Types of Cost Forecasting Dr Fiona Grant What
- Slides: 9
Types of Cost Forecasting Dr Fiona Grant
What is Cost Management? � The total financial management of a building project covering the entire processes ◦ from the decision to invest, ◦ to occupation of the property ◦ to demolition or refurbishment � An interdisciplinary subject ◦ data required from such other professionals as �Investment Analysts �Architects �Engineers �Property management consultants �Environmentalist, etc 2
Typical project stakeholders Sub-tenants Tenants Financiers Architect Consulting Engineers Landscape Architect Quantity Surveyor Interior Designer Investment Analysts Surveyors Advisers Ground landlord Client/Owner Domestic Sub-contractors General Contractor Specialist Contractors Manufactures/Suppliers Local Authority planners and inspectors Nominated Subcontractors Utilities 3
Client Types including their needs and objectives Public Sector Client - social infrastructure e. g. schools, hospitals - quasi profit making investment e. g. recreational facilities Private Sector Client - Corporate organisations - commercial investments - offices - Individuals - private houses 4
Why cost control? 5
Time – Cost – Quality Time n n n Budget Estimate Tender Final Account In-use Cost � � Design Length Start Date Hand-over Completion Project Quality n n Appearance Function Durability Maintenance 6
Pareto Diagram 80% committed Cost of Project 20% complete Design Period 7
Cost Savings and Time Relationship between life cycle cost savings and timing of implementation HIGH INFLUENCE LOW E XPE NDITURE LOW INFLUENCE HIGH E XPE NDITURE 100% VARIATIONS IN DE S IGN COS TS 0% Design Period Construction Period TIME AND LIFE CYCLE 8
Cost Planning Stages 9
