final exam part 1

hai u ollz..

i just nak share yang my final exam akan tiba.. OH MY GOD!!! so sekarang ni i tengah sibuk mengulang kaji la kan.. * kononnye la.. study week diberi seminggu, tapi lagi 3 hari before exam i baru nak bukak buku. tapi  agak oke la jugak kan lagi 3 hari.. ade yang i tengok kat facebook, malam exam baru bukak.. OMG... tapi mungking mereka pandai dan dah study awal2 kan..bukan boleh percaya sgt cakap mereka ni.. nnti tup2.. dorg dpt higher pointer.. kan kan kan.. so first skali yang i study adalah cost palnning and control. kami dapat soalan bocor tau.. tpi kalau x dapat jawab jugak x tau ler den nak cakap kot mano laie... hehe..

xoxo

ni ha yang i bace untuk soalan 1 : 

Clients’ requirements for an accurate forecast of the overall cost is due to:-

o   resources such as land and materials becoming scarce and expensive.

o   modern buildings becoming more complex,

o   fluctuation in labour and material cost etc.

what is cost planning

Ø  Cost plan is prepared by finding a cost analysis of a similar project to the one under consideration, and by studying how the cost was allocated in the old project, in order to prepare an estimate for the new scheme.

Ø  The cost information cannot be used directly from the cost analysis, and some degree of modification will have to be made.

Ø  These modifications are usually for differences in

v price level

v Quantity

v Finishes and standards

What is cost control

v  Techniques for “protecting” the cost plan.

v  Generic term embracing all methods of controlling the cost of a building throughout its various stages from inception to completion.

v  Process of cost checking required the estimated cost of each element to be checked against the target set set in the cost plan.

There are 3 basic principles of cost control :

·         There must be a frame of reference or a set of condition, which must be adhered to.

·         There must be a method of checking or a feedback system

·         There must be a means of remedial action.

      Up until the scheme design stage, planning is carried out on what should be done with the money available for the project.

      A cost plan is produced (a cost plan is simply a statement of how to design team propose to distribute the available money on the elements of the building).

      During detail design stage, decision must be made on every matter related to design, specification, construction and cost, i.e every part and component of the building must be fully designed and all design must be completely cost checked and remedial action must be taken if necessary.

      Since detail design and specifications are available, the most appropriate estimating technique is the appropriate quantities method.

      The quantities are  measure for each element and price; these are checked against the corresponding cost target in the cost plan.

      Cost check for each element. If cost checking reveals that remedial action is necessary; 2 courses of remedial action possible :

                      i.        If the cost of the element design is greater than a realistic cost target, the element design should be changed so that it is within the cost target.

                     ii.        If the cost check of the element design shows that the cost target is unrealistic, cost target should be adjusted throughout the cost plan, thereby releasing funds from other elements.

      However, the overall cost limit should not be altered; the remedial action must take place within time and budget allowance so that the objective of keeping expenditure within the amount allowed by the client is achieved.

      Each element is treated in turn this way and any necessary action is taken and completed, when everything is okay, proceed to production information, BQ and tender.