Why use a Certified Professional Estimator (CPE) if you're buying or building a building?

"For anyone in real estate, it is best to have a construction cost estimator to determine what the actual cost is going to be," he says. "Is it going to be a good deal, or is it going to cost too much, and don't even bother? A prospective buyer, or a potential developer, has to have the opportunity to know ahead of time what the actual cost is going to be."

Manfredonia's advice comes from nearly five decades of experience in construction cost estimating. A Certified Professional Estimator (CPE), as certified by the American Society of Professional Estimators, he performs construction cost estimating for everyone from architects, to bidding contractors and subcontractors, to homeowners for loss claims. He also did a stint with the U.S. Treasury Department for rebuilding or new construction projects.

"In that role, most of the time I couldn't even tell my wife where I was going," he laughs. "All I could say was that I was going to McGuire Air Force Base for a flight out."

In any event, he cautions against necessarily taking a contractor's word on pricing, given the fact that there may be part of and impacted by a bidding process.

"In that case, it is important to have an independent assessment, with no allegiance," he says. "On top of that, a CPE has a code of ethics that he or she must abide by. I also tell clients ahead of time, if there is any kind of a lawsuit involving pricing, I don't want to know what the cost is because I don't want to be influenced."

His early involvement with other NJCREA members has included working on a couple of projects with Joel Ives of The Ives Architecture Studio, and one with Darren Lizzack of NAI James E. Hanson.

"We were given a price for sitework for a project, but when we asked for and got an independent assessment from Bill Manfredonia, the real pricing was 40% less," Lizzack recalls. "Pricing can be a dealmaker or deal-breaker, and in this case, armed with an independent estimate, it was a dealmaker."

"All of my estimates are stamped and sealed," Manfredonia says. "That gives the client the opportunity to go to their lender and get the appropriate construction financing. Any realty client wants to know what the cost is going to be—I'm the one who will give them the up-to-date, down-the-line cost, the actual cost, either from historical data or from contractors, or whatever means is at my disposal, to come up with the legitimate cost of what that particular project is going to be.

"The cost of an estimate is miniscule compared to the total overall package," Manfredonia notes. "It behooves someone to get a legitimate cost estimate before final negotiations. It could indeed be either a dealmaker or deal-breaker."

How do changing economic conditions, and economic cycles in general, impact all of this? History has a story to tell on that issue.

"It is important to go back in time to see what the costs are for any particular item," Manfredonia explains. "Formerly, estimates were broken down into 16 divisions. Now, however, the Construction Specification Institute has established a new format of 45 divisions, everything from sitework to electrical.

"And the marketplace definitely has an effect on cost," he continues. "Plainly said, the economy can definitely be the deal-breaker. You have to be attuned to fluctuations in the marketplace—you can't keep using numbers as rote. So I will update my numbers at least quarterly to find out where the numbers are or where they're going.

"There are situations, for example, that I might have to go back in time if I'm serving as an expert witness for a project that was done, say, in 2008," he explains. "What was the pricing back then? You can't use today's prices—you have to keep attuned to the marketplace and where it is today."

With access to the resources of NJCREA to tap into, such as professional cost estimation through Bill Manfredonia’s firm, time is not wasted and decisions can be made quickly and effectively. Projects can be successful and, more often than not, projects that are not feasible can quickly be eliminated in order to move forward in a new direction. This theory continues to be proven time and time again.

"And keeping attuned to where the market is right now is a truism in any case," Manfredonia concludes.