Cost Planning & Management for Nest Apartments in Adelaide

Cost Planning & Management 1
COST PLANNING & MANAGEMENT
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Cost Planning & Management 2
Cost Planning & Management
Executive Summary
This report presents a summary of various elements that will enable successful
completion of the proposed Nest Apartments to be built in Adelaide, Australia. The total GFA of
this three-level residential development is 895.49 m2. Based on historical data, the estimated
cost of the project will vary from $1,844,758.70 to $2,254,705.05 (average of $2,049,731.85 –
$2,288.95/m2). All the functional areas of the building are similar to those of similar
developments. The design elements of the development are also adequate to perform the
intended function and achieve the objectives of the project. The management options that the
client can use to enhance successful delivery of the project are: function analysis, FAST,
cost/worth, SMART, value drivers, creative techniques, target costing, lean construction,
building information modelling, prefabrication, automation, nanotechnology. Considering the
project objectives, constraints and delivery method, the suitable contract type for this
development is fixed price or lump sum contract. To get better pricing, the client should provide
the following documentation to the tenderers: general conditions, special conditions, bill of
quantities, drawings and specifications.

Cost Planning & Management 3
Table of Contents
Executive Summary...................................................................................................................................2
1. Introduction.......................................................................................................................................4
2. Total Measurement of GFA..............................................................................................................4
3. Expected Order of the Cost of the Development.............................................................................6
4. Functional Areas of the Development..............................................................................................8
5. Design Review....................................................................................................................................9
6. Value Management Options...........................................................................................................11
7. Type of Contract..............................................................................................................................14
7.1. Advantages...............................................................................................................................15
7.2. Disadvantages...........................................................................................................................15
8. Tender Documentation....................................................................................................................15
References................................................................................................................................................17

Cost Planning & Management 4
1. Introduction
This report presents a wholesome review of the proposed residential property
development project. The project is a three-storey residential building, called Nest Apartments,
that is to be built along Tucker Street in Adelaide, SA. The project has to be completed within a
specified timeframe so that the University students can start using the building immediately. The
client is concerned about several issues including uncertainty of the immediate global economy
growth and the heavy reliance of the Australian residential market on the Chinese investor
market. As a result, the client has requested a review of several elements of the project including:
total measurement of the ground floor area (GFA), expected order cost of the development,
functional areas of the development, design value of the project, value management option,
suitable type of contract, and required tender documentation. Findings from this report will help
the client make a decision on whether to invest in the project or not.
2. Total Measurement of GFA
Ground floor area (GFA) is a building’s total amount of floor space (square footage). It is
determined by measuring the length and width of internal walls of the building and multiplying
the two measurements. In this scenario, GFA is determined as the sum of fully enclosed covered
area (FECA) and unenclosed covered area (UCA) (Australian Property Institute, (n.d.)). FECA
refers to the sum of the building’s fully enclosed covered areas including basements, penthouses,
garages, floored attics and roof spaces, enclosed porches, staircases, lift shafts, equipment rooms,
vertical ducts, and the building’s usable areas (Branson, 2014); (International Code Council,
2015). UCA refers to the sum of all unenclosed building floor covered areas including open
verandahs, roofed balconies, open covered ways, porticos and porches, unenclosed access