1. COST PLANNING AND ESTIMATION
Wong Chear Ching

2. 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

3. 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

4. 2. Cost Planning Techniques
2.1 Introduction 2.2 Technique

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

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

7. 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

8. 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)

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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