Cost Planning Project Report Business Tender

Question: Describe about the Cost Planning Project Report for Business Tender. Answer: Introduction Cost plan for the particular cottage project is prepared by the quantity surveyors or in the loose sense we often call them as cost consultant. By the concepts of the cost consultants it includes details like nature of design , actual prizes , contractors details, suppliers details, specialist contractors involved in the process from the preparation of the blue print to the stage of the complete construction till the end. Here for the cost plan in terms of the structure, finishes and the different fitments used in the cost estimation. The basic terms and the cost which generally includes in the cost plan for any construction are as follows Feasibility study or the initial cost appraisals for the tender passed. Study of the elemental cost plan for the brief study of the detailed design of the construction site. Approximate quantity cost plan for the estimation of the accurate cost and the resources used in the construction. Pre tender estimate process for the preparation of the price quotation for the different resources used in the construction. Tender pricing document for collecting the tender documents for the new contractors for the contractors process. Contract sum, it is amount of the amount which generally agreed during the initial of the construction period. Contract sum analysis, it is the analysis or the basic total pay for the contractors for the starting of any process. Final account agreed as per the vendors is the final amount agreed or fixed to complete the project in the estimated time period. The basic procedure for this is dependent upon the defects liabilities period for the project tenure. As per the estimation of the price for the different appraisals used for the initial cost for the project. Excluding the cost which is incurred for proper execution of the project on the construction side, some other costs do add on the project such as the civil equipment fees, furniture cost fees. Cost incurred in the staff s moving, different secondary contracts for the outside of the main works. And also in the estimation of the tender cost, the cost of the initial cost appraisals is carried for the benefit of the complete design of the project. For the project tender the cost involved in the project estimation is totally based on the project cost and the method upon which the process is monitored by the client organization. For the approximation of the basic cost of the project different published rates is estimated and then only any new cost plan is initiated. Bill of Quantities It is the document prepared by the registered quantity surveyor or the cost consultant for providing the different project specific measured quantities. The basic method and the process involved in the following process should be such as the drawing for the blue print of the construction design, notable specifications and the adjustments in the tender documentation. In the drawing practice for any project the basic parameters and the quantities used are number , length , area , volume and the date and time. The basic requirement used for the preparation of the bill of the quantities for any construction projects demands complete design and also the specification should be in the aligned format for the study. The basic need of the BOQ(Bill of quantities) is issued for the different tenderers in order to prepare for the price carrying cost for the works used in the construction process. Under the BOQ, the tenders cost is mentioned for the cost of all the items used during the projects, its quotation. And also the basic cost involved in the following process includes a detailed specification of the tenders specification, its background, quality standards offers by the tenders. Based on the following fact only the negotiations with the tender will done. Tender Pricing Document As per the tendering contractors, the tendering pricing documents sets the way out under which the whole design team and the client thoroughly review the breakdown in the prices quoted in the tender. The quotation for the any new project in the building construction is totally based on the sheer study of the project. In the shorter way it can be estimated to be like the unpriced Bill of the material used in the initial of any project. Here in the tendering pricing the cost plan for the project is done in the pre-tender estimates. Some preliminary staff cost and the basic working of the project may be broken in the more details. The basic objective of the tender pricing document for the following project are as It is used to enable the comparison in between the tender cost plan or the tenders. It is method to allow the cost consultant or the quantity consultant in order to assess the values for basic value of the different tenders, by which we can assess the complete value of the money. Identify any significant changes in the pricing of the tenders to ensure the design has been executed and done properly. To check the financial outcomes from the tenders report. In the simple way, the completed tender pricing document is effectively a priced bill of the material in which complete in and out details about the project is present. By the help of the following document only, the tenders rates, costs, and the complete offer related to the project is used. Pre- Tender Estimate for the Contracts The Pre- tender estimate (PTE) is the final estimate of the complete cost incurred in the project, or the complete cost of work which is described in the completed tender documents. By the help of the such documents only the any project seek supplier for the construction tender. And the details of the pre-tender estimate is not included in the tender documents. By the help of the