An American National Standard

Designation: E 1804 – 02

Standard Practice for

Performing and Reporting Cost Analysis During the Design
Phase of a Project1
This standard is issued under the fixed designation E 1804; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (e) indicates an editorial change since the last revision or reapproval.

1. Scope 5. Significance and Use

1.1 This practice covers an arranged method for providing 5.1 This practice increases the level of communication,
cost analysis during the design phase of buildings. provides an organized approach to cost control during the
1.2 The use of this practice increases the level of commu- design of a project, and also provides a means of identifying
nication between the design professional, owner, and the cost extraordinary cost items and changes in assumptions between
professional providing the cost consulting services. estimates.
1.3 The practice establishes a structured method to support 5.2 The users of this practice include owners, developers,
design decisions. contractors, cost professionals, estimators, architects, engi-
1.4 The practice provides design and cost professionals with neers, specification writers, quantity surveyors, and anyone
a framework for historically tabulating information to be used charged with the responsibility of successfully managing the
on relevant future projects. design of a building within a specified budget.
5.3 Use this reporting format during the following:
2. Referenced Documents 5.3.1 Contracting for design cost analysis services,
2.1 ASTM Standards: 5.3.2 Comparing the current design costs to a previous
E 833 Terminology of Building Economics2 estimate, and
E 1369 Guide for Selecting Techniques for Treating Uncer- 5.3.3 Responding to each design phase.
tainty and Risk in the Economic Evaluation of Buildings 5.4 This practice provides a tool for analyzing design
and Building Systems2 options and examining strategies to maintain the building
E 1557 Classification for Building Elements and Related budget.
Site Work—Uniformat II2
E 2168 Classification for Allowance, Contingency, and Re- 6. Types of Estimates and Level of Detail
serve Sums in Building Construction Estimating3 6.1 Purpose of Estimate:
6.1.1 The cost analysis procedure consists of providing
3. Terminology information in text and estimate form at the completion of each
3.1 Definitions—For definitions of terms used in this prac- significant phase of the design process: program, schematic,
tice, refer to Terminology E 833. design development, and construction documents. Apply this
format for each component when the construction project is
4. Summary of Practice comprised of several definable building types.
4.1 This practice provides an organized approach for cost 6.1.2 Comparisons of Uniformat II estimates to a contrac-
analysis during the design phase of a building project. The tor’s proposal will require the estimate to be resummarized to
practice presents the necessary information for the design MasterFormat.4
professional and owners to make decisions. 6.2 Program Phase Estimate:
4.2 This practice establishes a recommended procedure for 6.2.1 The program/predesign estimate includes construction
formatting the final project information for its use in forecast- costs, construction impact fees, and construction related ex-
ing the cost of future projects. penditures. It is prepared from the early stage of the design
process to assemble project data in a systematic format from
1
established project criteria. The resulting report provides the
This practice is under the jurisdiction of ASTM Committee E06 on Perfor-
mance of Buildings and is the direct responsibility of Subcommittee E06.81 on
baseline criteria and costs for the design team.
Building Economics.
Current edition approved June 10, 2002. Published August 2002. Originally
published as E 1804–96. Last previous edition E 1804–96.
2 4
Annual Book of ASTM Standards, Vol 04.11. Available from Construction Specifications Institute, 601 Madison St., Alex-
3
Annual Book of ASTM Standards, Vol 04.12. andria, VA 22314.

Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.

