Definition Of The Life Cycle Costing Construction Essay

This study emphasizes for placing critical stages of pre contract cost planning and commanding procedure in the life rhythm of undertaking with regard to the RIBA program of work & A ; how to pull off them and how to obtain a maximal turnover of the undertaking within the measure surveyor ‘s function as a cost director.

Therefore, this survey will discourse important undertaking pre contract cost planning and commanding procedure, such as methods of estimations for cost planning for different phases of RIBA work program, pre-contract cost planning and cost commanding procedure with regard to the RIBA program of work a client/consultant may follow during each phase, the term life rhythm bing and related nomenclature, the measure surveyor ‘s function as a cost director, in the life rhythm of the undertaking.

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Explain the methods of fixing estimations for cost planning for different phases of RIBA work program.

What Is Cost Planning?

The Cost Planning is a method of cost commanding the cost ( Price to client ) of a undertaking within a pre-determined amount up to the stamp phase. ( Page3, Cost surveies )

Cost Planning give advice to client how much will be project cost. As good, cost planning will rede when the expected disbursals will most possible occur. Hence it ‘s of import for get required undertaking finance and for finding possible undertaking net income. Therefore cost planning procedure indispensable to success of undertaking.

Methods of Estimating for Cost Planning

There are some important estimating methods uses in building industry for Cost planning procedure. Those methods give preliminary estimation, therefore Quantity Surveyor has to modify predetermine informations sing the followerss, such as, market conditions, Size, figure of floors, specification degree, inclusions & A ; exclusions, service, site & A ; foundation conditions and other factors.

Conference Estimating Method

RIBA Stage A of Options Appraisal and phase B Design Brief,

These method utilizations for readying of the initial monetary value estimation spring to the client. It is based on a concerted position of a group of individuals, and non quantify in any peculiar manner.

Fiscal methods

RIBA Stage A of Options Appraisal and phase B Design Brief,

This method fixes a cost bound on the edifice design, harmonizing to the unit of adjustment or rental values.

For illustration,

Unit of measurement methodA

RIBA Stage A of Options Appraisal and phase B Design Brief,

The unit method is multiplies desire standard unit of adjustment by an approximative cost per unit. Not required specific drawings, specifications, merely the construct of the undertaking relevant to the needed map.

For illustration:

Schools – costs per student enplace

Hospitals – costs per bed enplace

Car Parkss – cost per auto infinite

Estimate = Standard unitsA of adjustment ten Cost per unit

Cube methodA

Design Phase

This is the superseded method because of built-in disadvantages ; this method needs some study drawings, historical cost informations, and alsoA of import calculator experience. It is based on association between edifice volume and unit cost.

For illustration:

Superficial country method

RIBA Stage B Strategic Briefing and besides can be used for Stage C

This is soon most common usage method, its usage for early monetary value estimating intents. The country of each of the floors multiplied by the cost per square metre. Largely of import Storey highs, program form and methods for when choose on the rate demand be used.

For illustration:

Story enclosure unit method

This technique usage weightings for the gauging the edifice elements

Elemental Cost estimating

Detail Design Stage ( Production information Stage F )

This can utilize to set up the approximative cost of a building undertaking. It analyzes, the cost of the undertaking on an elemental footing utilizing from other similar undertakings. Besides provides cost advice during the design procedure. Detail drawings are required.

For illustration:

Approximate Cost estimating

Approximate measures present extra elaborate approximate estimation. No peculiar regulations ofA measurement exist, Besides significantly more information is required from the designer..

For illustration:

Resource analysis

( Pre Construction Stage Tender Documentation -G )

This method is traditionally adopted by contractors ‘ calculators to find their single rates for mensural points in measures of measures. All single measured points are analyzed into its component parts such as labor, stuffs and works. This method is non a pre-tender method of monetary value anticipation purely.

For illustration:

Explain the pre-contract cost planning and cost commanding procedure with regard to the RIBA program of work a client/ adviser may follow during each phase

What Is Pre-contract Cost Planning?

Pre Cost planning is really of import to successful planning, design and building of undertakings and is aimed at supplying best value solutions. Basically it is a pre-costing method of a undertaking. Equally good as Pre-estimation of a design proposal will give clear image about the cost to the employer and design squad to do determinations sing the undertaking to do certain value for money.

Pre-Contract Cost Planning Process

The pre-contract cost planning procedure harmonizing to the RIBA program of work 1998 ; it can be described as follows.

Graph – 2.1

Pre-stage A ( Establish the budget )

Client is the naming client direction squad ( Consultants ) such as, client representative, cost adviser, harmonizing to his demands.

Identify aims, physical range of undertaking, criterion of quality of edifice and services, timeframe and set uping the budget.

Emphasis nature of client ‘s jobs and functional demands on proposed undertaking.

Work Phase A ( Options Appraisal )

Adviser has to place of client requirement and possible restriction on development and cost of the ideal solution.

Prepare proficient, functional and cost surveies by adviser and so it should enable to the client to take determination on his undertaking weather he can go on the first proposal or could make some alterations to the first proposal etc. besides select the possible procurance method.

Work Phase B ( Strategic Brief )

Adviser has to fix initial cost suggestion to the client based on an outline statement of client ‘s demands, besides to find mark cost. This set up an initial budget for client

Client has to look into handiness of finance for the undertaking and value of money model.

