Journal Mental Health Policy And Economics: Cost Management For Oman’s Al Batinah Expressway – Package 4

Cost Management Principles for Al Batinah Expressway

Discuss About The Journal Mental Health Policy And Economics.

Cost Management holds an integral role in the development of the effective information processing for the project (Francis, Cervera and Frazeri 2017). The implementation of the cost management would help in easing the deployment of the extensive and operative development of the operations. The deployment of the cost management would allow the formation of the effective and improved management of the activities. The cost management holds an integral part in the development of the effective operational development. According to Claxton et al. (2015), the integration of the cost management would allow the formation of the successive development and integration for the overall calculation of the cost. The contract of constructing the Oman’s 272km long expressway had been assigned to Galfar Engineering & Contracting Co. The completion of the project would tend to form the deployment of the effective documentation and alignment of the operations. The project development would allow the integration of the construction activities for forming the final project deliverable.

The following assignment would provide the management of the cost factors for the project. The project taken for study is Oman’s Al Batinah Expressway – Package 4 which is a construction project and it involves the development of the Oman’s expressway. The project had included a number of cost expenses for the resources used. The integration of the operations would allow the formation of the effective operation development. The report is developed for the analysis of the project cost budgeting and the alignment of the improved estimation reports. The report would highlight the project background for the project of Al Batinah Expressway as it a construction project and the cost estimation would be widely based on the activities and the resources used for the project. The various cost estimation principles and techniques would be critically evaluated in this report for the provided case study of Al Batinah Expressway.

The project of Al Batinah Expressway would be helpful for the alignment of the improved operation development. The expressway is 272km long and it is built for the developed for the construction of the long expressway (Ascione et al. 2015). It would include huge amount of RO26 million or $68 million for completing all the construction works and alignment of the expressway. The project is formed for the alignment of the effective management of the project activities. The contract of constructing the Oman’s 272km long expressway had been assigned to Galfar Engineering & Contracting Co. The completion of the project would tend to form the deployment of the effective documentation and alignment of the operations. The project development would allow the integration of the construction activities for forming the final project deliverable (Muennig and Bounthavong 2016). The activities that are listed for the alignment of the construction of the expressway for the organization are being included in the project.

Conservative Approach

The project had considered the usage of the resource optimization for fixating the budget and accommodating the project activities within the fixed budget allocated for the project. The employment of the effective project management would help in easing the flow of the operations and develop effective management of the operations (Yet et al. 2016). The alignment of the project development operations would help in easing the construction of the expressway at Muscat, Oman. The project had been scheduled for completing in 426 days and there had been ad addition of 30 more days for the mobilization activities of the project. The alignment of the project activities would help in easing the development of the system development and the alignment of the operations for the integration of the activities. The project development would be supported by the integration of the operations.

The preparation of the cost budgeting is developed for the alignment of the expense listing and the calculation estimation of the project expenses. The preparation of the cost budget preparation would be based on the 4 factors like conservative approach, consultation, time management, and excellent documentation (Gregory et al. 2016). These four factors would help in easing the development of the cost budget preparation and the alignment of the successive project development operations. The construction project of Al Batinah Expressway would require the use of the mentioned principles for developing the cost budgeting by considering all expenses that would be incurred in the project. The explanation of the principles for the project of Al Batinah Expressway is given below,

Conservative Approach: The conservative approach is the most suitable approach for the development of the cost budgeting (Brodszky et al. 2014). The implication of the conservative approach would help in considering all factors of the cost that would or could occur during the course of project work. The conservative approach does not lets the cost budgeter to be optimistic and it helps in considering all the factors of project development and the alignment of the operations for forming the final project deliverable (Sears et al. 2015). The conservative approach would allow the budgeter for integration of the effective integration management. The integration would align with the formation of the operations and the alignment of the successive development operations. The analysis would be helpful for the deployment of the effective integration management. The deployment of the conservative approach would help in considering the surrogate expenses that can form the impact on the project of Al Batinah Expressway project. The material shortage, machine equipments failure, and any additional costs would be considered as provisional cost while estimating the project costs. The formation of the conservative approach would help in addition of the effective development of the project budget (Harrison and Lock 2017). It would ensure that in case of emergency, the project would have some resources for overcoming the expense for the project.

