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2. Cost Planning in Action Brief Stage. Review of principlesFeasibility/Inception Stage A - indicative costContingencies. 3. Review of Principles of Cost Control - 1. There must be a frame of reference(cost limit and cost targets)There must be a method of checking(cost checking)There must
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1. 1 Building Design Cost ManagementTopic 5 Cost Planning in Action
Brief Stage
2. 2 Cost Planning in ActionBrief Stage Review of principles
Feasibility/Inception Stage A - indicative cost
Contingencies
3. 3 Review of Principles of Cost Control - 1 There must be a frame of reference
(cost limit and cost targets)
There must be a method of checking
(cost checking)
There must be a means of remedial action
(adjustment of cost targets)
4. 4 Review of Principles of Cost Control - 2 During the Brief Stage:
Establish a realistic first estimate
Plan how the estimate is distributed among the building elements
(Note: A building element is not an abstraction - it is a part of a building that performs a specific function!)
5. 5 Limitations on Cost DecisionsDuring Stages A and B Cost decisions must:
Be based on functional requirements - not on a design solution
Take account of limited amount of information available
Impose minimal restrictions on subsequent design decisions
6. 6 Stage A: Brief StageIndicative Cost
7. 7 Information Available at Stage A: Brief Stage Usually, only basic details of:
Function (The use to which the building is to be put)
Accommodation
(The number of functional units or the floor area required - plus circulation areas in the latter case)
Quality (Prestige v average v low)
Site (Location, dimensions and soil conditions)
8. 8 Stage A: Indicative Cost by Interpolation Method Use data for buildings of same function
Choose suitable source of data
Isolate differences between analysed buildings and proposed building
Make allowances for identified differences
9. 9 Stage A: Indicative Cost Major Differences Isolated Quality
Difference in standard of accommodation
Quantity
Difference in number of functional units or in floor area
Additional or redundant features
Price level
Difference in tender dates
Site conditions
10. 10 Adjustment for Differences - 1 Quality
Standard of accommodation
Select suitable data or make a suitable allowance
Quantity
Quantity of accommodation
This will be expressed in the calculation
Additional or redundant features
Make a suitable allowance
11. 11 Adjustment for Differences - 2 Price level
Apply an appropriate index
Site conditions
Temporary access roads, difficult access and storage
Make a suitable allowance