Pre Contract Cost Control

By and large Pre contract cost commanding procedure is implement from this phase harmonizing to the RIBA work program mentioned chart 1.2,

Pre Contract Cost Control procedure spring to guarantee the cost of the undertaking is within the client ‘s budget or non. Hence pre contract cost control is really indispensable in a undertaking since it is be aftering, design finalizing and tendering and choosing a suited contractor excessively.

Outline Proposals- Stage C

Consultant involves fixing outline proposal and estimation of cost as initial cost program.

Investigate the site conditions and preliminary studies for demand of cost program by adviser.

Evaluate strategic brief through consideration of clip, cost, hazard and environmental issues.

Establish design direction processs and fix initial cost program, undertaking plan, and hard currency flow.

Detailed Proposals – Phase Calciferol

At this phase, adviser prepares full elaborate proposals for the client, and besides prepares house cost program & A ; detailed elemental cost program etc.

Clint tem evaluate lineation proposals for make concluding determination,

Receive design and cost input from client appointed squad and widen elaborate design solution.

Development control entry.

Review procurance advice.

Final Proposals – Phase Tocopherol

Adviser has to prepared concluding proposal for the undertaking at this phase.

Carry out cost cheque of the design as it develop against the cost program, hence it Confirmation of the cost bounds for the undertaking.

Most cost effectual in fulfilling degree of undertaking brief to corroborate or set concluding budget and to look into the elemental cost marks.

Cost cheques design against cost program.

Decide on procurement methods.

Consultant, they go toing to reexamine design and cost program.

Adviser has to fix all needed entry for legal blessings.

Production Information – Phase F

All legal blessings should hold completed when at this phase.

This is the appraisal of lowest acceptable stamp monetary value based on completed contract paperss.

Ensure that the completed designs are controlled within the cost bounds.

Fix all co-ordinate production information including location.

Arrange convey together all constituent drawings, agendas and specifications.

Supply all required information for concluding cost cheques of design against cost program.

Explain the term life rhythm bing and related nomenclature.

Definition of the life rhythm bing

Harmonizing to definition of Hoar and Norman ( 1990 ) suitably defined the life rhythm cost of an advantage as the present value of entire cost of the plus over its runing life including initial capital costs, occupational costs, runing costs and the cost or benefit of the eventual disposal of the plus at the terminal of its life.

Hence life rhythm bing related with the clip watercourse of costs and benefits that flow throughout the life of the undertaking.

There are figure of term usage in industry to place different phases in the life rhythm bing techniques, hence fluxing are the specially usage in building industry.

Life rhythm cost analysis ( LCCA )

Quantity surveyor aid to fix this, based on aggregation and analysis of historic informations on existent costs of busying edifice ( running cost and public presentation ) .

Life rhythm cost direction ( LCCM )

Actually it is derived from life rhythm cost analysis and individualities, by this manner client can be compare constructing cost and commanding tenancy cost throughout the life of edifice to acquire maximal value.

Life rhythm planning ( LCCP )

This is as portion of life rhythm cost direction ; it is constitute the anticipation of entire costs of a edifice, portion or single component taking history of initial capital costs, subsequent running cost and residuary values.

There are legion costs associated with geting, runing, keeping, and disposing of a edifice or edifice system. Building-related costs normally fall into the undermentioned classs:

Initial Costs-Purchase, Acquisition, Construction Costs

Fuel Costss

Operation, Maintenance, and Repair Costss

Replacement Costss

Residual Values-Resale or Salvage Values or Disposal Costss

Finance Charges-Loan Interest Payments

Non-Monetary Benefits or Costss

Merely those costs within each class that are relevant to the determination and important in sum are needed to do a valid investing determination. Costss are relevant when they are different for one alternate compared with another ; costs are important when they are big plenty to do a believable difference in the LCC of a undertaking option.

For Example:

Image of a saloon graph demoing the 30 Year Cost of a Building. The design and building are at 2 % of the cost, care costs are at 6 % and forces wages are at 92 % .

Viewed over a 30 twelvemonth period, initial edifice costs account for about merely 2 % of the sum, while operations and care costs equal 6 % , and forces costs equal92 % .Graphic: Sieglinde Fuller Source: Sustainable Building Technical Manual / Joseph J. Romm, Lean and Clean Management, 1994.

Life rhythm bing Terminology

Explain the Quantity Surveyor ‘s function as a cost director, in the life rhythm of the undertaking.

Role of the Quantity Surveyor as a Cost Manager

Quantity surveyor is the person/ house who manage the cost relating to the building undertakings, such as new buildings, care work and redevelopments. Quantity surveyor proctors the cost of every facets of a building undertaking as a cost director, every bit good as seeks to minimise the costs of the undertaking and to do more cost nest eggs while guaranting the entire cost of undertaking does non transcend the estimated cost.

Furthermore when survey about Quantity Surveyors in Cost trough place besides have to be identified their responsibilities and Responsibilities decently.

Conducting feasibleness surveies and composing procurement studies.

Pull offing gauging and cost planning activities to include taking ownership of and showing the concluding cost program.

Pull offing the procurance procedure, guaranting that all phases including pre-qualification, question, analysis, choice and contract readying are performed efficaciously.

Guaranting that post-contract cost discrepancies and alteration control processes are managed efficaciously.

Guaranting that cost checking and rating work is managed efficaciously.

Guaranting the production of monthly post-contract cost studies and showing them to the client.

Value technology and life rhythm costing.

Guaranting that concluding histories are negotiated and agreed.

Taking a lead function in interfacing with the client and other advisers, at all undertaking phases.

Working with Associate Directors and Directors to build commands for new work.

Identifying and moving upon chances to better cost direction processs, templets and merchandises.