Construction Cost Management
From apppm
Construction Cost Management
Contents |
Introduction
Financial Appraisal in Construction
Cost Estimation
Basic approaches on cost estimation
Unit Cost Method of Estimation
Methods for Allocation of Joint Costs
Historical Cost Data
Application
Th use of historical data for cost estimation is a common procedure in the construction industry. Historical data is useful when it is collected and properly structured for for future applications. Consulant engineering and construction companies continuously keep record of their construction cost estimating economic activities. The available data is structured according to the needs of the specific organization.
Limitations and Challenges
- Changes in relative prices result on serious changes in construction costs
- Prediction over long period of time is quite difficult
- Possibility of errors in analysis, due to uncertainties
Cost Indices
Quantity take-off
Computer Aided Cost Estimation
Budget Development
Pricing and Contracting
Pricing is determined by a large number of factors. The bid, which is submitted by a contractor, depends on
- cost estimation
- contractor's profit
Cost Control
The primary objective of Construction Cost Control is the delivery of the project within the approved budget.
