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Building Design Cost Management Topic 5

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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Building Design Cost Management Topic 5

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    1. 1 Building Design Cost Management Topic 5 Cost Planning in Action Brief Stage

    2. 2 Cost Planning in Action Brief 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 Decisions During 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 Stage Indicative 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

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