Pre contract phase Sign the agreement Post contract phase
Cost Estimation Cost control
It’s done by Consultant or client QS It’s done by Contractor QS
Cost control in pre contract phase
Ø If we want to select the suitable contactor normally we need to use tender process. In that case also we can do the cost control. That’s means
Normally 4 different methods are available for tender process.
1. Open tender.
2. Selected tender.
3. Pre-Registered tender.
4. Negotiated tender.
If we choose Negotiated tender we can control the total construction cost very easily.
Cost control in post contract phase
Case where total cost can change (increase/decrease)!!!!!!!!!!!!
From Client’s point of view
Ø Change of design and change of specification
ØVariation
1. Quantity variation
2. Quality variation
Ø Inflation.
Ø Extra work.
ØTax.
Ø Government (political) policy.
Case where total cost can change (increase/decrease)!!!!!!!!!!!!
From Contractor’s point of view
Ø Inflation.
Ø Time extension.
Ø Wastage.
Ø Proper Management.
Case where total cost can change (increase/decrease)!!!!!!!!!!!!
From Consultant’s point of view
Ø Detail drawings delay.
Ø Approval delay.
Normally we can divide the cost estimation method into 2 types in post contract phase.
1. Costing a design.
2. Design to a cost.
Costing a design.
Elemental costing – 30Elements are there (Its define by BCIS)
Eg:-
Material 60000.00
Labor 10000.00
Plant 10000.00
Over head 20000.00
In this method consultant and client will change the design (Specification –plant, material, etc) according to their purpose. As QS need to adjust the cost according to their condition at the same time we can’t exceed the total cost. Therefore for as Quantity Surveyor this method is very difficult.
Summary: - This method we all are concentrating the design - not cost
Design to a cost.
In this method total construction cost is fixed. That’s means
We can get the statistic from previous projects and make it several materials like foundation, roof. Then calculate the percentage then do the cost control in construction according to that.
In this method consultant and client will change the design (Specification –plant, material, etc) according to the total construction cost. Therefore for as Quantity Surveyor this method is very easy.
Summary: - This method we all are concentrating the cost - not design.