Beruflich Dokumente
Kultur Dokumente
Fall 2016
Question 1 Develop a conceptual estimate for a 75,000 m2 student residence complex that is to
be constructed at Concordias Loyola Campus four years from now (i.e. in 2020). University
of Toronto has built a residence complex with a very similar design, having the size of
68,500 m2 back in 2007 at the cost of $8,945,000. Use the data provided in the table below
to develop your cost estimate.
Table 1 Location & time indices for apartment construction in major Canadian cities
2007
2008
2009
2010
2011
Halifax (NS)
123.1
128.9
130.4
131.8
132.1
Montreal (QC)
122
129.9
132.2
134
134.6
Toronto (Ont.)
129.9
139.9
136.8
136.7
137.5
Calgary (AB)
156.8
174.4
160.7
156.6
158.8
Solution:
Estimated cost = previous cost (Toronto 2007)
20072020)
= (1+0.02487)n
(n=2020-2007=13)
C2 = 1.376
C3 = 1.095
THEREFORE:
Estimated cost = $8,945,000*0.939*1.376*1.094 = $12,655,476.17
Alternative Solution:
Alternatively, you may find the equivalent index for Montreal in 2020 (using compound interest
rate formula) and use it for a direct conversion from To,2007 to Mtl.2020:
IMtl-2020 = 167.9
REMEMBER: In each of the two approaches depending on how you round-off i (at what
decimal place) your final answer might be slightly different.
$277,520
3,950
$240,900
5,300
$259,880
4,260
$254,750
4,918
$265,500
4,500
(a) Determine the cost of a similar project with gross area of 4,600m2 by calculating the
weighted unit cost (Ignore the unit cost adjustment).
Solution:
Project
Total Cost
Size (m2)
$277,520
3,950
$240,900
5,300
$259,880
4,260
$254,750
4,918
$265,500
4,500
SUM
Unit
Cost
$70.26
$45.45
$61.00
$51.80
$59.00
$287.52
Max
Min
Mean
WUC
$70.26
$45.45
$57.50
$57.62
Solution
First approach (Using the end points only)
(x1=3,950, y1=$70.26) & (x2=5,300, y2=$45.45)
Assuming a first order linear relationship,
(y-y1)/(x-x1) = (y2-y1)/(x-x1)
(y-70.26)/(x-3950)
=(45.45-70.26)/(5300-3950)=-0.01837
(y-70.26) = -0.01837*(x-3950)
x=4600
y=$58.32/ft2(Unit Cost)
The Cost will be: 58.32*4600=$268,272
80
70
Unit Cost($)
60
y = -0.0175x + 137.6
50
40
30
20
10
0
3800
4000
4200
4400
4600
4800
5000
5200
5400
Size(ft2)
y= -0.0175*x + 137.60
size (x) = 4,600
y = $57.1/ft2(Unit Cost)
The Cost will be: 57.1*4600=$262,660
(c) What does the comparison of answers for parts (a) and (b) show?
Results in part(b) are expected to be more accurate since the
effect of size on unit cost adjustment is included. However,
the comparison between the results for this specific problem
shows only around 1%.
Question 3 The cost of a 630 m3 per hour process unit is $950,000. Use the capacity ratios
raised to an exponent method to determine the estimated cost of a similar process unit with
a capacity of 930 m3 per hour.
Solution
Cost of new process unit = Cost of old process unit
(Capacity of new process/Capacity of old process)m