Lesson 1 Terms and Depinitions 03/03/31

QUantity Surveying
Concerned with estimation, planning and control Of the cost on
construction projects
o COvers wide range of activies sUch as
cost estimation cost benepit analycis
Cost blanning and cOntrol lipe cycle costing
.Volue engineering valuation

Feasibility study
o eppicient and eppective utilization of resources

uantity Surveyofs
pldys an importanT role in contract procurement, 1ender
evaluation and dispute resolution
Risk Analysis is an area which should be wellstudied
t0 become a successFul quantity surveyor.

Cost Estimation
process oF forecasting the cost and other resources
needed to complete a projéct wlthin a defined scope.
COgt estimation accOunts FOr each element required
For the projéct and calculates a total amount that
determines a projects budger
o
estimating is generally where all the cost is generated
For the project
 COst Planning and Control
o Cost PIanning is an essentigl part of fhe projecf manage-
ment proess. PIanned cost can be fixed or variable.
Fixed cost happens once in the life of a project
Variable cos1 happens more that once in the lie of
a project.
oCoSt cotrol is the process of colecting actualcosts and
colating them in a format 10 qlow comparion with projéct
budgets, neccessary to keep c record of Monetary expen-
ditures For minimising cost and revedaling areasS of cost
Overspend

Value Engineering
oSystematic and organized approach in providing nece-
S5dry Functionc in a project at the lowest cost
opromotes the substitu tion of materials and methods
with less expensive alternatives without sacripicing
Furdionality
6 Functions of various components and materials rather
thonJust physical atribujes
o also known asValue analusis"
 feasibilits study
a n anatysis that tGkes all a projects relevant facJors into

gccount including economic, 1echnical, legqiI and schedtuling

Considerations to ascertain the likelihood ot completing the
project sucessfully.
Used to discern the pros and cons or undertaking a proyéct
bepore they invest a lot or time and money into it.
o Can provide a company's management witm crucial inpor
mation that could prevent the Company from en ter(ng
into a risky business

COSt- Benepit Analytis

process used to measure the benepits of a decision or
taking action minus the costs assocated with taking
that action
o invOves measurable finan cial metrics such as revenue
edrned or costs saved as a result oF he dedsion to pursue
a prajéc
a includes intangible benerits and costs of efpects From
a decision

.Lipe Cycle costing

omethods thut aggregates all costs that an organisation
or an individual wil incur over the lipe span of the asset
 projet or investments
includeg both the initial ínvestment or Me non-recurrina.
9
expensès along with any Further investment or the re-
Curring expenses such as the operoting COsts, upgrades
etc
also known as the whote tipe costing" which helps the
management decide whether not to go ahedd with the
project or acquire an asset

Valuation
o intended to denote the application op
broad range
a

o technicques and tools for measurement and ValuCction

por real State, business cind goremment purposes
oVluation is just a measument op value and depends

on sundvy mecsurêment of entities, proeses and harac-

terictics