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 E 1804 – 02
6.2.2 The program predesign estimate is prepared in an 7. Report Format
elemental form using Uniformat II (Classification E 1557). 7.1 Use this standard format for every cost report and
Elemental analysis allows the estimate to be prepared using expand as necessary to respond to project requirements.
basic elements, costs per square foot (meter) of gross floor 7.1.1 Title Page—Report the following information:
area, ratios, and, where necessary, lump sum allowances. 7.1.1.1 Name of the project,
Calculate the design allowance using risk evaluation tech- 7.1.1.2 Location of the project,
niques as described in 7.7 of Guide E 1369. 7.1.1.3 Type of estimate,
6.3 Schematic Design Phase Estimate: 7.1.1.4 Date of the estimate report,
6.3.1 The schematic design estimate provides for the first 7.1.1.5 Design team name and address,
cost analysis based on project specific design criteria. Prepare 7.1.1.6 Cost consulting firm’s name and address, and
the estimate in Uniformat II, Level 3 (Classification E 1557) 7.1.1.7 Owner name and address (unless confidential).
based on preliminary floor plans, preliminary specification 7.1.2 Table of Contents—Include the name of each section
outlines, general finish schedule information, and typical and page number.
structural, mechanical, and electrical information. Use building 7.1.3 Task Outline—Briefly describe the cost assignment
parameters in establishing the project base line costs. When undertaken by the firm.
specific criteria are not yet established, use target costs 7.1.4 Project Description—Briefly describe the project lo-
(allowances). Target costs provide design team guidance dur- cation, site area, site development, building size and function,
ing the continuation of the design. Calculate the design exterior materials, interior finishes, and special functions of the
allowance using risk evaluation techniques in 7.7 of Guide facility.
E 1369. 7.1.5 Notes Concerning the Estimate—Include observa-
6.3.2 Compare the schematic design estimate to the pro- tions, assumptions, and information obtained from the design
gram estimate. The comparison provides information to the professionals, site observations, and research conducted for
design professional on the changes since the last estimate. this project. Include opinions and project documentation ob-
6.4 Design Development Phase Estimate: tained from sources other than the current construction docu-
6.4.1 Preparation of the design development estimate in- ments. The following outline is a basis for organizing the notes
cludes the quantifying of key building elements. Quantities of section.
materials are calculated and multiplied by material and labor 7.1.5.1 General notes include discussion of general condi-
unit prices to develop the total cost for each element. Use this tions of the project, profit/fee projections, and general com-
method to arrive at a total cost for each element. Quantify and ments about the proposed construction project or local
price key building systems to replace the building parameters economy where applicable.
used in the previous estimate. Calculate the design allowance 7.1.5.2 Site work notes include discussion of site related
using risk evaluation techniques in 7.7 of Guide E 1369. items and concerns.
6.4.2 Summarize the design development estimate in Mas- 7.1.5.3 Building notes are organized per the Uniformat II
terFormat. Restructure the design development estimate in structure (Classification E 1557) or MasterFormat specification
Uniformat II (Classification E 1557) when comparing with the divisions.
schematic design estimate. The reformatted design develop- 7.1.5.4 Provide analysis for degree of risk used to establish
ment estimate will provide the basics for the translation the design allowance, construction contingency (Guide
between the schematic and design development estimates. E 1369), and escalation values.
6.5 Construction Document Phase Estimate: 7.1.6 Summaries are presented from the most global to the
6.5.1 The construction document’s estimate is the final specific. Reduce costs to a commonly understood element for
estimate of a project’s construction costs based on detailed the overall report (for example, cost/sf, cost/key, cost/acre,
project information. Prepare quantity information in Master- cost/bed). Include the following:
Format. Subdivide pricing into material, labor, and equipment 7.1.6.1 Overall summary,
costs. 7.1.6.2 Site development summary,
6.5.2 Use MasterFormat to compare the final construction 7.1.6.3 Building work summary,
document’s estimate to the design development estimate. 7.1.6.4 Special structures summary (when appropriate), and
Calculate the design allowance using risk evaluation tech- 7.1.6.5 Uniformat II summary (contract document estimate
niques in 7.7 of Guide E 1369. only).
6.5.3 Reformat the construction document’s estimate to 7.1.7 Cost Comparison Summaries shall include informa-
Uniformat II, Level 2 (Classification E 1557) to provide tion and opinions on how the project has changed from the
historical data for future building costs. previous cost estimate. When the report is the first estimate, the
6.6 Reconciliation of Estimate with General Contractor: program design shall be used as the initial benchmark for
6.6.1 Reconciliation—Comparison of independent esti- comparison.
mates for the project. Summarize estimates using MasterFor- 7.1.7.1 Costs are compared in Uniformat II for program,
mat to facilitate comparison with the general contractor’s schematic design, and design development estimates. The
format. construction documents estimate is compared to the design
6.6.2 Reconciliation of estimates can be required at any development estimate using major specification divisions.
design phase. Format the cost comparison summary report as follows:

