Estimates are developed to forecast tender results and other project costs. Estimates are used as part of the approval stage to help departments make decisions about renovations and alterations to their space.
Time to time estimates are required to help determine the feasibility and indicative project.
Estimate Types
Order of Magnitude based on unit cost & areas and provides general information to guide decisions or future capital projects.
Because Cost estimates are more detailed and follow industry standards, these types of estimates indicate construction costs as well as soft costs.
Third party estimates – Quantitative Surveyors (aka cost consultants) – are prepared for approved projects moving to construction and these level of estimates are prepared in advance or prior to the tender phase.
The estimate should include all possible project expenses including the following, but not limited to:
- Planning
- Design
- Construction
- Demolition
- Consultants
- FFE (furniture, furnishings & equipment)
- IT (information & technology)
- Permits
- Security
- Signage
- Moving charges
- and other industry allowances and contingencies
- HST
Estimates Explained
The estimates are based on results from historical similar projects at the University and are NOT actual quotations. The actual cost will only be known from the results of competitive tendering. There may be a gap between the estimate and the tender results. Costs are market driven and will be impacted by the amount of construction activity in the city and the cost of materials. If the lowest bid in a tender is higher than the estimate, the Planner or Project Manager will review project options with the user to find a solution.
Additional costs may arise during the construction phase, due to unforeseen site conditions, coordination issues between various disciplines, a change requested by the user, or some other change in the scope of the project. The cost of these changes is requested from the contractor through a Scope-Change-Request. If the user group and the Project Manager agree that these are fair and reasonable charges, they will sign a Scope-Change-Request instructing the contractor to proceed with the change. The extra cost could be absorbed from the 20% contingency that is standard on renovation projects. In case this cost exceeds the contingency amount, the user is responsible for the additional funds.
Client driven additional design changes, authorities having jurisdiction, can affect scope and timelines. Increased scope and timelines may affect final project costs.