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Course outline
1. Overview of Cost Planning
2. Cost Planning Techniques
3. Approximate Estimating
4. Elemental Method
5. Cost Planning at Various Stages of Design
6. Resource Analysis
7. Cash Flow
8. Valuation
9. Final Accounts
Teaching Scheme
DATE CHAPTER
11 April 2016 1. Overview of Cost Planning
13 April 2016 2. Cost Planning Techniques
3. Approximate Estimating
18 April 2016 4. Elemental Method
20 April 2016 5. Cost Planning at Various Stages of Design
25 April 2016 6. Resource Analysis
27 April 2016 7. Cash Flow
8. Valuation
3 May 2016 9. Final Accounts
7 May 2016 Exam
4. Elemental Method
4.1 Elemental Cost Analysis
4.2 Elemental Method
4.3 Building Economics and Cost Analysis
4.1 Elemental Cost Analysis
Source: Elemental Standard Form of Cost Analysis Principles, Instructions, Elements and Definitions, 4th (NRM) Edition, 2012, Building Cost Information Service of RICS
4.2 Elemental Method
The forecast cost of each element can be calculated in two ways:-
• By general adjustments for each element on a similar building
• By measuring the approximate quantity of each element and applying a unit rate.
4.2 Elemental Method
Sources of cost data• In-house data • Cost database
• Cost analyses
• Project rates
• Published data • Government
• Institutions
• Journals and magazines
• Pricing books
• Market testing
4.2 Elemental Method
Affects on cost• Quantum • Economies of scale
• Availability
• Location • Regional variations
• Exchange rates
• Timing • Inflation
• Market conditions
• Quality
4.2 Elemental Method
Project A = Total cost for a bungalow at Holland Village is S$ 4 million, built in 2010 with total gross floor area of 2,000m2
How much for a project B – a bungalow at Jurong Island, to be built in 2015 with total gross floor area of 3,000m2?
4.2 Elemental MethodProject A = Total cost for a bungalow at Holland Village is S$ 4 million, built in 2010 with total gross floor area of 2,000m2
How much for a project B – a bungalow at Jurong Island, to be built in 2015 with total gross floor area of 3,000m2?From BCA:
Adjust for time for construction: Cost x 2015 TPI divided by 2010 TPI
4.2 Elemental Method
Project A = Total cost for a bungalow at Holland Village is S$ 4 million, built in 2010 with total gross floor area of 2,000m2
How much for a project B – a bungalow at Jurong Island, to be built in 2015 with total gross floor area of 3,000m2?
Assuming it is 15% more expensive to construct at Jurong Island
Adjust for location for construction: Cost + 15%
4.2 Elemental Method
Project A = Total cost for a bungalow at Holland Village is S$ 4 million, built in 2010 with total gross floor area of 2,000m2
How much for a project B – a bungalow at Jurong Island, to be built in 2015 with total gross floor area of 3,000m2?
Answer
S$ 4 million / 2,000m2 x 3,000m2 x time x location
= 4,000,000 / 2,000 x 3,000 x 104/100 x 1.15
= S$ 7,176,000
4.2 Elemental Method
Elemental cost = Quantity x Unit Rate
4.2 Elemental Method
4.3 Building Economics and Cost Analysis
Design
economics• Assessment criteria • Site density
• Wall/floor ratio
• Floor area ratios e.g. net to gross
• Area efficiency e.g. M2 per bed
• Functional unit rate e.g. $ per
pupil
• Building height e.g. height to
eaves or storey height
