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    RECO 2040-CPM1-2-ElementalEstimate - S2

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    King Heng Shum
    This document discusses factors that affect elemental cost estimates for construction projects. It identifies four main factors: 1) market information, 2) project information and specifications, 3) cost information sources, and 4) professional judgment. Market factors include inflation, material and labor costs, and location. Project factors include specifications, storeys, foundations, finishes, and mechanical systems. Cost sources, indices, allowances, and inclusions/exclusions also impact estimates. Finally, experience, knowledge, and judgment of estimators are important. Elemental estimates require adjusting quantities and using professional opinion.

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    RECO 2040-CPM1-2-ElementalEstimate - S2

    Uploaded by

    King Heng Shum
    39 views10 pages
    This document discusses factors that affect elemental cost estimates for construction projects. It identifies four main factors: 1) market information, 2) project information and specifications, 3) cost information sources, and 4) professional judgment. Market factors include inflation, material and labor costs, and location. Project factors include specifications, storeys, foundations, finishes, and mechanical systems. Cost sources, indices, allowances, and inclusions/exclusions also impact estimates. Finally, experience, knowledge, and judgment of estimators are important. Elemental estimates require adjusting quantities and using professional opinion.

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    RECO 2040-CPM1-2-ElementalEstimate -S2

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    This document discusses factors that affect elemental cost estimates for construction projects. It identifies four main factors: 1) market information, 2) project information and specifications, 3) cost information sources, and 4) professional judgment. Market factors include inflation, material and labor costs, and location. Project factors include specifications, storeys, foundations, finishes, and mechanical systems. Cost sources, indices, allowances, and inclusions/exclusions also impact estimates. Finally, experience, knowledge, and judgment of estimators are important. Elemental estimates require adjusting quantities and using professional opinion.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    39 views10 pages

    RECO 2040-CPM1-2-ElementalEstimate - S2

    Uploaded by

    King Heng Shum
    This document discusses factors that affect elemental cost estimates for construction projects. It identifies four main factors: 1) market information, 2) project information and specifications, 3) cost information sources, and 4) professional judgment. Market factors include inflation, material and labor costs, and location. Project factors include specifications, storeys, foundations, finishes, and mechanical systems. Cost sources, indices, allowances, and inclusions/exclusions also impact estimates. Finally, experience, knowledge, and judgment of estimators are important. Elemental estimates require adjusting quantities and using professional opinion.

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    RECO 2040

    Construction Project Management I

    ELEMENTAL
    ESTIMATE
    DR. ISABELLE CHAN

    DEPARTMENT OF REAL ESTATE & CONSTRUCTION


    Factors Affecting Elemental Cost Estimate /Plan

    1. Market Information

    2. Project Information

    3. Cost Information

    4. Professional Judgment
    Factors Affecting Elemental Cost Estimate /Plan

    1. Market Information

     Market conditions (e.g., inflation /deflation)


     Rapid change of material cost (e.g., huge increase
    of structural steel price in 2003)
     Change of labour costs (e.g., decreased from 1997
    but increased recently due to lack of manpower
    supply)
     Location of project
    Factors Affecting Elemental Cost Estimate /Plan

    2. Project Information /Specification


     Project specifications, e.g.:-
     Different storey height
     Foundation systems
     Elevation to GCFA ratio
     Different elevation design
     Internal and external finishes
     Curtain wall vs. window
     E&M systems
    Factors Affecting Elemental Cost Estimate /Plan

    3. Cost Information
     Source of cost data
     Use of previous data
     Use of previous cost analysis
     Application of tender price indices
     Reasonable % allowances (e.g., preliminary &
    contingency)
     Inclusions & exclusions
    Factors Affecting Elemental Cost Estimate /Plan

    4. Professional judgment
     Senses of build-up rates
     Senses of elemental unit rate
     Reasonable assumptions
     The more expensive elements, the more attention paid
     Knowledge of construction methods
     Knowledge of new technology (e.g., precast façade)
     Knowledge of building regulations (e.g., refuge floors)
     Senses of market trend
     Senses of material costs
     Sense of construction related news (e.g., construction
    waste disposal charging scheme; $27-$125 / ton)
    Factors Affecting Elemental Cost Estimate /Plan

    In Sum…

    Elemental adjustments can be done by proportion,


    approximate quantities, or professional
    judgment.
    Factors Affecting Elemental Cost Estimate /Plan

    Cost
    info.

    Project
    info.
    Professional
    Market Judgment
    info.
    GFA vs. CFA What one should be
    used in Elemental
    Estimate?

    Gross Floor Area (GFA): -


     The area contained within the external walls of the building measured at each
    floor level (including any floor below the level of the ground), together with the
    area of balconies and the thickness of external walls. Carpark & plant room
    areas are usually excluded, but this is NOT a fixed rule.
     Generally measured by the Architect for submission to Planning Authorities

    Construction Floor Area (CFA): -


     The covered areas fulfilling the functional requirements of the building
    measured to the outside face of the external walls or external perimeter. Areas
    occupied by partitions, columns, internal structural walls, bay windows,
    stairwells, lift shafts, plant rooms, water tanks, carparks, open covered areas
    and the like are included.
     Generally measured by QS for the purpose of estimation of construction costs
    of a building.
    HKIS (2006)
    References

     ASD (2014) Building Works Tender Price Index, retrieved at


    https://www.archsd.gov.hk/en/reports/building-works-tender-price-
    index.aspx on 10th Sept 2014.
     Brookes, M. (2008) Estimating and Tendering for Construction Work, 4th
    Ed., Routledge.
     HKIS (2006) Basic of Cost Planning and Cost Estimate, retrieved at
    http://www.hkis.org.hk/hkis/general/mis/CostEstimate.pdf on 10th Sept
    2014.
     Kirkham, R. (2013) Ferry and Brandon’s Cost Planning of Buildings, John
    Wiley and Sons.
     LS (2014) HK Domestic Building Cost, retrieved at
    http://www.dlshk.com/cost_data/charts/costdata4.html on 1oth Sept
    2014.
     RLB (2015) Quarterly Construction Cost Update, retrieved at
    http://rlb.com/wp-content/uploads/2015/04/rlb-hong-kong-cost-report-
    march-2015.pdf on 26th Oct 2015.
     Soutos, M. and Lowe, D.J. (2011) Elemental cost estimating: current UK
    practice and procedure, Journal of Financial Management of Property
    and Construction, 16(2), 147-162.

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