinement as the building is specified. All allowances and exclusions are automatically generated for review and further decision-making.

As part of the design process, project scope is constantly evolving, changing, becoming more defined. From back-of-the-envelope starting point through to construction drawings, any cost or budget is meaningless without an accompanying scope defining the work.

The Scopes/Finishes Evolution report includes your drawings and all code requirements, and it also includes: 

• Interior Finish Report providing you with a detailed snapshot of the wall, floor and ceiling finishes used in various rooms of the house. It’s likely that you haven’t decided many of these items in the early going. 

• Inclusions, i.e. work that is in the project (especially where these may be subject to uncertainty). 

• A comprehensive list of exclusions that are items not included in this budget at the present time, either because they are not specified, or yet to-be-determined. The exclusions ‘frame the project’. All exclusions are generated automatically when absent from the estimate, ensuring no item is overlooked. 

• A list of allowances that provide a placeholder budget for items not yet specified. All allowances are generated automatically from the estimate. Excluded items generate an automatic zero allowance for further review.

The inclusions, exclusions, allowances and interior finishes change from assumptions, ie. items to be clarified, to becoming a well-defined scope as the design evolves. Now the project has the best chance of being completed the way you envisaged and within the budget.

If you need to know ballpark pricing for the project without spending a lot of money on full-scale analysis, QuikCalc is the starting point for you. You may just be imagining a house or work project, or you may have delved quite deeply into the design process. Either way, our goal here is to understand what kind of dollars the owner-client is likely to spend, more or less (+-30% approx.). With merely a few dimensions, a few finish specifications, and a general discussion of client goals, we can put a dollar value to your project that will avoid surprises 3-6 months from now.

Utilizing standard building norms, regulations and codes, our programs will automatically generate a price based on a list of assumptions that are generated for your review and consideration. Then, you may change these design assumptions, and add new information to get closer to reality with our AutoCalc service. What we provide you with is the dollar value and a list of assumptions about what is included, excluded, and how much allowance is carried for certain items. As we sort out the inclusions, exclusions, allowances, we are able to update the price. This is an ongoing process of further refining your budget with our AutoCalc Service.

We`re all interested in saving the planet! But how much will it cost me today. Payback periods for various technologies can be compared to standard construction to make informed decisions.

Whether LEEDs, or Life cycle, or carbon emission comparisons, there is much that can be said about various environmental technologies, when taken in the context of cost. You may have an environmental consultant or have your architect working to certain goals. In all cases, our programs permit comparisons of different options.

The Class 1 Estimate determines all costs so that the appropriate financing can be determined, the contract can be struck, and the project may proceed. It also begins the process to establish who your preferred vendors are. We provide customized report formats which display increasing levels of granularity according to your needs for detail: 16 division Group Phase report (one page); Phase report (5 pages); Detailed item report (12-35 pages typically). In all cases, the budget figures are based on the full detailed item report estimate that is available.

The cost categories in the detailed item report include material; labour; subcontractors, and equipment, each of which has pertinent values assigned as may apply to the described work. These too can be collapsed or expanded depending upon the reporting needs at various junctures. Necessary overheads and profit or construction management fee can be included at the discretion of the builder in an allocated or unallocated report.

In order for the project to proceed smoothly for all parties, we nail down the scope with accuracy. From drawings, to specifications, to material and subcontractor selections, all decisions are comprehensively reported as part of the Scope/Bid Package Confirmation. The estimate is the vehicle to prepare these details and confirm the definition developed by the designer or owner. The costing process closes the loop, ensuring that all specifications are acknowledged in the budget. We ensure that the Scope/Bid Package Confirmation is correlated to the budget.

Reports includes: 

• Overall Scope Definition 

• Interior Finish Report providing a detailed summary of the wall, floor, and ceiling finishes in all areas of the residence. 

• Inclusions, i.e. work that is in the project, including miscellaneous finishes. 

• A comprehensive list of exclusions. The exclusions ‘frame the project’. All exclusions are generated automatically when absent from the estimate, ensuring no item is overlooked. 

• A list of allowances that provide a placeholder budget for items not yet specified. All allowances are generated automatically from the estimate. Excluded items generate an automatic zero allowance for further review.

The Class 1 estimate/budget is an accurate estimate and this is double verified through subcontractor and material supply sources as part of our Subcontractor/Material Bid Centre service.

Working with the builder, subcontractor costs such as plumbing, heating, electrical and special items are put out to bid. Significant or unusual material costs are double checked and confirmed from appropriate competitive sources. Labour subcontractors can bid the project or your standard labour rates are used. Project quality level is scrutinized for cost implications and adjusted accordingly.

The Class 1 Estimate results in a comprehensive accurate listing of all materials necessary to construct the residence. All materials are preplanned, permitting easy referencing for purchasing, and maximizing the discount through bulk purchase. Avoid increased shipping & invoicing expenses, and very expensive return visits by staff and workers to obtain forgotten items. Many build sites can be in out-of-the-way locations, in which case organized purchasing becomes an even more important efficiency factor.

We can prepare your builder proposal for bid submission to the client/architect. This is a factual document, contract ready, detailing price, options, scope, inclusions, allowances, exclusions, finishes. Serving as your formal submission for contract award, the document acts as a seamless confirmation of the estimate and clarifies any architectural ambiguities. Price can be listed as a one-line statement or can be listed according to a group phase breakdown with 16 divisions. We offer a more extended report as supplemental that presents phase breakdown if your client/architect desires additional detail.

The owner/architect views a professional document that clearly reflects the detail and professionalism that distinguishes your firm from other builders. The probability of successful award is maximized. You can be confident that your submission is neither high nor low, reflecting in balance the project requirements. Confirmation and exception to the specification is clearly apparent for the client/architect. Subsequent change orders are minimized and easily defined. The project is set on a solid footing for client satisfaction, and the margins/profit that you expect.