The methodology used in the compilation of construction cost data in this cost guidebook are based on the following references:

a. QSI’s Unit Price Analysis
b. Ratio-based Benchmarking System
c. Historical data
d. Bid Proposals
e. Government mandated minimum wage and benefits
f. Inflation data

UNIT PRICE ANALYSIS (UPA)

Unit Price Analysis (UPA) is a method used in construction estimating to break down and calculate the cost of work on a per-unit basis—such as per cubic meter of concrete, per square meter of tiling, or per linear meter of piping.

For the labor cost, the UPA takes into consideration the productivity of manpower, crew and teams that perform the specific activities. The time-motion studies that established the productivity rates are compiled from hundreds of completed projects nationwide.

For the material cost, the UPA also takes into consideration the wastage, breakages and losses in materials during production, transport, delivery and installation.

For the equipment cost, the UPA considers that equipment is in tiptop shape but provides an allowance for breakdowns, maintenance, and inefficiencies.

RATIO BASED BENCHMARKING SYSTEM (RBBS)

Several hundreds of projects were compiled, analyzed and dissected into key performance indicators (KPI) that form part of the RBBS.

This database of ratios, KPIs and benchmarks are used to evaluate the project design against project design criteria and applicable building codes.

HISTORICAL DATA & BID PROPOSALS

Pricing trends from thousands of vendors are compiled and analyzed to develop the historical data that is useful in planning new projects.

Some readers would call it cost per square meter which comes in handy during conceptual estimating.

In construction estimating, historical data refers to cost, productivity, and resource information collected from past construction projects. This data is used to improve the accuracy, speed, and reliability of future cost estimates.

It is one of the most valuable tools for professional estimators, especially when creating budget estimates early in the project lifecycle, or when validating assumptions during detailed estimating.