8 elements of cost and its data

Question 1

What are the key areas of the cost estimate need to be considered?

Answer 1

1 personel 
2 equipment 
3 materials 
4 subcontractors 
5 specialist services 
6 overheads 
7 risk

Question 2

What cost needs could be considered of personnel?

Answer 2

labour such as concrete placing teams; steelfixing and formwork teams;
scaffolding teams; paving teams; general labour, management

Question 3

What is the aim of cost planning exercise

Answer 3

To define as accurately as possible the minimum realistic cost of executing an activity

Question 4

What cost needs could be considered of equipment?

Answer 4

both mechanical and non-mechanical. That equipment is full optimised consider:
1 suitability 
2 capacity 
3 output 
4 availability 
5 reliability 
6 maintenance 
7 redundancy

Question 5

What cost needs could be considered of material?

Answer 5

consumables, steel, pipes, piles, bricks, blocks, tiles etc.;
cladding; steelwork
Also consider; discounts for bulk materials, cost of storage and transport, account for wastage

Question 6

What cost needs could be considered for specialist services?

Answer 6

consultancy
model building and testing
process engineering and computer analysis
project management

Question 7

What cost needs could be considered for risks?

Answer 7

1 weather 
2 safety of staff
3 technical problems 
4 unexpected adverse conditions 
5 interpretation of contract documents
6 clients claims 
7 finance costs and inflation 
8 industrial disputes and productivity

Question 8

What cost needs could be considered for overheads?

Answer 8

Items not necessary to complete the job;
1 staff
2 accommodation ie offices 
3 small tools 
4 first aid 
5 transport 
6 insurance 
7 security 
8 storage 
9 workshops

Question 9

What are the 3 categories for cost data?

Answer 9

period based, fixed costs, unit output

Question 10

How is labour cost determined?

Answer 10

1 determine base period
2 determine number of normal hours worked over base period (not actual productive time)
3 determine number of overtime hours worked
4 determine cost of employment over the base period ie hourly rate, overtime rate, bonus, holiday, sick pay, national insurance, training
5 all in rate- ratio of base period cost to base period normal hours
6 determine productivity
7 labour cost of unit of production is a ratio of all in rate to productivity

Question 11

What are the advantages and disadvantages to the contractor of payment by measure and value?

Answer 11

advantages:
1 risk of quantity changes with contractor
2 easy estimation
3 can manipulate rates
disadvantages:
1 more effort and cost to establish value during construction
2 need more staff to administer contract

Question 12

What are the advantages and disadvantages to the principle of payment by measure and value?

Answer 12

advantages:
1 allows for uncertainty in size and quantity
2 makes payment method easier
disadvantages:
1 retain risk of cost + consequences of increase in quantities
2 no control over rates contractor proposes
3 require checks on value of work done by contractor

Question 13

give an example of when a contractor investigated demand

Answer 13

M6Toll