BSc (Hons) in Quantity Surveying & Construction Management

Acknowledgement
It is my great pleasure to thank Almighty God who gave me courage and confident to complete this assignment successfully. I am very grateful to the University of Sheffield Hallam for giving opportunity to follow the BSc (Hons) in Quantity Surveying and Construction Management course. I would like to thank my Lecturers, Mr. N.T.K Lokuliyana and Mrs. Tharusa Randiwera for guiding by giving necessary instruction and advice for completing the project successfully. They have taken pains to go through the project and make necessary corrections as and when required. I express my thanks to the International College ofBusiness and technology and its Staff for extending support, and guidance as well. Last but not the least I would thank my class members without whom this project would have been a distant reality.

i Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management

Contents

Acknowledgement Contents Introduction to Assignment Executive Summary 1. Pre-contract cost planning and cost controlling process 2. Methods of preparing estimates for cost planning 3. Life Cycle Costing, advantages and disadvantages 4. Value Management in construction projects Conclusion References

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ii Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management

Introduction
Construction industry totally depended on the money from the ancient times. Without money the construction cannot move a single step. So, cost and the construction have very tight relationship. Day by day the construction cost is increasing rapidly and value of construction shown high in local markets. Because of this clients are keep an eye on cost estimation methods. Nowadays, Cost estimation one of the main procedures in many sectors. Especially in construction execution this process has been considered one the basic work. The profession of Quantity surveyor developed to control the cost from initial stage to completion stage. Cost estimations are carried out in several methods using different types of techniques. Cost estimating is one of the most important steps in project management. A cost estimate establishes the base line of the project cost at different stages of development of the project. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data. According to the American Association of Cost Engineers, cost engineering is defined as that area of engineering practice where engineering judgment and experience are utilized in the application of scientific principles and techniques to the problem of cost estimation, cost control and profitability (C. Hendrickson 1998) Eventually, cost estimation gives high value for the construction process and construction industry obviously keep rely on cost estimating techniques in near future.

iii Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management

Executive Summary
Major aim of this assignment is to analyze the cost estimating techniques in the pre contract stage of construction process. All estimating technique methods are bounded to RIBA work plane 2007.RIBA has divide its eight pre contract stages in three main groups, those are Preparation Stage Design Stage Pre- Construction Stage

According to above three stages all cost control and cost planning process are well explained with examples. Moreover this assignment includes method of preparing estimate for cost controlling process with the respect of above RIBA stages. This assignment briefly analyzing about the value engineering and Life cycle costing in construction projects. These two sections are very important in pre contract stage in terms of cost estimation.

iv Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management

Conclusion
Human being needs oxygen for exists in the world, like wise construction process need money for successful completion. That much relationship has wide in modern world between money and construction. Cost controlling method has initiated to control the unwanted cost in construction industry. These techniques are widely used in the world since the cost of construction has been lifting up forward. The term cost controlling includes several techniques which are used by different professional in pre contract stage. As we following British standards our estimating thingies are based on RIBA work plane. according to RIBA work plan 2007 edition. Hopefully this assignment is a good creation about cost controlling process to develop and improve a construction process. Every success story has painful start and end, according to that I have gone through many references such as EBooks and journals and even I had an opportunity discuss about the company with some senior estimators. Almost everything has done under the assignment criteria and is really satisfied with my job. Broadly this assignment is also written

v Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management

References
Books Blair S. Dhillon, (1989), Life Cycle Costing: Techniques, Models, and Applications, Amsterdam B.V, OPA Stanford University Land and Buildings, (2005), Guidelines for life cycle cost analysis, Stanford University, UK. Chris Hendrickson, (1989), Project Management for Construction, New Jersey, Prentice-Hall. Lecture Notes Lee Sharpe, (2009), Advising Mad Hat Cakes LTD on how to proceed for a new building, Module Word Document , Held on 15th of December, Mad Hat Cakes LTD. Saranga Weerawardana, (2011), Building Economics, [Lecture], Held on 12th September, British College of Applied Studies. Tharusha Randiweera, (2013), Cost Studies, [Lecture], held on October, ICBT campus. Theses Johannes Breedt, (2010), estimates: A valid exercise or a false sense of security, BSc (Hons) Quantity Surveying, faculty of Engineering, Built Environment and Information Technology, University of Pretoria. Lahiru Dananjaya Paranamana, (Unknown), Pre-contract Costing, BSc (Hons) Quantity Surveying, Department of building Economics, University of Moratuwa

Internet vi Cost Studies University of Sheffield Hallam.

BSc (Hons) in Quantity Surveying & Construction Management Nuzul Azam Haron, (Unknown), Scribd, [Online], Last Accessed 10th of January 2014, http://s3.amazonaws.com/zanran_storage/www.fab.utm.my/ContentPages/981725817.p df Methods of Estimating for Cost Planning, (Unknown), [Online]. Last accessed 9 th of January 2014, http://www.ukessays.com/essays/construction/the-methods-of-preparingestimates-for-cost-planning-construction-essay.php Cube method estimating, (2010),[Online], Last accessed 10 th of January 2014 , http://constructionfield.net/cube-method-estimating/ Value management in building design and construction, (2013), [Online], Last accessed 10th of January 2014, http://www.designingbuildings.co.uk/wiki/Value_management_in_building_design_and_ construction RIBA outline plan of work, (2013), [Online], Last accessed 10th of January 2014 , http://www.architecture.com/Files/RIBAProfessionalServices/ClientServices/RIBAOutlin ePlanOfWork2008Amend.pdf The harvard green building resource,(unknown), [Online], Last Accessed 10th of January costing 2014,http://www.green.harvard.edu/theresource/new-construction/life-cycle-

vii Cost Studies University of Sheffield Hallam.