Testing the Reliability and Validity of Area Cost Factors in Hawaii

>>Testing the Reliability and Validity of Area Cost Factors in Hawaii

November 4, 2016

Joseph Uno, LEED AP BD+C presents his research on actual construction costs in Hawaii in his pursuit of becoming a Certified Cost Professional (CCP) through AACE International, the Authority for Total Cost Management. A CCP is an experienced practitioner with advanced knowledge and technical expertise to apply the broad principles and best practices of Total Cost Management (TCM) in the planning, execution and management of any organizational project or program.

Introduction:
With the increased use and reliance on computerized construction cost estimating programs, it is important to understand the underlying assumptions of the national databases upon which these programs rely to calculate their results. Too often, it has become easy for the apprentice estimator to pick an item from a database and place it in his estimate without challenging the basis of the cost item he is using and relying on an “Area Cost Factor” (ACF) to adjust this average cost to Hawaii. This paper presents my research of actual costs in Hawaii and tests the reliability and validity of the “Area Cost Factors” reported by two well-known construction cost references, Engineering News Record (ENR) and RSMeans. Additionally, I used the data collected to test the Area Cost Factors published by the U.S. Department of Defense Unified Facilities Criteria (UFC) 3-701-01 “DoD Facilities Pricing Guide”.

To view the full paper, click here to download.

 

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2017-05-23T14:12:59+00:00