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401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

1

Moonseo Park

39동 433 Phone 880-5848, Fax 871-5518

E-mail: mspark@snu.ac.kr Department of Architecture College of Engineering Seoul National University Professor, PhD

Design Review

401.649 Cost Planning for Construction Projects

(2)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

2

(3)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

3

Financial Feasibility Functional Requirements

Layout/Aesthetic Construction Holding/Operation

Design Flow Chart

(4)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

4

65% 25% 10%

5% 10% 85%

Influence on Cost

Actual Expenditure During Each Stage Phase 1 - Consideration of

Options & Project Definition

Phase 2- Design

Phase 3 - Construction Procurement

Design & Cost Commitment

(5)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

5

Cost reduction potential

Resistance to change

Cost to change

Time

Construction Design

Concept Occupation

THE VALUE ZONE

Opportunities reduce with time

80% of costs are committed at Concept Stage

(6)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

6

 Design Fee = % of Construction Cost Construction Cost = Design Fee

 Lump Sum Fee

Design Fee & Cost

(7)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

7

20% of Design 80% of Construction Cost

 Structural System

 Architectural Concept

 M&E Systems

20% account for 80%

(8)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

8

%

 Structural 23% - 28%

 Architectural 25% - 30%

 M&E 23% - 30%

 External Works 5% - 8%

 Preliminaries 8% - 12%

Typical Construction Cost

(9)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

9

Components Condo Offices Shopping Ware- Schools

Centres houses

% % % % %

Piling 3 4 4 4 4

Lowest slab & Foundation 4 3.6 3 6 4.6

Columns 1 1.4 1 1.4 1.5

Upper Floors 8 9 9 14 12

Roof Structure 0.1 0.2 0.2 0.4 0.4

Roof Finishes & Drainage 3.1 2.5 3 6.7 8.7

Staircases 0.7 1.3 1.3 0.6 0.7

External Walls 6 17.5 9 12.5 6

Windows 6 2.5 4 5 8.7

Internal Walls 4 3 3.7 2.2 2.2

Doors 5 1 2 0.6 1

Wall Finishes 5.8 3.8 3.8 3 5

Floor Finishes 6 4.4 4.7 3 7

Ceiling Finishes 2.5 2.1 2 1.5 5

Fittings 5 0.9 2 1 3.5

Sanitary Fittings & Accessories 1.8 1.2 1.9 1 1.4

Plumbing & Sanitary 7 2.2 4 3 3

Air Conditioning and Ventilation 6 9.6 9.9 4.6 2

Electrical Installation 6.5 8.9 8 9 6

Lifts and Escalators 3 7.4 8 4.3 1

Fire Protection 1.2 2.7 2.5 5.2 0.8

External Works 6.3 1.8 5 4.5 9

Preliminaries 8 9 8 6.5 6.5

TOTAL % 100 100 100 100 100

Indicative Breakdown of Construction Costs

(10)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

10

Design Costing

Review/Develop Design

Costing

Traditional Cost Control

(11)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

11

Cost Design

Design vs. Cost

Function/

Requirements

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401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

12

 Bench Marking

 Value Appraisal

 Team Work

 Cost Development

 Risk Management

New Approach

(13)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

13

Compare with:

 Similar projects

 Industry norms

 Geographical practice

 Expectations

Bench Marking

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401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

14

Compare:

 Cost = Value

 Cost Alternative solutions

Value Appraisal

(15)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

15

 Working as a team vs. working as individuals

 Working towards the project objectives

 Dynamic of team work

Team Work

(16)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

16

 Re-define the estimate

 Identify cost significant items

 Update cost data base

 Propose alternative materials & designs

 Estimate vs. budget

Cost Development

(17)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

17

Cost

Risk

Risk Management

(18)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

18

 Identify risks:

Contractor

Developer

 Balance risks & cost implications

 Look for ways to reduce risks

Principles

(19)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

19

Design Review

(20)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

20

 Building efficiency = Net Floor Areas (NFA)

Gross Floor Areas (GFA)

 Layout – explore ways to increase building efficiency

Building Efficiency

(21)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

21

Examples

Project 1 Project 2 Project 3 Project 4 Project 5

GFA (m 2 ) 102,279 10,162 24,921 15,692 10,219

NFA (m 2 ) 90,902 8,706 21,149 15,106 8,767

Building Efficiency

(%) 89% 86% 85% 96% 86%

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401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

22

 M&E spaces

 Ratio of M&E spaces/GFA

 Explore ways to reduce M&E spaces

M&E Spaces to GFA

(23)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

23

Examples

Project 1 Project 2 Project 3

M&E Spaces

(m 2 ) 153 214 574

GFA (m 2 ) 7,722 10,162 71,874

Ratio of M&E spaces to

GFA (%) 1.98% 2.11% 0.80%

(24)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

24

 Car parking areas and driveways

 Number of car parking lots

 Gross areas per lot

 Explore ways to improve car parking efficiency

Car Parking Efficiency

(25)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

25

 Car Parking Areas & Driveways: 6,684 m²

 Numbers of Car Parking Lots: 144 lots

 Gross Areas per lot: 46.42 m²

Examples

(26)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

26

(a) Car Parking Areas & Driveways - 6,684 m²

(b) Nos of Car Parking Lots - 144 lots

(c) Gross Areas per lot - 46.42

(d) Explore ways to improve car parking efficiency

 Proposed floor to floor height (First floor, Typical floors)

