QUESTION 2

a) Every phase of the building lifecycle (refer Figure 1) requires reliable cost data to ensure
budget estimate is accurate. Describe the relevant types of cost data and its application
at any two (2) stages of the RIBA Plan of Work (Stage 0 to Stage 5).

Figure 1: RIBA Plan of Work 2020

(10 marks)
ANSWER: BOLEH RUJUK SLIDE MADAM - COST CHECKING

The RIBA Plan of Work provides an organised way to managing the lifecycle of building
projects, with eight stages that include strategic definition to building usage. Each stage
requires reliable cost data in order to provide realistic budget projections.

1) Stage 0: Strategic Definition: The process of developing the core elements and
direction of a project while maintaining alignment with the client's and
stakeholders' overall goals and objectives. This phase is crucial in establishing the
framework for the project's succeeding phases, notably in terms of scope,
feasibility, and resource allocation.

Relevant Cost Data Types:

• Cost data is generally collected from feasibility studies, which analyse project
viability. This comprises initial cost estimates based on industry standards and
comparable projects, modified for market condition.

• Creating a preliminary project budget is critical. This budget should account for
potential risks and uncertainties, establishing a financial framework for decision-
making.

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 Application
• The cost data helps stakeholders evaluate whether the project aligns with financial
expectations and client requirements. It informs the decision to proceed with the project
by identifying potential financial constraints and ensuring that the proposed building
meets the client's strategic goals.
• Accurate cost data at this stage can prevent costly changes later in the project lifecycle

2) Stage 2: Concept Design: This involves making initial design proposals that are
consistent with the project brief and client needs. Architects create massing
studies, sketches, and 3D models to help clients visualise their projects.

Relevant Cost Data Types

• During this stage, detailed cost plans are developed based on the architectural concept.
These plans include estimates for materials, labour, and other resources necessary
for construction.

• Accurate quantity take-offs are essential for estimating the costs associated with
the various components of the design. This involves measuring and quantifying
materials and labour needed for the construction phase.

Application

• The cost data is used to refine the design and keep it on budget. The cost plan
allows for modifications to the design based on financial constraints, ensuring that
the project stays viable.

• This data facilitates talks with customers and stakeholders regarding prospective
design revisions that may affect overall costs.

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 b) One of a good practice for any construction project is to prepare an Elemental Cost
Analysis (ECA) after the tender has been successfully awarded. As part of your job as a
senior quantity Surveyor (QS) is to train the junior QSs to compile the ECA for completed
project undertaken by your firm. With suitable examples, determine the significant of any
five (5) important information in Form A of the ECA.
(15 marks)

Elemental Cost Analysis (ECA) is an important tool for quantity surveyors because it
allows them to break down the entire cost of a construction project into manageable
components. Form A of the ECA normally includes critical information for cost analysis
and budget control.

1. Project Title and Description

The project title and description clearly identify the project's scope and objectives. This
information is critical for contextualising the cost statistics and ensuring that all
stakeholders understand what the analysis is about. For example, a project labelled
"Greenfield Office Development" will have different cost consequences than
"Renovation of Historical Building."

2. Cost breakdown at the elemental level

This section divides costs into many categories, such as foundation, superstructure,
finishing, and services. By categorising costs, quantity surveyors may determine where
funds are allocated and assess the cost-effectiveness of each component. For example,
if superstructure costs are much greater than predicted, it may be necessary to
reconsider design or material choices in order to save money.

3. Cost Estimates for Each Element

Providing specific cost estimates for each aspect enables accurate budgeting and
financial forecasting. It allows project managers to track spending against budget
throughout the project's lifecycle. For example, if the expected cost of electrical services
is $100,000 and actual expenditures exceed that amount, it signals a potential budget
overrun, necessitating a revision of the electrical design or supplier contracts.

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 4. Significance: Percentage of Gross Floor Area

This data aids in understanding how expenses correspond to the total size of the project.
Quantity surveyors can compare costs to similar projects and determine whether they
are within industry norms by expressing them as a percentage of gross floor area. For
example, if a project's cost per square metre is higher than that of similar developments,
it may imply inefficiencies or over-specification in some areas.

