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COST PLANNING AND ESTIMATION

COST PLANNING AND ESTIMATION. Daniel Ng Danielng.trentglobal@yahoo.com. 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.

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COST PLANNING AND ESTIMATION

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  1. COST PLANNING AND ESTIMATION Daniel Ng Danielng.trentglobal@yahoo.com

  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

  4. 5. Cost Planning at Various Stages of Design 5.1 Pre-Contract Cost Control – Recap 5.2 The Cost Plan 5.3 The Process 5.4 Cost Planning Stages 5.5 Cost Control during Design and Construction 5.6 Definition of Cost, Price and Value 5.7 Types of Estimating Cost Control

  5. 5.1 Pre-Contract Cost Control – Recap • Cost Planning • Cost Planning Techniques • Single rate Methods • Multiple-rate Methods

  6. 5.2 The Cost Plan • To find out cost • To keep within budget • Close gap between budget estimate and Contractor’s tender • Efficient design process • Value for money • Helping the client decide how it wants to allocate the budget to the various parts of the project.

  7. 5.3 The Process

  8. 5.4 Cost Planning Stages

  9. 5.4 Cost Planning Stages

  10. 5.4 Cost Planning Stages

  11. 5.5 Cost Control during Design and Construction RIBA Plan of Work 2013

  12. 5.6 Definition of Cost, Price and Value Cost is an amount that has to be paid or given up in order to get something. E.g. Procurement cost, construction cost and life cycle cost. Price is the amount a seller willing to exchange the product for. Price = Cost + Profits Value is what the building is worth.

  13. 5.7 Types of Estimating Cost Control • Approximate Estimate • Cost Planning • Life Cycle Costing (Cost-in-use)

  14. 5.7 Types of Estimating Cost Control Life Cycle Costing (Cost-in-use) • Life cycle costing looks at the cost of a component, an elemental or a building, over the life of the facility and compares alternative solutions to find the best long-term value for the client. It considers: • Capital or initial costs • Running costs • Maintenance costs • Replacement costs • Demolition or disposal costs

  15. 5.7 Types of Estimating Cost Control Life Cycle Costing (Cost-in-use) Image from: http://sekisui-gbp.com/technology/lifecyclecost/index.html

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