Professional Documents
Culture Documents
Cost Planning Process in Construction
Cost Planning Process in Construction
Cost Planning Process in Construction
Cost planning is a specialist technique used by the Quantity Surveyor. It aims to help the
design team to arrive practical and efficient designs for the project and to keep within the
budget. Effective cost planning will help to ensure that, once a realistic estimate is agreed,
everything that follows is in accordance with it, from the successful contractor’s tender to the
final project cost.
If the employer decides to change his plans and introduce variations, the quantity surveyor
will assess the cost implications. Cost planning obtains improved economy standards and
better value for money.
(A) INCEPTION
This represents the employer’s decision to build, the setting up of the administrative
organization, and the appointment of the architect and other members of the design team. The
architect requires a site plan, details of preliminary items, erection times and any cost limit.
This process is known as client briefing.
(B) FEASIBILITY
At this stage the architect and the employer are attempting to establish the employer’s specific
requirements. The quantity surveyor supplies cost information. The design team should
consider the design time table and the tendering procedures.
Economical feasibility – Quantity Surveyor
Structural feasibility – Engineer
Functional feasibility – Architect
Some drawings will be produce at this stage and the quantity surveyor will be in a position to
give on costs and, to evaluate the financial effect of different solutions, and he prepares an
outline cost plan.
When all the design drawing have been prepared and cost checked, a final cost review should
be made by the quantity surveyor and report submits to the architect.
The quantity surveyor continues his cost checks on the data produce against the final cost plan.
He will give advice to the architect on any financial or contractual matters associated with the
project.
Various methods of cost planning have been developed. Cost control, operating at various
stages of the design process. There are, broadly, two methods of cost planning currently in
use.
1. The first of these involves the establishment of a realistic first estimate (Preliminary
Approximate Estimate)
2. The second stage plans how this estimate should be spent among the various parts or elements
of the project (Cost Plan)
3. The final stage is a checking process to ensure that the actual design details for the various
elements can be constructed within the cost plan (Cost Checking)
The some of the cost targets set against each element must not exceed the total estimated cost.
Cost cheeks are made throughout the design stage and lastly a final cost check is made of the
whole scheme.
Target cost planning: Cost limit is fixed for the scheme and Architect prepare the design not to
exceed this cost.
Limits placed on the amount of money that could be made available for a project.
Designing to a cost.
QS can check the cost of the architect’s selection against the pre-determined budget.
The quantity surveyor will need to carry out cost checks periodically through the design stage
as with the elemental system, to ensure that the architect’s proposal are being kept within the
total cost limit agreed with the employer.
Sets out the estimated costs of individual sections of work, where appropriate the estimated
costs of alternative methods and materials.
Select the most suitable with complete awareness of the cost consequences.
Costing to design.
4