Division 01 – General Requirements

All costs directly related to the overall management of the project – project start, operation and finish are being placed in in division 01 – general requirements. These costs relate to field preparation work, your field staffing, temporary utilities, your mobilization and demobilization costs, permits, and much more.

Every company calculates their general requirements a little differently, but generally, you can group these costs as:

  • Project preparation and survey,
  • project staffing, per diems and travel,
  • jobsite office, utilities, tools, vehicles, equipment, and storage,
  • project safety, security, and first aid,
  • project sanitation and clean-up,
  • weather, and ground conditions,
  • permits and fees.

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BUILDING PERMITS

There are a large number of permits required on a construction site, among them one of the most important ones is the Building Permit. This permit is the permission by a local government agency (often a construction division of the local town administration) to proceed with the construction work. To acquire that permit we need to submit the required documentation (available drawings, specs, etc.) to that agency, which in turn will check the documents on abidance to governing land use, zoning, construction code, and other requirements. If they are not satisfied, you will not get that permit, hence you cannot begin construction.

Every agency calculates the cost of a permit very differently. In most cases a predefined formula is being used, with inputs such as the classification type of project (our project, a multistore living place, would be classified under the International Building Code as RESIDENTIAL (R)), if the project is new construction or renovation, the size of the project, and / or the total estimated construction costs. The formula can be complex or as simple as a percentage multiplier of the total construction costs of the building. Once again, every agency calculates these costs very differently. Therefore, these costs must always be looked up on a case-to-case basis.

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