Consultation

Consultation: The consultation approach would help the budgeter for making the final project cost estimation by aligning with the formation of the operations (Boardman et al 2017). The process of consultation would help the project team or steering committee for providing some specific ideas for the development of the project budget. The consultation is the process of getting some information on the any topic from various persons so that a detailed inference can be made. The consultation of the cost budgeting method would work in the same way and it would help in accumulating information before development of the project budget. The development of the project budget for the project of Al Batinah Expressway would help in consulting with experts about the cost estimation. The budgeter would be able to get acquainted with the types of expenses that are probable for the project and form accurate project budget. For example- the consultation with the market expert would help the budgeter for getting idea of the costs that would be required for the development of the raw material cost summarization (Greene et al. 2016). The integration of the effective cost budgeting would help the integration of the smart project deliverable operations. The consultation would help in reducing the probability of missing any vital point while development of the final cost budget.

Time Management: The time management is another crucial factor that would form the impact on the development of the cost budget. According to Chhatwal et al. (2015), time plays a vital role in the development of the cost budget. The alignment of the cost estimation budget would help in forming the final project deliverable for the project. The time management is deployed for considering the project for alignment with the effective project cost estimation. The management of time would help in forming the final project deliverable and the alignment of the improved functional development. The management of the time factor would help in forming the effective development of the operations. The integration of the time management would help in considering the management of the cost budget too (Greene et al. 2016). The construction project of Al Batinah Expressway would require time management for the development of the successive integration management. For example- the time management would help in vitalizing the project of effective development model. The analysis would also help in dealing with the development of the cost estimated budget for the alignment of the final project deliverable.

Time Management

Excellent Documentation: The development of the excellent documentation would be helpful for the alignment of the effective development model (Trautman et al. 2016). The documentation of the cost budget would be helpful for forming the consideration of the advance project management operations. The documentation technique is very crucial as it would result in marking whether the developed project had covered the crucial project requirements. The development of final documents would help in easing the flow of the information for developing the effective and final project documentation. The documentation is the reporting of the outcomes in a proper structured way so that it can be used in future (Trautman et al. 2016). The documentation would be carried on for the alignment of the effective operation development. The documentation would help in easing the flow of the information for further usages. The proper documentation methods are aligned with the formation of the improved final report documentation. For example- the documentation of the cost budget would help in forming the final project deliverable successful for the alignment of the operations (Hong et al. 2016). The documentation approach is helpful for the alignment of the operations and development of the activities. The deployment of the operations would be helpful for carrying out the alignment of the successive development processes.

According to James et al. (2017), there are four types of cost estimation methods that can be implied for the calculation of the final cost of the project of Al Batinah Expressway and they are analogy, parametric, engineering, and actual costs. The cost estimation is implied for the development of the successive management operations. The cost analysis and program evaluation would help in easing the calculation for the project of Al Batinah Expressway. The cost estimation is done for the future costs that may incur for the project of Al Batinah Expressway. The cost estimation is largely based on the historical performance, cost prevailing, technical data, and schedule for the project. The study of literature by Armstrong et al. (2015) has helped in understanding that the alignment of the operations can support the development of the effective operations and development. The four estimation methods of costs had been explained below,

Analogy: The analogy is the most appropriate method of calculation of the cost for the initial period of the project (Sullivan 2014). The deployment of the operations was supported by the project lifecycle analysis. The analogy is a primitive calculation of the cost by the help of taking the cost estimated from a single point source. The method is highly efficient for the calculation of the costs in early stages of the project. The analogy cost estimation is done by adjusting analogous cost system and creation of cost factor for the overall calculation of the cost budget. The project of Al Batinah Expressway can use the calculation of the initial costs by the use of the analogy cost estimation methods. In this method, the project budgeter would have to take required data from a single point of data and form the complete estimation of the cost budget. However, it is risky process as the cost estimation might not be accurate and it would result in forming the errors in calculation (Orfanos, Wright and Munk 2016). Although the process is very fast, inexpensive, and easy to change, the estimation process is more likely to be subjective for the project costs.

