Detailed Cost Budget Report for Serviced Apartments Construction

This report provides a comprehensive analysis of the cost budget for the construction of two-star serviced apartments. The report utilizes the superficial area method to estimate costs across three different schemes. It details the project's significant stages, including planning, design, execution, and monitoring. The report includes detailed cost breakdowns, considering factors such as superficial area construction, wall-to-floor ratios, external services, ESD allowance, contract contingency, professional fees, furniture and fittings, and various cost escalation allowances. A discussion of the three budget schemes highlights the most optimized budget, and influential cost factors are also examined. The analysis aims to provide a robust understanding of the project's financial requirements and resource allocation.

Cost Budget Report
Construction of Two-Star Serviced Apartments
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Table of Contents
Summary of Report..........................................................................................................................3
Introduction......................................................................................................................................3
Significant Stage in Project Execution............................................................................................3
Important Stage................................................................................................................................4
Briefing Stage Objectives................................................................................................................5
Project Features and Assumptions...................................................................................................5
Scheme 1: Cost Budget using superficial area method...................................................................6
Scheme 2: Cost Budget using superficial area method...................................................................8
Scheme 3: Cost Budget using superficial area method...................................................................9
Discussion of the 3 budgets...........................................................................................................11
Cost Influential factors..................................................................................................................11
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................13

Summary of Report
The following report had been made for the analysis of the budget requirements for the
project of Construction of Two-Star Serviced Apartments. The document would involve the
analysis of the budget and resources of the project. The three scheme budget analysis of the
project would be helpful for identifying the expenses on the budget for the project. The three
schemes have been made using the superficial area method. The analysis of the three types of
budget would be effectively used for developing the use of the effective implied area calculation.
The successive calculation of the specific rates of the area construction. The cost estimation
would be effective for the alignment with the works.
Introduction
The cost budget plays a significant role in development of the smart work analysis and
the execution of the project activities (Fleming and Koppelman 2016). The analysis would be
helpful for forming the management of the works and the continuation of the successive and
effective work implication. The budget analysis can be done using the cost per area calculation.
The estimation for the project of Construction of Two-Star Serviced Apartments has been done
using the three schemes mentioned. The discussion section would evaluate the three budget
schemes and find out the most optimized budget for the project. The budget estimation would
allow the utilization of the superficial area calculation and multiplying it with the area for
calculation.
Significant Stage in Project Execution
The construction works for the project of Construction of Two-Star Serviced Apartments
would be completed using the adaptive methodology. The complete project activities would be

divided into 4 phases of planning, designing, executing, and monitoring and closing (Harrison
and Lock 2017). The analysis of the three phases would be effectively managed with the
implication and development of the successive information management.
Stage 1 Planning would include the analysis of the project requirements of construction
and executing the implication of the work compliment for Two-Star Serviced Apartments. The
planning would help in identifying and scheduling the works required in the project. The project
planning would include the analysis of the resources required for the construction of the two
stared service apartment.
Step 2 Designing would include the development of the design for the Two-Star Serviced
Apartments. The development of the design would allow the formation of the building
considering the safety and quality work requirements. The design would be effectively
developed for forming the analysis of the smart work completion. The design development
would be implied with the formation of the effective work completion and utilization of the
applied work formation.
Step 3 Executing would involve the alignment of the plan developed and form the
construction of the Two-Star Serviced Apartments. The construction works would involve the
pillar works, floor works, main walls, windows and doors cut off, ceiling works, joists works,
paint works, and site preparation. The completion of these activities would result in forming the
completion of the apartment construction.
Step 4 Monitoring would involve the analysis of the constructed building for quality and
cost efficiency. The safety considerations for the project would be aligned effectively. The

ensuring of the quality consideration would be done in this phase. The completion of the phase
would mark the closure of the project.
Important Stage
The designing stage for the two-star serviced apartments would be effectively implied
with the management of the aligned work completion and development. The designing would
consider the analysis of the listing work formation. The development of the design would be
helpful for taking care of the operations and the formation of the successful work completion.
The development of the design would allow the formation of the building considering the safety
and quality work requirements (Rogelj et al. 2016). The design would be effectively developed
for forming the analysis of the smart work completion. The design development would be
implied with the formation of the effective work completion and utilization of the applied work
formation.
Briefing Stage Objectives
Stage Description Objectives
Stage 1
Planning
It would include the analysis of the project
requirements of construction and executing the
implication of the work compliment for Two-Star
Serviced Apartments.
To analyses the
requirements of the
project
To identify the activities
required in the project
To develop the activity
schedule for the project
Step 2
Designing
It would include the development of the design for
the Two-Star Serviced Apartments.
To develop a feasible
design for the
construction of the
apartments
To involve the skills of
design principles
Step 3
Executing
It would involve the alignment of the plan
developed and form the construction of the Two-
Star Serviced Apartments.
To construct the building
apartments
To ensure the quality of
the 2 star services

