COST PLANNING AND ESTIMATION Wong Chear Ching

Course outline Overview of Cost Planning Cost Planning Techniques Approximate Estimating Elemental Method Cost Planning at Various Stages of Design Resource Analysis Cash Flow Valuation Final Accounts

Teaching Scheme DATE CHAPTER 1. Overview of Cost Planning 2. Cost Planning Techniques 3. Approximate Estimating 4. Elemental Method 5. Cost Planning at Various Stages of Design 6. Resource Analysis 7. Cash Flow 8. Valuation 9. Final Accounts Exam

2. Cost Planning Techniques 2.1 Introduction 2.2 Technique

2. Cost Planning Techniques Single-rate Methods Functional unit method Superficial floor area Functional area method Cube/ volume method

2. Cost Planning Techniques Multiple-rate Methods Approximate quantities Accurate quantities

2. Cost Planning Techniques Reasons for the final cost of construction are different from estimate Type of construction Amount and quality of historical data Amount of design Changes introduced by clients Performance of the design team Estimator’s skill and method used

3. Approximate Estimating 3.1 Introduction 3.2 Method 1 – Functional Unit 3.3 Method 2 – Superficial (floor area) 3.4 Method 3 – Cube (Volume)

3. Approximate Estimating Functional unit Per M, M2, M3 GIFA, GEFA, NIA Per bed, room, place, cover Capacity, output Elemental quantities Detailed measure  

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS

3.2 Method 1 – Functional Unit Total estimate cost for a new hospital Number of functional units: 300 units Cost per bed: $100,000 Total estimated cost is 300 x $100,000 = $30,000,000

3.3 Method 2 – Superficial (floor area) Total estimate cost for a new bungalow Total gross floor area: 2,000m2 Cost per gross floor area: $3,000 Total estimated cost is 2,000 x $3,000 = $6 million

3.4 Method 3 – Cube (Volume) Measuring the length and breadth of a building and multiplying with the height of the building Total estimated cost = $10,400.00