Methods of Estimating For Cost Planning in Construction

rules of Estimating For embody Planning in windingIn the Construction industry, equal picturening is a vital management forge for ascertain the overrun live of fancy and gets maximum returns to the node at heart client agreed cipher. Generally metre Surveyor as a personify passenger vehicle who is involve to prep be salute intend and court autocratic forge for specific stages with respect to the RIBA plan of reckon.There are some substantial estimating manners for ready intend fulfil utilize in turn externalise. t thence those rules give preliminary estimate for the client at the heading stage.And Pre-Contract be Planning and Cost program line process are alike truly most-valuable to successful planning, design and construction of projects and is aimed at providing best rank solutions. Basically it is a pre- hailing method of a project.In addition, Term of animateness stave make uping can be expound, according to the exposition of rime an d Norman (1990) noted as appropriately defined the life roll hail of an advantage as the acquaint value of total equal of the addition over its operating life including sign capital be, occupational be, operating make ups, and so forthSpecially, Quantity surveyor monitors the constitute of every phases of a construction project as a approach manager to minimize the exists of the project and to make more cost savings for the project success. penetrationThis report emphasizes for identifying critical phases of pre centralize cost planning and haughty process in the life cycle of project with respect to the RIBA plan of pop off how to manage them and how to obtain a maximum turnover of the project at bottom the quantity surveyors utilization as a cost manager.Hence, this study testament discuss significant project pre cringe cost planning and controlling process, such as methods of estimates for cost planning for different stages of RIBA work plan, pre- withdraw cos t planning and cost controlling process with respect to the RIBA plan of work a client/consultant may adopt during from each one stage, the barrier life cycle cost and related terminology and the quantity surveyors role as a cost manager, in the life cycle of the project. master(prenominal) BODYExplain the methods of preparing estimates for cost planning for different stages of RIBA work plan.What Is Cost Planning?The Cost Planning is a method of cost controlling the cost (Price to client) of a project within a pre-determined sum up to the tender stage. (Page3, Cost studies)Cost Planning give advice to client how overmuch go a focusing be project cost. As healthy, cost planning will advise when the expected expenses will most possible occur. Hence its alpha for get required project finance and for determining possible project profit.Methods of Estimating for Cost PlanningThere are some significant estimating methods dos in construction industry for Cost planning process. Thos e methods give preliminary estimate, hence Quantity Surveyor has to modify predetermine data considering the followings, such as , market place conditions, Size, keep down of storeys, specification level, inclusions exclusions, service, site foundation conditions and another(prenominal) factors.Conference Estimating MethodRIBA form A of Options idea and stage B Design Brief,This method uses for preparation of the initial price estimate give to the client. It is based on a cooperative view of a group of persons, and not assess in any particular way.Financial methodsRIBA do A of Options Appraisal and stage B Design Brief,This method fixes a cost throttle on the expression design, according to the social unit of alteration or rental values.Unit methodRIBA Stage A of Options Appraisal and stage B Design Brief,The unit method is multiplies desire standard unit of accommodation by an approximate cost per unit. Not required specific drawings, specifications, besides the conc ept of the project relevant to the required function.For exampleSchools costs per student enplaceHospitals costs per bed enplaceCar parks cost per car topographic pointEstimate = Standard unitsof accommodation x Cost per unit stoppage methodDesign StageThis is the superseded method because of inherent disadvantages this method unavoidably some sketch drawings, historical cost data,Superficial area methodRIBA Stage B strategic Briefing and excessively can be used for Stage CThis is presently most common use method, its use for early price estimating purposes. The area of each of the floors multiplied by the cost per square meter. Mostly important Storey heights, plan dramatis personae and methods for when choose on the rate to be used.Story enclosure unit methodThis technique use weightings for the estimating the building elementsElemental Cost estimating item Design Stage (Production information Stage F)This can use to fix the approximate cost of a construction project. It analyzes, the cost of the project on an elemental basis, using from other similar projects. as well provides cost advice during the design process. Detail drawings are required.For exampleApproximate Cost estimatingApproximate quantities present additional detailed approximate estimate. No particular rules ofmeasurement exist, in like manner significantly more information is required from the designer..For exampleResource psycho abbreviation(Pre Construction Stage Tender Documentation -G)This method is traditionally follow by contractile organs estimators to decide their man-to-man rates for measured items in bills of quantities. every(prenominal) individual measured items are analyzed into its element parts such as labour, materials and plant. This method is not a pre-tender method of price portent strictly.The pre-contract cost planning and cost controlling process with respect to the RIBA plan of work a client/ consultant may adopt during each stageWhat Is Pre-contract Cos t Planning?Pre Cost planning is very important to successful planning, design and construction of projects and is aimed at providing best value solutions. fundamentally it is a pre- be method of a project. As well as Pre-estimation of a design design will give clear picture astir(predicate) the cost to the employer and design team.Pre-Contract Cost Planning ProcessThe pre-contract cost planning process according to the RIBA plan of work 1998 it can be described as follows.Pre-DesignInception of FeasibilityPre-stage AWork Stage A (1)Work Stage B (2)Establishing the need (Establish the budget)Options Appraisal (Cost of preferred solution)Strategic Briefing (Target cost)Pre-construction StageWork Stage CWork Stage DWork Stage EOutline plans (Prepare initial cost plan)Detailed Proposals (Firm Cost Plan)Final Proposals (Cost