To complete the
construction on time
Step 4
Monitoring
It would involve the analysis of the constructed
building for quality and cost efficiency.
To monitor the formation
of the apartments
To ensure the WHS
policies
Project Features and Assumptions
The project of construction of Two-Star Serviced Apartments would involve the
construction of the apartments with all two star services and functions. The analysis would be
helpful for forming the management of the works and the continuation of the successive and
effective work implication. The budget analysis was done using the effective bottom up, top
down, and work division analysis. The complete project activities was divided into 4 phases of
planning, designing, executing, and monitoring and closing. Planning had included the analysis
of the project requirements of construction and executing the implication of the work
compliment for construction. The development of the design had allowed the formation of the
building considering the safety and quality work requirements. The construction works had
involved the pillar works, floor works, main walls, windows and doors cut off, ceiling works,
joists works, paint works, and site preparation. The safety considerations for the project was
aligned effectively. The ensuring of the quality consideration was done in this phase.
Scheme 1: Cost Budget using superficial area method
Cost budget calculation for the project has been done considering,
 Cost of superficial area construction of 11520 SQM (@$3500) has been considered for
calculation of budget

 Cost adjustment for wall to floor ratio of 11520 SQM (@$250) has been considered for
calculation of budget
 Building cost using superficial area method would multiply the 11520 SQM with the cost
of $3750
 External Service allowance using the rates of 11% of the superficial cost
 ESD allowance of 2.60% of the superficial cost
 Contract Contingency of 11% of the superficial cost
 Professional Fees of 8% of the superficial cost
 Furniture and Fittings of 5% of the superficial cost
 Cost Escalation Allowance (Current date) for addition to 1% of the of the total cost
 Cost Escalation Allowance (Tender date) for addition to 1.5% of the of the total cost
 Step 1 for addition to 0.8% of the of the total cost
 Step 2 for addition to 4.4% of the of the total cost
 Step 3 for addition to 2.6% of the of the total cost
 Average Cost at Completion for the 6 cost average calculation
 Total Cost is the average cost of completion
Area (Sqm)
Rate ($ in
AUD/Sqm Total ($)
Cost of Superficial area construction 11520 $3,500.00 $40,320,000
Cost adjustment for wall to floor ratio 11520 $250.00 $2,880,000
Building cost using superficial area method $43,200,000
External Service allowance 0.11% $4,752,000
Sub total $47,952,000
ESD allowance 2.60% $1,246,752
Contract Contingency 11% $5,274,720
Professional Fees 8% $3,836,160
Furniture and Fittings 5% $2,397,600
Sub total $60,707,232

Cost Escalation Allowance (Current date) 1% $61,314,304
Cost Escalation Allowance (Tender date) 1.50% $61,617,840
Step 1 0.80% $61,192,890
Step 2 4.40% $63,378,350
Step 3 2.60% $62,285,620
Average Cost at Completion $61,749,373
Total Cost $61,749,373
Scheme 2: Cost Budget using superficial area method
Cost budget calculation for the project has been done considering,
 Cost of superficial area construction of 11520 SQM (@$3500) has been considered for
calculation of budget
 Cost adjustment for wall to floor ratio of 11520 SQM (@$35) has been considered for
calculation of budget
 Building cost using superficial area method would multiply the 11520 SQM with the cost
of $3750
 External Service allowance using the rates of 11% of the superficial cost
 ESD allowance of 2.60% of the superficial cost
 Contract Contingency of 11% of the superficial cost
 Professional Fees of 8% of the superficial cost
 Furniture and Fittings of 5% of the superficial cost
 Cost Escalation Allowance (Current date) for addition to 1% of the of the total cost
 Cost Escalation Allowance (Tender date) for addition to 1.5% of the of the total cost
 Step 1 for addition to 0.8% of the of the total cost
 Step 2 for addition to 4.4% of the of the total cost

