1. Types of Cost Forecasting
Dr Fiona Grant

2. 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

3. 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

4. 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

5. Why cost control?

6. 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

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

8. 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

9. Cost Planning Stages