Reviewing the Cost Estimate Line Item (CELI) and Adding Cost Adders

The following article instructs Inspectors on how to review/update the Cost Estimate Line Item (CELI) and create Cost Adders for an Opportunity.

The CELI reflects the national average cost of an activity and is made up of labor, material and equipment costs.  

These costs are then adjusted based on the Geo Index selected by the campus and applied at the Estimate Solution.

Cost Adders allow inspectors to add costs to an estimate to address a variety of location situations and needs that are not reflected in the national averages.

1. Reviewing the Cost Estimate Line Item (CELI)

A. With the Cost Estimate Unit Line Item record you may review/update and add Cost Adders.

2. Cost Estimate Type Review

The Cost Estimate Type indicates the type of Estimate Line Item that has been created (Assembly, Manual, Percent or Unit).  


A. In this example, an Assembly estimate has been created, which will be the most common type of Estimate Inspectors will be creating

3. Cost Estimate Details Review

A. The Cost Estimate Detail section indicates the quantity deficient that will be costed out.

  1. The Geography Index percentage that will increase (or decrease) the national cost based on the location where the work is to be performed
  2. Labor, Material and Equipment OP with Geo reflects the impact of the Geo Index being applied to the Overhead and Profit (OP) cost elements
  3. Labor, Material and Equipment Cost Adders percentages and dollars reflect the amounts added to the estimate via cost adders
  4. Labor, Material and Equipment OP Adjusted with Geo reflects the total amounts adjusted for the Geo Index and Cost Adders
  5. Total Adjusted with OP reflects the fully adjusted Cost Estimate for the total quantity of the deficiency  

4. Assembly Line Item Details Review

A. The Assembly Line Item section will display:

  1. The 5th Level ID and Name of the Cost Assembly from the UC Real Property Asset Catalog.  This can be based on either RSMeans or UC data.  
  2. The Assembly shows the unit prices (bare costs) for the Labor, Material and Equipment that make up the activities of the Assembly.  These represent the bare unadjusted national average costs.
  3. The In-House costs reflects the initial markup expected if In-House recourses were to perform the work.
  4. OP Costs reflect a markup of the work if outside contractors were to perform the work.  UC has chosen to use the OP Costs as the basis of the cost assemblies.

 

5. Adding a Cost Adder to the Cost Estimate Line Item

Cost Adders represent additional factors or activities that will increase the cost of the work.  They are preset with a recommended increase to the Labor percentage, but the Inspector can modify the Labor, Material or Equipment percentage as needed.  

The percentage increases apply to each quantity unit being costed out.

Cost Adders also allow Inspectors to add flat dollar amounts to the Labor, Material or Equipment components of an Estimate.  Flat dollar Adders only apply to the total calculated Estimate, not to each unit of the Estimate.

Note that the Cost Adders list has been streamlined to just the following selections:

System Complexity includes Low (10%), Medium (30%), High (60%) and Extra High (100%)  where the percentages are applied to labor, material and equipment

  • The complexity adders can be used to adjust an estimate to reflect the need for different trades supporting a job or based on the fact that a piece of equipment might be located above the ceiling
  • Eliminates the need to pick several different adders to reflect all of the activities and intricacies of a given job
  • Use the comment field to indicate what makes up the complexity factors
  • Hazardous Materials starts with a 0% and $
    • Adjust the dollar amount to address any hazards (asbestos, lead, …)
  • General Conditions  applies 30% for labor, material, equipment
    • Can use this to reflect soft costs (permits, drawings, etc)
  • Other  Continue to use other if/when necessary

A. Go to the Labor, Materials and Equipment Adjustment section of the CELI form and click the Quick Add button.

C. Click the check box next to the desired Cost Adder for this Cost Estimate Solution in the pop-up dialog box and then click the OK button.  

if you don't see an Adder in the list the that fits your need, select the "Other" Adder in the list.

D. Modify or add any additional percentage or flat dollar amounts and add comments as needed to the Adder in the following fields:

  • Labor %
  • Material %
  • Equipment %
  • Labor $
  • Material $
  • Equipment $
  • Comments

 

If you've selected the wrong Cost Adder name by mistake, make sure you place a check in the checkbox of the Cost Adder and click the Remove button and repeat the adding a Cost Adder process again.

E. Click the Save button at the top of the Cost Estimate Line Item form.

F. If have no additional Cost Adders to include, and you are satisfied with the Cost Estimate, click the Save & Close button.  

F. The Cost Estimate Line Item has been added to the Estimate Manager.

The Total Adjusted OP cost will display in the Cost Estimate section.

At this point, if no other adjustments or changes need to be reflected at the Cost Estimate Line item the Inspector’s assessment is finished.  Then save and close the Estimate Manager and Opportunity Forms.  

At the Inventory Item (BSII), save and Complete the BSII.

6. Total Estimated Costs

Once a Cost Estimate Line Item has been saved, the Total Estimated Costs will roll up to both the Estimate Solution and then to the Opportunity.

A. To view the Total Estimated Cost at the Estimate Solution form, go to the Estimate Summary section.

B. To view the Total Estimated Cost at the Opportunity form, go to the Total Rating Score section.