COST

IMPLICATION
FROM DESIGN
CHANGES
 What is cost implications
of design changes
/variables ?
Cost of building are influenced by
change in shape , design , storey height
, user need’s , planning and local
authorities
 Change in shape
• The more simpler the shape the lower the unit cost
• When building become more complicated and
irregular , perimeter / floor area ratio will increase
and increase the unit cost
• Rectangular shape building would have higher
perimeter / floor area ratio than square one , thus
it will be more expensive .
 Size of Building
• General rule is increase the size of building will
reduce in unit cost
• Cost does not rise proportionally with increase in
the plan size of building cause :
• - Fixed cost such as : transportation , temporary
supply of water , temporary storage of material ,
provision of temporary roads do not vary with an
extension size of the building .
• Larger project is often less costly to build as the
wall/floor ratio reduce .
• Cost advatage of a highrise building may acure to
lift serving a large floor area and greater number of
occupants increase in plan area .
 Wall / Floor Area
ratio
• Expressing the planning efficiency of a
building and
is influenced by the plan shape , size and
storey
height
• The ratio is calculated by dividing the
external wall
area by gross floor area
• The lower the wall/floor area ratio , the more
economical will be the proposal
• The best wall / floor ratio is produced by a
circular
building buyt saving is offset by bigger cost of
circular work .
 Circulation space
• An economic layout will reduction of circulation
space because :
• - Circulation space such as lift lobby , entrance ,
corridor cannot use for profitable purpose .
• The proportion of floor space allocated to
circulation purposes vary between different type of
building .
 Storey Height
• Storey Height of building are determined by the
client requirement
• Constructional item affected by the variations in
storey height would be :
1)Walls , partitions and their associated finishing
work
2)Increased volume to be air-conditioning
3)Longer length of pipes or cables
4)Longer waste pipes to suppply sanitary apppliance
5)Possibility of higher roof costs due to increses in
hoisting
6)More costly foundations to support the increases
load .
1)Mentakrifkan kawalan kos dalam
konteks pembinaan projek
1) Define the cost control in
contexts of construction project
• The purpose of the cost plan is to plan
and determine how the budget should
be spent among building elements.
Additionally, cost plans are provided,
as guidance to the client to provide
budgetary allocation and as a cost
control limit by the consultant when
in the preparation of building design.
 A METHOD OF CONTROLLING
THE COST OF A PROJECT FROM
ITS INCEPTION TO
COMPLETION
The Project Sequence
(based on the RIBA Plan of Work).

• Inception
• Feasibility
• Outline Proposal
• Scheme Design
• Detail Design
• Production
• Information
• Bill of Quantities
• Construction
• Completion

ss5 15
 Inception
At the initial stage, client wishes to know:
 how much will the idea cost?
 How best might available capital be
spent?

 Feasibility
Develop a brief indicating:
 location
 floor areas
 type of accommodation
 nature of the site
 indicative cost etc
Is the project feasible:
 Yes : proceed with the design
 No : review/cancel the project
ss5 16
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal
• Develop the optimum design solution
to satisfy the brief.
• Indicates size, type, location, number
of storeys, plan shape etc.

• Scheme Design
• Ensure the overall design is the most
cost effective.
• To establish the final cost plan (limit
of cost)
• indicates dimensioned sketch plans,
elevations, sections, early structural
information, early specification, site
layout etc.
• Preparing brief cost summary/the
elements of cost plan.

ss5 17
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal and Scheme
Design
• The lump sum estimate must not be
split down into the amount of money
it is intended to spend on each
element (See Figure 1).
Figure 1

