Cost Management

Assessment Module BNV 6100 Cost Management

Assessment Title Deliverable Two

Name of the Student P.G.G.C.N.Gangewaththa

University ID no. S18159019

Branch Kandy

Name of the Lecturer Mr.Sithum Karunanayake

Word count 1838

Date of Submission 07/07/2019

Table of Contents
INTRODUCTION ............................................................................................................................................. 3
Task 1 – COST PLAN FOR NEW DEVELOPMENT ............................................................................................ 3
Factor Calculation ..................................................................................................................................... 3
Summary of New Development Estimation with height modification ..................................................... 4
Justification for for story height modification .......................................................................................... 5
Task 2 – COST ESTIMATE OF REVISED SCHEME ............................................................................................ 8
Summary of New Development Estimation with GIA modification ......................................................... 8
Justification for GIA modifications ............................................................................................................ 9
CONCLUSION............................................................................................................................................... 11
REFERENCE .................................................................................................................................................. 11

2|Page
INTRODUCTION

This is a cost report for a new development of 22 semi-resident houses. The area of new
development is 8000m2.Previous project estimate have been used for the new development. In
the Preliminary plan the client needed to make use of building design of resident houses to save
time and cost for the design. The time and location factors were considered in this project. The
client needed to reduce height of resident houses and also the clients requested to reduce the cost
per house by increasing the no of house units by remaining the same overall GIA of the previous
project. In this report the estimation of this project has been calculated by rebasing the time and
location factor and assessed the cost implication due to decrease of story height and grouping of
houses.

Task 1 – COST PLAN FOR NEW DEVELOPMENT

Factor Calculation

The previous project location was Colombo and the period of the project was 3rd quarter of
2018.The location of new project is Kurunegala and the project period will be 3rd quarter of
2020.

Annex 2.1(Factor calculation)

BCU Student ID No S18159019

Past Proposed
Location Colombo Kurunegala
Location Factor 95 96
Quarter 3rd Q 2018 3rd Q 2020
TPI 1784 1841

Proposed Project Factor

Adjustment for Location: Location Factor proposed = 1.01

Location Factor past

Adjustment for TPI: TPI proposed = 1.03

TPI past

Adjustment for Location & TPI: = 1.04

3|Page
Summary of New Development Estimation with height modification

Annex 2.1 – (height modification)

Amount Adjustment Factor

Item aj. For Updated
Description Amount By Remarks
No By Rate Location Amount
Quantity & Time
Elemental Estimation
1 Substructure 1,807,711.19 0.97 1.04 1,822,295.21
2.1 Frame 5,290,747.18 0.95 1.04 5,257,162.11
2.2 Upper floors 1,170,878.00 0.97 1.04 1,187,865.54
2.3 Roof 2,217,188.36 0.99 1.04 2,298,901.46
2.4 Stair 451,672.00 0.92 1.04 434,674.55 Refer Justification for height
2.5 External walls 3,272,897.31 0.93 0.99 1.04 3,151,123.77
2.6 Windows & External Doors 2,016,242.42 1.04 2,102,564.44
2.7 Internal walls and partitions 1,365,592.20 0.93 0.99 1.04 1,314,783.09
2.8 Internal doors 1,022,123.70 1.04 1,065,884.20
Prime Cost Estimation
3.1 Wall Finish 1,793,048.36 0.93 0.99 1.04 1,726,335.04
3.2 Floor Finish & Skirting 497,141.47 1.04 518,425.75 Refer Justification for height
3.3 Ceiling Finish 265,928.50 0.99 1.04 275,729.13

4 Fittings, Furnishings and Equipment - 5% of floor finishes 24,857.07 25,921.29

5 Services - 15% of the total of items 1 to 4 3,179,404.17 3,177,249.83
6.1 Site works - 7% of the sub structure item 126,539.78 127,560.66 Assume same percentage will continue
6.2 Drainage - 6% of the service item 190,764.25 190,634.99
6.3 External services - 10% of the service item 317,940.42 317,724.98
7 Preliminaries - Allow 10% of the total of items 1 to 6 2,501,067.64 2,499,483.60
8 Risk Allowances - Allow 6% of the total of items 1 to 7 1,650,704.64 2,749,431.96

Total 29,162,448.66 30,243,751.61

4|Page
Justification for for story height modification

Annex 2.1.1 - (Justification for heights)

