DISEMBER 2015

COST ANALYSIS
CQ505 ESIMATING 2

INTRODUCTION
2

An analyzed cost data is a good

information for Quantity Surveyor
Usually its done by summarizing the cost
per square feet or meter square
The future cost will be more accurate by
using analyzed cost data as sources for
costing

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INTRODUCTION
3

To analyzed the cost allocation between

element for various type of projects with
the same criteria
One of the usual method used for
analyzing cost is Elemental Cost Analysis

4 DEFINITION

Cost Analysis
- Mean : a systematic cost breakdown for
the purpose of cost checking and cost
comparison

Element
- Mean : Components of the building
which fulfilling similar function with
different or similar specification, design
and construction method

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5 DEFINITION
Elemental Cost Analysis
Mean : a systematic cost breakdown of the
building for the information of cost per
element or cost per building component
Analysis done for the usage of Architect and
Client in drafting future project; looking at
cost analysis of 2 or more similar projects
A brief project cost information collected
from Bill of Quantities of previous projects
Apart from cost, brief specification and
project information also need to be provided
in Elemental Cost Analysis (ECA)

6 PURPOSE

to show the costs relationship with several

sections/elements in a building.

To allow comparison of cost for several

projects.

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7 USAGE
Knowledge
- To deliver information to other construction
parties on how cost distributed between
building elements
Evaluation
- To have guideline in having balance cost
distribution and evaluate the cost priority
Checking
- To check and find surplus cost allocation of
tender received by comparing it to ECA
Planning
- The cost information can be used to plan future
projects cost allocation

ITEMS FOR COST ANALYSIS

Complete Contract Document
(Awarded tender) inclusive Bill of
Quantities, Provisional Sum, Prime Cost
Sum etc
Working drawings and specification
Tender report to know market rate
among submitted tenderers
Manual for Cost Analysis preparation
Standard Form of Cost Analysis

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CALCULATION
9

Total Building Cost = Total Building

Cost
per M2 GFA

Element Cost per M2 = Total Elemental

Cost
GFA

10

COST ANALYSIS PRINCIPLES

More than one buildings in one project should be
analyzed differently
For example;
In one project, there are 3 buildings, therefore, 3 cost
analysis need to be done.

All related information should be provided to facilitate

the preparation of estimates based on the simple
measurement.
For example;
Information like specification and drawings need to be
prepared

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COST ANALYSIS PRINCIPLES

The cost analysis should be made according to several
levels. The source of extra cost in element need to be
identified to have a good cost judgment.
For example;
For item WBLFF, the type and number of piling used will
affect the total of elemental cost, therefore, the increase
of average elemental cost need to be identified.

The preliminaries works should be allocated separately.

12

COST ANALYSIS PRINCIPLES

If there is additional Lump Sum amount in project, the cost need
to be allocated pro-rate based along to all elements and
external works deducted with Prov. Sum and Prime Cost Sum.
For example;
Lump sum amount = RM 450,000.00
Original contract sum = RM 8, 898, 328.27
Total Element; Frame = RM 585, 577.50
PC & PS = RM 1, 750, 000.00

= 585, 577.50 x 450,000.00

(8,898,328.27 1,750,000.00)
= RM 36,863.15
New total element;frame:RM585,577.50 + RM36,862.15
= RM 622.,440.65

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COST ANALYSIS PRINCIPLES

Professional fees no need to be added in cost
analysis

All cost must be stated in Ringgit Malaysia in 2

decimal point per floor area

14

STANDARD FORM COST ANALYSIS

The format for Elemental Cost Analysis is
produced by Building Cost Information
Centre (BCIC) and ISM is the same as the
form used by RICS, UK, which are:

- Form 1 ; Content of project information

and analyzed building information
- Form 2 ; Brief building elemental costing
- Form 3 ; Brief building Specification

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15

ELEMENTAL COST ANALYSIS

-FORM 1
Type and Building code; Ten building types

- 0; Land, Planning, Landscape

- 1; Civil Engineering Works
- 2; Industrial Building
- 3; Administration Building
- 4; Health and Welfare Building
- 5; Recreational Building
- 6; Religious Building
- 7; Educational Building
- 8; Accommodation Building
- 9; General Building

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ELEMENTAL COST ANALYSIS

-FORM 1
Construction Class;
- A; Reinforced Concrete Structure
- B; Metal Structure
- C; Timber Structure
- D; Light Metal Structure or Reinforced Concrete
Structure
Administration Building constructed with Reinforced
Concrete Structure, 14 storey and GFA 34000m2 is
shown:
3 Administration Building
A 14 34000

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