When is construction cost determined?


Wouldn’t that be determining construction costs and not the “estimate” or “budget” as being different meanings as explained in my previous question?
Thank you

Hi @ylouka,

Let’s see if we can help clear this up. For future reference, please do not post screenshots of Black Spectacles or any other 3rd party content. You can post with quotes of the question however!

@coachchrishopstock can you please take a look?


Hi @ylouka -
I can’t see the first screenshot that you uploaded (it’s blocked by our server) but I will try to answer what I think is your question. Please let me know if I’ve fully answered it:
In traditional design build, the construction costs are determined prior to the design phase (See AHPP, 15th edition, figure 9.3).
You’re right that ‘determining the construction cost’ is different from an estimate or budget that is provided during the design phase. The construction cost is a contractual amount - budgets and estimates are not. Of course, the construction cost is subject to change via change orders throughout the course of the project.

Thank you for the explanation above, but I still don’t understand how using the traditional DBB the construction costs are determined after the permitting phase? Shouldn’t it be after bidding?
Thank you

I’ve seen this question and think I can lend some advice. It stated that the client would like to have a single point contact between the contractor and architect instead of a traditional method due to previous issues on another project. You have to determine from that context that the client wants a different project delivery method, being design build with a single contract, not the traditional DBB. Using Design Build, cost is determined before design—see chart in AHPP 9.3 on p. 516

Hope that clears things up!

Thank you very much for the detailed explanation but my question is related to another question on the black spectacles practice exams that is a drag and drop and in the explanation of the answers it says that in DBB the cost of construction is known after permitting, but I thought it should be known after the bidding phase?
Thank you

@ylouka ah, I see, I was referring to your question stated above.

I agree with you in that in DBB, cost is determined after bidding. Not sure why Black Spectacles refers to it as “after permitting.” Referring to the answer reference given for that question: AHPP 9.3, the chart notes cost is determined after “procurement” which is the new 2017 term in B101 for bidding. See B101 3.5