Analysis of Factors and Techniques in Building Cost Estimating Report

This report examines the factors influencing the accuracy of early-stage building cost estimates, focusing on the material market. It explores how material prices, quality, and availability impact cost estimation. The report also delves into preliminary estimating techniques, including unit, cubic, floor area, and elemental estimating, comparing and contrasting them based on their description, accuracy levels, information requirements, popularity, and usability. The analysis incorporates industry examples and research findings to support the discussion, providing a comprehensive overview of building cost estimating practices and challenges. The report is divided into two parts: the first part focuses on early cost estimates and the factors that affect them, and the second part delves into preliminary estimating techniques.

report

Contents
Part 1:...............................................................................................................................................2
Early cost estimates.....................................................................................................................2
Factors for early stage building...................................................................................................2
Market conditions which affect the factors:................................................................................4
Material Price, quality & availability......................................................................................4
Part 2:...............................................................................................................................................6
References........................................................................................................................................9

Part 1:
Early cost estimates
The early cost estimates are for the construction projects that are set under the high degree of
uncertainty. This is mainly due to the limited forms of the information that are for the accuracy
of the cost estimates. Here, there is no variation when it comes from the exact costs and how the
cost is incurred for the execution of project. (Al-Zwainy & Hadhal, 2016). The estimated amount
helps in the proper decision making with the implementation of the cost set at the later time. The
importance of the preliminary is mainly due to the reference for the commencement of the
project with reference for the next stage. The accuracy cost is important that works on the stages
of project development.
Factors for early stage building
The costs estimation is based on forecasting the project costs and then work on the performance
which is related to the amount of information which is for the detailed designing. Here, the pre-

construction is for the three important aspects with biasing, consistency and the accuracy of the
project estimate. The biasing is also for the average differences that is set in between the real
prices and the forecasted ones. Hence, for this, it is important to map with the degree that is for
the variations created through the biasing. The estimates are important for the projection and to
calculate the success that depend on the precise value of the accuracy of the project estimation
cost at different stages. (Akintoye & Fitzgerald, 2000). It has been seen that the cost of the
construction for the material includes the shipping charges and the taxes which are applicable.
The importance is based on the variations and the calculations that are for the construction of the
material cost. The construction estimates are depending upon the needs that are important to be
factored with the current construction cost indices. They are set for the labor wage rate where
there are variations based on the place to place patterns. The issues related to the construction
site conditions could also lead to the increase in the cost of construction like the poor soil
conditions, wetlands and the sensitivity area. The endangered species and the habitat could lead
to the increase of the cost with the variations that are not impotent at the time of estimation. The
quality and the plan are depending upon the reduced construction time with the proper execution
to handle the site depending unpin the delay. Along with this, there are other forms of the
regulatory requirements which are important for the costs that are considered for the cost
estimates. The insurance requirements with the administering of the different tools and the
equipment is important for the proper performance bond and the payment bond that is set at the
normal costs of the construction projects.

Market conditions which affect the factors:
Material Price, quality & availability
For the construction buildings, the management is important for a proper project planning and
control. Here, the procurement and the purchase cost is important for the reduced costs. The poor
material management can also lead to the large and the avoidable costs that is set at the time of
construction. Hence, when the material is purchased early, then it should be tied with the
inventory of the materials. The quality is also important for the procurement along with the
availability of the material. For this, the activities need to be based on the schedule of the project
with the fast track or the tight schedule so that the easy availability of the material is possible.
Along with this, the quality is administered with the planning systems and for the master
production schedule, inventory records and the product component lists. This helps in ordering
the problems and setting the inventory based on the organizational management problems. Here,

the inventory is also found to be low when there is a new order which is recommended. Hence,
for this, the items are found to be non-standardized or kept in the inventory form. The material
procurement and the management is based on easy handling of productivity from 1.92-man hours
per unit without a system. (Harrington & Johnston, 2016).
With the change in economy, there are issues related to the changing material pricing. The price
increase is considered to be the natural part which is for working for a particular business. This is
related to providing a better associate functioning that relates to handle the offsets with the
measurement of the rising insurance costs. The manufactures need to handle the competitors so
that there is a proper balance of the quality and the pricing that is used for the construction. The
material management is important for the proper setup and controlling the correct quality. This is
based on specific formats where there are reasonable costs patterns and the points are related to
the representation of the cost of the work and how the improved opportunities are able to work
with the improvement in the substantial savings. There is a possibility that the materials
deteriorate at the time of storage and get stolen till the time a proper care is taken for the same.
Hence, for this, the major focus is on the productivity in the construction where the different
factors are related to the internal workforce and the factors with the leadership. There are
materials and the equipment to take hold of the supervisions with the projects related to the
characteristics of security, quality and the other related external factors.

Part 2:
Preliminary Estimating Techniques
1. This includes the activity to work on the
execution of the task base on a
stipulated sum where the technique is
mainly to forecast any of the cost
incurred for the building or the
construction.
2. The control is to make sure of the
forecast of the project along with
assisting the clients with the financial
commitment to the project. There is a
possibility to alter the cost with the
request from the client. (Taranth, 2016).
3. The method used are unit, cubic and the
floor area.
Elemental estimating
1. This is based on the comparing
design alternatives which is
important when the client has a
budget and want to check for the best
economic designing. The estimates
are for the secured financing and the
presentation for building the
potential inventory, financier etc.
2. The elemental cost plan can help in
keeping a check on the costs with
proper designing stage that is set
prior to the preparation of the Bills
of Quantities.
3. Here, the major focus is on the
elemental cost analysis which is
important for the people to involve
in the project and show the cost
breakdown by the building of the
elements.
4. The standards are set to identify and

4. The selection is based on the
information and the time which is
important for the Quantity Surveyor
with the total type of cost data. the cost
estimate is for the accommodation and
to work on the designing with the
proper calculation from the sketch
designing. (Brook, 2016).
5. The major advantage is the fast and the
easy method of the unit method which
is used with the easy preparation of the
monetary allocations. Here, the cubic
method is based on the estimations
where the floor area is for the
estimations where the client and the
architect could work on understanding
adjust depending upon the cost
planning where it is important to
keep the budget of the client in mind
at the time of designing. Here, the
main elements are analyzed with the
BOQ items which are closer to the
tender value and for the plan of
adjustments.
5. The elemental designing is for the
establishment of the cost of
constructing a project where the
analysis is based on the elemental
basis of the other similar projects.
The detailed advice is set for the
designing with the approximate
qualities.

the concept of the floor area. It is then
associated to the concept of the volume
method where the cost data is from the
previous methods.