The cost budget plays a significant role in development of the smart work analysis and the execution of the project activities (Fleming and Koppelman 2016). The analysis would be helpful for forming the management of the works and the continuation of the successive and effective work implication. The budget analysis can be done using the cost per area calculation. The estimation for the project of Construction of Two-Star Serviced Apartments has been done using the three schemes mentioned. The discussion section would evaluate the three budget schemes and find out the most optimized budget for the project. The budget estimation would allow the utilization of the superficial area calculation and multiplying it with the area for calculation.
The construction works for the project of Construction of Two-Star Serviced Apartments would be completed using the adaptive methodology. The complete project activities would be divided into 4 phases of planning, designing, executing, and monitoring and closing (Harrison and Lock 2017). The analysis of the three phases would be effectively managed with the implication and development of the successive information management.
Stage 1 Planning would include the analysis of the project requirements of construction and executing the implication of the work compliment for Two-Star Serviced Apartments. The planning would help in identifying and scheduling the works required in the project. The project planning would include the analysis of the resources required for the construction of the two stared service apartment.
Step 2 Designing would include the development of the design for the Two-Star Serviced Apartments. The development of the design would allow the formation of the building considering the safety and quality work requirements. The design would be effectively developed for forming the analysis of the smart work completion. The design development would be implied with the formation of the effective work completion and utilization of the applied work formation.
Step 3 Executing would involve the alignment of the plan developed and form the construction of the Two-Star Serviced Apartments. The construction works would involve the pillar works, floor works, main walls, windows and doors cut off, ceiling works, joists works, paint works, and site preparation. The completion of these activities would result in forming the completion of the apartment construction.
Step 4 Monitoring would involve the analysis of the constructed building for quality and cost efficiency. The safety considerations for the project would be aligned effectively. The ensuring of the quality consideration would be done in this phase. The completion of the phase would mark the closure of the project.
The designing stage for the two-star serviced apartments would be effectively implied with the management of the aligned work completion and development. The designing would consider the analysis of the listing work formation. The development of the design would be helpful for taking care of the operations and the formation of the successful work completion. The development of the design would allow the formation of the building considering the safety and quality work requirements (Rogelj et al. 2016). The design would be effectively developed for forming the analysis of the smart work completion. The design development would be implied with the formation of the effective work completion and utilization of the applied work formation.
|
Stage |
Description |
Objectives |
|
Stage 1 Planning |
It would include the analysis of the project requirements of construction and executing the implication of the work compliment for Two-Star Serviced Apartments. |
To analyses the requirements of the project To identify the activities required in the project To develop the activity schedule for the project |
|
Step 2 Designing |
It would include the development of the design for the Two-Star Serviced Apartments. |
To develop a feasible design for the construction of the apartments To involve the skills of design principles |
|
Step 3 Executing |
It would involve the alignment of the plan developed and form the construction of the Two-Star Serviced Apartments. |
To construct the building apartments To ensure the quality of the 2 star services To complete the construction on time |
|
Step 4 Monitoring |
It would involve the analysis of the constructed building for quality and cost efficiency. |
To monitor the formation of the apartments To ensure the WHS policies |
The project of construction of Two-Star Serviced Apartments would involve the construction of the apartments with all two star services and functions. The analysis would be helpful for forming the management of the works and the continuation of the successive and effective work implication. The budget analysis was done using the effective bottom up, top down, and work division analysis. The complete project activities was divided into 4 phases of planning, designing, executing, and monitoring and closing. Planning had included the analysis of the project requirements of construction and executing the implication of the work compliment for construction. The development of the design had allowed the formation of the building considering the safety and quality work requirements. The construction works had involved the pillar works, floor works, main walls, windows and doors cut off, ceiling works, joists works, paint works, and site preparation. The safety considerations for the project was aligned effectively. The ensuring of the quality consideration was done in this phase.