following document before releasing any tender all the estimates of the project is checked and all the parameters is done accordingly. By the help of the following estimate, one can compare the budget of the project to its tender. And also in such scenario, the basic cash flow estimate from the client end is done properly.and for the estimation of the following estimate New Rules of Measurement (NRM) techniques is used. Cost saving methods for construction projects The basic methods to save the cost for the project, is the method of the measurement used in the tenderers and the client end. Measurement is the transformation of the drawn data into the description and the quantity information of the project. By the help of the measurement tool, one can check the terms like cost, complete pricing of the construction work, and also it can effectively assist the flow of the effective management. Under this process, the complete detailing of any task is done in order to enable the efficiency in the positive respect. Figure Basic design used for the construction process By the help of this technique, we can easily estimate the complete cost of the project by the help of the pre-cost and the post cost method. And also it helps in producing of the bill of quantities by using the technique of the tendering and also it helps in estimating that what is the amount paid to the contractors and to the sub-contractors for their respective work done. Pre-Contract Measurement By the help of the early data used in the different stages, the cost consultant will measure the dimensions of the construction project to produce the budget estimates for the project. Now during this process it is used to create a benchmark for the similar building of its kind. This process continues with the flow of the project and continues till the end of the project. As per the design develops , the cost consultant ot the quantity surveyors measure the approximate units for the cost planning and also ensure that the design is maintained with the budget. After this cost consultant thoroughly measures the completed working drawing to estimate and produce new BOQ( Bill of Quantities). Post-Contract Measurement For the post contract measurement, the contractor can use the measurement and these are Estimating the construction methodology for the preparation of the tenders quotes. Orders for the inventory for the project. Sales and the procurement for the different sub-contractors and the outsource works. Calculation the effect of the variations in the parameters such as inventory , work force, shifts as per the demand rate of the construction project. Payments making timely to the sub-contractors and the contractors Rapid assessment for the valuation of the quality of the work done Complete cost control for the project in the mid of the project and in the end of the project. Estimation of the cost if there is any variation in the work. Providing the complete structure for the information by which maximum analysis of the project can be done. Defining the unit of the measurement for the respective item , in the standard way so that the condition of the interchangeability can maintain . Provides the rule for the include and the excluded item. Define every terms to avoid disputes. Order of the cost estimating and the cost planning The condition like the cost hikes, overheads, profit , risks allowances for the product can be easily maintained by the method of the market survey. There should be the proper updating in the documents, there should be proper brainstorming with every issues and problem seen during the process. By doing such things only one can meet the need of the client, can provide more up front detail, can apply better consideration of the full cost used in the project. By using the above documents it can quantify the risk of the market in a better way, the value of the time management can also be used by the help of the updating in the documents. Completion of the project As per the given techniques the base cost of the product cost, equipment, capital investment almost every revenue is dependent on the year of the starting of the project. As the project is going to be end on 2017, so because of this scenario the major estimation such as inventory control, capital investment , work force management, machinery and the equipment is maintained such that if there is any hike in the cost of among this, then there should be no bottlenecking in the process. Cost escalation In order to avoid the cost escalation of the product , for any project there should be market survey for the product time to time such as on the monthly, yearly, on the weekly basis. By such way one can adjust proper inventory control for the mandatory product, Cost planning For any cost planning involved the basic planning is done for the investment which generally escalated as per the time. The provisional sum allocation of the project used here is done by the estimation of the units (cost) involved for the various fields. These are Here during the construction time the basic cost involved is classified on the basis of the parameters which changes as per the time Tasks Cost involved in ($) Boundary fencing cost 3,000 driveway 7,000 Road crossing 3,500 Septic system installment 10,500 Solar Electricity System 7,000 Outdoor spa and pergola 7,000 Landscaping 3,000 Total 41,000 Conclusion By the process of the cost planning ,one can estimate and maintain construction, management ,and the procurement process in the best way. Under this process, the complete detailing of any task is done in order to enable the efficiency in the positive respect.By the help of this technique, we can easily estimate the complete cost of the project by the help of the pre-cost and the post cost method. 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