Approximate Quantities Costs Model: Cost Model

This falls into the comparative estimation method that the book calls parametric estimation. We would start by finding the most similar projects and to define the cost estimation based on what we historically has been our cost values. Most of our products are made out of about 10 different materials we use regularly so we are able to easily estimate our material costs as well as lead times for acquiring material. Since we use this parametric estimation we are able to also estimate our cost times for production, inspection and any assembly requirements by comparing to similar products. If we are comparing though to a product that has not been produced recently we will estimate costs based on inflation to ensure that we are accounting for changes in economic times.

* The final significant risk my firm identified is the possibility of not meeting the established budget ceiling of $320,000. There are many variables which we feel could cause the cost of build to exceed the budget. Some of those variables include having to pay a premium for in-demand subcontractors, the cost of buying and

Undertaking a project such as the proposed new Student Common Room requires careful financial planning and management, involving a range of details related to resource capabilities and project demands (Shim & Siegel, 2008; Brigham & Ehrhardt, 2010). Deciding whether or not to move forward with a project must also include an assessment of opportunity costs weighing the cost of a project against the other things that could be accomplished with the same resources and considering issues such as economies of scale and other cost behaviors is also necessary (Brigham & Ehrhardt, 2010; Moya, 2012). These and other cost related theories are directly relevant to the proposal at hand, which will necessarily come at a substantial cost that is not necessarily warranted given the benefits the project will lead to and the existence of cheaper alternatives. Because the proposed renovation and construction will only be for one room, the savings achieved by economies of scale will not be realized, meaning that variable costs will be at their highest rate, and cost overruns are more likely in this single project as there will be fewer project phases to carry excess materials over to (Shim & Siegel, 2008; Brigham & Ehrhardt, 2010; Moya, 2012).

Table 2. The total cost of the project will need to be calculate along with the projected use and

Estimates of the elements of the WBS are determined using the template method. Because TCD regularly performs redevelopments, the information from previous projects was used as a baseline to build this cost estimate. The following cost estimate information includes the objectives, associated cost, and durations of each of the eight project phases for P-Man Mall.

In order to answer this question it is assumed that a comprehensive procurement process was undertaken identifying the clients stated objectives and constraints. Any references to project particulars, objectives and constraints within this answer have been assumed based on my experience of similar client objectives in a design and build scenario.

Project Scope Description This section of the estimate basis should be organized to correspond with the project’s work breakdown structure (i.e., plant, building, floor, etc.). A semi-detailed description of the scope of work should be provided for each major segment of the project. Identify any major pieces of process equipment or components. It’s also good practice to indicate the primary trades that will be involved with the project. Be as thorough as necessary, without being overly descriptive, so as to adequately explain the scope of work being estimated. Methodology The BOE should indicate the primary estimating methodology used to prepare the cost estimate. This should include documentation of the use of cost resources, historical data and project benchmarking. Documenting the level of effort or man-hours used in preparation of the estimate may also be helpful. Estimate Classification The AACE International estimate classification should be identified, along with reasons or justification used in the selection of the estimate classification. Design Basis Company standards will typically specify the technical and project information required for the classification of the estimate that is being prepared. In this section, the estimator will identify the types and status

Estimate the total cost to build a duplicate of the existing structure, at construction prices at the date of value

The clients require construction of a two - story, three bedroom detached house within the west midlands region. This is the projects realisation stage that is in place to make sure that the proposed business case have been fully considered for development constraints , the projects sustainability , preparation of feasibility studies and contingency plans as stated on NMR1 (2nd edition ). Estimate approximation gives a ball park figure (see appendix ) that shows a range per square meters / metered thus giving an estimate as highlighted when using the lower end and assuming a gross floor area of a hundred and fourteen square meters . The key task practitioners involved are mainly the client, design consultants, an architect or project manager.

The mode of estimation that is suitable for this stage is based on the approximation technique of functional unit rate. The ball park budget cost is refined by using a past but similar project contract price whilst also taking into account its closest location and date. An example is set in appendix()

The participants include the client and appointed professional lead consultants for aiding in the assembling of the project team. A report by Sir Latham, M (1994) states the selection process of professional consultants is on the basis for recognition of quality as well as price " This selection model is important because in order for project success , a compatible team needs building . The mode of estimation that is suitable for this stage uses the approximation technique of functional unit rates. The ball park budget cost would be refined by using a past but similar project contract price whilst also taking into account its site locality and date. Appendix () shows an example. Approximate floor area = 114m2 Building cost £1, 122 /m2 = £127 '899 [2Q2016 TPI =282 (F ) / 4Q2008 TPI = 240 (previous )] x Building cost £127 '899 (See appendix ) . Projects estimated budget cost = £150 '281. Stage 2: Concept Design. Draft design sketches and a budget estimate are further refined with the aid of elemental cost plan techniques. Greenhalgh , B (2013 p 85 ) illustrates the element cost method within a hierarchy of estimating data used to cost per square meter of each element ( see appendix ) . An example shown below with reference to (appendix ) that illustrates approximated element cost per square meters / metered of the detached house . Projects estimated budget cost = £150 '281 has been firmed up by multiplying all the elements ' lowest cost value per square meter

Project duration is from September 2016 to December 2017, a period of 16 months. The total project cost is $5,329,700, based on a Class B estimate, with a range of +25% to -10%. The project risk is low for Phases 1 (preconstruction), 2 (construction), Phase 3 (Post construction) and Operations. Risk management and mitigation are dealt with at length in the

Cost estimate will use bottom-up and three-point estimates based on each work package. Three cost models will be created to estimate most likely, optimistic, and pessimistic costs for items. Cost estimate will be summed up by resource breakdown structure.

Risk allocation is performed as part of the development of the project structure, which takes into account the distribution of responsibilities and risks during the planning, construction, financing and operating phases (Corner, 2006). The aim is to identify an efficient and effective structure that optimises the costs of the project and ensures that the risk occurrences do not damage the project (Delmon, 2009). According to Grimsey and Lewis (2007) risk allocation has two elements: optimal risk management and value for money. The first implies that the

Since the development of a long history in the construction industry, which has its own associated culture before clear scientific analysis and problem-solving. It seems to be the most general conceptual understanding of architecture as a series of activities for a specific output, namely the conversion. That is a key issue cost estimates for these activities. Traditionally, the building is divided into several constituent elements, each element of the necessary raw materials and labor costs (input into the output) during construction estimate. In addition, the contract specified as part of a building, pay as output and input, respectively. This is a conversion from a traditional model, this is a hypothetical production process consists of a set of inputs into output sub-processes, and may be realized and analyzed independently of each other.