Cost Modelling

Construction Economic : Traditional Cost Modelling 

FOR COLLEGE STUDENTS, FOR RESEARCHERS, FOR LECTURERS

by Nur Afifah Humaira,

    

Cost modelling stated as symbolic representation of some observable system which exist or proposed which signifies the Cost, Features for the purposes of display, Analysis, Comparison and Control. This techniques used for forecasting the estimated cost of a proposed construction project. Cost modelling also stated as fundamental cost management tool used by construction economists or quantity surveyors.

There have 6 stages of estimate classification that are project identification (stage 1 - stage 3), project definition (stage 4 - stage 5) and project excution (stage 6) .

What are the types of Traditional Cost Model ?

Figure 1 : Table of types of traditional cost model (shortform)

Conference stated as technique that can be used for the preparation of the earliest price estimate which is given to the client.

Financial Method stated as cost limit that fixed on the building design based on either units of accommodation or rental values.

Figure 2 : Example of Financial Method calculation

Unit Method stated as standard unit of accommodation and multiplying by an approximate cost per unit. For example , schools ( costs per pupil ) and hospital ( costs per bed ).

Superficial Area method stated as the area of each of the floors is measured and then multiple by a cost per square meter.

Superficial Perimeter method stated as the formula combined floor area with the length of the building perimeter.

Cube rules stated as the cost of a new job then be determined by calculating its volume and selecting an appropriate rate from the book.

Approximate Quantities stated as an analysis of composite items which are measured by combining or grouping together typical bill-measured items.

Elemental Estimating stated as an analysis the cost of the project on elemental basis, attempting to make use of the cost analysis from other similar projects in determining the approximate cost of construction project.

Figure 3 : The example of Elemental Estimating calculation

Bill of Quantities (BQ) stated as document prepared by the cost consultant or quantity surveyors that provides project specific measured quantities of the items of work identified by drawings in tender documentation.

REFERENCES 

1. Peter M Lauther & Peter J Edward (2001). "A Design Cost Modelling - A Way Forward", Department of Building and Construction Economics Royal Melbourne University of Technology University, Australia.

2. Smith, J. (2008). "Building Cost Planning for the Design Team",  Deakin University Press, Geelong.

3. Peng Alex Zhao, Cynthia Changxin Wang (2014). "A Comparison of Using Cost Estimating Software and BIM for Construction Cost Control", 2014 International Conference on Construction and Real Estate Management , DOL: 10.1061/9780784413777.031

4.Dr. Izatul Laili Jabar (2020). "Traditional Cost Modelling", Building Surveying Department UiTM Shah Alam.