 Proposed floor to ceiling height

(First floor, Typical floors)

Storey Heights

(27)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

27

 Average slab thickness

 M&E space requirement above the ceiling

 Cost implication for changes to floor to floor height

Considerations

(28)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

28

 Construction method for the basement

 Extent of temporary works required for the basement

Explore ways to reduce the cost for temporary works

Basement

(29)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

29

 Propose alternative structural systems and grids Advantages and disadvantages for each system

 Key and schematic plans for each system

 Precast beams, columns and staircases

 Typical and transfer floors

Structural Framing Systems & Grids

(30)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

30

 Construction method

 Floor to floor cycle time (days)

 Reinforcement/concrete ratio analysis

Buildability

Structural Framing Systems & Grids

(31)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

31

Structural Ratio Analysis

 Structural cost: $ 7,726,000

 Construction floor areas (CFA): 27,025 m 2

 Cost per m 2 (CFA): $ 286 / m 2

(32)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

 Explore possibility of sizing down column sizes for upper floors

 Explore possibility of sizing down structural wall thickness for upper floors

Columns and Structural Walls

(33)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

33

 Review the type of facade system and windows

 Review the extent of glazed areas

 Review the extent of double glazing required

 Explore alternative facade system and windows

External Facade System

(34)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

34

 Type of internal walls

 Areas for different types of internal wall

Cost implication

Internal Walls

(35)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

35

m

2

$ $/m

2

 Brick wall (one brick thick) 2,506 150,000 60

 Brick wall (half brick thick) 15,782 474,000 30

 R.C. core walls 1,517 750,000 494

______ ________ ____

TOTAL 19,805 1,374,000 69

Examples

(36)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

36

 Items which have close relationship to buyers’ / tenants’ satisfaction such as:

- Finishes: Floor, wall and ceiling

- Fittings and Fixtures - Sanitary wares, wardrobes, kitchen cabinets and appliances

 Explore ways to enhance these items

 Cost implication

Touch and Feel” Items

(37)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

37

Examples: Apartment Floor Finishes

Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Living /

Dining

300 x 600 x 25mm thk marble slabs

600 x 600 x 20mm thk Crema Arfaz

300 x 600 x 20mm thk

Botticino Classico

600 x 600 x 20mm thk Toprak Beige

300-900 x 100 x

15mm thk Golden Teak

300 x 600 x 20mm thk

Perlatino Svevo

Supply

rate * $100/m 2 $180/m 2 $66/m 2 $76/m 2 $79/m 2 $88/m 2

(38)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

38

References

 Avraham Shtub, Jonathan F. Bard, Shlomo Globerson, “Project management : engineering, technology, and implementation”, Englewood Cliffs, NJ, Prentice Hall, 1994

 Frederick E. Gould, Nancy Joyce, Chapter 8, “Construction project management”, Upper Saddle River, NJ, Prentice Hall, 1999

 James M. Lyneis *, Kenneth G. Cooper, Sharon A. Els, “Strategic management of complex projects: a case study using system dynamics”, System Dynamics Review, Vol. 17, No. 3, 2001

 Christopher M. Gordon, “Choosing appropriate construction contracting method”, J. of Construction Engineering & Management, Vol. 120, No. 1, 1994

 Feniosky Pena-Mora, Jim Lyneis, “Project control and management”, MIT 1.432J Lecture Material, 1998

 Barrie, D.S., and Paulson, B.C., “Professional Construction Management”, McGraw Hill, 1992

 Halpin, D.W., “Financial and Cost concepts for construction management”, John Wiley &

Sons, 1995

 Yehiel Rosenfeld, “Project Management”, MIT 1.401J Course Material, 2000

 Sarah Slaughter, “Innovation in construction”, MIT 1.420 Course Material, 1999

 Gray and Hughes, “Building Design Management”,.

 Murdoch and Hughes, “Construction Contracts: Law and Management”, E&FN SPON, 1996

 Gray, Hughes and Bennett, “The Successful Management of Design”, Reading, 1994

(39)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

Technical Writing

39

 Focus on ‘a problem’ NOT ‘ a system’

 Over-reference!

 Avoid legal issues

 Highlight your Contribution

 G  S (L)  G

(40)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

40

 Make logics flowing

(41)

401.649 Cost Planning for Construction Projects

Developed by Davis Langdon & Seah Singapore Pte Ltd, 2002, reformatted by Moonseo Park, SNU, 2005

41

 Let readers know where we are

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