Purpose

At the brief stage is where most of the clients highlight what they require in a project; referred to as ‘foundation stage’ of the orientation. The customer will explain the fundamental idea on the expected design of the required structure. The size and features of the floor such as the floor space and the number of floors the need for their building is highlighted at this stage. The intention of the structure and the special characteristics of the structure such as new technology are mentioned at this level (Black, 2017, p. 321). Necessary information of the plot is also availed at this stage. The purpose of the orientation stage is to enable the client to get an idea on the approximate costs of the suggested project that is indicative price. When the client release their expectations for the suggested project, it will be possible to avail various suggestions for the client regarding the associated costs of their plans. These various suggestions will help the client to make the correct decision on the way forward on the required project. The results of the orientation stage are to produce a universal idea on the appearance of the completed project while getting an approximate budget for the suggested project. The client can then make a decision on whether to proceed with the project depending whether it’s viable (Kirkham, 2018, p. 42)

This technique is uneven and favorable in most initial stages of planning.

Areas/Volumes

The method of Floor Area, the ‘superficial technique’ of cost per square meter. This technique functions well as it is easy to prepare and understand although it does not factor in detailed prices. This technique has been applied in coming up with the introductory costs of this project.

The basic rule of the floor approximate is that the price per component can be assigned to superstructure substructure and finishes in consideration to every m2 let-able floor space. Experience in similar projects can provide figure that can be used in combination with trusted available reference materials can be used to calculate these values (White, 2017, p. 520).

Functional floor area: similar to the floor area but twisted depending on the function of the space such as for storage purposes or board room functions.

Building surface area: is useful in the initial stages of a project proposal. The method is less trusted since the data concerning such measurements cannot be found easily.

Context

Building volume: this is achieved by the multiplication of the height of the building by the floor area. This technique is best in projects with unusual ceiling height that influences the cost. This method is not good for use since it cannot be trusted (Best, 2017, p. 44).

1. It usually depends on the architectural drawings given by the architects and other consultants which makes it very reliable.
2. It usually relies on the gross floor of the building span
3. This method allows quick estimation as compared to bill of quantities
4. The current building index can be easily incorporated into the estimates
5. The estimates are usually based on the past similar projects

1. The methods does not take into account the overall perimeters of the wall.
2. The method does not take into account the aerial configuration of the building. Even if two buildings might be having same gross floor area, the aerial plan can be much different.
3. It does not consider the floor-to-ceiling height of the building
4. It does not take into account the area of the wall finishes

These methods are useful in situations where the cost of single elements is crucial. This price can be multiplied by a given factor (Seeley, 2017, p. 334). This method is not good for use in the suggested project.

1. The method is and much faster with that it makes it possible to get the estimate in a much faster way as compared to the other estimation methods.
2. The method is inexpensive as it does not require a lot of resources in order to generate an estimate.

1. The method is considered as inaccurate as it does not take into account of many factors and elements of the building or of the entire project.
2. Black box idea
3. Incomplete possibilities for adjustments
4. Likelihood for incorrectly use
5. Estimating with only historical data
6. Labor exhaustive to develop standards with a similar basis

This section of this report consist of the preliminary estimates for both the suggested three schemes. By building up a rate for the entire building in accordance to the   floor space, it has been possible to attain a preliminary estimate which is accurate enough to enable one make an informed decision regarding to the best scheme for further development.

The final estimate which is provided has been based on an informed estimate to how much of each of the elements is required per m²

 Of the floor space. This technique is one of the most practiced method for assisting in making informed decisions at the brief phase of a project.

INDICATIVE COSTS:SCHEMES A
Element	M2	$/m2	Element cost	%	Note
PRELIMINARIES		$ 287.30		15.23
SUBSTRUCTURE		$ 41.99		2.22
SUPERSSTRUCTURE		$ 830.91		44.06
Columns		$ 41.41		2.19
Upper floors		$ 221.00		11.71
Staircases		$ 15.47		0.82
Roof		$ 59.67		3.16
External  walls and windows		$ 382.86		20.30	Rate adjusted accordingly with the wall length  ratios
External Doors		$ 6.63		0.35
Internal walls		$72.93		3.80
Internal screens		$6,63		0.35
Internal doors		$24.31		1.24
FINISHES		$201.11		10.66
Walls		$ 48.62		2.60
Floor		$ 81.77		4.34
Ceiling		$70.72		3.73
FITTINGS		$17.68		0.94
fitments		$17.68		0.94
SERVICES		$484.61		25.70
Plumbing		$103.87		5.50
Mechanical		$9.46		0.50	Rare adjusted accordingly  for no air-conditioning
Fire		$ 17.68		0.94
Electrical		$167.96		8.86
Vertical transport		$163.54		8.67
EXTERBNAL SERVICES		$22.10		1.17
SUBTOTAL ELEMENTAL COST		$ 1, 888.70		100
Professional Fees			$ 575,417.21	Additional 8%
Design Contingency			$ 359,635.13	Additional 5%
Contract Contingencies			$ 359,635.13	Additional 5%
SUBTOTAL INC. CONTIGENCY		339.426		118%
FINAL  TOTAL  after the index adjustment		$2,225.13			Rate adjusted  to current  index (

