Cost Planning in Building Construction Industry

Running head: COST PLANNING
Cost Planning
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1COST PLANNING
Executive Summary:
The ultimate objective of any type of project is success as the viability of project depends upon
successfulness of the project. This report investigates the criteria for determining the success of a
project in building construction industry. Next, the report discusses the role of cost manager or
quantity surveyor (QS) in the success of the project. After that, the report discusses the reason for
recommendation of cost planning. Further, the report discusses about how cost planning
improves the financial success of the project. Finally, the report discusses about the impact of
project team’s corrective or preventive measures towards project’s success.

2COST PLANNING
Table of Contents
1. Introduction:................................................................................................................................3
2. Discussion:...................................................................................................................................3
2.1. Criteria for determining the success of a project:.................................................................3
2.1.1. Scope:............................................................................................................................3
2.1.2. Schedule:........................................................................................................................3
2.1.3. Budget:...........................................................................................................................4
2.1.4. Team Satisfaction:.........................................................................................................4
2.1.5. Customer Satisfaction:...................................................................................................4
2.1.6. Quality:..........................................................................................................................4
2.2. Role of quantity surveyor (QS) in the success of a project:.................................................5
2.3. Reason for recommendation of cost planning in the building projects:...............................6
2.4. Role of cost planning in improving the financial success of a project:................................6
2.4.1. Determinants of initial project cost:..............................................................................6
2.4.2. Cost changing factors:...................................................................................................7
2.5. Impact of the project team in the financial success of a project:..........................................8
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

3COST PLANNING
1. Introduction:
A project is any unique undertaking that is managed and conducted by people in order to
meet fixed goals within parameter of decreased cost and increased quality. The considerable
factors of the project are precise objectives, prescribed resources, budget, schedule, quality
measures and functions within the life cycle. The following sections discusses various factors
that measures and determines project’s success, describes the role of QS in the project’s success,
states reason for recommendation of cost planning in building projects along with role of cost
planning in improvement of project’s financial success and finally discusses about the impact of
the project team in situations where corrective or preventive measures are required.
2. Discussion:
2.1. Criteria for determining the success of a project:
The success criteria of a project include hard metrics such as on time delivery of the
project within budget. It is valuable practice to measure the success of a project as it offers a
learning opportunity for future projects. The following criteria for success measurement
determine the project’s success (Mir & Pinnington, 2014).
2.1.1. Scope:
It is the project’s intended result that needs to be completed. A project’s success can be
determined by measuring its achievement of objectives within prescribed framework.
2.1.2. Schedule:
It is easy to measure and understand. Irrespective of whether clients come to the project team
with a hard deadline or they simply look for final product, in both cases the team always has a
schedule that needs to be met as it determines the project’s success. The factors such as