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 E 1804 – 02
Sub-Grouping Previous Estimate Current Estimate Variance 8.2.2.5 Finish schedule by room types,
8.2.2.6 Structural foundation system,
Site work $450,000 $475,000 $25,000
8.2.2.7 Typical structural framing system, and
7.1.7.2 Organize the detailed explanation of changes be- 8.2.2.8 Roof system selections.
tween the estimates as follows: 8.2.3 Specialty Structures:
Sub-Grouping Variance Reasons/Comments 8.2.3.1 Structure type (bridge, gazebo, etc.) and
Site work $25,000 Allowance for landscaping increased
8.2.3.2 Height and floor plan dimensions.
($5,000). Earthwork quantities in- 8.3 Design Development Phase Estimate—The cost profes-
creased ($25,000). Allowance for site sional requires the following documents:
lighting decreased ($5,000).
8.3.1 Site Development:
7.1.8 Design alternatives are alternate solutions that are 8.3.1.1 Site plans, indicating building locations and site
mutually acceptable to the design team and cost engineer. improvements (including all paved areas, site utilities, land-
Include a summary of the proposed costs of the alternates and scaping ideas, and building or vertical structure locations),
notations if these costs are mutually exclusive or overlap with 8.3.1.2 Topographical information (current and engineered
other suggested alternates. Each alternate detail report shall topographical information),
consist of the following: 8.3.1.3 Utility location (showing all underground structures
7.1.8.1 Description of the related base estimate criteria, and lines), and
7.1.8.2 Description of the proposed alternate, 8.3.1.4 Demolition plans and information.
7.1.8.3 Summary of costs for additions and deductions from 8.3.2 Building and Specialty Structures:
the base estimate, and 8.3.2.1 Current floor plans,
7.1.8.4 Adjustment for general conditions, fee, and escala- 8.3.2.2 Project specification outline with selected equipment
tion. and acceptable manufactures,
8.3.2.3 Exterior wall sections,
8. Information Needed at Each Design Stage 8.3.2.4 Building elevations and sections,
8.1 The following list shows what documents and informa- 8.3.2.5 Mechanical, electrical, and plumbing system de-
tion are the minimum to be provided by the design professional scriptions and one line diagrams reflecting the design of the
at each estimate level. HVAC, plumbing, fire protection, and electrical systems, and
8.1.1 Program Phase Estimate—The program phase estab- riser diagrams with panel information,
lishes the building budget. The cost estimate consists of 8.3.2.6 Structural foundation design, typical structural fram-
building parameters, finish levels, and general site develop- ing,
ment activities. The cost professional requires the following 8.3.2.7 Preliminary finish schedule with material selections,
information: 8.3.2.8 Typical interior wall types, and
8.1.1.1 Design Program—Detailing the project function, 8.3.2.9 Acoustical guidelines.
purpose, and characteristics. The program includes material 8.4 Construction Documents Phase Estimate—The cost
information relating to the gross floor area of prime building professional requires the following documents:
spaces, equipment, and building systems, 8.4.1 Site Development:
8.1.1.2 Cost limitations and allowances, 8.4.1.1 Final site drawings showing current and engineered
8.1.1.3 Site configuration, limitations, known soil and rock topographical information,
information, and the location of available utility services to the 8.4.1.2 Utility locations and design showing all under-
building, and ground structures and utility lines,
8.1.1.4 General information about the exterior building 8.4.1.3 Demolition, landscaping, miscellaneous site struc-
elevations and floor plan configuration. tures and related details,
8.2 Schematic Design Phase Estimate—The cost profes- 8.4.1.4 Elevations and sections, and
sional requires the following documents: 8.4.1.5 Details, schedules, and notes to be used in the
8.2.1 Site Development: construction of the project.
8.2.1.1 Paving and parking requirements, 8.4.2 Building and Specialty Structures:
8.2.1.2 Finish building grades, 8.4.2.1 Project specifications, completely describing mate-
8.2.1.3 Original site drawings, rials and manufactures,
8.2.1.4 Storm drainage solution, 8.4.2.2 Current floor plans,
8.2.1.5 Existing utility location, 8.4.2.3 Building elevations and building sections,
8.2.1.6 Site retaining walls, and 8.4.2.4 Exterior wall sections,
8.2.1.7 Site lighting requirements. 8.4.2.5 Details of exterior walls, stairs, toilet rooms, etc.,
8.2.2 Building Work: 8.4.2.6 Finish schedule and notes,
8.2.2.1 Principal floor plans, 8.4.2.7 Typical interior partition details with notes,
8.2.2.2 Specification outline, 8.4.2.8 Special details and conditions (millwork, handrails,
8.2.2.3 Exterior wall sections, etc.),
8.2.2.4 Mechanical/electrical/plumbing systems outline 8.4.2.9 Structural plans, notes, sections, and details fully
(suggested equipment requirements), describing the structural building requirements,

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8.4.2.10 Conveyance plans specifications and sections fully 9. Keywords
describing the elevators, escalators, and lifts,
9.1 analysis; cost; design; estimating
8.4.2.11 Mechanical plans, notes, and sections fully describ-
ing the plumbing, HVAC, and fire protection requirements, and
8.4.2.12 Electrical plans, notes, and sections fully describ-
ing the electrical, communications, security, and equipment
requirements.

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