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April 30, 2015

“What are the “appropriate” markups for overhead, profit and contingency when budgeting facilities construction projects?”

I get this question a lot from my architect friends when helping them budget their projects through the design process. The answer can get messy considering all the factors that can impact the bottom line. There are many variables to consider. With this blog post I will answer the “markup” question for an average facilities project and try to keep it simple but still useful.
 

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April 23, 2015

When contractors submit a bid, they use their expertise and knowledge to formulate a bid price that is accurate and competitive, but the bid must also be  “responsive” and the bidder must be “responsible.” What do these terms mean?

 

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March 19, 2015

If the construction calendar were laid out on a timeline graph, it would likely resemble a bell curve, with the bulk of construction work being shouldered in the summer months. Here are some things to keep in mind for your summer construction project planning.

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March 12, 2015

Many times a facility manager receives their budget for the year at the beginning of their Fiscal Year (FY). This budget may include set-aside funding for repair, maintenance or small construction projects.
 

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February 19, 2015

Lower budgets have become a reality for many in the public and private sectors. Local and state government agencies, school districts, universities, hospitals and others have struggled with trying to accomplish as much as possible with fewer financial resources. Making sure that you’re using the most efficient methods possible is one way to stretch dollars without sacrificing quality. 
 

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January 22, 2015

Change orders remain one of the most frustrating issues in the construction industry, seeming to sneak up on owners and contractors to spike costs and prolong project schedules. Even when all financial and planning systems are in order, a last-minute alteration can throw everything out of sync, leaving decision-makers feeling like they have no other choice but to throw more money at the project to keep it on schedule. On average, change orders account for approximately 8-14% of all capital construction dollars. 24% of the time change orders account for over 10% of the total project costs. 

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November 20, 2014

Change orders bring frustration to the construction industry, spiking costs and prolonging project schedules for owners and contractors. Even when the project is well-planned in advance and details seem in order, a last-minute alteration can throw everything out of sync...
 

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October 16, 2014

Change orders affect construction projects of all sizes, and can feel like they are a way of life in construction. 

 

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October 9, 2014

Let’s start with a little bit of sarcasm. Imagine an advertisement for the latest construction estimating software; “…With click and drag speed you can choose from thousands of line items of unit cost national average data and build accurate cost estimates…blah, blah, blah! ”
 

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