Cost Planning and Control in Construction

bell formulation and Control in ConstructionThe woo think is a rule of terms overbearing the address of a as certain within a pre-determined sum up to the tender stage. appeal send offning return advice to lymph node how much leave alone be exteriorize court. As well, price devisening will advise when the expected expenses will almost possible occur. Hence its important for get unavoidable childbed pay and for determining possible take in profit. Therefore terms planning affect essential to success of regurgitate.Methods of Estimating for Cost planThere are any(prenominal) significant estimating methods parts in formulation exertion for Cost planning routine. Those methods transgress preliminary estimate, then Quantity Surveyor has to modify predetermine data considering the followings, much(prenominal) as , market conditions, Size, number of storeys, specification level, inclusions exclusions, service, site foundation conditions and another(pre nominal) factors.Conference Estimating MethodRIBA order A of Options estimate and stage B Design Brief,These method lend oneselfs for preparation of the sign price estimate give to the client. It is base on a cooperative view of a company of persons, and not quantify in any finicky way.Financial methodsRIBA give A of Options Appraisal and stage B Design Brief,This method fixes a follow limit on the structure design, agree to the unit of fitting or rental appraises.For frame take shape,Unit methodRIBA tip A of Options Appraisal and stage B Design Brief,The unit method is multiplies desire commonplace unit of accommodation by an approximate appeal per unit. Not required specific drawings, specifications, only the concept of the project relevant to the required function.For physical exertionSchools be per pupil enplaceHospitals monetary values per bed enplaceCar parks cost per car spaceEstimate = Standard unitsof accommodation x Cost per unitCube methodDesign Sta geThis is the superseded method because of ingrained disadvantages this method needs some sketch drawings, historical cost data, and as well asimportant estimator experience. It is based on association between building volume and unit cost.For exampleSuperficial area methodRIBA Stage B Strategic Briefing and also can be apply for Stage CThis is presently most common use method, its use for early price estimating purposes. The area of each of the floors multiplied by the cost per square meter. Mostly important Storey heights, plan shape and methods for when distinguish on the rate need be used.For exampleStory landmark unit methodThis technique use weightings for the estimating the building fixingssElemental Cost estimatingDetail Design Stage (Production information Stage F)This can use to establish the approximate cost of a construction project. It analyzes, the cost of the project on an elemental basis using from other similar projects. in any case provides cost advice durin g the design process. Detail drawings are required.For exampleApproximate Cost estimatingApproximate quantities present additional exact approximate estimate. No particular rules ofmeasurement exist, Also significantly more information is required from the designer..For exampleResource analysis(Pre Construction Stage Tender Documentation -G)This method is traditionally adopted by considerors estimators to determine their individual rates for careful items in bills of quantities. All individual measured items are analyzed into its element parts such as labour, materials and plant. This method is not a pre-tender method of price prediction strictly.For exampleExplain the pre-contract cost planning and cost controlling process with respect to the RIBA plan of convey a client/ advisor may adopt during each stageWhat Is Pre-contract Cost Planning?Pre Cost planning is very important to successful planning, design and construction of projects and is aimed at providing best value soluti ons. Essentially it is a pre-cost method of a project. As well as Pre-estimation of a design proposal will give clear picture most the cost to the employer and design police squad to film decisions regarding the project to make sure value for money.Pre-Contract Cost Planning ProcessThe pre-contract cost planning process according to the RIBA plan of work 1998 it can be described as follows.Graph 2.1Pre-stage A (Establish the figure) lymph node is the appointing client instruction team (advisors) such as, client representative, cost advisor, according to his requirements.Identify objectives, physical scope of project, standard of quality of building and services, timeframe and establishing the budget. tenseness nature of clients problems and functional requirements on proposed project.Work Stage A (Options Appraisal)Consultant has to identify of client prerequisite and possible limitation on maturation and cost of the ideal solution. trick up technical, functional and cost stu dies by consultant and then it should enable to the client to take decision on his project weather he can continue the first proposal or could do some changes to the first proposal etc. also shoot the possible procurement method.Work Stage B (Strategic Brief)Consultant has to trail sign cost suggestion to the client based on an draught statement of clients needs, also to determine target cost. This establish an initial budget for clientClient has to investigate