Thursday, November 25, 2010

Preparation of a Cost Analysis




Preparation of a cost analysis
The primary purpose for using cost analysis of construction project provides useful source of cost information.  Any form of cost analysis should be provided in standard way with the following.


Information on the total project
Summary of element costs with preliminaries shown separately and also apportioned among the elements
A brief specification in element form
Sketch plans and elevations for the project
The amplified analysis

Information of the total project is important as it includes the building type which is necessary for future analytical purpose of a similar type of project. In addition, the client, location, tender date, contract particulars, market conditions, competitive tender list, project details, and brief cost information are provided under project information section of the cost analysis.

The following  basic principles  need to be followed in preparing the cost analysis
The qualitative aspects of the project should be expressed by reference to accompanying specification notes
An element should be of cost significance
The analysis should consider the features in different building which have heavy bearing on cost.
An element should be easily definable and capable of having the appropriate costs allocated against it with a minimum of effort on the part user
Other information relevant to the costs in the analysis should be provided as a background to these data


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