Friday, February 2, 2018

Healthcare Facilities Today: Key Considerations When Cost Estimating a Healthcare Project

Ghafari Senior Healthcare Planner Tom Gunn authored a post that recently appeared on the Healthcare Facilities Today blog titled “Key Considerations When Cost Estimating a Healthcare Project”. In it, he discusses the various factors that impact cost estimates for healthcare facility projects. These factors, he argues, are essential for estimators to consider as they develop cost models that may influence how a project is ultimately executed.

“Cost estimating in the healthcare industry is a precise science,” he writes. “It is time-sensitive, as costs fluctuate with construction escalation over time. The estimated cost to build a new hospital or medical office in a particular region is tied to a base cost of new construction in that region.” 

According to Tom, there are several factors to evaluate in cost estimating, including:

  • Construction type (new buildings, horizontal and vertical additions, and renovations)
  • Building age
  • Net assignable square feet, departmental gross square feet, floor gross square feet, and building gross square feet
  • Material and labor costs
  • Contingency allowances
  • Soft costs such as furniture, fixtures, and equipment

“An effective cost model, developed early, along with an experienced team, and healthcare leaders who are on board with the process, are invaluable in creating accurate estimates in the early planning stages,” he says.

Read the full post here.