Since 1972
Estimate of Magnitude of Costs for:
Master Planning
Program Estimates
Preliminary Estimates
and
Feasibility Studies
Easy to Change An Estimate of Magnitude of Cost Creates the Foundation for Your Capital Projects Success
65%
Hard to Change
25%
10%
Concept Phase
Evaluate Options Together with Cost, Program, and
Design visualization to Create the Foundation for
Success
Master Planning
Program Estimates
Preliminary Estimates
Feasibility Studies
Design Phase
Evaluate Options Together with Cost, Program,
and Design to Stay on Budget
Pre Schematic
Schematic Design
Design Development
Construction Documents
Construction Phase
Manage the risk of Errors, and Omissions, Substitutions,
Unexpected Site Conditions or Owner-initiated Changes
On Time on Budget and meets the Clients expectations
5%
10%
85%
Least Expensive
Cost of a Change in Time and Money
Most Expensive
Vermeulens Estimate of Magnitude of Cost Creates the Foundation for Your Capital Projects Success
North America’s Construction Economists
Boston
Toronto
Dallas
Denver
Los Angeles
Estimate of Magnitude of Costs for: Master Planning, Program Estimates, Preliminary Estimates, and Feasibility
Studies
With limited design information, utilizing hundreds of comparable accurately documented historical projects from our
elemental system database we can establish the total project budget. We analyze cost data while adjusting for inflation, market
conditions, location, and procurement method
Project Volume and Benchmarking
 Our benchmarking process compares hundreds of historical costs across all building types
 We estimate over 100 new projects every year, which translates into over $5 billion worth of construction volume
Our current database of over 3,000 projects form a library to access; market conditions, trade prices, escalation, building type,
client contracts, product information, and correspondence that can be extrapolated for your project.
This provides owners and architects with detailed and accurate cost reports based on information from our comprehensive
database, knowledgeable staff, and developed processes. Realistic project budgets from the outset help minimize the loss of
program and scope, and costly re-design.
Typical benchmarking analysis encompasses projects from across North America and projects in your area.
Element $/sf
Structure
Enclosure
Interiors
Fittings
Mechanical
Electrical
Site
Markups
Total
PAC 1
PAC 2
PAC 3
PAC 4
PAC 5
PAC 6
PAC 7 Rehab
78
56
78
50
70
70
66
92
117
104
105
92
83
48
63
94
79
85
69
57
38
58
77
44
70
40
53
41
72
78
82
70
74
66
47
38
56
52
50
47
35
31
24
22
32
20
30
21
10
58
57
76
51
68
52
35
483
557
547
501
490
437
316
Program Analysis
Program data on all of our projects allow us to analyze the program mix, and narrow the probable cost range applicable for the
project.
Project Soft Costs
We make comparisons to similar benchmarks in the categories of loose furnishing and equipment, design fees, owner expenses,
project contingencies, and provide detailed breakdowns as required.
Elemental Systems and Parametric Estimating
Our Elemental Systems database provides the cost driving parameters for every project we estimate. We capture not only the
trade cost but the elemental systems cost as well. Elemental systems divide the building into structure, enclosure, interiors,
etc. As shown in the benchmarking table above. Within each element are typical design parameters such as structural steel
pounds per square foot, exterior enclosure ratios, partition densities, air handler volumes, mechanical and electrical device
densities. To validate an estimate we compare both the parameters and parametric cost for each elemental system to ensure
they are tracking within range for the particular building type.
Orientation
Our Orientation Session brings the core team together at project formation to identify and incorporate goals, program, site,
massing, quality, and more into a preliminary cost model. Collectively as a team, we decide on building systems to establish
the appropriate budget for each building type.
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Elemental estimates based on building parameters, program, building arrangement, phased alternate functions sketches, and
team conversations on but not limited to;





