Professional Documents
Culture Documents
Estimating ,
Cost control,
Quality control,
Safety,
Productivity,
Value engineering,
Claims, and legal issue
INTRODUCTION- ESTIMATING
Cost estimation in project management is the process of forecasting the financial and
other resources needed to complete a project within a defined scope.
Cost estimation accounts for each element required for the project—from materials to
labor—and calculates a total amount that determines a project’s budget.
ESTIMATING 1
ELEMENTS OF COST ESTIMATION IN A PROJECT
There are two key types of costs addressed by the cost estimation process:
1.Direct costs: These are the costs associated with a single area, such as a
department or this particular project itself. Examples of direct costs include fixed
labor, materials and equipment.
2.Indirect costs: These are costs incurred by the organization at large, such as
utilities and quality control.
ESTIMATING 2
ELEMENTS OF COST ESTIMATION IN A PROJECT
Within these two categories, some typical elements that a cost estimation will take into
account include:
•Labor: the cost of project team members working on the project, both in terms of
wages and time.
•Materials and equipment: The cost of resources required for the project, from
physical tools to software to legal permits.
•Facilities: The cost of using any working spaces not owned by the organization.
•Vendors: The cost of hiring third-party vendors or contractors.
•Risk: the cost of any contingency plans implemented to reduce risk.
ESTIMATING 3
TYPES OF COST ESTIMATES USED IN CONSTRUCTION
Plinth area cost estimate is prepared on the basis of plinth area of building
which is the area covered by external dimensions of building at the floor
level .
ESTIMATING 4
TYPES OF COST ESTIMATES USED IN CONSTRUCTION
The rate per cubic meter is taken into consideration based on the costs
of similar type of buildings situated in that location.
ESTIMATING 4
TYPES OF COST ESTIMATES USED IN CONSTRUCTION
Quantities of items of work are measured and the cost of each item of
work is calculated separately.
ESTIMATING 4
VALUE ENGINEERING
INTRODUCTION
Miles was responsible for purchasing raw materials for the General Electric
Company and realised if he was unable to obtain one particular material, then it
was necessary to obtain a replacement material which performed the same function.
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VALUE ENGINEERING
METHODOLOGY
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METHODOLOGY
Value engineering should start at project inception where the benefits can be
greatest, however the contractor may also have a significant contribution to make
as long as the changes required to the contract do not affect the timescales,
completion dates or incur additional costs that outweigh the savings on offer
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PROCEDURE FOR VALUE ENGINEERING
•Developing in more detail the alternatives with the highest likelihood of success.
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INTRODUCTION
TYPES OF CLAIMS
Delay claims
Price accelerator claims
Change of work order claims
Extra item and variation claims
Different site conditions claims
Damage claims
CAUSES OF CLAIMS
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