TOPIC 1:

PRELIMINARY
ESTIMATES

DEFINATION AND IMPORTANCE

OF PRELIMINARY ESTIMATES
DEFINATION

Defined as an activity in particular work to make possible offer

to execute task base on a stipulated sum

Technique to forecast the possible cost incurred for a certain

building or construction project via a systematic calculation
employing certain method, prepare at early stage of the project

Is a part of the cost planning process that is controlling of the

project cost at the design stage before any drawings are
embarked upon.

USE OF THE PRELIMINARY

ESTIMATE METHOD
To

ascertain the actual cost forecast of a project.

Assist

the client in knowing to what extent he

need to be financially committed to a particular
project

Estimated

is also function as a design guide

whether the project to the allocation made
either

Contd
If

the estimate is higher that the client budget for

that particular project, the following could be
carried out :

The design could be altered to reduce the cost

Extra provisions are sought after or requested

from the client

The project is postponed or cancelled

Contd
If

the estimate is low than the allocated sum,

the following could be done

Accept the estimate

To modify the design and/or the

specifications to increase the estimate
appropriate to the provision set aside.

METHOD FOR PRELIMINARY

ESTIMATE
UNIT
CUBIC
FLOOR

AREA

METHOD

UNIT

CUBIC

FLOOR
AREA

WHEN IT IS USED

NOTE

Appropriate for project

that have standard unit
of accommodation, its
Inception feasibility commonly used to
establish the cost limit
for public sector
project

UNIT OF
MESUREMENT
Cost/student
Cost/classroom
Cost/bed
Cost/ chair

Cost/m3

Outline proposal

Used to calculate the

volume of airconditioned space or
space which is given
mechanical ventilation

Cost/m2

Outline proposal

Used extensively, can

be used for almost all
types of building

THE SELECTION OF THE

METHOD WILL DEPEND ON
The

information and time to prepare the

estimate

The

experience of Quantity Surveyor

The

total and type of cost data available

UNIT METHOD

This method is also referred to as cost according to building function

Estimate the building cost base on the size depends on the

population unit

Example: the total number of student in a school, total number of

bed in a hostel or hospital and etc.

Easier method but the most unrefined.

Total population can be obtained from the client or the design

team

USAGE
The

cost estimate is obtained by multiplying the

number of accommodation for a new building with
the cost per unit of accommodation based on a
suitable building

The

current unit of accommodation can be obtained

by calculating from the sketch design or by
obtaining information from the client.

Example:
Estimate the total cost to build a mosque to house a
congregation of 500 individuals.
From a suitable cost data, get the cost/ congregation of a
similar mosque that has been updated. Lets us say that the
cost is RM 1400.00/ congregation.
Total cost = Number of accommodation x cost/congregation
500 individuals x 1,400
= RM 7000,000.00

CUBIC METHOD

In Malaysia this method is seldom or almost

never used
Only in certain case, it is utilized

To calculate the space which is need to be airconditioned

To calculate the space that needs mechanical
ventilation

USAGE
Measure

the volume of the new building and

its volume is then multiplied with the suitable
price rate per m3
Unrelated works is to be volume must be
calculated separately
The volume of the building is calculated as
follows:
Volume = length x width x height

Height of pitch roof

from the top surface of the foundation to
apex / height of roof
i.

half

Height of flat roof

From the top surface of foundation to 600mm above
the flat roof or parapet wall
(which is higher)
ii.

Pitch roof

Flat roof

Example
Estimate the total cost to build a 2-storey bungalow if the
construction cost/m3 of a similar construction is RM
550.00. estimate the construction cost base on
a)
b)

Pitch roof
Flat roof

20.00

10.00

1.50

3.50

3.50

1.00

a) Pitch roof
Building volume = 20.00 x 10.00 x [1.00 +2(3.50) + (1.50)]
=20.00 x 10.00 x 8.75
=1750m3
Total building cost = volume x cost/m3
=1750m3 x RM550.00
=RM962,500.00

b) Flat roof
Building volume = 20.00 x 10.00 x [1.00 +2(3.50) + 0.60]
=20.00 x 10.00 x 8.60
=1720m3
Total building cost = volume x cost/m3
=1720m3 x RM550.00
=RM946,000.00

Floor area method

Make a preliminary estimate as most of the cost data

are kept or are available in this form
The measurement for GFA must be similar between
the new building and the analyzed building
Need to consider criteria in measurement of area

In the calculation the floor area of a building there are

several criteria need to be taken
1.
2.
3.

The actual area of the building

If the project offers a standard or different type of
accommodation it is better for each to be priced separately
Unrelated work to the area, for example, external work
must be priced separately

Contd

The rate per m2 chosen must be current rate as

building cost often differ

The site, external works, condition of contract, the

quantity and the quality of equipment and others that
related to the floor area must be calculated separately

It is clear and difficulty of this method lies in choosing

the appropriate rate, which requires experience,
observation and familiarity toward varied building
types

USAGE
The

floor area of a building to be erected. Only the

building used this floor area method. Other works
may use other method like approximate quantity.

Total cost = area x cost/m2 gross floor area (GFA)

Area calculate the area of the building. The
measurement method differs according to practices
Cost/m2 GFA from similar building type and
function

EXAMPLE
Estimate the cost of the building by referring to the plans
given if the construction cost is RM 1,500/m2
25.00

25.00

5.00
8.00

10.00

15.00

10.00

10.00

3.00

7.00
5.00

Ground floor plan

First floor plan

CONTD
Floor area
Ground floor
25.00 x 5.00
10.00 x 3.00
5.00 x 7.00

= 125.00
= 30.00
= 35.00
190.00

First floor
25.00 x 5.00
10.00 x 3.00

Total cost

= 125.00
= 30.00
345.00

155.00

= area x cost/m2 Gross Floor Area

= 1500.00 x 345.00
= RM 517,500.00

ADVANTAGES
UNIT

CUBIC

Fast and easy

The estimate can be
Easiest method to
prepared quickly
obtain cost limit to
prepare the monetary
allocations for several
years to come
No necessity for
drawings

FLOOR AREA
The client and
architect easily
understand the
concept of floor area.
most work items are
appropriately
associated with the
concept of floor area
rather than the
volume method
Cost data easily
available as most of
the data from
previous project most
utilize this method

DISADVANTAGES
UNIT

CUBIC

FLOOR AREA

An unrefined method Does not take into

Does not take into
and in accurate. Only
account changes to
account changes to
suitable to provide
plan, height, of storey
plan, height, of storey
and overall
and the overall height
and the overall height
approximate estimate
of the building
of the building as
Does not take into
Unrelated work to the
these factors effect the
account changes to
volume has to be
building cost
plan, number of
calculated separately Other work which are
Does not help
storeys and other
not related to the
factors related to
architect in design
floor area must be
design
work as it is difficult
calculate separately
Unrelated work
to predict or to know Difficult to calculate
concerning unit of
the effects of the
and allocate the cost
accommodation has
changes to
for different site
to be calculated
specifications, design,
conditions, quality of
separately.
etc. to the cost per m3
materials, condition
Difficult to obtain
of contract and etc.