INDICATIVE COSTS:SCHEMES B
Element	M2	$/m2	Element cost	%	Note
PRELIMINARIES
SUBSTRUCTURE
SUPERSSTRUCTURE
Columns
Upper floors
Staircases
Roof
External  walls and windows
External Doors
Internal walls
Internal screens
Internal doors
FINISHES
Walls
Floor
Ceiling
FITTINGS
fitments
SERVICES
Plumbing
Mechanical
Fire
Electrical
Vertical transport
EXTERBNAL SERVICES
SUBTOTAL ELEMENTAL COST
Professional Fees
Design Contingency
Contract Contingencies
SUBTOTAL INC. CONTIGENCY
FINAL  TOTAL  after the index adjustment

INDICATIVE COSTS:SCHEMES C
Element	M2	$/m2	Element cost	%	Note
PRELIMINARIES
SUBSTRUCTURE
SUPERSSTRUCTURE
Columns
Upper floors
Staircases
Roof
External  walls and windows
External Doors
Internal walls
Internal screens
Internal doors
FINISHES
Walls
Floor
Ceiling
FITTINGS
fitments
SERVICES
Plumbing
Mechanical
Fire
Electrical
Vertical transport
EXTERBNAL SERVICES
SUBTOTAL ELEMENTAL COST
Professional Fees
Design Contingency
Contract Contingencies
SUBTOTAL INC. CONTIGENCY
FINAL  TOTAL  after the index adjustment

Note: all values, unless otherwise stipulated, are from Rawlinson’s 2014,adjusted to Melbourne .

1. Construction projects that are similar, reference from similar structures can be the most important source of the cost estimate. Getting information on their cost of similar project after

 Completion can help to give out a rough idea on the cost of the project in place. The resulting costs of the former projects should be considered in when making the calculations (Boussabaine, 2016, p. 52).

1. The costs of the construction materials. The expenses incurred in acquiring the construction materials such as shipping costs and the incurred taxes. The calculation of the cost of the material should involve all these factors.
2. The cost of hiring the labor. The labor wages differ from one region to another. There is need to consider the increase in the wage values in case the project is not being started immediately. The wages tend to fluctuate with time(Ferry, 2010, p. 32).
3. The conditions within the construction site. The situations within the construction plot can determine the construction costs. The construction sites that require other special activities to be carried out such as the removal of buried pipes or wetlands should be factored in when calculating the construction cost. These situations tend to increase the construction cost and should therefore be considered.
4. Project schedule, the period of the construction influences the costs. Prolonged period of project construction tends to increase the costs due to the indirect costs associated with the construction activities. It’s important to include the construction time loans when planning when calculating the construction costs.
5. The plans quality and specifications, having excellent construction plans will help to cut short the period required to complete the project thus reducing the construction costs. A good plan helps to eliminate delays by avoiding confusions.
6. The region of construction, a construction plot that is near the required resources will help to minimize the construction costs by reducing the transportation expenses. The transportation costs of people and machinery required in the construction can greatly increase the construction cost. Increase in the distance between resources the construction site and the resources will increase the transportation cost and thus increasing the overall construction cost(Rad, 2017, p. 33).
7. The insurance plans, the insurance requirements for the machinery being used in the construction should be put in place. The insurance of the workers and other special insurance requirements influences the cost of construction. There is need to get insurance policies on the safety of worker and also to pay for insurance of the machinery being used.
8. The Reputation of the construction engineer, when the client gets the services of an engineer who has established their good name, they might be required to pay the necessary costs since this will ensure that the project runs smoothly and effectively(Smith, 2015, p. 163). Reputable engineering firms might charge high prices due to their high demand in the construction activities.
9. The legal requirements, the process of getting the authorization documents of the construction can be sometimes expensive and need to be incorporated in estimating the construction costs. The construction of the building might require the client to clear with different organizations thus increasing the approval costs.

Conclusion and recommendation

On concluding our preliminary estimate, it can be seen that the best scheme in terms of cost saving is Scheme A. While Scheme B may been the obvious choice on face value, it is essential to consider the value of function and quality that the scheme can add to your project.

At the brief stage is where most of the clients highlight what they require in a project; referred to as ‘foundation stage’ of the orientation. The customer will explain the fundamental idea on the expected design of the required structure. The size and features of the floor such as the floor space and the number of floors and the need for their building is highlighted at this stage. The intention of the structure and the special characteristics of the structure such as new technology are mentioned at this level.

References

Best, R., 2017. Design and Construction. 4th ed. Chicago: Routledge, .

Black, J., 2017. Cost Engineering Management Techniques. 2nd ed. London: CRC Press.

Boussabaine, A., 2016. Cost Planning of PFI and PPP Building Projects. 3rd ed. London: Routledge.

Ferry, D. J., 2010. Cost Planning of Buildings. 5th ed. Texas: Wiley.

Kirkham, R., 2018. Ferry and Brandon’s Cost Planning of Buildings. 1st ed. London: John Wiley & Sons,.

Rad, P. F., 2017. Project Estimating and Cost Management. 3rd ed. Chicago: Berrett-Koehler Publishers.

Seeley, I. H., 2017. Building Economics: Appraisal and control of building design cost and efficiency. 1st ed. Texas: Macmillan International Higher Education.

Smith, J., 2015. Building Cost Planning for the Design Team. 3rd ed. Sydney: Routledge.

White, P., 2017. Active Cost Planning Techniques in the Early Stages of Building Design. 4th ed. London: University of Bristol.