5. Assumption and Exclusion

Documenting assumptions and exclusions is crucial for transparency and clarity in cost
analysis. It specifies what is and is not included in the cost estimates, hence reducing
misconceptions among clients and stakeholders. For example, if the ECA thinks site
preparation expenditures are covered but not landscaping, this distinction is critical for
effective budgeting and expectation management.

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QUESTION 4 (FEB 2022)

ANSWER:

To effectively implement cost control in the situation where the client decides to occupy four
floors of a newly constructed 20-storey office building, the following strategies can be
employed.

Cost control strategies

1. Regular Cost Estimation and Monitoring:

• Continuously estimate and monitor project costs throughout the redesign and
construction phases. This includes tracking expenses related to the reduction of internal
walls and partitions as well as the upgrade of finishes for the occupied floors. Regularly
updating the cost plan will help identify any potential overruns early on and allow for
timely adjustments.

2. Change Management Procedures:

• Establish a clear change management process to handle the redesign requirements.

This will involve documenting changes in scope, such as the new layout and upgraded
finishes, and assessing their cost implications. Ensure that all changes are approved and
recorded to maintain budget integrity. This process helps prevent unauthorized cost
increases and ensures that any additional expenses are balanced by savings elsewhere
in the project.

3. Budget Reallocation:

• Reassess the overall project budget to accommodate the changes. This may involve
reallocating funds from less critical areas of the project or identifying cost-saving
opportunities in other aspects of construction. For instance, if the reduction in internal
walls leads to lower material costs, those savings can be redirected to cover the higher
specifications for finishes.
 4. Collaboration and Communication:

• Foster collaboration among all stakeholders, including the client, architect, and
contractors. Regular meetings should be held to discuss cost implications of design
decisions and ensure everyone is aligned on budget constraints. Open communication
will facilitate quicker decision-making and help avoid misunderstandings that could lead
to cost overruns.

5. Collaboration and Communication:

• Foster collaboration among all stakeholders, including the client, architect, and
contractors. Regular meetings should be held to discuss cost implications of design
decisions and ensure everyone is aligned on budget constraints. Open communication
will facilitate quicker decision-making and help avoid misunderstandings that could
lead to cost overruns.

Points of Reference for Cost Control at Post-Contract Stage

1. Cost Plan:

• The cost plan serves as a foundational document that outlines the estimated costs
for various elements of the project. It should be regularly updated to reflect changes
due to the redesign and serve as a benchmark for monitoring actual expenditures
against the budget.

2. Development Budget:

• This budget encompasses all costs associated with the project, including
construction, professional fees, and contingencies. It provides a comprehensive
view of financial expectations and helps in assessing the feasibility of changes
requested by the client.

3. Historical Cost Data:

• Utilize historical cost data from similar projects to inform estimates for the redesign.
This data can provide insights into typical costs associated with specific finishes
and construction methods, aiding in more accurate budgeting for the upgraded
specifications.

4. Regular Financial Reporting:

• Establish a routine for financial reporting that includes updates on project costs,
forecasts for future expenses, and cash flow projections. This will help in identifying
trends and potential budget issues before they escalate
ANSWER:

i) Two reliable cost data sources for IBS projects in Malaysia are:

1.The Arcadis Construction Cost Handbook for Malaysia 2022.

This will provide cost data for IBS construction of apartments ranging from RM1,800 -
RM2,700 per square meter.

2.The IBS Centre at CIDB Malaysia.

This showcases IBS components available in the Malaysian market and serves as a
reference for designers and contractors. It includes examples of IBS score
calculations that can inform cost estimates

ii) 1. Location: Costs may vary between different regions in Malaysia. Adjust the data
based on the specific location of the project in Shah Alam.

2. Project size and complexity: Larger projects may benefit from economies of scale,
while more complex designs can increase costs. Tailor the data to the scale and
specifications of the proposed apartment building.

3. Current market conditions: Material and labour costs can fluctuate over time.
Ensure the data is current and accounts for any recent changes in the construction
market