Cost budget calculation for the project has been done considering,
|
Area (Sqm) |
Rate ($ in AUD/Sqm |
Total ($) |
|
|
Cost of Superficial area construction |
11520 |
$3,500.00 |
$40,320,000 |
|
Cost adjustment for wall to floor ratio |
11520 |
$250.00 |
$2,880,000 |
|
Building cost using superficial area method |
$43,200,000 |
||
|
External Service allowance |
0.11% |
$4,752,000 |
|
|
Sub total |
$47,952,000 |
||
|
ESD allowance |
2.60% |
$1,246,752 |
|
|
Contract Contingency |
11% |
$5,274,720 |
|
|
Professional Fees |
8% |
$3,836,160 |
|
|
Furniture and Fittings |
5% |
$2,397,600 |
|
|
Sub total |
$60,707,232 |
||
|
Cost Escalation Allowance (Current date) |
1% |
$61,314,304 |
|
|
Cost Escalation Allowance (Tender date) |
1.50% |
$61,617,840 |
|
|
Step 1 |
0.80% |
$61,192,890 |
|
|
Step 2 |
4.40% |
$63,378,350 |
|
|
Step 3 |
2.60% |
$62,285,620 |
|
|
Average Cost at Completion |
$61,749,373 |
||
|
Total Cost |
$61,749,373 |
Cost budget calculation for the project has been done considering,
|
Area (Sqm) |
Rate ($ in AUD/Sqm |
Total ($) |
|
|
Cost of Superficial area construction |
11520 |
$3,500.00 |
$40,320,000 |
|
Cost adjustment for wall to floor ratio |
11520 |
$35.00 |
$403,200 |
|
Building cost using superficial area method |
$40,723,200 |
||
|
External Service allowance |
0.11% |
$4,479,552 |
|
|
Sub total |
$45,202,752 |
||
|
ESD allowance |
2.60% |
$1,175,272 |
|
|
Contract Contingency |
11% |
$4,972,303 |
|
|
Professional Fees |
8% |
$3,616,220 |
|
|
Furniture and Fittings |
5% |
$2,260,138 |
|
|
Sub total |
$57,226,684 |
||
|
Cost Escalation Allowance (Current date) |
1% |
$57,798,951 |
|
|
Cost Escalation Allowance (Tender date) |
1.50% |
$58,085,084 |
|
|
Step 1 |
0.80% |
$57,684,498 |
|
|
Step 2 |
4.40% |
$59,744,658 |
|
|
Step 3 |
2.60% |
$58,714,578 |
|
|
Average Cost at Completion |
$58,209,075 |
||
|
Total Cost |
$58,209,075 |
Cost budget calculation for the project has been done considering,
|
Area (Sqm) |
Rate ($ in AUD/Sqm |
Total ($) |
|
|
Cost of Superficial area construction |
11520 |
$3,500.00 |
$40,320,000 |
|
Cost adjustment for wall to floor ratio |
11520 |
$380.00 |
$4,377,600 |
|
Building cost using superficial area method |
$44,697,600 |
||
|
External Service allowance |
0.11% |
$4,916,736 |
|
|
Sub total |
$49,614,336 |
||
|
ESD allowance |
2.60% |
$1,289,973 |
|
|
Contract Contingency |
11% |
$5,457,577 |
|
|
Professional Fees |
8% |
$3,969,147 |
|
|
Furniture and Fittings |
5% |
$2,480,717 |
|
|
Sub total |
$62,811,749 |
||
|
Cost Escalation Allowance (Current date) |
1% |
$63,439,867 |
|
|
Cost Escalation Allowance (Tender date) |
1.50% |
$63,753,926 |
|
|
Step 1 |
0.80% |
$63,314,243 |
|
|
Step 2 |
4.40% |
$65,575,466 |
|
|
Step 3 |
2.60% |
$64,444,855 |
|
|
Average Cost at Completion |
$63,890,018 |
||
|
Total Cost |
$63,890,018 |
In the three budgets of the superficial calculation, the estimation of the budget would be done considering the use of superficial area method. In this method cost of the area construction would be considered for analyzing the formation of the successive work alignment. The calculation of the cost of superficial area construction, cost adjustment for wall to floor ratio, subtotal, external service allowance, building cost using superficial area method, ESD allowance, contract contingency, professional fees, and furniture and fittings. The utilization of the cost escalation allowance for current and tender date would be considered the analysis would be aligned with the formation of the improved management. The cost management has been aligned with the formation and listing of the factors. The budget calculation has been shown the values of $61,749,373, $58,209,075, and $63,890,018 for budget estimation.
The cost influential factors can be explained in the form of the three budget evaluated for the project of Construction of Two-Star Serviced Apartments,
|
Budget Estimation Method |
Cost Influential factors |
|
Bottom Up |
Resources like project manager, analyst, documenter, contractor, planner, workers, risk analyst, construction material, equipment, electricity, water utility, and safety equipment and their usage/standard rates |
|
Top Down |
Works like pillar works, floor works, main walls, windows and doors cut off, ceiling works, joists works, paint works, site preparation, contract contingency, and fixtures and their usage/standard rates |
|
Budget Division |
human labor, construction materials, cost of utilities, materials cost, risk planning, contingency, site rent, and contract cost and their usage/standard rates |
Conclusion
The study had provided the implication of the cost management factor and the budget estimation methods. The analysis has allowed the formation of the budget considering the resource usage, budget resources, and the works required in the project. Out of the three budget, second budget using the top down estimation would be selected for the project of Construction of Two-Star Serviced Apartments. The use of the top down budget estimation method would be helpful for aligning the significant management of the cost for the projects. The work alignment with the budget would be effectively implied for the calculating the budget analysis. The cost influential factors can be explained in the form of the three budget evaluated for the project of Construction of Two-Star Serviced Apartments had included the resources, works, and the human resources.
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