Elemental Cost Planning

Question 1

Definition of elemental cost planning

Answer 1

A budget distribution technique involving critical breakdown of the cost limit for the buildings into cost targets for each element of the building

Differs from order of cost estimate in that it has a budget

Question 2

Why is elemental cost planning used

Answer 2

Assurance of value for money

Awareness of cost consequences of design decisions or proposals

To provide robust cost information for informed decision making

Framework for making decisions about the cost implications of design

Question 3

How is building cost estimate calculated

Answer 3

Building works estimate = sum of cost targets for building elements

Element cost target = EUQ x EUR
or
Element cost target = Cost / m2 of GIFA x GIFA

Question 4

How are EURs and unit rates calculated

Answer 4

Derived from analyses and rebased for time and location