EXERCISE COST PLAN

QUESTION 1: COST PLAN (Exam DEC 2019)

The following table shows the cost analysis of selected elements for a 10-storey
apartment building, which has been constructed in Pulau Pinang, tendered in November
2019. A 12- storey building of similar category is proposed to be tendered in Johor Bahru,
Johor early next year.

Element Total cost of Cost of Element Unit Element Unit

element (RM) element/ M2 Quantity (m2) Rate
GFA (RM)
Frame 1,099,566.25 225.55 4,875.00 225.55
Upper floor 1,419,795.00 291.24 4,387.50 323.60
Roof 702,000.00 144.00 585.00 1,200.00
External Walls 2,296,896.00 471.16 8,960.00 256.35
Internal Floor 1,468,130.63 301.16 4,143.75 354.30
Finishes

Calculate new cost targets for each element based on the following information:
i) Previous index (November 2020): 105.80
ii) Forecasted index (April 2024): 120.14
iii) Location index (Pulau Pinang): 1.2245
iv) Location index (Johor Bahru, Johor): 1.2092
v) Floor plan (proposed building): rectangular shape 70m x 85m
vi) Storey height (proposed building): 4.20m
vii) Specifications for proposed building:

a) Frame
Cost of frame is expected to increase by 20% due to the change of materials from
reinforced concrete frame to steel structure.
b) Upper Floors
Increase by 8% to cater for stronger material due to larger span design. Allow 12%
for staircase floor openings.
c) Roof
Changes on the roof design involved a significant decrease in cost approximately
by 6%.
d) External wall
Shortage of clay bricks necessitates the use of concrete bricks. The current rate
for concrete brick is RM85.00/m2. Allow 15% for wall openings.
e) Internal floor finishes
As per existing quality. Allow 10% for staircase floor openings and internal
divisions.
QUESTION 2: COST PLAN

Your firm have been appointed as QS consultant for a proposed 6-storey office building
which will be built in Ipoh, Perak. The client had requested your firm to prepare a cost
plan for the project. The project is scheduled to be tendered out in December this year.
The selected ECA used for the reference is a 10-storey office building in Shah Alam,
Selangor tendered out last year. The plan shape and the size are similar for both
buildings. The following table shows an abstract from the ECA.

Table 1.0: Abstract of ECA of 10-storey office building in Selangor

Element Cost of Cost of Element Unit Element Unit

element element/ m2 Quantity Rate
(RM) GFA (m2) (RM)
WBLFF 205,110.00 45.58 450 455.80
Frame 578,250.00 128.50 4,500 128.50
Roof 152,352.00 33.86 552 276.00
External Walls 302,400.00 67.20 2,520 120.00
Internal Ceiling 356,400.00 79.20 3,375 105.60
Finishes

Calculate the targeted elemental cost for above elements to be inserted in the cost plan
based on the information given below:

a) The index for the proposed building is 127.90; the location index is 1.0420 as
compared to the analysed building which is 107.30 and location index 1.0440
respectively

b) There is an increased in the storey height for the proposed building to 3.50m as
compared to the analysed building, which is 3.00m.

c) Better specification for WBLFF and Frame, allow 15% increase for both elements
to cover for the specification changes.

d) The design of the roof same as analysed building

e) The proposed building uses IBS lightwieght wall panel instead of the common
bricks used by the analysed building, allow 20% changes in cost.

f) Changes in the specification for the Internal Ceiling Finishes to be upgrade 25%
to meet with the client requirement. Allow for 15% for staircase floor opening