1. English for Construction Engineering Management ，建筑工 程专业英语 赖小东 授课教师：赖小东 email: tylerlai@126.com. Cell#13627005955 tylerlai@126.com 江西财经大学旅游与城市管理学院工程管理系

2. Lecture 6 Project Cost Estimate and Cost Control 1 1.Project cost management 2.Project estimate 3.Cost control 4. Summary 5.Reading:bill of quantities

3. 2 Project Cost Estimate and Cost Control 1. Project Cost Management Processes Cost estimating: developing an approximation or estimate of the costs of the resources needed to complete a project Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance Cost control: controlling changes to the project budget

4. Tools and Techniques for Cost Estimating 1. 1 Analogous Estimating / Top-down Estimating: Using the actual cost of a previous, similar project as the basis for estimating the cost of the current project. It is less costly but less accurate. (Rough-cost Estimate) 1.2 Parametric Modeling: Using project characteristics (parameters) in a mathematical model to predict project costs.

5. Tools and Techniques for Cost Estimating 1.3 Bottom-up Estimating: Estimating the cost of individual work items, then summarizing or rolling up the individual estimates to get a project title. (Detailed Estimate) 1.4 Computerized Tools: Use of computerized tools such as project management software and spreadsheets to assist with cost estimating.

6. 5 Project Cost Estimate and Cost Control 2. Cost budgeting involves allocating the project cost estimate to individual work items over time The WBS is a required input to the cost budgeting process since it defines the work items An important goal is to produce a cost baseline –A time-phased budget that project managers use to measure and monitor cost performance

7. 6 Project Cost Estimate and Cost Control 3. Project cost control includes: –Monitoring cost performance –Ensuring that only appropriate project changes are included in a revised cost baseline –Informing project stakeholders of authorized changes to the project that will affect costs Many organizations around the globe have problems with cost control

8. 4. OBJECTS OF COST CONTROL To have a knowledge of the profit and loss of the project throughout the duration of the project PROJECT PROFITS Client payments. Sale of surplus or scrap material and plant Payments for plants or labor by others, where, this plant or labor is, from time to time not required for the project.

9. OBJECTS OF COST CONTROL PROJECT LOSSES Labor and site office costs Plant costs Site overheads i.e. site facilities, access roads and office etc Cost of tendering including bonds, insurance, etc. Material costs. Head office overheads proportioned over all current projects.

10. 4. OBJECTS OF COST CONTROL To have a comparison between the actual project performance and that conceived in the original project plan. Comparison is basically done according to the following bases: 1)According to units of production 2)According to line items; e.g., labour, material, equipment, overheads, --- Provides feedback data on actual project performance to future project planning

11. 5. Bill of quantities A bill of quantities (BOQ) is a document used in tendering in the construction industry in which materials, parts, and labor (and their costs) are itemized. It also (ideally) details the terms and conditions of the construction or repair contract and itemizes all work to enable a contractor to price the work for which he or she is bidding.tenderingconstructionmaterialscontractor 10

12. 5. Bill of quantities Bills of quantities are prepared by quantity surveyors and building estimators, and “Indeed the bill of quantities was the reason to be for the development of quantity surveying as a separate profession.”. [1]quantity surveyorsbuilding estimators [1] 11

13. 5. Bill of quantities Bills of quantities are prepared by a “taking off” in which the cost of a building or other structure is estimated from measurements in the Architects, Structural Engineers, and other building consultants drawings. 12

14. 5. Bill of quantities These are used to create a cost estimate such as in regard to the square area in meters of walls and roofs, the numbers of doors and windows, and systems as heating, plumbing and electrics. Similar types of work are then brought together under one item, a process known as "abstracting". Estimating books provide the relevant costs of the materials and labour costs of the operations or trades used in construction. As the rates for materials and labour change due to inflation, these books are frequently republished. The practice historically of estimating building costs in this way arose from non- contractual measurements, taken off drawings to assist tenderers in quoting lump sum prices. There are different styles of bills of quantities, mainly the Elemental BOQ and Trade Bills. 13

15. 5. Bill of quantities These are used to create a cost estimate such as in regard to the square area in meters of walls and roofs, the numbers of doors and windows, and systems as heating, plumbing and electrics. 14

16. 5. Bill of quantities Estimating books provide the relevant costs of the materials and labour costs of the operations or trades used in construction. As the rates for materials and labour change due to inflation, these books are frequently republished. 15

17. 5. Bill of quantities The practice historically of estimating building costs in this way arose from non- contractual measurements, taken off drawings to assist tenderers in quoting lump sum prices. There are different styles of bills of quantities, mainly the Elemental BOQ and Trade Bills. 16

18. Any Questions?