Excellent Documentation

Parametric: Parametric is the statistical cost estimation process that would tend to form the evaluation of the final project deliverable (Ascione et al. 2015). The method is used for the mid period of the project lifecycle as it would help in estimating the probable errors of the estimation too. The parametric estimation is helpful for the evaluation of the effective operation development and alignment of the cost estimation methods. The process involves the application of the statistical data analysis for finding out the cost of 2 or more than 2 systems. The process is largely responsible for the development of CER estimation methods. The parametric method can be implied for the project of Al Batinah Expressway and it would help in forming the measurement of the cost across the complete program. The method is based on the use of statistical methods for calculating the overall cost of the construction project of Al Batinah Expressway. The consideration of more than single trend for the estimation of the project would help in forming less risky system for the cost estimation (Yet et al. 2016). However, the major setback of the method is that the data can be misleading and the calculation is constrained by the quality and amount of data used for the measurement.

Engineering: The Engineering is a more detail estimation process for calculating the cost budget for the project (Reyes-Uruena et al. 2017). The method is the detailed build up of the progress and project for estimation of the project costs. It is predominantly used in the late phases of the project for calculating the least value of money. The latter phase of program would tend to form the estimation of the costs for decreasing the expenses and increasing the profits. The process estimates the lowest cost level of the project activities and sums the costs entry by WBS. The summation of the costs would tend to form the estimation of the overall project budget. The Engineering cost estimation can be used for the project of Al Batinah Expressway for calculating the final cost value for the development of the activities. The calculation would help in easing the final project calculation methods and the method would help in enabling better visibility to the cost drivers (Gregory et al. 2016). However, the implication of the Engineering cost estimation method would result in the problems of slow operations, expensive operations, and intensive labour. These problems would result in hampering the development of the operations for the cost estimation methods.

Cost Estimation Methods

Actual Costs: The actual costs have resulted in the formation of the analysis of the actual costs for the alignment of the project operations. The actual cost estimation is the most appropriate method for calculating the cost and alignment of the activities for the development of the operations (Francis, Cervera and Frazeri 2017). The actual cost estimation would help in easing the analysis of the costs of the development model. The extrapolation of the current program costs is used for the calculation of the actual costs for the total budget estimation using extrapolation of program costs. The method is used for the development of the cost estimation using current program costs. The method evaluates the trend from the development of the operations and alignment of the activities for the management of the operational development. The method of actual costs would be helpful for the project of Al Batinah Expressway and it would help in forming the development of the improved activities. The implication of the cost estimation would be helpful for the analysis of the operations (Jeong, Koo and Hong 2014). However, the actual cost estimation would bring about the issues of late and slackness of operations. The adjustment of the actual costs would tend to delay the operational development and formation of the correlation issues.

According to Claxton et al. (2015), the construction of the Al Batinah Expressway is a major construction project and it would built an expressway of 272km length in Oman. It would include huge amount of $68 million for completing all the construction works and alignment of the expressway. The project is formed for the alignment of the effective management of the project activities. The contract of constructing the Oman’s 272km long expressway had been assigned to Galfar Engineering & Contracting Co. The completion of the project would tend to form the deployment of the effective documentation and alignment of the operations. The project development would allow the integration of the construction activities for forming the final project deliverable (Muennig and Bounthavong 2016). The activities that are listed for the alignment of the construction of the expressway for the organization are being included in the project. The construction activities included in the project are site development, road splitter, paving, cementing, carving, pillar works, boundary development, express way development, and alignment of the operations. The development of the construction activities would tend to form the alignment of the project operations favourable for the deployment of the effective operations. The project of Al Batinah Expressway would have to face the modifications of the operations and the alignment of the major deliverable issues. The use of traditional or modern method of construction has direct relation with the project cost (Muennig and Bounthavong 2016). The modern methods of construction is cost efficient and consumes very less amount of resources. Hence, the overall cost expended for the completion of the project activities would be altered with the inclusion or exclusion of the improved methods of construction.

