Types of Cost Forecasting Dr Fiona Grant

An interdisciplinary subject What is Cost Management? The total financial management of a building project covering the entire processes from the decision to invest, to occupation of the property to demolition or refurbishment An interdisciplinary subject data required from such other professionals as Investment Analysts Architects Engineers Property management consultants Environmentalist, etc

Typical project stakeholders Ground landlord Sub-tenants Tenants Manufactures/Suppliers General Contractor Financiers Advisers Client/Owner Specialist Contractors Utilities Nominated Subcontractors Architect Consulting Engineers Landscape Architect Quantity Surveyor Interior Designer Investment Analysts Surveyors Local Authority planners and inspectors Domestic Sub-contractors

Public Sector Client Private Sector Client Client Types including their needs and objectives Public Sector Client - social infrastructure e.g. schools, hospitals - quasi profit making investment e.g. recreational facilities Private Sector Client - Corporate organisations - commercial investments - offices - Individuals - private houses

Why cost control?

Time – Cost – Quality Time Project Quality Cost Design Length Start Date Hand-over Completion Time Budget Estimate Tender Final Account In-use Project Quality Cost Appearance Function Durability Maintenance

Pareto Diagram 80% committed Cost of Project 20% Design Period complete Design Period

Cost Savings and Time R e l a t i o n s h p b w f c y v g d m T % 1 L O W E X P N D I T U R HIGH INFLUENCE LOW INFLUENCE H I G H E X P E N D I T U R E V A R I A T I O N S I N D E S I G N C O S T S Design Period Construction Period I M E A N D L I F E C Y C L E

Cost Planning Stages