Construction Cost Estimation Methods

This assignment delves into different construction cost estimation methods. It discusses the unit method's application in feasibility analysis based on standardized unit costs, the cubic method for calculating air volume in cubic meters, and the floor area method for determining building usage in square meters. The focus then shifts to elemental estimating, which compares design alternatives with budgets and involves detailed cost breakdowns. This method helps identify major cost drivers and facilitates economic design decisions.

report

Contents
Part 1:...............................................................................................................................................1
Importance for early cost estimates.............................................................................................1
Factors for early stage..................................................................................................................2
Market conditions which are:......................................................................................................3
Material Pricing, Quality and availability...............................................................................3
Part 2:...............................................................................................................................................4
References........................................................................................................................................7

Part 1:
Importance for early cost estimates
The estimation of the construction cost is set with the higher accuracy with the proper planning
of the project that is set with the financing. For this, the construction for the clients also need to
work on the accuracy with the advice that is given to the sites for the acquisition and the
commitment to build and enable to take all the important decisions for the construction of the
project. The major determination is about identifying the status of the contractor and how the
material price fluctuation is going to directly affect the costs. There are top five factors which
include the political situation, fluctuation in the prices for the different materials, planning is
poor with the previous experience with the contractor. (Dziadosz et al., 2015). It is important to
focus on uncertainty patterns with the costs that needs to be incurred. This mainly reflects the
series of the decision-making process. The project includes development planning where there
are concepts, development, execution and the transfer.

Factors for early stage
There are different estimations based on how the costs are affiliated with the working on the
performance that is set for the detailed designing. (Lung et al., 2014). Here, the major focus is to
work on the accuracy as well as the consistency of the system that includes the real pricing and
the forecasted too. This works with the estimates for properly handling the designing of facility
with the data cost that is important to build up a proper project. For this, the check is also on how
the detailed estimates are able to work on the costs which are associated to the facility with the
level of detail for the tasks that depends on the cost types to be prepared. The major focus is on
the pre-tender stage which could be for checking whether the project is continued or dropped.
Along with this, there is a possibility to make the decisions about the conceptual concepts and
then work on the different findings which relate to the facets or the services. The majority is able
to define and work on the project factors with the early stage with procurement methods with
project location and size. Here, the inconsistency is measures which is influenced by the size of
the project with the method and location. The quantity surveyors are for the increased planning,
with the controlled designing phase and checking the estimated period.(Ahiaga & Smith, 2014).
The importance is based on working over the changes and the calculations that depends on the
needs and the cost indices. The patterns are also related to work with the site conditions and how
the shipping charged are applicable to with the change in the estimation time.

Market conditions which are:
Material Pricing, Quality and availability
The cost of construction need to include the different variable factors which is mainly to work on
the new project costs with the construction material costs. This includes the shipping charges and
the other taxes are applied to it. There are calculations which relate to handling the labor wage
rate and then working over the project site conditions that could lead to the increase of the cost of
construction. The site conditions are related to the poor soil conditions, wetlands and the
contaminated minerals with some of the conflicting utilities. For the material management, there
is a proper need of the planning and then controlling the efforts which are important to make sure
of the quality and the material specifications. The material is based on improving the
opportunities for the reduced cost of the overall project (Choi et al., 2015). The management of

the poor material will lead to the deterioration at the time of storage with the check on how the
timely flow of materials could help in balancing the procurement and the inventory plan.
With the material management, there is a need to check on the issues of the design related
factors, contractor related, site and the labor, equipment issues. The construction is based on the
operations with the site storage space. The methods are considered to be important for working
on the productivity which can lead to the delay in the project and result in the project cost
overrun. The projects need to work on the building of the structure and the activities are
maintained through proper support and the best quality material which is available at the
adequate price according to the budget. The change in economy has a major impact on the
business where the procurement material and the management is working for 1.92 man hours
without any system. It has been seen that the quality is measured with the planning and setting all
the schedules that include the inventory records with the product components that are including
the material availability with the fast track or the tight schedules. The poor cost of the material
management can also lead to the change in the avoidable costs with the time set for the
construction (Ceke & Milasinovic, 2015).
Part 2:
Preliminary Estimating Techniques
They are considered to be important for the
activities with the particular work with the
possibility to execute the tasks based on the
time stipulation.
The techniques are based on the construction
Elemental estimating
This is to work on the comparison of the
designing alternatives with the budget and the
economic designing. Here, it includes the
presentation for the building of the plans with
the finance and the sponsor. The elemental

project through the systematic calculation.
There are three methods unit, cubic and the
floor area methods for the estimates.
The unit method is for the handling of
inception feasibility when the project is set at
the standardized unit for the cost for the
student, bed etc (Mathew et al., 2016).
The cubic method is for the outline proposal
for the calculation of volume of air in m3.
The floor area method is for the use of the
different buildings in m2.
cost plan is for the preparation of the bills of
the quantity and then working on the match as
per the budget of the client. The elemental
cost is for the analysis and to involve the cost
breakdown which is for the taking of the
biggest costs that are identified with the
methods that include the choice of the
affordable designing which is priced and set
by the quantity surveyor. For this, the check is
also on building the analysis for the
superficial area methods and to plan the
adjustments based on the architecture and the
re-pricing at the time of the designing stage
eliminates (Swei et al., 2017).
The disadvantage is the planning adjustments
which leads to the fluctuation in the budget
and the issues related to the designing
specification changing the entire construction
technology (Molcho et al., 2014).