Conclusion

The construction methods play a significant role in the development of the cost budget for the project. The implication of the modern methods of construction would tend to form the impact on the development of the successive project activities. The traditional project activities are being avoided due to cost saving. Bilinski et al. (2017) have stated that the modern methods consume lesser amount of resources and provide better results for the development of the construction project activities. The modern tools and equipments are cost efficient and they consume very less time for completion of the project activities. It would help in reducing the overall cost factor of the project. Moreover, the implication of the activities would also result in developing the effective operation development. The alignment of the construction safety risk procedure would reduce the probability of occurrence of health hazards for the project. It would help in forming the development of the operations and aligning the cost effective methods for the project duration (Darmon and Drewnowski 2015). The implication of the modern methods of construction would also help in reducing the effort required for the completion of the project. For example- if the paving of the road for the construction of the Al Batinah Expressway would have taken 5 days before the introduction of the modern equipments. It would only take 3 days with the help of the paving equipment and hence it would reduce the labour costs by 2 days. The rent of the machine would be negligible in compare to the two days wages of the whole worker group. Moreover, the introduction of the modern methods of construction would also help in reducing the number of persons required for any work (Pil et al. 2017). Suppose the cleaning of the road would have taken a total of 6 workers before the use of the modern methods of construction. The use of the cleaning vehicle would clean the road of Al Batinah Expressway by consuming only 2 workers. The wages of the 4 labours would be reduced in return of a nominal rent of the machine.

According to the study by Whiting et al. (2014), the project costs budget can be evaluated by the help of four estimating methodologies of analogy, parametric, engineering, and actual cost. The project of Al Batinah Expressway can use the calculation of the initial costs by the use of the analogy cost estimation methods. In this method, the project budgeter would have to take required data from a single point of data and form the complete estimation of the cost budget. The method is highly efficient for the calculation of the costs in early stages of the project (Stiglitz and Rosengard 2015). The analogy cost estimation is done by adjusting analogous cost system and creation of cost factor for the overall calculation of the cost budget. The parametric method can be implied for the project of Al Batinah Expressway and it would help in forming the measurement of the cost across the complete program. The method is based on the use of statistical methods for calculating the overall cost of the construction project of Al Batinah Expressway. The consideration of more than single trend for the estimation of the project would help in forming less risky system for the cost estimation. The method is used for the mid period of the project lifecycle as it would help in estimating the probable errors of the estimation too (Messori et al. 2018). The parametric estimation is helpful for the evaluation of the effective operation development and alignment of the cost estimation methods. The process involves the application of the statistical data analysis for finding out the cost of 2 or more than 2 systems.

References

The Engineering cost estimation can be used for the project of Al Batinah Expressway for calculating the final cost value for the development of the activities. The calculation would help in easing the final project calculation methods and the method would help in enabling better visibility to the cost drivers (Nas 2016). However, the implication of the Engineering cost estimation method would result in the problems of slow operations, expensive operations, and intensive labour. The method is the detailed build up of the progress and project for estimation of the project costs. It is predominantly used in the late phases of the project for calculating the least value of money. The latter phase of program would tend to form the estimation of the costs for decreasing the expenses and increasing the profits. The process estimates the lowest cost level of the project activities and sums the costs entry by WBS.

