unit price book - Best detailed JOC line item pricing

Finally! A Source for Objective, Verifiable, Current, Granular Construction Cost Data.

“Standardized tasks and processes are the foundation for continuous improvement and employee empowerment”
(Liker 2004).

Why Use 4BT Local Market Construction Cost Data?

Granular local market construction cost data holds significant value for various stakeholders in the construction industry, including contractors, developers, architects, and investors. Here are some key reasons why this data is highly valuable:

Reliable Local Market Project Estimation:

Precise Budgeting: Granular cost data allows for more accurate budgeting and cost estimation for construction projects. This is crucial for ensuring that projects remain within budget constraints.
Cost Breakdowns: Detailed cost breakdowns at a local level provide insights into the specific costs associated with labor, materials, permits, and other project components. This helps in creating comprehensive estimates.

Competitive Bidding:

Bid Preparation: Contractors can use local market data to prepare competitive bids for projects. Understanding local labor rates, material costs, and other expenses allows them to submit more accurate and competitive bids.
Risk Mitigation: Current cost data reduces the risk of underbidding or overbidding, which can lead to financial losses or missed opportunities. Errors and ommissions are mitigated due to the ability to better visualize and share information.

Project Planning and Scheduling:

Scope of Work Clarity: A detailed line item scope of work ensures better knowedge of required labor types and hours as well as material and equipment requirements.
Resource Allocation: Local market data helps in planning the allocation of resources such as labor and materials. This ensures that the right amount of resources is available at the right time, optimizing project schedules.
Lead Time Considerations: Understanding lead times for materials and subcontractors based on local market conditions allows for better project scheduling and coordination.

Decision-Making:

Investment Decisions: Organization rely on local market construction cost data to assess the financial impacts upon mission requirements.
Site Selection: Cost differentials in various local markets can influence decisions on where to locate a project. Access to accurate cost data helps in evaluating the economic viability of different locations.

Negotiation and Contracting:

Subcontractor Agreements: Granular cost data aids in negotiating fair subcontractor agreements. Contractors can benchmark subcontractor bids against local market rates.
Contract Negotiations: Owners and contractors can use cost data to negotiate favorable terms in contracts, ensuring that costs are aligned with market realities.

Regulatory Compliance:

Permitting and Regulatory Costs: Local market data includes information on permitting fees, zoning requirements, and other regulatory costs. This helps in compliance and avoids unexpected expenses.

Quality Control:

Material Selection: Cost data can influence material selection decisions. Balancing cost with quality ensures that projects meet required standards without unnecessary expenses.
Avoiding Costly Changes: Understanding local market costs helps in avoiding costly design changes later in the project due to unforeseen cost implications

Transparency and Trust:

Stakeholder Communication: Transparent cost data fosters trust and improves communication among project stakeholders. Owners, contractors, and subcontractors have a clear understanding of cost expectations.

In conclusion, granular local market construction cost data is invaluable for accurate project estimation, competitive bidding, effective project planning, informed decision-making, negotiation, regulatory compliance, quality control, benchmarking, and transparency in the construction industry. It forms the foundation for successful and financially viable construction projects.

Construction costs change rapidly due to inflation, material shortages, labor demand, the availability of equipment, and multiple other factors.
Your construction cost data can now keep pace!

4BT (Four BT, LLC) is the only source for LOCALLY RESEARCHED reliable, objective, and current granular construction task data, complete with separate demolition lines, line-item modifiers, and even preventive maintenance costs for multiple frequencies and associated checklists. Cost data is UPDATED QUARTERLY, without the use of location factoring or economic indexing.
(Note: Location factoring has been demonstrated to introduce significant error.)

If you are familiar with CSI MASTERFORMAT and line item estimating, there is virtually no learning curve, as construction. Repair, renovation, and new build line items are organized using expanded Masterformat. This also significantly improves information sharing, lowers the cost of updating, expanding, and reuse, and enables knowledge building.

Fully transparent scope of work, schedule, and costs.

Locally researched detailed unit price construction cost data is critical to cost visibility and control. This is even more true today with continued high commodity, material, and labor market volatility. 4BT exclusively provides cost clarity and confidence.

You can’t manage what you don’t measure…

A standardized approach to construction data collection should be established that collates data on all public sector projects across all locations in a common format. The data should then be made available to both public and private sector audiences to leverage the latest methods and tools supporting optimal project planning, costing, procurement, delivery, and management.

Credible Construction Estimate – Core Elements

All public sector entities would benefit by using locally researched standardized cost data to generate line item cost estimates for construction projects. This practice would not only provide requisite transparency, but also improve early, ongoing, and higher quality project work scope. Sharing actionable, transparent information with all construction project participants and stakeholders early on, and throughout the construction and operations life-cycle of a built structure, would measurably mitigate change orders, legal disputes, and waste.

Metrics for a Construction Cost Database

#1 Verifiable – All components are traceable, including labor, material, and equipment costs.

#2 Current – Cost data has been updated within the past quarter.

#3 Standardized, Easy to Understand, and Uniquely Identified – Common industry terms and definitions are used for all construction, repair, renovation, and maintenance task. Data is organized using a standard data architecture such as CSI MasterFormat or expanded UNIFORTMAT.