Target cost
lump sum estimate of
$2,000,000

Elements

Cost Target Cost Target Cost Target

$600,000 $750,000 $650,000

ss5 18
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal and Scheme
Design (Cont’d)
• As the project design develops, the
information available increases and
perhaps changed somewhat.
• After detail design stage the general
layout should not be radically altered.
• The constituent parts of a cost
analysis are:
• a summary of project,
contract and design/shape
information
• a summary of element
costs
• an amplified analysis

ss5 19
Cost Planning, Cost Control and
Cost Analysis
 Outline Proposal and Scheme
Design (Cont’d)
 A brief cost summary, which is a
statement of how the target cost has
been distributed over major groups of
elements, such as:
 useful in providing an outline proposals
stage a broad but accurate cost allocation
over these groups of elements.
 From these elements, the cost plan is
prepared.
 The designer with the Q.S.’s advice on the
cost implications of various alternative
forms of construction, finishes, and so on;
will also examine the alternatives to meet
the client’s requirements.
 It also enable the Q.S. to examine how
the cost is distributed and whether any
element may be overloaded with capital,
and it allows the Q.S. to alter the balance
of cost within the overall target cost.

ss5 20
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal and Scheme
Design
• Consider this situation, remembering
all the time that the target cost must
not be altered.
Figure 2
Target cost
$300,000

Element No. 1 Element No. 2 Element No. 3

Frame Roof Services
$150,000 $50,000 $100,000

ss5 21
Cost Planning, Cost Control and
Cost Analysis
 Outline Proposal and Scheme
Design
 After checking against the detail
design, it becomes obvious that
$150,000 for frame is an unrealistic
target and that at least an additional
$15,000 will be required for this
element.
 To prevent the target cost from
increasing to $315,000.
 Compensating reductions must be
made to other elements i.e. it is
found that element 3 or services can
be reduced, it is decided that the
installation to be substituted with a
cheaper alternative.
 Performing this ‘lending and
borrowing’ exercise, the Q.S. runs the
risk of tipping the balance of the
design.

ss5 22
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal and Scheme
Design

Target cost
$300,000

Element No. 1 Element No. 2 Element No. 3

Frame Roof Services
$170,000 $50,000 $80,000

ss5 23
Cost Planning, Cost Control and
Cost Analysis
• Outline Proposal and Scheme
Design
• Care must be taken not to overload
one element at the expense of
another.
• It is also argued by some Q.S. that
client would much prefer to pay the
extra $15,000 than to have the
project’s overall standards reduced,
or the balanced design abolished.
• Sometimes, the substitution of a less
expensive alternative should not
necessarily result in a lowering of
standards, or an abolition of the
balanced design.

ss5 24
Cost Planning, Cost Control and
Cost Analysis
 Detail Design Stage (Cost Control)
 cost checks the Architect’s detailed
design against the cost target set (at
outline cost plan)
 to ensure that design does not exceed
the budgetary cost estimate
 During this stage, the Q.S. will
immediately performed cost check
using the approximate quantities on
each elements after being detailed
against the cost target set.
 This is to allow any necessary
redesign or reallocation of cost to be
carried out before the final drawings
are prepared for tender.

ss5 25
Cost Planning, Cost Control and
Cost Analysis
 Construction Stage (Cost Control)
 Cost updates in the form of financial
report provide control over variation
or deviation made to the contract.
 This tool is vital for monitoring
deviations or variations and ensuring
that the design team and client are
kept updated of changes made
without compromising the budget.
 For new requirements, the cost
updates on anticipated final cost will
also provide the client and/or
designer with an updated financial
commitment so that he can decide
whether to proceed or not.

ss5 26
 Project Cost Management

• “The processes involved in planning, estimating,

budgeting, and controlling costs so that the budget can
be completed within the approved budget”
 Why Do We Manage Cost?

Part of triple constraint, can’t manage one without the

others (scope, time, and quality)
Plots of cost and scope against plan can help spot
problems early
 Cost Management Key Terms

PV - Planned Value, estimated value of the planned work

EV – Earned Value, estimated value of work done
AC – Actual Cost, what you paid
BAC – Budget at Completion, the budget for the total job
EAC –Estimate at Completion, what is the total job expected to cost?
ETC – Estimate to Complete, forecasted costs to complete job
VAC – Variance at Completion, how much over/under budget do we
expect to be?
 How Do We Manage Cost?

Three processes
 Estimate Costs

 Determine Budget

 Control Costs

Estimate Determine Budget Control

Costs Costs
 REFERENCES
• http://borak-qs.blogspot.com/2011/08/ekonomi-binaan-rancangan-
kos.html
• https://link.springer.com/chapter/10.1007/978-1-349-17173-6_2
• cidos/pkb