The effect of change in story height to the elemental quantities and elemental rates were justified under this
section with necessary assumptions.
Sl. Element By Quantity By Rate
No.
1 Sub Structure No impact to the quantity When the building height decrease the strength of the foundation should
decrease. So the sub-structure rate will have to decrease.
Foundation weightage in Sub-structure = 50%
Height different = (2.8-3.0)/3.0
-7%
(A) = -4%

Factor adjustment = 0.97

2 Frame No impact to the quantity When building height decrease, cost of frame should decrease.

Assume weight of frame calculated in 3m x 3m x3m building

Weight of column = 0.61 58%
Weight of beam = 0.44 42%
1.05
Adjustment for decrease in Column height
Weightage of column = 58%
Decrease = (2.8-3.0)/3.0
-7%
(A) -4%
Adjustment for method related charges due to decreased height
( Crane,Scafolding & etc.)
Assume that method related charges will be 8% of rate
Method related charges = 8%
Decrease = (2.8-3)/2.8
-7%
(B) -1%
(A) + (B) -5%

Factor adjustment = 0.95

3 Upper Floor No impact to the quantity For upper floor, rate shall decrease due to the cost of form work support
decrease
Weightage of formwork in floor slab = 30%
Decrease = (2.8-3.0)/3.0
-7%
(A) -2%
Adjustment for method related charges due to decreased height
( Crane,Scafolding & etc.)
Assume that method related charges will be 8% of rate
Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(B) -1%
(A) + (B) -3%

Factor adjustment = 0.97

5|Page
 4 Roof No impact to the quantity Adjustment for method related charges due to decreased height
( Crane,Scafolding & etc.)
Assume that method related charges will be 8% of rate
Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(A) -1%

Factor adjustment = 0.99

5 Stair case No impact to the quantity Stair case height will decrease due to the height different
Weightage of staircase = 100%
Decrease =(2.8-3.0)/3.0
-7%
(A) -7%
Adjustment for method related charges due to decreased height
( Crane,Scafolding & etc.)
Assume that method related charges will be 8% of rate
Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(B) -1%
(A) + (B) -8%

Factor adjustment = 0.92

6 External walls Previous = 1 Adjustment for method related charges due to decreased height
Increase = (2.8-3.0)/3.0 (Crane,Scafolding & etc.)
-7% Assume that method related charges will be 8% of rate
(A) -7% Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(A) -1%

Factor adjustment 0.93 Factor adjustment = 0.99

7 Windows and External
doors
8 Internal walls
No impact to the quantity No impact to the rate
Previous = 1 Adjustment for method related charges due to decreased height
Decrease = (2.8-3.0)/3.0 (Crane,Scafolding & etc.)
-7% Assume that method related charges will be 8% of rate
(A) -7% Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(A) -1%

Factor adjustment 0.93 Factor adjustment = 0.99

9 Internal Doors No impact to the quantity No impact to the rate
10 Wall Finish Previous 1 Adjustment for method related charges due to decreased height
Decrease = (2.8-3.0)/3.0 (Crane,Scafolding & etc.)
-7% Assume that method related charges will be 8% of rate
(A) -7% Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(A) -1%

Factor adjustment 0.93 Factor adjustment = 0.99

11 Floor Finish & Skirting No impact to the quantity No impact to the rate

6|Page
 12 Ceiling Finish No impact to the quantity Adjustment for method related charges due to decreased height
(Crane,Scafolding & etc.)
Assume that method related charges will be 8% of rate
Method related charges = 8%
Decrease = (2.8-3.0)/3.0
-7%
(A) -1%

Factor adjustment = 0.99

7|Page
Task 2 – COST ESTIMATE OF REVISED SCHEME

Summary of New Development Estimation with GIA modification

Annex 2.2 - (GIA Modification)

Amount Adjustment
Item Height Modified
Description By Updated Amount Remarks
No Amount By Rate
Quantity
Elemental Estimation
1 Substructure 1,822,295.21 0.45 1.13 933,152.74
2.1 Frame 5,257,162.11 0.45 1.47 3,509,785.14
2.2 Upper floors 1,187,865.54 0.45 539,938.88
2.3 Roof 2,298,901.46 0.45 1.03 1,076,303.86
2.4 Stair 434,674.55 434,674.55 Refer Justification for GIA
2.5 External walls 3,151,123.77 0.65 2,054,793.76
2.6 Windows & External Doors 2,102,564.44 0.65 1,371,046.21
2.7 Internal walls and partitions 1,314,783.09 0.45 597,628.68
2.8 Internal doors 1,065,884.20 0.45 484,492.82
Prime Cost Estimation
3.1 Wall Finish 1,726,335.04 0.45 1.23 968,616.54
3.2 Floor Finish & Skirting 518,425.75 0.45 235,648.07 Refer Justification for GIA
3.3 Ceiling Finish 275,729.13 0.45 125,331.42

