Project Work Answers of Project Cost Planning: CEE220A

Project Work Answers of Project Cost Planning: CEE220A

Assessment 2 1
ASSESSMENT 2
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Assessment 2 2
Introduction
According to APM …

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Assessment 2 1
ASSESSMENT 2
First Name Last Name
Course
Professor ’sName
University
Date
Assessment 2 2
Introduction
According to APM Body of Knowledge ,7thedition, the term project cost planning is the;
‘estimation of project costs, setting up of an agreed budget, management of actual costs and
forecasting costs against the planned budget. ’Cost planning is akey component in projects ’
construction cost management plan as itoutlines aroadmap that would be followed while
budgeting for project resources in aproject. Cost planning shows the budgeting, estimation and
controlling of costs. The discussion below illustrates the cost plan for the drawing schemes A
and B, itis apreliminary estimates of construction plans at Sydney ’sCBD that will be used by
the developers to choose the project that is viable and will be bring good profit margins upon
completion.
Assumptions for Scheme A and Scheme B
On an overall, some of the keys assumptions that can be made on scheme A and B would include;
ï‚· The overall designs in A and B for the two different construction plans i.e. how complex
are the designs when itcomes technical aspects, how the construction site is laid out, the
organization of the project etc. This complexities influences project lifespan, project cost
etc.
ï‚· In making the cost plan for either project A or B the estimator has to consider the trends
in the market and the implications itbrings in the cost of project resources.
ï‚· The scope of the construction project A or B. As acontractor making the cost plan keep
in mind that the scope defines the requirements ’of adeveloper and the quality standards
of aproject.
Assessment 2 3
ï‚· In making preliminary estimates of the projects, be considerate of the method of
construction and production technology to be adopted by the contractor as this would to
large extent have an effect on the costs. Adopt atechnology that is cost efficient and
provides agood competitive edge.
ï‚· Being considerate of the limitations that asite location, access and conditions pose.
Checking on the weather patterns at the site area, general topography is key in
determining the cost and the overheads that rise as itis implemented.
 Checking on the contractors ’financial standing, this akey determinant in knowing the
contractor ’scapital base, this would help in building trust in developers on awarding of
tenders.
Cost Plans
According to New Rules of Measurement (NRM) the term ‘elemental cost estimating
method, ’refers to ‘abudget setting technique that considers the major element of abuilding
and provides an order of cost estimate based on an elemental breakdown of abuilding
project. ’
Most of the time elemental cost estimating is used for cost budgeting and itis easily
understood by project clients or developers because itoutlines asummary of costs that is
contained in each of the element being described. Its ’application in calculating of
construction project costs is easy.
Assessment 2 4
Cost Plan for Scheme A
Element Descriptions Unit Quantity Unit rates Cost
Foundations-
excavations, trimming
and backfilling
M2 1328 35 46480
Basement-concrete,
reinforcements, labor,
stairs
M2 761 3,305.00 2515105
Ground Floor- concrete,
formwork,
reinforcements, labor,
stairs, beams
M2 419 3,405.00 1426695
Level 1 – concrete,
formwork,
reinforcements, labor,
stairs, beams
M2 441 3,505.00 1545705
Level 2- concrete,
formwork,
reinforcements, labor,
M2 441 3,605.89 1590197.49
Assessment 2 5
stairs, beams
Level 3- concrete,
formwork,
reinforcements, labor,
stairs, beams
M2 441 3,705.89 1634297.49
Level 4- concrete,
formwork,
reinforcements, labor,
stairs, beams
M2 180 3,805.89 685060.2
Walls and partitions,
brick work,
M2 3360 2000 6720000
Roofing M2 1336 1600 2137600
Interior finishing –
plastering, painting
M2 6720 3520 23654400
Plumbing- Hydraulic
services incl. sewer,
sanitary, hot and cold
water reticulation, gas
and roof plumbing
Item per unit 27 8000 216000
Assessment 2 6
Electrical plan and
installation
Item per unit 27 5000 135000
Fire protection- Fire
hose reels
No 5 550 2750
Mechanical
–Lift No 1 113000 113000
Split system A/C to units No 16 1600 25600
Metalwork
-Al windows No 37 100 3700
-fire Doors No 24 380 9120
Tiling –ceramic tiles to
units and common areas
No 21500 25 537500
External Works –
Fences, gates,
landscaping
m2 1328 30 39840
SUB TOTAL 43,038,050.18
Inflation Cost price index
in percentage
A rate of 4-
6% annually
2582283.011
Increase cost payables Percentage
Contingencies 5% of the 2151902.509
Assessment 2 7
construction cost
Professional fees 10% of total 4303805.018
Omission 2-3 % 1291141.505
TOTAL PROJECT
COST
Total amount
inclusive of
indirect & direct
costs
53,367,182.22
Assessment 2 8
Cost Plan for Scheme B
It is aplan for multi-residential flat building and the constructions clients are the PTY
Limited. The apartment will house twenty-four habitable rooms that are varying in size from
one floor to the other. According to the plan the residential flat will have the ground level,
typical part, the foundations and basement etc.
The ground level has acos terrace totaling to 226.1 sq. meters with cos terrace 1occupying
128 sq. meters, cos terrace 2occupying an area of 69.6 sq. meters and the internal cos
occupying 28.5 sq. meters. The ground level has abed unit 001 that has an area of 84.6 sq.
meters, terrace area of 17.9 sq. meters. The windows at the ground level are to be
highlighted and the security doors to have an access with intercom station.
The roofing should be ametal roof or concrete that is to be at relative level of 62. 50mm.The
distance above height limits would atotal of 3950mm and adistance of 4050mm under the
height limit.
The ceiling in the habitable rooms should be at 2.7m height and 2.4m for non-habitable in
relations to the design criteria and separation between windows and balconies up to 12m.
