| Course | MT281 Fundamentals of Construction Management |
|---|---|
| Unit | Unit 7 |
| Paper type | Cost estimate |
| Length | About 870 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT281 Unit 7
Six Percent Measured, the Rest by the Square Foot: A Unit 7 Cost Estimate for Station 2 at $6,373,892
[Student Name]
Purdue University Global
MT281: Fundamentals of Construction Management
Unit 7 Cost Estimate
[Instructor Name]
[Date]
Station 2 and every quantity, unit price and markup are composite and illustrative; unit prices are of the kind published in cost databases and are not quotes; the sources cited are real.
Summary
Direct cost: $5,105,900, about $397 a square foot over 12,864 square feet. General conditions: $474,000. Overhead and profit at 7.5 percent: $418,493. Design contingency at 5 percent: $299,920. Bond at 1.2 percent: $75,580. Total: $6,373,892, leaving $526,108 under the $6.9 million construction budget, a margin of about 7.6 percent.
Measured Items
Seven items come from the quantity takeoff and are priced at installed unit rates.
Bay slab: 140 cubic yards at $305: $42,700
Wing slab: 122 cubic yards at $290: $35,380
Footings: 44 cubic yards at $390: $17,160
Foundation walls: 59 cubic yards at $640: $37,760
Reinforcing steel for the bay slab: 6.25 tons at $2,450: $15,313
Concrete masonry at the bay: 5,985 square feet at $23.50: $140,648
Geotechnical undercut and fill: 398 cubic yards at $46: $18,308
Measured total: $307,268, about 6 percent of direct cost. The undercut is priced per bank cubic yard removed, with the swell to 498 loose yards of fill included in the rate, following the convention Peurifoy et al. (2018) describe for excavate-and-replace work. Installed rates include material, labor and equipment and were set from published cost data adjusted for the township's location (RSMeans, 2024).
Counted Items
Sectional doors, six at $21,500 each installed, including operators and safety sensors: $129,000.
Parametric Items
Everything else is priced per square foot of building area, using cost data for fire stations of similar size and adjusting for features this station has or lacks. Each line names its basis.
Mechanical and plumbing, $96 per square foot: $1,234,944; basis, published fire station data, raised for the bay's radiant heating
Site work, paving and utilities, $72: $926,208; basis, civil engineer's preliminary quantities, priced by area
Electrical, communications and alarm, $47: $604,608; basis, fire station data with station alerting added
Metals, joists and deck, $30: $385,920; basis, supplier's budget price for the bay roof
Finishes, $28.50: $366,624; basis, finish schedule by room type
Roofing, insulation and sealants, $23: $295,872; basis, roofer's budget price
Other concrete, aprons, sidewalks and pads, $14: $180,096; basis, area of aprons at 4,500 psi air-entrained
Equipment, vehicle exhaust removal and kitchen, $12: $154,368; basis, two vendor budget quotes
Other openings, doors, frames and windows, $11: $141,504; basis, door and window schedules
Masonry veneer at the living wing, $9.50: $122,208
Wood and casework, $8: $102,912
Specialties, lockers, gear racks and signage, $6.50: $83,616
Fire suppression, $5.50: $70,752
Parametric total: $4,669,632. Halpin et al. (2017) note that parametric pricing is appropriate at this stage of design, provided each rate's source is stated so it can be replaced by a measured price when the drawings are complete.
A square-foot price is honest only if it says where it came from.
Markups and Their Order
Markups are applied in a stated order, because each is calculated on a different base.
General conditions are added to direct cost first, since they are a cost of doing the work: twelve months of field office, supervision, temporary utilities and insurance at $39,500 a month, $474,000. Overhead and profit at 7.5 percent are then applied to direct cost plus general conditions, $5,579,900, giving $418,493. Design contingency at 5 percent is applied to that subtotal, $5,998,393, giving $299,920, because it covers items the incomplete design has not yet shown. The bond at 1.2 percent is applied last, to the total including contingency, $6,298,312, giving $75,580, because the surety bonds the full contract amount.
Applying the markups in a different order would change the total by a few thousand dollars. Stating the order lets the township's architect reproduce it.
Sensitivity
Three open questions could move the total. If the structural engineer confirms the 9-inch bay slab the geotechnical report recommends, the order rises from 140 to 157 cubic yards, about $5,200 more. If the door lintels need a deeper bond beam, masonry and steel could add $8,000 to $12,000. And if more soft clay appears during excavation than the borings showed, the undercut could grow; each additional 100 cubic yards removed and replaced adds about $4,600 at the measured rate, before any delay costs. Together these risks are well inside the design contingency, which is the purpose of carrying one.
Comparison With Similar Stations
At about $495 a square foot including all markups, the estimate sits within the range published cost data show for fire stations of this size in comparable regions. That comparison is a check on the whole, not a substitute for measuring the parts.
