Build up developer budget

 What items include in developer budget e.g. condition of the land, adjoining building, etc
 Make appropriate allowance

Feasibility study

 Before developer budget

Building up price

 Unit price rate e.g. labour, material, plant and overhead and profit
 National working rule agreement  give information about labour rate
 Productivity rate: difficulties, reputation
 Material: Wastage, complexity, time
 Plant: concrete (concrete mixer)
 Overhead: site based / head office based/ project based
 Profit: vary

Preliminaries items

Categories

 Time related (site management, hoardings)

 Value related (insurance)
 Fixed items (transport

Item includes

1. Site accommodation (wash rooms/showers/ toilets, canteen, first aid facilities….)

2. Site management (site manager, section foreman, site engineer, quantity surveyor……)
- site manager: every detail on site
- project manager: contract administrator, can be responsible for more than one project
3. Setting out
4. Insurance
5. Statutory fees (licence for site hoarding)
6. Plant and equipment
7. Safety and health management (PPE)
8. Environmental management
9. Security
10. General transport for site use
11. Site offices for employer’s representatives
12. Crane and access equipment (hoist) if required (foundation, operator, banksman)
13. Waste management (removal of rubbish and waste)
14. Hoarding
15. Scaffolding
16. Water for the works
 17. Electricity and power for the works
18. Testing and sampling
19. Keeping roads clean
20. Site communication (internet access, data recovery systems)
21. Quality control and assurance
22. Logistic management

8-15% of the project

Cost planning

Manage the cost though the design process

Elementary items e.g. external wall, drainage Mechanical system, foundation

Cost indices

 Going forward
 Looking back

Do not confuse cost analysis with cost planning

 Output indices (tender price index)

 Input indices (material price index)

Whole life appraisal

 Whole life costing v.s whole life appraisal (difference)

- (cost just looks at cost and appraisal also look at performance)
 Maintenance categories from BCIS
 Selection of appropriate discount rate
- time value of money; bring it back to present value
 Obsolescence