4.1 - Factors Influencing Costs Flashcards
What are the Economic and Political factors that influence cost?
- Inflation
- Market Conditions
- Political and Social Climate
What are the Environmental factors that influence cost?
- Site Characteristics
- Weather and Seasons
- Location
What are the Build Type and Design factors that influence cost?
- Building features
What are the Project Requirement factors that influence cost?
- Changes in Project Scope
What are the Project Requirement factors that influence cost?
- Changes in Project Scope
What are the Types of Project Delivery factors that influence cost?
- Owners Responsibility and Timeline
What are the Other Factors that influence cost?
- Regulations
- Unusual Work Conditions
Factors Influencing Cost: Inflation
- Requires architects to include allowance for escalation
- Be aware of trends of the last 6 months
- Seek client input
Factors Influencing Cost: Inflation
- Requires architects to include allowance for escalation
- Be aware of trends of the last 6 months
- Seek client input
Factors Influencing Cost: Market Conditions
- Increased demand for construction results in less competitive tenders - higher construction costs
- Interest rates on financing costs
- Demand for building materials
- Exchange rates
Factors Influencing Cost: Political and Social Climate
- Local/Provincial/Federal elections affect timing
- Construction prices erratic in unstable democracies
Factors Influencing Cost: Site Characteristics
- Challenging topography
- Unusual soil conditions
- Existing hazardous waste that requires removal (asbestos, pcb’s)
- Contaminated soils, removal costs and environmental certification
- Adjacent building protection
Factors Influencing Cost: Weather and Seasons
- Winter protection and temporary heating
- Reduced site work activity December to March, affecting schedule
Factors Influencing Cost: Location
- Core areas more expensive than suburban (traffic re-routing, deliveries, more stringent regulations)
- Remote areas increase labour costs
- Travel distance to disposal sites increase costs
- Distance to supply sources
Factors Influencing Cost: Building Features
- Compliance with building code (sprinklered vs non)
- Method of construction (wood frame vs steel vs concrete vs mass timber etc)
- Building height and number of storeys
- Types of finishes
- Choices of mechanical and electrical systems
- Selection of components (custom vs off shelf)
- Sustainable design requirements
Factors Influencing Cost: Building Features
- Compliance with building code (sprinklered vs non)
- Method of construction (wood frame vs steel vs concrete vs mass timber etc)
- Building height and number of storeys
- Types of finishes
- Choices of mechanical and electrical systems
- Selection of components (custom vs off shelf)
- Sustainable design requirements
Factors Influencing Cost: Developers/Commercial Institutions
- Regularly procure design services, expect project to be delivered below costs
Factors Influencing Cost: Institutions and Government Agencies
- Unable to avoid certain costs due to procedure’s
- Requires high quality control procedures
- Complex building procedures
- Insurance requirements above normal
- Extensive bonding requirements
- Poorly written non standard contracts
- Payment delays to contractors
Factors Influencing Cost: ** Changes in Project Scope**
- Development of more requirements by owner
- New legislation/change in market conditions
- Lack of detailed information
- Change in building users, stakeholders, partners
- Inadequate research prior to programming
Factors Influencing Cost: Owners Responsibility and Timeline
- Project schedule accelerated to suit owners critical dates
- Late commencement due to factors out of owners control such as weather
- Delayed commencement due to inflation or currency fluctuations
- Owners approval process
Factors Influencing Cost: Regulations
- Onerous bureaucratic requirements such as planning regulations or site development agreement conditions
- Numerous building code classifications in one building
- Hazardous demolition such as asbestos removal
- Recycling regulations and dumping fees
Factors Influencing Cost: Unusual Work Conditions
- Scheduling construction around on going activities
- Additional protection and cleanup
- Work adjacent to or within certain buildings may have limitations on equipment use
- Demolition and sharing of existing structures
- Abnormal construction phasing