The method of actual costs would be helpful for the project of Al Batinah Expressway and it would help in forming the development of the improved activities. The implication of the cost estimation would be helpful for the analysis of the operations (Wetzelaer et al. 2017). The actual cost estimation is the most appropriate method for calculating the cost and alignment of the activities for the development of the operations. The actual cost estimation would help in easing the analysis of the costs of the development model. The extrapolation of the current program costs is used for the calculation of the actual costs for the total budget estimation using extrapolation of program costs. According to Dos Santos et al. (2017), the method is used for the development of the cost estimation using current program costs. The method evaluates the trend from the development of the operations and alignment of the activities for the management of the operational development.

NRM2 provides the detailed measurement that should be followed for the development of the construction works. The volume provides the guidance of the detailed measurement of the building works and the details of the operations for building work management (Wang et al. 2016). The rules set by NRM2 would address all the aspects of construction development for bill of quantities production. It also sets out the information required for the implication of the effective implication development. The construction of the activities had helped in easing the development of the operations for alignment of the operations. The guidance of the project implementation would help in easing the deployment of the operations for the alignment of the successive development model. The analogy cost estimation is done by adjusting analogous cost system and creation of cost factor for the overall calculation of the cost budget (Araujo, Goncalves and Fonseca, 2016). The parametric method can be implied for the project of Al Batinah Expressway and it would help in forming the measurement of the cost across the complete program. The method is based on the use of statistical methods for calculating the overall cost of the construction project of Al Batinah Expressway. The consideration of more than single trend for the estimation of the project would help in forming less risky system for the cost estimation (Thornton 2015). The method is used for the mid period of the project lifecycle as it would help in estimating the probable errors of the estimation too.

The various cost management tools are Profitability Analysis, Budget Plan, and Cash Flow Statement for project (Kyriopoulos et al. 2017). The project of Al Batinah Expressway would be helpful for the alignment of the operations and develop successive cost budget estimation. The project was estimated for a budget of $68million dollars. The project of Al Batinah Expressway is 272km long and it is built for the developed for the construction of the long expressway. It would include huge amount of RO26 million or $68 million for completing all the construction works and alignment of the expressway. The contract of constructing the Oman’s 272km long expressway had been assigned to Galfar Engineering & Contracting Co. The completion of the project would tend to form the deployment of the effective documentation and alignment of the operations.

Profitability Analysis: The profitability analysis is the study of the cash flows for a defined period (Russo et al. 2017). The analysis would consider the total inflow and out flow of the cash in the project for the period of 3 years. The net income and outcome of the project would be calculated by considering the overall costs of the project.

The net inflow of year 1 of the project can be calculated by adding the agreed loan of year one and client’s payment for the four quarters of the 1^st year.

$50,000 + $1,500,000 + $1,500,000 + $1,800,000

= $5,300,000

The net inflow of year 2 of the project can be calculated by adding the agreed loan of year one and client’s payment for the four quarters of the 2^nd year.

$150,000 + $3,200,000 + $1,500,000 + $1,500,000 + $11,000,000

= $18,700,000

The net inflow of year 3 of the project can be calculated by adding the agreed loan of year one and client’s payment for the four quarters of the 3^rd year.

$17,000,000 + $3,000,000 + $3,000,000 + $23,000,000

= $46,000,000

The net outflow of year 1 of the project can be calculated by adding the expenses on engineering, purchasing, construction, contingency, and escalations for 1^st year.

$140,000 + $230,000 + $240,000 + $370,000 + $170,000 + $180,000 + $190,000 + $170,000      + $1,000,000 + $190,000 + $320,000 + $480,000  + $50,000 + $780,000 + $20,000 + $310,000 + $10,000 + $240,000

= $5,090,000

The net outflow of year 2 of the project can be calculated by adding the expenses on engineering, purchasing, construction, contingency, and escalations for 2^nd year.