Confidence and Next Steps
With only 6 percent of direct cost measured, the estimate is a design development estimate, not a bid. The largest parametric lines, mechanical and plumbing and site work, should be measured first as their drawings are completed, since a 10 percent error in either would move the total by more than $90,000. The 7.6 percent margin under the budget is adequate for this stage but not generous.
References
Halpin, D. W., Lucko, G., & Senior, B. A. (2017). Construction management (5th ed.). Wiley.
Peurifoy, R. L., Schexnayder, C. J., Shapira, A., & Schmitt, R. L. (2018). Construction planning, equipment, and methods (9th ed.). McGraw-Hill.
RSMeans. (2024). Building construction costs with RSMeans data 2024. Gordian.
MT281 Unit 7 instructions, in plain terms
The seventh unit asks students to prepare a cost estimate for their project from the quantities and schedule already developed. Price measured items at installed unit rates, counted items by the unit and the rest by parametric rates such as cost per square foot, naming the source of each rate. Then add general conditions, overhead and profit, contingency and bond in a stated order, since each applies to a different base. The prompt usually expects a summary by CSI division, a comparison with the budget and an honest statement of how much of the estimate is measured. A sensitivity section on open design questions shows judgment. Seven pages, with a summary sheet and division detail, is a typical format.
How the MT 281 Unit 7 example is put together
The estimate opens with a summary of direct cost, each markup and the margin under budget. Seven measured items follow with their unit rates, totaling 6 percent of direct cost, under a margin note on what can be checked, with RSMeans and Peurifoy and colleagues on the undercut rate. The sectional doors are counted. Thirteen parametric lines each name a basis, with Halpin and colleagues on parametric pricing and the highlighted line about square-foot honesty. A section explains why markups are applied in the order shown and on which base. Sensitivity covers the thicker slab, the lintel change and more soft clay. A comparison with similar stations and a plan to measure the largest lines next close it.
MT281 Unit 7 rubric: what earns full points
Cost estimates earn marks for accurate arithmetic, a clear basis for every rate, correct markup sequence and honesty about confidence. Instructors reward estimates that distinguish measured, counted and parametric items and state what share each represents. Naming the source of each parametric rate allows review and later replacement. Applying markups in a stated order, each to its proper base, shows understanding of how contractors build prices. A sensitivity section that prices open design questions shows the writer knows where the estimate could move. Comparing the result with the budget and with similar projects is expected. Clean summary tables and accurate citations complete the rubric. A plan for which parametric lines to measure next shows the writer treats the estimate as a stage, not a final answer.
Common MT281 Unit 7 mistakes, and how to avoid them
Students often present a single cost per square foot for the whole building, which hides everything an owner needs to see. Another frequent problem is stacking markups in an unstated order or applying each to the wrong base. Some estimates use unit prices with no source. Others carry measured quantities from an outdated takeoff. Check that division totals add up to direct cost, and that every parametric rate is tied to the same date and location as the measured ones. Send your quantities and the cost data you can use, and a writer can price the measured items, set out the parametric lines with their bases and apply the markups in order.
Get an MT281 Unit 7 example written to your instructions
Bring your takeoff or the quantities your Unit 7 prompt supplies, any unit prices or cost data the course provides, and the instructions and rubric, and say whether markups are specified. A free first estimate arrives within 24-48h, each measured line traced to its quantity and every assumed rate labeled with its basis. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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MT281 Unit 7 questions, answered
Where do unit prices come from in a student estimate?
Usually from data the course supplies, a published cost database adjusted for location and year, or quotes described in the scenario. Whatever the source, name it on the line or in a note. The sample labels its rates as assumptions for the exercise, which is honest and lets a reader substitute better figures without rebuilding the sheet.
In what order should markups be applied?
In the order your course or contract specifies, stated on the page. A common sequence applies overhead and profit to direct cost plus general conditions, then contingency, then bond on the full amount. Because each percentage applies to a different base, changing the order changes the total, so the sequence itself is part of the answer.
Is it acceptable to price some work per square foot?
At early design stages, yes, provided the basis is named and the paper says how much of the total rests on it. Square-foot pricing becomes weak when it covers most of the estimate without acknowledgment. The sample shows that only six percent of direct cost is measured, which shapes how much confidence its total deserves.
Where can I find a free MT281 Unit 7 sample paper?
This page holds the full MT281 Unit 7 cost estimate. It prices a fire station at $6,373,892 from measured, counted and parametric items, applies markups in a stated order and tests three open design questions.
In what order are markups applied in the MT281 Unit 7 sample?
General conditions are added to direct cost first, then overhead and profit at 7.5 percent on that subtotal, then design contingency at 5 percent, and finally the bond at 1.2 percent on the total including contingency.