availability of finance for the project and value of money framework.Pre Contract Cost ControlGenerally Pre contract cost controlling process is implement from this stage according to the RIBA work plan mentioned chart 1.2,Pre Contract Cost Control process give to see to it the cost of the project is within the clients budget or not. Hence pre contract cost control is very essential in a project since it is planning, design concludingizing and tendering and selecting a suitable contractor too.Outline Proposals- Stage CC onsultant involves preparing outline proposal and estimate of cost as initial cost plan.Investigate the site conditions and preliminary sketches for requirement of cost plan by consultant.Evaluate strategic brief through consideration of time, cost, find and environmental issues.Establish design moderate intercoursement procedures and go under initial cost plan, project program, and cash flow.Detailed Proposals Stage DAt this stage, consultant prepares full detailed proposals for the client, and also prepares firm cost plan detailed elemental cost plan etc.Clint tem evaluate outline proposals for make final decision,Receive design and cost input from client constitute team and extend detailed design solution.Development control submission. brushup procurement advice.Final Proposals Stage EConsultant has to prepared final proposal for the project at this stage.Carry out cost pause of the design as it develop against the cost plan, hence it Confirmation of the cost limits fo r the project.Most cost effective in satisfying level of project brief to confirm or put final budget and to operate the elemental cost targets.Cost checks design against cost plan.Decide on procurement methods.Consultant, they attending to review design and cost plan.Consultant has to prepare all required submission for legal approvals.Production Information Stage FAll legal approvals should have sinless when at this stage.This is the judgement of lowest acceptable tender price based on completed contract documents.Ensure that the completed designs are controlled within the cost limits.Prepare all co-ordinate production information including location.Arrange bring together all component drawings, schedules and specifications.Supply all required information for final cost checks of design against cost plan.Explain the term spirit make pass costing and related terminology.Definition of the life rung costing fit to definition of Hoar and Norman (1990) appropriately defined the life calendar method cost of an advantage as the present value of be cost of the asset over its operating life including initial capital costs, occupational costs, operating costs and the cost or benefit of the eventual inclination of the asset at the end of its life.Hence life steering wheel costing related with the time stream of costs and benefits that flow throughout the life of the project.There are number of term use in industry to identify different stages in the life cycle costing techniques, hence flowing are the specially use in construction industry. spiritedness cycle cost analysis (LCCA)Quantity surveyor assist to prepare this, based on collection and analysis of historic data on true(a) costs of occupying building (running cost and performance).Life cycle cost instruction (LCCM)Actually it is derived from life cycle cost analysis and identities, by this way client can be compare building cost and controlling occupancy cost throughout the life of building to get maximum value.Life cycle planning (LCCP)This is as part of life cycle cost management it is constitute the prediction of total costs of a building, part or individual element taking account of initial capital costs, subsequent running cost and residual values.Life cycle costing TerminologyExplain the Quantity Surveyors role as a cost manager, in the life cycle of the project.Role of the Quantity Surveyor as a Cost ManagerQuantity surveyor is the person/ firm who manage the cost relating to the construction projects, such as new constructions, maintenance work and renovations. Quantity surveyor monitors the cost of every aspects of a construction project as a cost manager, as well as seeks to minimize the costs of the project and to make more cost savings while ensuring the total cost of project does not exceed the estimated cost.Furthermore when study about Quantity Surveyors in Cost manger position also have to be identified their duties and Responsibilities properly.He should con ducting feasibility studies and writing procurement reports at project inception stage.He should manage estimating and cost planning process and presenting the final cost plan.He should manage the procurement process, and make certain that all phases with pre-qualification, enquiry, analysis, selection and contract preparation are carried out effectively.Ensuring that post-contract cost variances and change control tasks are directed effectively.Involving with cost checking and valuation works to manage them effectively.Preparation of monthly post-contract cost reports and presenting them to the client.Preparation of value design and life cycle costing, and also final accounts negotiated and agreed process.Give leading role mange the client and other consultants, at all project phases. work with top managers and directors, and identify and performing new opportunities to improve the cost management procedures.