$260,000 + $400,000 + $150,000 + $290,000 + $1,230,000 + $190,000 + $240,000 + $2,320,000 + $1,500,000 + $340,000 + $260,000 + $4,500,000 + $1,450,000 + $350,000 + $650,000 + $3,500,000 + $250,000 + $205,000 + $90,000 + $150,000

= $18,325,000

The net outflow of year 3 of the project can be calculated by adding the expenses on engineering, purchasing, construction, contingency, and escalations for 3^rd year.

$210,000 + $360,000 + $180,000 + $8,900,000 + $180,000 + $130,000 + $340,000 + $6,470,000 + $8,900,000 + $1,400,000 + $240,000 + $1,370,000 + $6,880,000 + $890,000 + $2,040,000 + $2,880,000 + $680,000 + $215,000 + $150,000 + $2,380,000

= $44,795,000

Profitability Analysis	Year 1	Year 2	Year 3
Inflow	$5,300,000	$18,700,000	$46,000,000
Outflow	$5,090,000	$18,325,000	$44,795,000
Net Flow	$210,000	$375,000	$1,205,000
Discounting factor @5%	$10,500	$18,750	$60,250
Final Net Flow	$199,500	$356,250	$1,144,750
Cumulative Net Flow	$199,500	$555,750	$1,700,500

Budget Plan: The budget plan had been made considering the expenses of the project activities for engineering, purchases, construction costs, contingency costs, and escalation costs of the project. The development of the project budget plan for the project is shown below,

The total cost of engineering can be calculated by summing the cost of engineering for all four quarters of 1^st year, all four quarters of 2^nd year, and all four quarters of 3^rd year.

$140,000.00 + $230,000.00 + $240,000.00 + $370,000.00 + $260,000.00 + $400,000.00 + $150,000.00 + $290,000.00 + $210,000.00 + $360,000.00 + $180,000.00 + $8,900,000.00            = $11,730,000.00

The total cost of purchases can be calculated by summing the cost of purchases for all four quarters of 1^st year, all four quarters of 2^nd year, and all four quarters of 3^rd year.

$170,000.00 + $180,000.00 + $190,000.00 + $1,230,000.00 + $190,000.00 + $240,000.00 + $2,320,000.00 + $180,000.00 + $130,000.00 + $340,000.00 + $6,470,000.00           

= $11,640,000.00

The total cost of construction can be calculated by summing the cost of construction for all four quarters of 1^st year, all four quarters of 2^nd year, and all four quarters of 3^rd year.

$170,000.00 + $1,000,000.00 + $190,000.00 + $1,500,000.00 + $340,000.00 + $260,000.00 + $4,500,000.00 + $8,900,000.00 + $1,400,000.00 + $240,000.00 + $1,370,000.00  

= $19,870,000.00

The total cost of contingency can be calculated by summing the cost of contingency for all four quarters of 1^st year, all four quarters of 2^nd year, and all four quarters of 3^rd year.

$320,000.00 + $480,000.00 + $50,000.00 + $780,000.00 + $1,450,000.00 + $350,000.00 + $650,000.00 + $3,500,000.00 + $6,880,000.00 + $890,000.00 + $2,040,000.00 + $2,880,000.00  

= $20,270,000.00

The total cost of escalation can be calculated by summing the cost of escalation for all four quarters of 1^st year, all four quarters of 2^nd year, and all four quarters of 3^rd year.

$20,000.00 + $310,000.00 + $10,000.00 + $240,000.00 + $250,000.00 + $205,000.00 + $90,000.00 + $150,000.00 + $680,000.00 + $215,000.00 + $150,000.00 + $2,380,000.00           

= $4,700,000.00

Cost	Value
Cost of Engineering	$11,730,000
Purchases	$11,640,000
Construction Cost	$19,870,000
Contingency Cost	$20,270,000
Escalation Cost	$4,700,000
Total Cost	$68,210,000