all aspects of the overall architecture and design intent, from exterior and interior finishes to structural systems,
landscaping and parking requirements
specialized sub-consultant information such as geotechnical, acoustical, theater, audio-visual, elevator, mechanical,
electrical
general performance space and stage arrangement and technical performance needs with heat and electrical loads
program requirements, room data, and appropriate net to gross ratios
identification of fundraising opportunities and potential naming rights
This initial costing can be reconciled with subsequent design based line item estimates. Due to the preliminary nature of early
estimates, they are generally considered to be within 10% accuracy.
Escalation and Vermeulens® Index
Our cost estimates include an escalation factor which is based on our index. The Vermeulens® Index compiles the bid results
of trade costs to establish current pricing trends in the market. We combine this with macro and micro economic factors such
as money supply, labor supply, commodity pricing, and overall market activity to provide a forecasting tool for future
construction costs.
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It Is Never Too Early To Involve Vermeulens in Your Planning Process
We do not need extensive information to develop project budgets that will stand the test. The opposite is true. We will help
your team develop the detail necessary for a road map to your future.
Program Cost Analysis
 With basic program information Vermeulens can develop your budget and delivery methodology
 Program data on all of our projects allow us to analyze the program mix, and narrow the probable cost range applicable
for the project.
PERFORMING ARTS CENTER
Lobby of Creativity and Performance
Box Office: 3 windows
Gallery Storage
Subtotal Lobby
Program Areas
Preliminary Program
Unit
SF
4,680
$
4,456,000
500
500
$
500,000
Subtotal Stage & Technical Areas
8,160
6,070
$
4,621,000
Subtotal Studio Theater
3,220
3,320
$
1,896,000
Subtotal House / Technical Area
3,075
1,075
$
435,000
Subtotal Stage Support
6,120
3,200
$
802,700
Subtotal Performer Support
3,280
2,850
$
1,036,500
180
760
$
184,000
Subtotal Dance studio / Lecture
3,100
2,300
$
869,600
Subtotal Music Classrooms
3,980
3,450
$
1,110,900
680
880
$
352,000
41,515
33,245
$
18,090,700
Subtotal Bldg Support
2,283
1,828
$
324,139
SUB-TOTAL NET AREA
Efficiency 75%
PROGRAM TOTAL
43,798
14,599
58,398
35,073
11,691
46,765
100 $
419 $
1,169,116
19,583,955
1,535
1,500
400
50,200
100
300
300
405
$
$
$
$
153,500
450,000
120,000
20,307,455
11% $
449 $
2,233,820
22,541,275
Subtotal Support Spaces
Sub-Total
Vermeulens Review and Revisions
Additional gross
Catwalks - 350 Theatre
Catwalks - Studio Theatre
Revised total efficiency 70%
Escalation to Q1 2016, Construction Contingency
Total

2
1
40
100
$ per SF Total Cost
36,000
30,000
1,827,000
Subtotal Perf Arts Administration
160
100
4,440
Total
450 $
300 $
$
Subtotal Control Rooms
40
100
Revised Program
Unit
SF
80
100
4,160
Subtotal House/Seating Areas
4
1
Total
Every area in the program is assigned a cost per sf
4,780
Final Program Signed off by Client and Design Team with Area, Quality, and Construction Budget Approved
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Risk Analysis
 Appropriate contingencies are necessary in avoiding time-consuming value engineering exercises, and expensive re-design.
We specify line item contingencies in the estimate for all scope that we can anticipate. A separate contingency below the line
is for changes in design that are unanticipated.
The rate of escalation in construction pricing is commonly very different from the rate of inflation in the overall economy.
Vermeulens recommendation for cost escalation represents an educated outlook on the economy and its impact on local
construction pricing.
Project Contingency and Escalation Recommendations
Design Contingency
Preliminary Design
10% to 15%
Schematic Design
6% to 9%
Design Development
3% to 6%
Contract Documents
0% to 3%
Construction Contingency
Escalation - based on the Market Outlook and Local index
3% to 5%
3 to 9%
Bidding Contingency
0% to 5%
Project Contingency (Owner)
5% - 15%
Procurement Strategies
 Experience with all modes of project delivery from traditional Design-Bid-Build to Integrated Project Delivery allows us to
help your team plan the best approach for procuring your project
For the best outcome, Vermeulens should be engaged early on in the development process. Not only will we be able to help
develop the project budget, but we will be able to recommend a procurement route that makes sense. Why is the procurement
route so important? It is because the route a client decides to take can impact the overall construction costs, duration of design
and construction, and the overall quality of the project.
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Should You already have a Contractor or Developer Onboard

Consider utilizing a parallel estimating approach to maximize value, save time and money on costly redesign, and loss of
scope by optimizing your budget
Parallel Estimating

Parallel Estimating is key to the Construction Management process
Parallel estimating engages two firms to prepare cost estimates from the same documents at each of the design millstones.
The two estimates are cross checked and compared through the Reconciliation Process. With a transparent process and
independent market information, the owner and design team have the knowledge to negotiate toward scope and price levels
that are fair and reasonable for all parties.
Key activities in the parallel estimating process include:

preparing the estimates completely independently

exchanging estimates when both are complete

having a reconciliation meeting to understand and reconcile the two estimates
Parallel Estimating - Two firms work in Parallel to develop independent Estimates
Estimate Development over Time
Reconciliation
Budget
Exchanging estimates
The owner and design team must manage the conflict of
interest in delivering the construction project for the best
possible price, schedule, etc., while maintaining an ongoing working relationship with contractors.
 Contractors Estimate
 Vermeulens Estimate
The construction manager must find a balance between
competitive and competent subcontractors to deliver a
successful project.
 Owner
Millstone Estimating Phase
Two Firms prepare the estimates
completely independently
On Budget
Exchanging estimates
when both are complete
Real-time Reconciliation
meeting to understand and
reconcile the two estimates
We compare the detail of the two estimates and tabulate the results for ease of comparison and discussion. This Reconciliation
Tracker document becomes the starting point and the recording document for the reconciliation process.

Final Capital Project Sign Off by Client and Design Team with Area, Quality, Escalation, Budget, and Delivery
Methodology Approved to Reduce Risk, Maximize Scope, and Budget
Parallel Estimating can provide 20% saving at SD, 10% saving at DD, 5% saving at CD and bids that are on budget.
Page 6