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Basics of Cost Planning & Cost Estimate

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THE HONG KONG INSTITUTE OF SURVEYORS JUNIOR ORGANIZATION – PQSL SEMINAR

BASICS of COST PLANNING & COST ESTIMATE

By Victor Lau B.Sc., M.Sc., MHKIS, MRICS
28 February 2006

COST PLANNING & COST ESTIMATE
• DEFINITIONS, TERMS & PROCESSES • TYPES OF PRE-CONTRACT COST PLANNING • FACTORS AFFECTING COST ESTIMATES/PLAN

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DEFINITIONS, TERMS & PROCESSES
A. Classification of Areas B. Terms of Cost Estimate & Cost Plan C. Pre-Contract Cost Planning Processes

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DEFINITIONS, TERMS & PROCESSES
A. CLASSIFICATION OF AREAS
GROSS FLOOR AREA (GFA) GFA is 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 (for submission to Planning Authorities)

Note : Carpark & plant room areas are usually excluded, but this is NOT a fixed rule
CONSTRUCTION FLOOR AREA (CFA) CFA is the covered areas fulfilling the functional requirements of the building measured to the outside face of the external walls or external parameter. 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.

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DEFINITIONS, TERMS & PROCESSES
B. TERMS OF COST ESTIMATE & COST PLAN
ELEMENTAL QUANTITY • No. of door • Area of wall finishes • Volume of concrete structure • Elemental quantity per CFA (i.e. Element Quantity / CFA) • Average cost per unit elemental quantity (i.e. Total Cost of Element / Elemental Quantity) • Indication of price level for particular subject tender price index building services tender price index labour index material index consolidated labour & material index
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ELEMENTAL RATIO

ELEMENTAL UNIT RATE

INDICES

DEFINITIONS, TERMS & PROCESSES
C. PRE-CONTRACT COST PLANNING...

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