Posted at 10.09.2018
The Cost Planning is a method of cost handling the cost of a project in a pre-determined summarize to the sensitive stage.
Cost Planning give advice to client how much will be task cost. As well, cost planning will advise when the expected expenses will most possible occur. Hence it's important for get required job finance and then for determining possible job earnings. Therefore cost planning process necessary to success of task.
There are some significant estimating methods uses in building industry for Cost planning process. Those methods give primary estimate, hence Amount Surveyor must modify predetermine data considering the followings, such as, market conditions, Size, range of storeys, standards level, inclusions & exclusions, service, site & foundation conditions and other factors.
Conference Estimating Method
RIBA Stage A of Options Appraisal and stage B Design Simple,
These method uses for preparation of the initial price estimate give to the client. It is based on a cooperative view of several persons, and not quantify in virtually any particular way.
RIBA Stage A of Options Appraisal and level B Design Short,
This method fixes a cost limit on the building design, based on the product of accommodation or local rental values.
RIBA Stage A of Options Appraisal and stage B Design Brief,
The product method is multiplies desire standard product of accommodation by an approximate cost per device. Not required specific drawings, features, only the idea of the project highly relevant to the required function.
Schools - costs per pupil enplace
Hospitals - costs per foundation enplace
Car parks - cost per car space
Estimate = Standard models of accommodation x Cost per unit
This is the superseded method because of inherent drawbacks; this method needs some sketch drawings, historical cost data, and also important estimator experience. It really is based on connection between building quantity and device cost.
Superficial area method
RIBA Level B Strategic Briefing and can also be utilized for Level C
This is currently most typical use method, its use for early price estimating purposes. The area of every of the floor surfaces multiplied by the price per square meter. Usually important Storey heights, plan form and options for when choose on the pace need be used.
Story enclosure unit method
This approach use weightings for the estimating the building elements
Elemental Cost estimating
Detail Design Stage (Production information Level F)
This may use to determine the approximate cost of a building job. It analyzes, the price tag on the project by using an elemental basis using from other similar projects. Also provides cost advice through the design process. Detail drawings will be required.
Approximate Cost estimating
Approximate volumes present additional in depth approximate estimation. No particular guidelines of measurement exist, Also a lot more information is required from the developer. .
(Pre Construction Level Tender Documentation -G)
This method is customarily implemented by contractors' estimators to determine their individual rates for measured items in expenses of quantities. All individual measured items are analyzed into its factor parts such as labour, materials and place. This method is not really a pre-tender approach to price prediction purely.
What Is Pre-contract Cost Planning?
Pre Cost planning is vital to successful planning, design and structure of projects and is aimed at providing cost effective solutions. Essentially this can be a pre-costing approach to a project. As well as Pre-estimation of your design proposal will give clear picture about the cost to the company and design team to make decisions regarding the project to ensure value for money.
The pre-contract cost planning process according to the RIBA plan of work 1998; it can be described as follows.
Graph - 2. 1
Client is the appointing client management team (Consultants) such as, customer representative, cost consultant, regarding to his requirements.
Identify aims, physical range of job, standard of quality of creating and services, timeframe and building the budget.
Emphasis nature of client's problems and practical requirements on proposed task.
Consultant must identify of consumer prerequisite and possible limitation on development and cost of the perfect solution.
Prepare technical, efficient and cost tests by consultant and then it should enable to your client for taking decision on his job weather he is able to continue the first proposal or could do some changes to the first proposal etc. also select the possible procurement method.
Consultant has to prepare preliminary cost recommendation to the client based on an outline statement of client's needs, also to find out goal cost. This set up an initial cover client
Client must investigate option of fund for the project and value of money construction.
Generally Pre contract cost managing process is execute from this level based on the RIBA work plan described chart 1. 2,
Pre Agreement Cost Control process share with ensure the price tag on the project is at the client's budget or not. Hence pre contract cost control is very essential in a project since it is planning, design finalizing and tendering and choosing the suitable contractor too.
Consultant involves getting ready put together proposal and estimation of cost as first cost plan.
Investigate the site conditions and primary sketches for dependence on cost plan by specialist.
Evaluate strategic simple through consideration of their time, cost, risk and environmental issues.
Establish design management techniques and prepare initial cost plan, project program, and cashflow.
At this level, advisor prepares full precise proposals for your client, and also prepares strong cost plan & detailed elemental cost plan etc.
Clint tem evaluate outline proposals for make ultimate decision,
Receive design and cost suggestions from customer appointed team and prolong in depth design solution.
Development control distribution.
Review procurement advice.
Consultant has to prepared final proposal for the job at this stage.
Carry out cost check of the look as it develop against the cost plan, hence it Confirmation of the cost limits for the job.
Most cost effective in satisfying degree of project brief to confirm or put final budget and also to check the elemental cost targets.
Cost assessments design against cost plan.
Decide on procurement methods.
Consultant, they going to to review design and cost plan.
Consultant must put together all required submission for legal approvals.
All legal approvals should have completed when at this stage.
This is the diagnosis of lowest satisfactory tender price predicated on completed contract documents.
Ensure that the completed designs are handled within the price limits.
Prepare all co-ordinate creation information including location.
Arrange gather all component drawings, schedules and specifications.
Supply all required information for last cost inspections of design against cost plan.
According to definition of Hoar and Norman (1990) appropriately defined the life circuit cost of an advantage as the present value of total cost of the advantage over its operating life including first capital costs, occupational costs, working costs and the price or good thing about the eventual removal of the advantage by the end of its life.
Hence life pattern costing related with the time stream of costs and benefits that circulation throughout the life span of the project.
There are quantity of term utilization in industry to recognize different periods in the life span routine costing techniques, hence flowing will be the specially used in development industry.
Life circuit cost analysis (LCCA)
Quantity surveyor help prepare this, predicated on collection and evaluation of historic data on actual costs of occupying building (running cost and performance).
Life cycle cost management (LCCM)
Actually it is derived from life circuit cost evaluation and identities, by this way customer can be compare building cost and controlling occupancy cost throughout the life span of creating to get maximum value.
Life circuit planning (LCCP)
This is really as part of life routine cost management; it is constitute the prediction of total costs of an building, part or individual element taking profile of primary capital costs, following jogging cost and residual beliefs.
Life routine costing Terminology
Quantity surveyor is the person/ company who manage the cost associated with the construction projects, such as new constructions, maintenance work and renovations. Amount surveyor monitors the price of every aspects of a construction task as a cost administrator, as well as looks for to minimize the costs of the job also to make more cost benefits while ensuring the full total cost of project does not go over the projected cost.
Furthermore when review about Volume Surveyors in Cost manger position also have to be discovered their obligations and Obligations properly.
He should executing feasibility studies and writing procurement reviews at job inception level.
He should control estimating and cost planning process and presenting the ultimate cost plan.
He should deal with the procurement process, and make sure all phases with pre-qualification, enquiry, examination, selection and contract preparation are completed effectively.
Ensuring that post-contract cost variances and change control duties are directed effectively.
Involving with cost checking and valuation works to control them effectively.
Preparation of every month post-contract cost studies and presenting these to the client.
Preparation of value engineering and life routine costing, and also final accounts negotiated and decided process.
Give management role mange the client and other consultants, at all project stages.
Working with top professionals and directors, and identify and undertaking new opportunities to enhance the cost management procedures.