 Step 3 for addition to 2.6% of the of the total cost
 Average Cost at Completion for the 6 cost average calculation
 Total Cost is the average cost of completion
Area (Sqm)
Rate ($ in
AUD/Sqm Total ($)
Cost of Superficial area construction 11520 $3,500.00 $40,320,000
Cost adjustment for wall to floor ratio 11520 $35.00 $403,200
Building cost using superficial area method $40,723,200
External Service allowance 0.11% $4,479,552
Sub total $45,202,752
ESD allowance 2.60% $1,175,272
Contract Contingency 11% $4,972,303
Professional Fees 8% $3,616,220
Furniture and Fittings 5% $2,260,138
Sub total $57,226,684
Cost Escalation Allowance (Current date) 1% $57,798,951
Cost Escalation Allowance (Tender date) 1.50% $58,085,084
Step 1 0.80% $57,684,498
Step 2 4.40% $59,744,658
Step 3 2.60% $58,714,578
Average Cost at Completion $58,209,075
Total Cost $58,209,075
Scheme 3: Cost Budget using superficial area method
Cost budget calculation for the project has been done considering,
 Cost of superficial area construction of 11520 SQM (@$3500) has been considered for
calculation of budget
 Cost adjustment for wall to floor ratio of 11520 SQM (@$380) has been considered for
calculation of budget

 Building cost using superficial area method would multiply the 11520 SQM with the cost
of $3750
 External Service allowance using the rates of 11% of the superficial cost
 ESD allowance of 2.60% of the superficial cost
 Contract Contingency of 11% of the superficial cost
 Professional Fees of 8% of the superficial cost
 Furniture and Fittings of 5% of the superficial cost
 Cost Escalation Allowance (Current date) for addition to 1% of the of the total cost
 Cost Escalation Allowance (Tender date) for addition to 1.5% of the of the total cost
 Step 1 for addition to 0.8% of the of the total cost
 Step 2 for addition to 4.4% of the of the total cost
 Step 3 for addition to 2.6% of the of the total cost
 Average Cost at Completion for the 6 cost average calculation
 Total Cost is the average cost of completion
Area (Sqm)
Rate ($ in
AUD/Sqm Total ($)
Cost of Superficial area construction 11520 $3,500.00 $40,320,000
Cost adjustment for wall to floor ratio 11520 $380.00 $4,377,600
Building cost using superficial area method $44,697,600
External Service allowance 0.11% $4,916,736
Sub total $49,614,336
ESD allowance 2.60% $1,289,973
Contract Contingency 11% $5,457,577
Professional Fees 8% $3,969,147
Furniture and Fittings 5% $2,480,717
Sub total $62,811,749
Cost Escalation Allowance (Current date) 1% $63,439,867
Cost Escalation Allowance (Tender date) 1.50% $63,753,926
Step 1 0.80% $63,314,243
Step 2 4.40% $65,575,466

Step 3 2.60% $64,444,855
Average Cost at Completion $63,890,018
Total Cost $63,890,018
Discussion of the 3 budgets
In the three budgets of the superficial calculation, the estimation of the budget would be
done considering the use of superficial area method. In this method cost of the area construction
would be considered for analyzing the formation of the successive work alignment. The
calculation of the cost of superficial area construction, cost adjustment for wall to floor ratio,
subtotal, external service allowance, building cost using superficial area method, ESD allowance,
contract contingency, professional fees, and furniture and fittings. The utilization of the cost
escalation allowance for current and tender date would be considered the analysis would be
aligned with the formation of the improved management. The cost management has been aligned
with the formation and listing of the factors. The budget calculation has been shown the values
of $61,749,373, $58,209,075, and $63,890,018 for budget estimation.
Cost Influential factors
The cost influential factors can be explained in the form of the three budget evaluated for
the project of Construction of Two-Star Serviced Apartments,
Budget
Estimation
Method
Cost Influential factors
Bottom Up Resources like project manager, analyst, documenter, contractor, planner,
workers, risk analyst, construction material, equipment, electricity, water
utility, and safety equipment and their usage/standard rates
Top Down Works like pillar works, floor works, main walls, windows and doors cut
off, ceiling works, joists works, paint works, site preparation, contract
contingency, and fixtures and their usage/standard rates

Budget
Division
human labor, construction materials, cost of utilities, materials cost, risk
planning, contingency, site rent, and contract cost and their usage/standard
rates
Conclusion
The study had provided the implication of the cost management factor and the budget
estimation methods. The analysis has allowed the formation of the budget considering the
resource usage, budget resources, and the works required in the project. Out of the three budget,
second budget using the top down estimation would be selected for the project of Construction of
Two-Star Serviced Apartments. The use of the top down budget estimation method would be
helpful for aligning the significant management of the cost for the projects. The work alignment
with the budget would be effectively implied for the calculating the budget analysis. The cost
influential factors can be explained in the form of the three budget evaluated for the project of
Construction of Two-Star Serviced Apartments had included the resources, works, and the
human resources.