Data processing: financial – business practice – management – or co – For cost/price
Reexamination Certificate
1999-08-06
2002-09-03
Cosimano, Edward R. (Department: 2761)
Data processing: financial, business practice, management, or co
For cost/price
C703S001000, C707S793000
Reexamination Certificate
active
06446053
ABSTRACT:
BACKGROUND OF THE INVENTION
An individual considering a major construction project such as building his dream house or remodeling his existing home needs to forecast important details of the project. To create a reasonably accurate forecast, the individual (hereinafter called “the owner”) must try to answer the following questions: What will the new or remodeled house will look like when completed; What will the project cost; How long will the project take to complete; and Who will do the work? In the process of trying to answer these questions, the owner can determine if the project is economically feasible. If the owner decides to undertake the project, a reasonably clear forecast can prevent costly price overruns and construction delays.
However, answering these questions is difficult for unsophisticated builders. Forming a clear mental image of the completed project can be difficult, even with detailed blueprints and plans. Large projects such as building a house include many construction phases and require many different types of building materials. Calculating the material quantities and costs can be very complicated. Large projects also require hiring several different types of subcontractors. The associated labor costs are difficult to estimate without experience in working with such contractors. Labor cost estimates introduce additional complexities in that labor rates vary by region and the specialty of the subcontractors. Further, there are costs the inexperienced builder might not consider, such as building permit fees, inspector's fees and builder's risk insurance. In addition since many owners are first time builders, it may be difficult for them to locate and hire the appropriate subcontractors for their project.
For complicated projects such as building a house or a major remodel of an existing house, many owners hire a general contractor to provide the estimates described above and to hire and manage the subcontractors to do the work. However, any miscommunication with the general contractor as to what the owner wants or expects can lead to unfortunate mistakes that may be prohibitively expensive and time consuming to correct. Further, the uninformed owner has no assurance that the general contractor's estimate is reasonable. The fees charged by general contractors are substantial, adding significantly to the cost of the project. Also, hiring a general contractor entails loosing a large degree of control over the project. For these reasons, hiring a general contractor may not appeal to all owners.
Some owners forgo hiring a general contractor in an effort to retain control over the project and cut costs. According to some estimates, an owner can save anywhere from 10% to 25% of overall building costs by acting as his own general contractor. On the other hand, the owner's lack of experience can negate these savings if it leads to cost overruns and construction delays. Further, lenders at financial institutions may be leery of lending to owners acting as their own general contractors. Many lenders associate lack of experience with delays, shoddy construction, and even failure to complete a project. Subcontractors might not want to work with a novice if they anticipate that the owner's inexperience will cause them delays and callbacks. In order to reassure the lender and subcontractors of the owner's abilities, it is essential that the owner has a clear set of plans, knowledge of all necessary phases of construction, and a detailed and reasonably accurate estimate of the costs involved.
Computer applications have been developed for the construction industry that create digital images of potential construction projects and others that generate cost estimates for such projects. A computer application called VisualPhile produced by Visual Applications in North Kansas City, Mo. allows a user to modify an existing digital image of a home by incorporating materials selected from a catalog of digital images into an existing digital image to create an approximation of the completed project. U.S. Pat. No. 5,893,082 to McCormick discloses a material cost estimating computer application for the construction industry. However, these applications are designed for construction professionals who are intimately familiar with the various phases and requirements of a given construction project. Any graphical model or cost estimate model produced by an owner with little or no building experience using these tools would probably be incomplete and hence inaccurate.
Accordingly, a need exists for a tool that enables owners to accomplish the tasks usually performed by a general contractor. These tasks include producing a set of preliminary building plans and a detailed cost estimate and soliciting bids from subcontractors.
BRIEF SUMMARY OF THE INVENTION
According to a preferred embodiment of the invention, a computer implemented method and system enables a user to develop a construction proposal including a detailed graphical model and a detailed cost estimate model. The proposal is submitted electronically over a networked communication system to a construction professional for a bid, and the user receives a response from the construction professional over the networked communications system. According to the preferred embodiment, the user accomplishes all of these tasks from a single computer environment. A computer application installed on the user's computer educates the user as it guides the user through a series of construction phases and steps, prompting the user to input critical information and make appropriate selections throughout the series of phases and steps.
According to the preferred embodiment, the system includes a central site and a user site connected for electronic communication through the networked communications system. The central site includes a first database that contains product descriptions supplied by a number of subscribing suppliers. The product descriptions include a digital image and a cost-per-unit data for that particular product. The central site also includes a second database that contains contact data for a number of subscribing construction professionals. The user site includes a computer having stored in memory an application that guides the user through the following steps: create an initial graphical model and store it in a first memory; create an initial cost estimate model and store it in a second memory; prompt the user to create the construction proposal in a series of construction phases and steps; access product descriptions from the first database associated with a particular one of the construction steps and prompt the user to select from them; update the graphical model by incorporating the digital image of the selected product description into the existing graphical model in the first memory; update the cost estimate model by calculating a cost of the selected product from the corresponding cost-per-unit data, incorporate the cost into the existing cost estimate model in the second memory, and store the updated cost estimate model in the second memory; display a completed construction proposal on the user's display screen; access the second database and display the contact information of at least one construction professional; and electronically transmit the completed construction proposal to a selected one of the displayed construction professionals.
According to an alternate embodiment, the user transmits the completed construction proposal to the central site. The appropriate construction professional(s) are selected at the central site. The proposal is then sent to the selected construction professional(s) for bidding, along with contact data for the user. The construction professional(s) then transmit bids to the user via the networked communication system.
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