ABSTRACT
This chapter provides additional discussion of the concepts behind development of parameter quantities, the use of building quality guidelines, the use of the estimate as a scope document, the methodology of UNIFORMAT estimating and the author's database that can be used to compute project construction cost. After calculation of space, configuration, and quantities and definition of quality, it is then the job of the cost engineer to apply the proper unit prices and add or delete items of work peculiar to the project. Up to this point, we have discussed the development of direct construction costs without general contractor overhead and profit, contingency, escalation or location factor adjustment. The cost template provides for the inclusion and computation of these cost elements in its last section. Overhead and profit must be added to the sum of direct construction cost and design contingency. This overhead and profit represents the general contractor's markup on the work of his subcontractors.
