04 Estimates and Budget Costs

Question 1

The client asks you to set a budget for a project. How would you do this ensuring that it was as accurate as possible?

Answer 1

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Question 2

What is a cost plan and how is it set out?

Answer 2

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Question 3

What is the difference between a cost plan and an estimate?

Answer 3

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Question 4

Explain to your client how he benefits from the cost planning process.

Answer 4

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Question 5

How does a cost plan help a designer?

Answer 5

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Question 6

After carrying out a cost plan you find the cost of the works exceeds the budget. What action would you take and who would you liaise with?

Answer 6

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Question 7

What is meant by the term ‘value engineering’?

Answer 7

The process used to drive out unnecessary and excessive costs in order to ensure value for money

Question 8

Give an example a value engineering exercise you have been involved in.

Answer 8

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Question 9

Is value engineering the same as cost cutting?

Answer 9

Not just cost cutting - it may also require increasing initial spend in order to achieve greater value

Question 10

When is the best time during the cost planning process to implement value engineering workshops?

Answer 10

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Question 11

Who should be involved in the value engineering process?

Answer 11

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Question 12

How can life-cycle costing be used in a value engineering exercise?

Answer 12

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Question 13

How do you communicate the results of a value engineering exercise to your client?

Answer 13

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Question 14

What is value management?

Answer 14

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Question 15

How can value management be used within a feasibility study?

Answer 15

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Question 16

What is the difference between value engineering and value management?

Answer 16

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Question 17

How can the principles of value management be used to enhance the value for money delivered to a client on a project?

Answer 17

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Question 18

When is the best time during a project to implement value management workshops?

Answer 18

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Question 19

How might whole-life costing help in a value management exercise?

Answer 19

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Question 20

What is the difference between cost and value?

Answer 20

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Question 21

How can you demonstrate to a client that you are achieving best value on his project?

Answer 21

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Question 22

What is the difference between lowest cost, cost certainty, cost control and best value?

Answer 22

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Question 23

What is a cost / benefit analysis?

Answer 23

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Question 24

What are the typical exclusions you would expect to see associated with a construction estimate?

Answer 24

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Question 25

What factors influence the accuracy of an estimate?

Answer 25

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Question 26

What would you do if the budget on a project is exceeded through valid variations / compensation events?

Answer 26

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Question 27

What sources of additional finance may be available to you client on a project?

Answer 27

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Question 28

Why might you need to know how your client is funding his project?

Answer 28

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Question 29

How is VAT dealt with when setting a budget for your client and why?

Answer 29

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