Got a tricky question? Receive an answer from students like you! Try us!

Pre-Contract Cost Planning and Cost Controlling - Assignment Example

High school
Assignment
Engineering and Construction
Pages 9 (2259 words)
Download 2

Summary

Cost planning is considered important where successful planning, design and construction of projects are concerned (Mincks & Johnston, 2004, p.102). Its main objective is to provide the best value solutions to project managers. …

Extract of sample
Pre-Contract Cost Planning and Cost Controlling

Cost planning not only enables capital cost budgets to be set but also provides a structure to accommodate as well as manage transformations to the client’s brief and design (Murdoch & Hughes, 2007, p.80). An effective Cost plan enables a client together with the design team to understand where and how finances have been allocated towards the completion of a project. On the other hand, Cost control should be provided from start to completion of the project, ensuring that the estimated final cost is always known. However, Pre-contract Cost Controlling is quite different from the Post-contract Cost Controlling.
Pre-Contract Cost Planning and RIBA Plan of Work
As aforementioned, an effective construction plan is the foundation of the budget development as well as schedule for work. Pre-construct cost planning is thus crucial when preparing a construction plan. Even though construction costs can be pre-planned as well as estimated, it is quite possible for these to significantly change in the course of the actual construction (Chitkara, 1998, p.99). Pre-contract cost planning informs the owner when financial installments will be required to enable him/her keep current with the billings (Ferry, et al., 1999, p.55). ...
Download paper
Not exactly what you need?

Related Essays

Construction Cost Control & Management
In our case, the formula is; (a + 4 m + p) / 6 (NetMBA, 2012). Where, O = Optimistic Time. M = most likely time. N = pessimistic time. Activity a days m days b days Expected Days a 4 m p (a + 4 m + p) / 6 AB 4 5 6 (4 + (4 *5) + 6) / 6 = 5 BC 2 5 8 (2 + (4 *5) + 8) / 6 = 5 CD 5 7 9 (5 + (4 *7) + 9) / 6 = 7 CE 4 5 6 (4 + (4 *5) + 6) / 6 = 5 DF 2 4 6 (2 + (4 *4) + 6) / 6 = 4 FG 3 5 9 (3 + (4 *5) + 9) / 6 = 5.3 FH 4 5 6 (4 + (4 *5) + 6) / 6 = 5 FI 3 4 7 (3 + (4 *4) + 7) / 6 = 4.3 FJ 5 7 9 (5 + (4 *7) + 9) / 6 = 7 JK 10 11 12 (10 + (4 *11) + 12) / 6 = 11 KL 4 6 8 (4 + (4 *6) + 8) / 6 = 6 KM 7 8 9…
10 pages (2510 words)
HS2- cost vs benefits
The Government’s base of argument is on the projected forecasts that are unreal. The painful experience gathered from HS1 project is concrete evidence for evaluation of the project. The project will create demand for high-costs and taxpayer-funded transport capacity. The benefits alleged by the Department for Transport remain wanting. BACK GROUND KNOWLEDGE ON HIGH SPEED RAIL The high speed rail entered the UK in 2007 following the completion of Channel Tunnel to London. It was called Channel Tunnel Rail Link, currently referred to as High-Speed 1 or HS1. A political consensus on the…
12 pages (3012 words)
Construction Cost Control & Management
The length of the lodge is 14 meters and the width is 10 meters. The rear roofing will not be excavated. The perimeter area that is to be excavated is the outer 2m width, and the depth will be 2.75 m. On the first day at the site, only the excavator and the driver will be present since the only work on that day will only involve digging up the ground. The material extracted is of poor quality and will be deposited in a pit far away from the site. The material is to be transported to a pit 8 km away by 20 tones capacity lorry. The number of lorries to be used during excavation period are two,…
10 pages (2510 words)
Total Cost Minimization
This paper explores the difference between the past and the present automobile engineering world, giving examples of Toyota and Ford. Specifically, the paper discusses the past and present economic issues, the growth and development of the manufacturers, and the changes in production speed by the manufacturers. The Past and Current State of the Industry The automobile industry has been in existence for slightly more than one hundred years, having begun in France and Germany. However, the industry grew, developed, and came of age in the United States until the current times where automobile…
3 pages (753 words)
Total cost minimization
These activities relate to different fields of engineering including Textile Engineering, Chemical Engineering, and Agricultural Engineering. One field of engineering that has been very dominating in all ages is the Civil Engineering. There have been unique ways and standards of construction throughout the history. Examples include carved caves to make space for living made by a nation who perished away many centuries ago, the Egyptian Pyramids whose construction reached its apogee “with the Great Pyramid of Khufu” (Freudenrich, 2012, p. 1), and Taj Mehal made by the Mughal Emperor…
3 pages (753 words)
Total cost minimization
This essay paper provides a detailed discussion about information gathering, individual and teamwork, written communication skills, communication tools, professionalism, relationship, economics and project management in relation to Ford Company and its bid to minimize its total cost Information gathering It has been necessary for Ford to conduct an internal investigation and gather information. The investigations have been to assess performance levels, safety concerns, employee misconduct, harm to property, sexual harassment, attitude, employee capability, and theft cases. Internal…
3 pages (753 words)
total cost minimization
The new communication and information technologies today have made it possible to attain sophisticated and continuous process manufacturing. The automotive industry, for instance, has seen dramatic breakthroughs in technology displacement and reengineering. They now make over fifty million new automotives every year and are responsible for the creation of one out of every twelve jobs in the North American manufacturing industry. Experts predict that Japanese owned factories, by the end of this decade, would have the ability to make an automobile in eight hours or less (Dikbas and Scherer 297).…
4 pages (1004 words)