4 Fittings, Furnishings and Equipment - 5% of floor finishes item 25,921.29 11,782.40

5 Services - 15% of the total of items 1 to 4 3,177,249.83 1,851,479.26
6.1 Site works - 7% of the sub structure item 127,560.66 65,320.69
6.2 Drainage - 6% of the service item 190,634.99 111,088.76 Assume same percentage will continue
6.3 External services - 10% of the service item 317,724.98 185,147.93
7 Preliminaries - Allow 10% of the total of items 1 to 6 2,499,483.60 1,455,623.17
8 Risk Allowances - Allow 6% of the total of items 1 to 7 2,749,431.96 1,601,185.49

Total: one number house unit 30,243,751.61 17,613,040.37 -

Total -1 : 10 number of house unit of previous project 302,437,516.07 387,486,888.17
Total -2 : 22 number of house unit of new project
Cost Variation 85,049,372.10

8|Page
Justification for GIA modifications

Annex 2.2.1 – Justification for GIA

1 Sub Structure

GIA of previous designed house unit (A) = 226.39

GIA for 10 no: of house units ( B ) = ( A ) x10 = 2,263.90

GIA of new designed house unit ( C ) = ( B ) /22 = 102.90

Quantity reduced % (C -A)/(A) = -55%

Quantity Factor adjustment = 0.45

Assume 2 floor in each house unit of new design

Area in each floor ( D ) = (C) /2 = 51.45

Assume length of new house unit is 8m

Width of house ( E ) = ( D )/8 = 6.43

Impact of Sub structure

External Wall foundation
Previous 10 nos house units = 419.70
New 22 nos house units ((2x8)+(2x 6.01))x22 = 616.44

% increase in External wall foundation = 47%

Weightage of External wall foundation is 27% of Sub = 13%

structure
Rate Factor adjustment = 1.13

2.1 Frame
Same as Sub structure quantity Factor adjustment = 45%

Rate will increase similar to the External wall foundation = 47%

Rate Factor adjustment = 1.47

2.2 Upper floors

Same as Sub structure quantity Factor adjustment = 45%

Assume Rate remains same as previous

2.3 Roofs
Same as Sub structure quantity Factor adjustment = 45%

Apply 3% rate increase for eave additional gutters and down pipe = 3%
Rate Factor adjustment = 1.03

2.4 Stair case

Assume Rate and Quantity remains same as previous

9|Page
 2.5 External wall
External wall length -previous house unit = 85.94
External wall length -new house unit = 56.04
Quantity reduced = -35%
Quantity Factor adjustment 0.65

Assume Rate remains same as previous

2.6 Windows & External Doors

Same as External wall quantity adjustment % = 0.65

Assume Rate remains same as previous

2.7 Internal walls and partitions

Same as Sub structure quantity adjustment % = 0.45

Assume Rate remains same as previous

2.8 Internal doors

Same as Sub structure quantity adjustment % = 0.45

Assume Rate remains same as previous

3.1 Wall Finish

Same as Sub structure quantity adjustment % = 0.45

Rate will increase similar to the External wall and foundation(47%).But the External = 23%
finish will be included in external wall.so 50% of wall finishes will be considered.
Rate Factor adjustment = 1.23

3.2 Floor finish and skirting

Same as Sub structure quantity adjustment % = 0.45

Assume Rate remains same as previous

3.3 Ceiling finish
Same as Sub structure quantity adjustment % = 0.45

Assume Rate remains same as previous

10 | P a g e
CONCLUSION

As for the client’s new requirements, construction of 22 no: of semi-residence houses needs
Rs.85,049,372.10 rather than previous 10 no of residence houses.

REFERENCE

BCIS. (2012). Elemental Standard Form of Cost Analysis (4th ed.). London.

Royal Institution of Chartered Surveyors (RICS). (n.d.). RICS new rules of measurement (1st ed.). UK.

11 | P a g e