With approximation project construction cost amount of $34,857,190, below is an
elementary cost plan for the project multi-residential Flat building done by constructions
PTY limited.
Assessment 2 9
Cost Plan for Scheme B
Element Descriptions Unit Quantity Unit rates Cost
Foundations-excavations,
trimming and backfilling
M2 1328 35 46480
Basement-concrete,
reinforcements, labor, stairs
M2 531 3,305.00 1754955
Ground Floor- concrete,
formwork, reinforcements,
labor, stairs, beams
M2 250 3,405.00 851250
Level 1-concrete,
formwork, reinforcements,
labor, stairs, beams
M2 455 3,505.00 1594775
Level 2- concrete, formwork,
reinforcements, labor, stairs,
beams
M2 455 3,605.89 1640679.95
Level 3- concrete, formwork,
reinforcements, labor, stairs,
beams
M2 455 3,705.89 1686179.95
Level 4- concrete, formwork,
reinforcements, labor, stairs,
M2 222 3,805.89 844907.58
Assessment 2 10
beams
Walls and partitions, brick
work,
M2 3360 2000 6720000
Roofing M2 1336 1600 2137600
Interior finishing –
plastering, painting
M2 6720 3520 23654400
Plumbing- Hydraulic
services incl. sewer, sanitary,
hot and cold water
reticulation, gas and roof
plumbing
Item per unit 24 8000 192000
Electrical plan and
installation
Item per unit 24 5000 120000
Fire protection- Fire hose
reels
No 5 550 2750
Mechanical
–Lift No 1 113000 113000
Split system A/C to units No 12 1600 19200
Assessment 2 11
Metalwork
-Al windows No 33 100 3300
-fire Doors No 21 380 7980
Tiling –ceramic tiles to units
and common areas
No 20411 25 510275
External Works –Fences,
gates, landscaping
m2 1328 30 39840
SUB TOTAL 41,939,572.48
Inflation Cost price index in
percentage
A rate of 4-6%
annually
2516374.349
Increase cost payables Percentage
Contingencies 5% of the
construction cost
2096978.624
Professional fees 10% of total 4193957.248
Omission 2-3 % 1258187.174
TOTAL PROJECT COST Total amount
inclusive of indirect
& direct costs
52,005,069.88
Assessment 2 12
Comparison and Recommendation
According to the calculations, itis imperative to propose the construction project plan in scheme
B as compared to that of A. This is because of the following outlined reasons;
ï‚· The plan in scheme B is clearly giving out every details of the measurements of the
building, this helps in cost planning for every unit price required in finishing up the
building without much deviation in the project cost i.e. in every unit itclearly
showing the measurements of the kitchen, bathroom, living room areas whereas this
is not the case in scheme A that has generalized the measurements.
ï‚· The plan in scheme B is catering for environmental sustainability, the plan ensures
clean environment by plantation of deciduous trees at the front part moving to the
lobby area and waste management system this is amere case in the plan in scheme
A.
ï‚· The plan in scheme B is ensuring proper natural lighting of the apartment, the
window plan is facing the Blair Avenue that ensure adequate light into the habitable
rooms, this reduces the energy consumption rates in the apartment.
ï‚· The plan in scheme B is catering for proper drainage system, this is done by
creation of concrete paths, PVC hydrants and proper plans for road demarcation this
ensure safety from high speed moving vehicles and safety of the residents.
ï‚· The plan in scheme B has created aseparate area for people with disabilities i.e. the
wheelchair area is separate from the lift, this ensure safety of every house resident
in any case of emergency.
Assessment 2 13
ï‚· The plan in scheme B consists of 5floors with 24units, the spacing between the
apartment and standard of the floors would provide more return to aleasing agent
considerate of developer who is willing to invest.
ï‚· The plan in scheme B has ahigher rate of investment because of the high capital
investment that would be used by the developer, the higher capital investment
brings higher return after aperiod of time.
ï‚· The plan in scheme B plan proximity to the Blair Avenue ensure easy accessibility
to the road for the residents owning motor vehicles to access their apartments.
ï‚· The plan in scheme B has allocation for aseparate driveway ramp this reduces
congestion by pedestrians where cars are, reducing accidents.
ï‚· The plan in scheme B has ascope that is abit easy to understand, the measurements
provided would help in defining schedule of work, breaking down the small work
easy and knowing the duration each task would take, thus helping in allocation of
work.
The following shows alisting of recommendations that would be given to adeveloper wishing to
invest in the two given construction scheme plans bearing in mind that construction project plan
in scheme B would be abetter choice for investments as to the plan in scheme A.
ï‚· The construction project plan in scheme B has ahigher rate of investment. Therefore, I
would recommend that adeveloper to consider investing in B because the rate of internal
rate of return would be higher after aperiod of time.
ï‚· The scope of work in the project plan scheme in B is much easy to understand, therefore
the developer would be able to assimilate his requirements to the plan much easily.
Assessment 2 14
ï‚· Cost planning for the construction project plan in scheme B is higher, this would be
helping in discounted rate in material costs, the supplier would receive volumes of
required supplies thus the developer would be advised to consider itfor investment.
Summary
In summary, itis important to note that Project B is quite cheaper than Project A following the
cost estimate calculations. Project B can cost atotal of $52,005,069.88 while the cost for Project
A amounts to $53,367,182.22. Looking at the designs, Project B seems much efficient and may
have good user experience compared to Project A. Therefore, project rate of return for Project B
seems to be higher than Project B in event that we consider the rate of occupations and
regulations that may be considered by users. Therefore, Project B remains more appreciate both
in terms of cost, returns and design considerations.

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