#4 Detailed – Data is presented at a granular level sufficient to support line item estimating.

#5 Local – Data is locally researched and does not rely upon location factors or economic factoring.

“Prevailing wage” is equivalent to the wage paid to at least 30% of workers in a given trade in a locality.

4bt.us – Your exclusive resource for current, actionable, and verifiable local market construction cost data.

The amount of cost data is irrelevant if it is not appropriately collected, current, and presented. Current, local market data-driven cost estimating methodology maximized the validity and effectiveness of cost estimation.

Benefits of a Locally Researched Unit Price Book and Role in Driving Optimal Construction Outcomes

#1. Locally researched cost data is 30% to 40%+ more reliable than national average cost data
#2. Line-item locally detailed unit price cost data is 50% more representative of actual local construction costs than system level (UNIFORMAT) cost estimating.

(Supporting Documentation – 2018, Hasan, M., Ming, L. RSMeans-Guided Approach to Detailed Cost Estimating: A Residential Project Case; 2017 Ming, L., Hasan, M. Comparative Study of Information and Masterformat for
construction Cost Estimating; Lu, Ming; Liu, Chang 2014, Ming, Lu, Chang, Liu, Crew Cost and Productivity Performance Benchmarking based on Commercial Cost Estimating Databases)

“Cost estimate and job schedules generated based on RS Means should be interpreted with caution… In particular, crew productivity benchmarking should be performed in a more reliable way by defining crew productivity as a variable, which is dependent on not only time and location, but also job complexity, human factors, trades’ competencies, and equipment conditions.” (2014-, Ming, L., Chang, L. , Crew Cost and Productivity Performance Benchmarking based on Commercial Cost Estimating Databases)

4BT OpenCost cost databases are researched and updated by a professional team of cost engineers and cost researchers with decades of industry experience. Our team includes form cost engineers from the RS Means Company whose goals was to develop a superior product.
Owners can depended upon 4BT’s current, local market cost data to provide verifiable information and to validate contractor and subcontractor quotes. Similarly, contractors and subs can be assured that labor, material, and equipment prices represent local market conditions.
4BT OpenCOST local market data includes in excess of 90,000 unit line items and does not rely upon the used of Assemblies. There is no superior alternative to current, locally researched cost data.

COST DATA GOVERNANCE
Creation – Maintenance – Enhancement

EXTRACT the data from its original source, whether that is another database or an application.

TRANSFORM data by cleaning it up, deduplicating it, combining it, and otherwise getting ready to

LOAD the data into the target database.

Define the project scope

The first step towards a reliable construction cost estimate is to clearly and accurately define the project scope is a detailed manner. The project scope describes the agreed upon final deliverables and the associated assumptions and constraints. It defines the quality standards, performance measures, and acceptance criteria for the project in a manner that the owner and design/builders both share and fully understand. The scope of work (SOW) should be presented using a standard data architecture (expanded CSI Masterformat) and any higher lever work breakdown structure (WBS). A WBS can be used to organize project deliverables and/or discrete construction task into various groupings (trade, schdule, etc.)

Creating a DETAILED project scope is a fundamenal REQUIREMENT for ensuring clear objectives, deliverables, and constraints.

Begin by thoroughly reviewing project requirements and specifications, then divide the scope of work down into detailed pieces using a detailed line item unit price book (UPB) develop specifically by researched current, local market trades labor costs, materials costs, and equipment costs. (Note: DO NOT rely upon historical cost data from similar projects, national average cost data, or either economic or location factoring).

Use reliable data sources

Cost data must be current, objective, and granular in order to assure its reliability.

Reliable data sources to are the foundation for assumptions and calculations.

Exclusive reliance upon contractor or subcontractor quote WILL NOT provide verifiable cost visibility.

Apply appropriate estimation methods

The third step to estimate project costs more accurately is to apply appropriate estimation methods that suit the project characteristics and the level of detail and accuracy required. There are various estimation methods that you can use, such as analogous estimation, parametric estimation, bottom-up estimation, three-point estimation, and contingency estimation. Each method has its advantages and disadvantages, and you may need to use a combination of them depending on the project complexity and uncertainty. You should also document your estimation methods and assumptions, and explain how you derived your estimates.

Consider risk and uncertainty

Risk and uncertainty are factors that can impact cost.

These include events or conditions that may cause deviation from the planned scope, schedule, quality, or budget of the project. Consideration of the pontential factors and mitigation strategies should be part of any cost estimate.

Review and validate your estimates

All construction estimates should be jointly reviewed by ALL project participants (owners, designers, builder…) prior to acceptance and progress to the procurement and project delivery phases.

This invovle a detailed review of all constructon task line items and quantities for appropriateness and accuracy. Appropriate project team members, managers, consultants, etc. are involved in this process.

Following the above process will help validate the estimate in terms of accuracy, completeness, consistency and alignment with project scope and constraints.

Monitoring and controlling costs is clearly an ongoing project management process.

It is important to track and measure the actual costs against the estimated costs, and identify and report any variances and issues.

