TOPIC 1: PRELIMINARY ESTIMATES

DEFINATION AND IMPORTANCE OF PRELIMINARY ESTIMATES

DEFINATION Defined as an activity in particular work to make possible offer to execute task base on a stipulated sum

Technique to forecast the possible cost incurred for a certain building or construction project via a systematic calculation employing certain method, prepare at early stage of the project Is a part of the cost planning process that is controlling of the project cost at the design stage before any drawings are embarked upon.

USE OF THE PRELIMINARY ESTIMATE METHOD

To

ascertain the actual cost forecast of a project. the client in knowing to what extent he need to be financially committed to a particular project is also function as a design guide whether the project to the allocation made either

Assist

Estimated

Contd
If

the estimate is higher that the client budget for that particular project, the following could be carried out :

The design could be altered to reduce the cost

Extra provisions are sought after or requested from the client The project is postponed or cancelled

Contd
If

the estimate is low than the allocated sum, the following could be done

Accept the estimate

To modify the design and/or the specifications to increase the estimate appropriate to the provision set aside.

METHOD FOR PRELIMINARY ESTIMATE

UNIT CUBIC FLOOR AREA

METHOD

WHEN IT IS USED

NOTE

UNIT OF MESUREMENT

UNIT

Appropriate for project that have standard unit of accommodation, its Inception feasibility commonly used to establish the cost limit for public sector project Used to calculate the volume of airconditioned space or space which is given mechanical ventilation Used extensively, can be used for almost all types of building

Cost/student Cost/classroom Cost/bed Cost/ chair

Cost/m3

CUBIC

Outline proposal

Cost/m2

FLOOR AREA

Outline proposal

THE SELECTION OF THE METHOD WILL DEPEND ON

The

information and time to prepare the estimate experience of Quantity Surveyor total and type of cost data available

The The

UNIT METHOD

This method is also referred to as cost according to building function Estimate the building cost base on the size depends on the population unit Example: the total number of student in a school, total number of bed in a hostel or hospital and etc. Easier method but the most unrefined. Total population can be obtained from the client or the design team

USAGE
The

cost estimate is obtained by multiplying the number of accommodation for a new building with the cost per unit of accommodation based on a suitable building current unit of accommodation can be obtained by calculating from the sketch design or by obtaining information from the client.

The

Example:
Estimate the total cost to build a mosque to house a congregation of 500 individuals. From a suitable cost data, get the cost/ congregation of a similar mosque that has been updated. Lets us say that the cost is RM 1400.00/ congregation. Total cost = Number of accommodation x cost/congregation 500 individuals x 1,400 = RM 7000,000.00

CUBIC METHOD

In Malaysia this method is seldom or almost never used Only in certain case, it is utilized

To calculate the space which is need to be airconditioned To calculate the space that needs mechanical ventilation

USAGE
Measure

the volume of the new building and its volume is then multiplied with the suitable price rate per m3 Unrelated works is to be volume must be calculated separately The volume of the building is calculated as follows: Volume = length x width x height

i.

Height of pitch roof from the top surface of the foundation to half apex / height of roof Height of flat roof From the top surface of foundation to 600mm above the flat roof or parapet wall (which is higher)

ii.

Pitch roof

Flat roof

Example
Estimate the total cost to build a 2-storey bungalow if the construction cost/m3 of a similar construction is RM 550.00. estimate the construction cost base on
a) b)

Pitch roof Flat roof

20.00

10.00

1.50

3.50

3.50

1.00

a) Pitch roof
Building volume = 20.00 x 10.00 x [1.00 +2(3.50) + (1.50)] =20.00 x 10.00 x 8.75 =1750m3 Total building cost = volume x cost/m3 =1750m3 x RM550.00 =RM962,500.00

b) Flat roof
Building volume = 20.00 x 10.00 x [1.00 +2(3.50) + 0.60] =20.00 x 10.00 x 8.60 =1720m3

Total building cost = volume x cost/m3 =1720m3 x RM550.00 =RM946,000.00

Floor area method

Make a preliminary estimate as most of the cost data are kept or are available in this form The measurement for GFA must be similar between the new building and the analyzed building Need to consider criteria in measurement of area

In the calculation the floor area of a building there are several criteria need to be taken
1. 2. 3.

The actual area of the building If the project offers a standard or different type of accommodation it is better for each to be priced separately Unrelated work to the area, for example, external work must be priced separately

Contd

The rate per m2 chosen must be current rate as building cost often differ The site, external works, condition of contract, the quantity and the quality of equipment and others that related to the floor area must be calculated separately It is clear and difficulty of this method lies in choosing the appropriate rate, which requires experience, observation and familiarity toward varied building types

USAGE
The

floor area of a building to be erected. Only the building used this floor area method. Other works may use other method like approximate quantity.

Total cost = area x cost/m2 gross floor area (GFA) Area calculate the area of the building. The measurement method differs according to practices Cost/m2 GFA from similar building type and function