Order Of Cost Estimating Flashcards
What is the standard method of measurement for cost planning
NRM1
Purpose of cost estimating
Establish if project is affordable
Establish realistic cost limit
Determine option costings
Formal stages of cost planning
Order of cost estimate (stages 0/1)
Formal cost plan 1 (stage 2)
Formal cost plan 2 (stage 3 design development)
Formal cost plan 3 (stage 3 technical design)
Each formal cost plan is a progression of the previous cost plan
Constituent costs of the building works estimate
MC’s prelims
MC’s overhead and profit
Project/design team fees
Other development/project costs
Risk allowances
Inflation
Process of order of cost estimate
The following process is shown by cost constituent:
Facilitating works estimate
Building works estimate
MC prelims estimate
MC’s overhead and profit estimate (works cost estimate)
Project and design team fees estimate
Other project costs estimate (base costs estimate)
Risk allowances estimate (cost limit excluding inflation)
Tender inflation estimate (cost limit excluding construction inflation)
Construction inflation estimate (cost limit including inflation)
Three main estimating methods
Floor area method (GIFA x unit rate)
Functional unit method (no. of units x unit cost)
Elemental method of estimating (sum of element unit rates x element unit quantities or sum of GIFA x unit rates)
Latter method is essentially a more detailed version of floor area method
Essential project reporting elements required in order of cost estimate
Project title
Project description
Statement of cost (including cost limit)
Details of informations sources and specifications
Statement of floor areas
List of assumptions
Estimate base date
Summary of option costs (if required)
Inclusions and exclusions
How is project indexation factor attained
Project X TPI / Analysis project TPI
Applied in cost analysis to account for differences in project location, time and contractor selection method