checks, design against cost plan)Work Stage FProduction study (Final cost checks of design against cost plan) represent 2.1Pre-stage A (Establish the budget)Cl ient appointing clients management team ( advisers) such as, client representative, cost consultant, according to his requirements.Identify objectives, physical scope of project, standard of quality of building and services, timeframe and establishing the budget.Emphasis nature of clients problems and functional requirements on proposed project.Work Stage A (Options Appraisal)Consultant has to identify of client prerequisite and possible limitation on development and cost of the ideal solution.Prepare technical, functional and cost studies by consultant and then it should enable to the client to take decision on his project weather he can continue the first proposal or could do some changes to the first proposal etc. also select the possible procural method.Work Stage B (Strategic Brief)Consultant has to prepare initial cost suggestion to the client based on an blueprint statement of clients needs, also to determine target cost. This establish an initial budget for clientClient has to investigate availability of finance for the project and value of money framework.Pre Contract Cost ControlGenerally Pre contract cost controlling process is implement from this stage according to the RIBA plan of work as mentioned by chart 1.2,Pre Contract Cost Control process give ensure the cost of the project is within the clients budget or not. Hence pre contract cost control is very immanent in a project since it is planning, design finalizing and tendering and selecting a suitable contractor too.Outline Proposals- Stage CConsultant has to involve preparing outline proposal and estimate of cost as initial cost plan. As well as Investigate the site conditions and preliminary sketches for requirement of cost plan. rate strategic brief through consideration of time, cost, risk and environmental issues. Also establish design management procedures.Detailed Proposals Stage DAt this stage, consultant prepares full detailed proposals for the client, and also prepares firm cost pl an detailed elemental cost plan etc.Clint tem evaluate outline proposals for make the final decision,Receive design and cost input from client appointed team and extend detailed design solution. And review procurement advice.Final Proposals Stage EConsultant has to prepared final proposal at this stage.Carry out cost check of the design as it develop against the cost plan, hence it Confirmation of the cost limits for the project.Most cost effective in satisfying level of project brief to suffer or put final budget and to check the elemental cost targets.Consultant prepares all required submission for legal approvals.Production Information Stage FAll legal approvals should have completed when at this stage.This is the assessment of lowest acceptable tender price based on completed contract documents. And also ensure that the completed designs are controlled within the cost limits.Supply all required information for final cost checks of design against cost plan.Explain the term li fe cycle costing and related terminology.Definition of the life cycle costingAccording to definition of Hoar and Norman (1990) appropriately defined the life cycle cost of an advantage as the present value of total cost of the asset over its operating life including initial capital costs, occupational costs, etc.Hence life cycle costing related with the time flow of costs and benefits that flow throughout the life of the project.There are number of term use in industry to identify different stages in the life cycle costing techniques, hence flowing are the curiously use in construction industry.Life cycle cost summary (LCCA)Quantity surveyor assist to prepare this, based on collection and analysis of historic data on actual costs of occupying building ( trail cost and performance).Life cycle cost management (LCCM)Actually it is derived from life cycle cost analysis and identities, by this way client can be compare building cost and controlling occupancy cost throughout the life o f building to get maximum value.Life cycle planning (LCCP)This is as part of life cycle cost management it is constitute the prediction of total costs of a building, part or individual element taking account of initial capital costs, subsequent running cost and residual values.There are several costs related with acquiring, operating, maintaining disposing of a construction or building system. Hence related costs generally fall into Initial Costs, Energy Costs, Operation, Maintenance, and Repair Costs, Replacement Costs, difference Values, Finance Charges, Non-Monetary Benefits or Costs.For ExampleSieglinde Fuller Source Sustainable construct Technical Manual / Joseph J. Romm, Lean and Clean Management, 1994.Life cycle costing TerminologyExplain the Quantity Surveyors role as a cost manager, in the life cycle of the project.Role of the Quantity Surveyor as a Cost ManagerQuantity surveyor is the person/ firm who manage the cost relating to the construction projects, such as new co nstructions, maintenance work and renovations. Quantity surveyor monitors the cost of every aspects of a construction project as a cost manager.Furthermore when study about Quantity Surveyors in Cost manger position also have to be identified their duties and Responsibilities properly.He should conducting feasibility studies and writing procurement reports at project inception stage.He should manage estimating and cost planning process and presenting the final cost plan.He should manage the procurement process, and make certain that all phases with pre-qualification, enquiry, analysis, selection and contract preparation are carried out effectively.Ensuring that post-contract cost variances and change control tasks are directed effectively.Involving with cost checking and valuation works to manage them effectively.Preparation of monthly post-contract cost reports and presenting them to the client.Preparation of value engineering and life cycle costing, and also final accounts negotia ted and agreed process.Give leadership role mange the client and other consultants, at all project phases.Working with top managers and directors, and identify and do new opportunities to improve the cost management procedures.CONCLUSION/RECOMMENDATIONPre contract stages are vital important phases of construction project to execute pre-contract cost planning and controlling process in a proper way for completion of project successfully within client brief, hence as identified thorough this report, Quantity Surveyor has critical responsibility as cost manager involve to carried out entire pre-contract cost planning process in a proper way.