TOTAL PROJECT COST

GROUP 7:
GUERRERO, CHRISTIAN LEO
GUMABAY, KHYREN
LAMMAWIN,
LIMTO, AUBREY
MALIWAT, SHEPHERD PAUL
MNALWAP,
 CONTENTS
1 INTRODUCTION
2 PROFESSIONAL ENGINEERING
3 CONSTRUCTION COST
4 LEGAL, LAND, ADMINISTRATION, STAFFING & COST

5 CONTINGENCY ALLOWANCE
6 SUMMARY
LESSON 1 INTRODUCTION

Probable total cost is qmajor concern of the client throughout the

planning design, and construction phases of a project. The
probable capital cost, often used to establish budgets for a typical
project, us made up of:
1. Professional engineering costs.
2. Construction cost
3. Legal And land cost
4. Owner's costs, including project administration,
staffing, financing, and other overhead.
5. Contingency allowance for unkowns
LESSON 2

Professional Engineering Cost

The civil engineer is often engage to make a study and to

render a planning report on the contemplated project
including alternative solutions, layouts, and locations along
with initial estimates of the probable project cost. This may
involve alternative or phase implementation schemes which
add flexibility to the project.
LESSON 2
There six (6) standard phase of a construction project and the
engineering services:

1. Study and Report Phase

2. Preliminary Design Phases
3. Final Design Phase
4. Bidding and Negotiating Phase
5. Construction Phase
6. Operation Phase
LESSON 2

1. Study and Report Phase

Analysis of clients needs, evaluation of alternatives and
recommendation of a preferred options, conceptual design,
conseptual opinions of probable construction cost.

2. Preliminary Design Phase

Preparations of final Design criteria, preliminary drawings,
outline specifications, and preliminary estimate of
construction cost.
LESSON 2

3. Final Design Phase

Preparation of construction drawings, specifications,
estimates of probable construction cost, and other cotract
documents.
4. Bidding/Negotiating Phase
Assistance to the client with bidding or negotiating process
for the construction of the project.

5. Construction Phase
Representation of the client during construction and
LESSON 2

5. Construction Phase
Representation of the client during construction and
inspection of construction.

6. Operation Phase
Assistance to the client in startup and operation of the
project, including periodic instruction.
LESSON 3 Construction Cost

• Construction cost form part of the • Contract sum can be

overall costs incurred during the adjusted.
development of a built asset such
as a building. • Cost plan is use to analyze
• However the construction contract the estimated cost during the
may include costs that might not in pre and post
themselves be considered literal constructionphase of the
construction cost (hard cost), such project.
as fees, profuts, overhead, and so
on.
LESSON 3 Construction Cost

Cost plan may include:

• Initial Cost Appraisal, prepare during the feasibility study stage.
• Element Cost Plans, prepared during the project brief stage and
carried throughout detailed design.
• Approximate Quantoties Cost Plans, prepared from the end to
detailed design through to tender.
• Pre-tender Estimates, prepared alongside tender documentation.
• Contract Sum, agreed with the selected constructor.
• Final Account, aggressive once the construction works are completed.
LESSON 3 Cost Estimate
The method use to estimate actual cost will vary with the increase of the amount of detail available:
• Initial Cost appraisal might simply breakdown oof the overall project budget based on client input,
comparable project analysis and Cost project consultant experience.
• Element Cost Plans might simply the total construction cost for the project divided into major
components of the work in percent
• Approximate Quantoties is a first attempt to measure quantities based in drawing. It provides a
clearer picture of the distribution cost.
• Pre-tender Estimates (PTE) is the final estimate of the likely cost of the work describe in the
tender documents and provides a basis for evaluating and comparing offers upon return.
• Contract Sum provide a confirmed first real price. Until now, all cost planning was based on
estimate. Constructors are given an estimate to prepare a price for performing g the work. The bill
quantities helps tender to calculate tje construction cost of their bid and, as this means that all
tenders will set the same price. It offers a fair and precise tending system.
• Final Account include any adjustments to the contruct sum to allow the final payment amount to
be determined.
LESSON Construction Price and Cost Indices

The complexity of construction project, the differences in circumstances,

duration and level of specification between one project and another, and
the continually changing state of the market due ro fluctuations in supply
and demand, inflation and so on mean that it is improssible to give the
rule of thumb figures (such as a Cost per Sq. M) for the likely cost of
construction works.
However, a wide range of construction price and cost indices are
continuously updated and published to help estimate the likely cost of
construction works.
 CAPITAL COST VS OPERATIONAL
LESSON
COST
Capital cost are associated with one-off expenditure on the acquisition,
construction or enhancement of assets and might include:
• Land or property acquisition
• Commissions
• Statutory fees
• Consultant fees directly associated with the development
• Materials, plant and equipment
• Labour's
• Fixtures And fittings
• Project insurance, inflation, taxation and financing
• Internal costs directly associated with the development
 CAPITAL COST VS OPERATIONAL
LESSON
COST
Operational cost incurred in day-to-day operations might include:
• Wages
• Utilities
• Maintenance and Repair
• Rent
• Sales
• General and Administrative Expenses
 Whole Life Cost

Whole life cost consider all cost associated with the life of a building from inception
building to construction , occupation, and operation and even ultimate disposal.

This is considered a better way of assessing value for money than construction costs,
which result in level short-term costs but higher ongoing costs through life of a building.

This can also apply to things such as design fees, where saving money on fees at the
beginning of a project can be outweighted by very much higher ongoing costs through
construction and occupation.
 Life Cycling Cost (LCC)

Life Cycling Cost provides a methodology for the evaluation of

combined capital, and end-of-life costs of a range of construction
project alternatives, to ensure long term value is delivered.
 Hard Costs vs Soft Costs

Soft Costs might include

• Land costs
• Off-site costs
• Loans accounting fees and interests
• Insurances and Taxes
• Public Relations and Advertising cost
• Other Fees
•
 Hard Cost vs. Soft Cost

Often reffered to as 'brick-and-mortar-cost'

Hard Costs refer to the cost of physical construction.

Soft Costs refer to those costs, that unlike hard costs, are not directly related to labor or building
materials.

Hard Costs might include

• Labour, materials, and equipment to complete the built structure
• Site costs such as utilities, drainage , etc
• Landscape costs.
 Legal Land, Administration, Staffing,
and Finan Financial Cost Cost

These costs which

 SUMMARY

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Thanks