As a matter of coure all estimates should be updated regularly, and and changes communicate any changes to the stakeholders. You should also implement cost control measures, such as change management, value engineering, and earned value management, to ensure that the project costs are within the approved budget and scope.

Superior cost control, visibility, and transparency

Standardizes data formatting and naming conventions.

Guarantees that data is consistent across the organization.

Essential in allowing organizations to fully utilize cost and technical data from planning through warranty and beyond.

Establishes and supports best management practices.

Codifies processes, procedures, and workflows.

Enables shared resources.

Eliminates duplicate efforts.

Cost reductions.

Increase accessibility for all users.

Improved schedule performance, milestones achieved, time saved

Improved Client Satisfaction

Reduced rework

Improved use of available funds

Better quality of life for participants

Ensures that data is treated and managed as an asset and tool instead of simply as a byproduct.

Public Sector Organizations – The Requirement for Line-Item Cost Estimating

The use of historical data or lump sum contractor quotes to determine cost for routine maintenance, repair, renovation, or new builds do not provide adequate cost visibility or cost management capability
The Unit Price estimating approach, using locally researched labor, material, equipment, and productivity information is uniquely capable providing the level cost visibility and transparency required to meet basic standards for fiduciary oversight.
Public sector organizations that use lump sum bids from contractors, rely on historical data, or use national average cost data and location or economic factors are not acting in the best interests of the consistencies.
Locally researched unit price cost data is readily available for all the construction tasks, the materials, equipment, and labor for each component of a public sector facility.
The use of a locally researched unit price cost database also allows for simplified tracking costs on projects over time and updating budgets and cost estimates, if the database is organized using CSI Masterformat.
Furthermore, integrated LEAN planning, procurement, and project delivery processes, cost savings of up to 40% are possible, as well as consistent delivery of projects on-time and on-budget.
Public sector owners and design-builders can jointly develop and review detailed scopes of work and associated detailed line-item estimates. This process virtually eliminates miscommunication and change orders, the latter accounting for 20% or more of project costs.

For Job Order Contracting

A locally researched, detailed line-item Unit Price Book is an important consideration for any JOC Program, and any repair, renovation, repair, maintenance, or new construction project. It provides a highly detailed scope of work that is easily communicated to all participants and stakeholders, as well as full financial visibility and transparency.

locally researched unit price book — Locally Researched Granular Construction Cost Data

How do you manage labor, equipment, and material costs for a self-performing contractor?

Read about the importance of cost data architecture – CSI Masterformat

Adaptable and flexible while maintaining cost estimation best practices, principles, and objectives.

A 4BT locally researched unit price book researched using propriety methods and unique capabilities provides multi-dimensional insight into a multiplicity of cost objects, functions, processes, activities, multi-disciplinary labor, and crews. Thousands of materials and all required equipment, as well associated productivity, and economy of scale are provided. Our approach enables owner led teams to focus more upon cost planning and control, and better support decision-making across planning, sourcing/procurement, investment justification, and execution efficiency activities and to improve overall productivity. A locally researched 4BT UPB mitigates root problems and the negative consequences resulting from traditional methods.

White Paper: How-to-Select-a-JOC- Unit Price Book – – A JOC Unit Price Book, UPB is particularly important to the quality, integrity, productivity, and transparency of any Job Order Contract.

A JOC unit price book, sometimes called a unit price guide, (UPG), is a required component of a Job Order Contract. That said, a detailed unit price book should be used for any construction project. (Learn more about the history of JOC / SABER Unit Price Books, UPBs)

The UPB enables the rapid development, use, and re-use of transparent detailed construction cost estimates for repair, renovation, repair, and minor new construction in association with a Job Order Contract.

Eliminate construction cost uncertainty

The use of standardized data formats and descriptions, easily understood by all participants, is important. CSI Masterformat (registered trademark of The Construction Specifications Institute) is the North American standard data format for organizing JOC and other construction unit price books. Unit price books should provide consistent clear descriptions of each line item using terms that all project participants and stakeholders can easily understand. The use of abbreviations and acronyms should be minimized.

Each line-item task, in addition to being clearly defined in “plain English”, should include associated detail cost data breakdowns for material, equipment, and labor.

Historically, the majority of Job Order Contracts have used the “Facilities Cost Data” books published by the R.S. Means Company, LLC. Alternative, best value sources are now available.

Owners should avoid “custom” UPBs, and “custom” unit price line items whenever possible. As JOC specifically targets numerous, repetitive, and common renovation, repair, and maintenance projects typically encountered by real property Owners, a standardized unit price book is preferable. This approach lowers the costs associated with building, updating/maintaining, and use of the cost book. It also improves overall communication and ease of use. That said, custom line items may sometimes be needed to account for unique structures, building requirements, etc.

Similarly, the use of standardized construction technical specifications, and/or those specifications currently in use by the owner, are preferable to customized JOC specifications for reasons like those stated above regarding custom unit price books.

JobOrderContractingWhitePaper2016801

Reliable Construction Cost Estimating – White Paper

Four BT, LL – Your trusted information source – www.4bt.us