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4Q - COST PLANNING - Coggle Diagram
4Q - COST PLANNING
WHAT IS COST PLANNING?
PRINCIPLES
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Allow the designer to take necessary measure or actions before any decision on the final design is made.
It enables costs to be presented in a logical and olderly way for clients from time to time during the design process
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There is a standard framework reference available for each identifiable element of the building (page 360)
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DEFINITION
The cost planning is a system that requires total coordination of the project from its commencement to tender action.
A system that have systematic framework procedure and demand high commitment which make quantity surveyor and design team cooperate together in achieving the objectives in terms of cost, time and quality.
The estimation of costs, the setting of an agreed budget and management of actual and forecast costs against budget, during design process.
It is a management process that seeks to control design development in line with the client's budget. It does this by helping the client decide how it wants to allocate the budget to the various element of the project
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WHY DO COST PLANNING?
ADVANTAGES
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Cost consideration will be given more attention since the quantity surveyor is involved in the early stages of the design process
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The bills of quantities can be prepared more easily since the quantity surveyor is already familiar with or skilful in the project
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There is a checking system on the cost, there is possibility that less changes will be made to the bill of quantities and definitely save time in making adjustment to any vhanges to the cost and design
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DISADVANTAGES
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Designer and Qs are involved with more work at the design stage as compared to when no cost planning is used
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The quantity surveyor needs to be equipped with vast experience and knowledge pertaining to cost and factors influencing the cost.
The architect is likely to be more restricted in his method of working (for elemental cost planning)
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PURPOSE
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Ensure a reasonable expenditure between sections of the building by relating the design and specification to the client's budget.
To ensure that quality, usage suitability, initial cost and life cycle cost for the entire life span of element must be balance.
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HOW TO DO COST PLANNING?
PHASE 2
cost plan
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It is not designed to produce the cheapest building but helps to provide quality buildings within the limited budget.
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QS - after discussion with the architect ,QS has to prepare cost plan based on the client's need, architect's sketch plans, specification notes and make comparisons with cost analysis of similar building
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Client prepare brief like the required total floor areas of buildings, brief specifications, function of building, construction period , storey and overall heights of building and other.
the main objective in this stage is to plan and to determine how estimates should be allocated among the parts or elements of a building.
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Fixed cost target commonly used in the public sector like expenditures on infrastructure , hospital buildings, school etc.
At this phase, there are two stages involved in RIBA, Stages C and D
In preparing the cost plan, all parties must work hand-in-hand and have their own responsibilities to execute.
PHASE 3
Cost check :
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The main objective in this stage is to secure a genuine design for elements that can be built based on the cost plan and design, which have been prepared in the cost limit
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Ensure that each cost distributed is realistic by refering to the cost analysis of previous similar project
Each elements is checked thoroughly and the design and the established costs are checked againts the cost target.
close cooperation between the architect and the QS in the distribution of total expenditure between elements is essential.
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Cost check method
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Ensure that each cost distributed is realistic by referring to the cost analysis of previous similar or almost similar project building projects.
At phase 3, there is a stage involved in RIBA, stage E
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