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COST PLANNING AND ESTIMATION
Daniel Ng
Course outline
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
Teaching Scheme
DATE CHAPTER
11 April 2016 1. Overview of Cost Planning
13 April 2016 2. Cost Planning Techniques
3. Approximate Estimating
18 April 2016 4. Elemental Method
20 April 2016 5. Cost Planning at Various Stages of Design
25 April 2016 6. Resource Analysis
27 April 2016 7. Cash Flow
8. Valuation
3 May 2016 9. Final Accounts
7 May 2016 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
