Cost Anaysis & construction project

Question 1

What’s the purpose of cost analysis?

Answer 1

To estimate the cost of the build and the cost of each element

Question 2

What are the methods of estimating? (4)

Answer 2

Subjective - rough estimate (+/- 20-40%)
Parametric - historical data (+/- 10-20%)
Comparative - based on simplified schedule used on previous jobs (+/- 10%)
Analytical - estimated based on B.O.Q (+/- 5%)

Question 3

what is NRM?

Answer 3

New rules of measurement (RICS)

Question 4

What does NRM specify (5 estimates)

Answer 4

1.Order of cost estimate
2.Formal Cost Plan 1
3. formal cost plan 2
4. Formal cost plan 3
5. Post tender estimate

Question 5

What is order of cost estimating

Answer 5

Initial build up to the cost planning process
Produces a possible cost for the building - early design stage

Question 6

NRM1 - formal cost plan 1

Answer 6

Cost estimate and cost planning for capital building works

Question 7

NRM2 - formal cost plan 2

Answer 7

Detailed measurement for building works

Question 8

NRM3 - formal cost plan 3

Answer 8

Order of cost estimating and cost planning for building maintenance works

Question 9

What is considered in the OCE (order of cost estimating)

Answer 9

Clients and project needs
Facilitating works estimates
building works estimate
main contractor preliminaries estimate
main contractor overhead and profit estimate
project design team fees estimate
risk allowance estimate
inflation
tax assessment

Question 10

Draw cost planning control time line for the design and construction of a project

Answer 10

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