The WAYS OF Estimating For Cost Planning Engineering Essay

It advises a customer how much a suggested project will definitely cost. As well, cost planning will suggest when the expected expenditures will most possible occur. Hence it's important for obtaining task financing and for identifying whether a project can be profitable. Therefore cost planning process necessary to success of project.

Methods of Estimating for Cost Planning

There are some significant estimating methods uses in construction industry for Cost planning process. Those methods give initial estimate, hence Volume Surveyor must improve predetermine data taking into consideration the followings, such as, market conditions, Size, range of storeys, standards level, inclusions & exclusions, service, site & groundwork conditions and other factors.

Conference Estimating Method

RIBA Level A of Options Appraisal and level B Design Short,

These method uses for prep of the original price estimate give to your client. It predicated on a collective view of several persons, rather than quantify in virtually any particular way.

Financial methods

RIBA Stage A of Options Appraisal and stage B Design Brief,

This method fixes a cost limit on the building design, in line with the unit of accommodation or rental values.

For example,

Unit method

RIBA Stage A of Options Appraisal and level B Design Quick,

The device method is multiplies desire standard device of accommodation by an approximate cost per device. Not necessary specific drawings and specifications, only the concept of the project according of function is necessary.

For example

Schools - costs per pupil enplace

Hospitals - costs per foundation enplace

Car parks - cost per car space

Estimate = Standard systems of accommodation x Cost per unit

Cube method

Design Stage

This is the superseded method because of natural disadvantages; this method needs some sketch drawings, historical cost data, and also important estimator experience. It is based on marriage between building size and device cost.

For example

Estimate = volume of the building x Unit cost (cost/m3)

Superficial area method

RIBA Stage B Strategic Briefing and can also be used for Level C

This is currently most common use method, its use for early price estimating purposes. The area of each of the floor surfaces multiplied by the cost per square meter. Typically important Storey levels, plan form and options for when deciding on the speed to be used.

For example

Estimate = Area of the building x Unit cost (cost/m2)

Story enclosure unit method

This strategy use weightings for the estimating the building elements

Elemental Cost estimating

Detail Design Level (Creation information Stage F)

This can use to determine the approximate cost of a development task. It analyzes, the expense of the project on an elemental basis using from other similar tasks. Also provides cost advice through the design process. Detail drawings will be required.

For example

Approximate Cost estimating

Approximate quantities present additional thorough approximate estimate. No particular rules of measurement exist, and the composite items resulted from the knowledge of each individual surveyor. Also, significantly more information is necessary from the custom if the method is to be applied in practice.

For example

Resource analysis

(Pre Construction Stage Tender Documents -G)

This method is usually adopted by companies' estimators to find out their individual rates for measured items in charges of amounts. All individual measured items are examined into its component parts such as labour, materials and vegetable. This method is not really a pre-tender method of price prediction purely.

For example

Explain the pre-contract cost planning and cost controlling process with respect to the RIBA plan of work a consumer/ consultant may adopt during each stage

What Is Pre-contract Cost Planning?

Pre Cost planning is vital to successful planning, design and building of projects which is targeted at providing best value solutions. Essentially this can be a pre-costing approach to a project. Aswell as Pre-estimation of any design proposal gives clear picture about the cost to the workplace and design team to make decisions regarding the project to be sure value for money.

Pre-Contract Cost Planning Process

The pre-contract cost planning process according to the RIBA plan of work 1998; it could be referred to as follows.

Pre-Design

Inception of Feasibility

Pre-stage A

Work Level A (1)

Work Level B (2)

Establishing the need (Establish the budget)

Options Appraisal (Cost of preferred solution)

Strategic Briefing (Goal cost)

Pre-construction Stage

Work Level C

Work Stage D

Work Stage E

Outline proposals (Prepare preliminary cost plan)

Detailed Proposals (Firm Cost Plan)

Final Proposals (Cost bank checks, design against cost plan)

Work Stage F

Production Information (Final cost assessments of design against cost plan)

Graph - 2. 1

Pre-stage A (Establish the budget)

Client is the appointing client management team (Consultants) such as, customer representative, cost advisor, relating to his requirements.

Identify targets, physical range of task, standard of quality of building and services, timeframe and establishing the budget.

Emphasis dynamics of client's problems and efficient requirements on proposed task.

Work Level A (Options Appraisal)

Consultant has to identify of customer prerequisite and possible restriction on development and cost of the ideal solution.

Prepare technical, efficient and cost tests by advisor and then it will enable to your client to consider decision on his project weather he can continue the first proposal or could do some changes to the first proposal etc. also choose the possible procurement method.

Work Level B (Strategic Simple)

Consultant must prepare original cost advice to the client based on an overview assertion of client's needs, also to ascertain focus on cost. This establish an initial cover client

Client must investigate option of money for the job and value of money construction.

Pre Contract Cost Control

Generally Pre agreement cost managing process is execute from this level according to the RIBA work plan talked about chart 1. 2,

Pre Deal Cost Control process give to ensure the expense of the project is within the client's budget or not. Hence pre deal cost control is very essential in a job since it is planning, design finalizing and tendering and selecting a suitable contractor too.

Outline Proposals- Stage C

Consultant involves setting up format proposal and estimate of cost as first cost plan.

Investigate the site conditions and preliminary sketches for dependence on cost plan by advisor.

Evaluate strategic quick through consideration of time, cost, risk and environmental issues.

Establish design management methods and prepare first cost plan, job program, and cashflow.

Detailed Proposals - Level D

At this stage, expert prepares full specific proposals for the client, and also prepares firm cost plan & detailed elemental cost plan etc.

Clint tem evaluate put together proposals for make final decision,

Receive design and cost source from client appointed team and increase thorough design solution.

Development control distribution.

Review procurement advice.

Final Proposals - Level E

Consultant has to prepared last proposal for the project at this time.

Carry out cost check of the look as it develop against the price plan, hence it Verification of the price restrictions for the task.

Most affordable in satisfying level of project brief to verify or put last budget and also to check the elemental cost targets.

Cost investigations design against cost plan.

Decide on procurement methods.

Consultant, they participating in to examine design and cost plan.

Consultant has to make all required distribution for legal approvals.

Production Information - Stage F

All legal approvals should have completed when at this time.

This is the examination of lowest appropriate tender price based on completed contract documents.

Ensure that the completed designs are controlled within the cost limits.

Prepare all co-ordinate development information including location.

Arrange gather all component drawings, schedules and specs.

Supply all required information for final cost bank checks of design against cost plan.

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