Quarterly Cash flow
	2017-2018	2018-2019	2019-2020
	1	2	3	4	1	2	3	4	1	2	3	4
Cash Inflow
Agreed Loans	$500,000				$1,500,000								$2,000,000
Client’s payment		$1,500,000	$1,500,000	$1,800,000	$3,200,000	$1,500,000	$1,500,000	$11,000,000	$17,000,000	$3,000,000	$3,000,000	$23,000,000	$68,000,000
Total Inflow	$500,000	$1,500,000	$1,500,000	$1,800,000	$4,700,000	$1,500,000	$1,500,000	$11,000,000	$17,000,000	$3,000,000	$3,000,000	$23,000,000	$70,000,000
Cash outflow
Engineering	$140,000	$230,000	$240,000	$370,000	$260,000	$400,000	$150,000	$290,000	$210,000	$360,000	$180,000	$8,900,000	$11,730,000
Purchasing		$170,000	$180,000	$190,000	$1,230,000	$190,000	$240,000	$2,320,000	$180,000	$130,000	$340,000	$6,470,000	$11,640,000
Construction		$170,000	$1,000,000	$190,000	$1,500,000	$340,000	$260,000	$4,500,000	$8,900,000	$1,400,000	$240,000	$1,370,000	$19,870,000
Contingency	$320,000	$480,000	$50,000	$780,000	$1,450,000	$350,000	$650,000	$3,500,000	$6,880,000	$890,000	$2,040,000	$2,880,000	$20,270,000
Escalation	$20,000	$310,000	$10,000	$240,000	$250,000	$205,000	$90,000	$150,000	$680,000	$215,000	$150,000	$2,380,000	$4,700,000
Total Outflow	$480,000	$1,360,000	$1,480,000	$1,770,000	$4,690,000	$1,485,000	$1,390,000	$10,760,000	$16,850,000	$2,995,000	$2,950,000	$22,000,000	$68,210,000
Net Flow
Periodic Flow	$20,000	$140,000	$20,000	$30,000	$10,000	$15,000	$110,000	$240,000	$150,000	$5,000	$50,000	$1,000,000
Cumulative	$20,000	$160,000	$180,000	$210,000	$220,000	$235,000	$345,000	$585,000	$735,000	$740,000	$790,000	$1,790,000

Value Engineering is an advanced method of systematically increasing the value of the goods/ services by implying examination function (Ferrufino et al. 2017). The inclusion of the value analysis is the most effective way of calculating the expected value of the systematic development. The cost of the services or products is affected by a number of factors and hence, the use of value engineering would help in keeping the value of the products or services intact. It might even help in increasing the value to some extent. The methods of value engineering are functional analysis, standardization of components, alternatives of functions, value cost analysis, and re-engineering (Kerzner and Kerzner 2017). The following of these methods would help in implementing the value engineering concept for the project of Al Batinah Expressway.

Functional Analysis: The functional analysis is helpful for the analysis of the components of the construction projects and forms the major intake of the development of the successive integration model. The analysis of the functions of the project would also help in easing the construction activities and develop an understanding of the successive development model (Shen et al. 2015). The functional analysis would also help in forming the modification of the operations for the analysis of the integration model. The analysis of the functions of the development would help the increment or decrement of the activities and the alignment of the operations favourable for the listing of the operations.

Standardization of components: The standardization of the components would help in easing the development of the successive management of operations. The synthesis of the components would be aligned for the development and the alignment of the operations for the integration of the operations and it would be helpful for the deployment of the operations (Harrison and Lock 2017). The deployment of the standardization would help in easing the development. The development of the standardization of the components would be implied for increasing the profitability of the operations. The deployment would help in easing the management of the operations and alignment of the successive development model. The increment of the operations would be integrated for the deployment of the effective operation and development of integration. The management of the activities would help in scheduling the deployment of activities and alignment of the operations.

Alternatives of Function: The alternatives of the function are developed for aligning with the development of the improved activities and formation of the support and integration of the operations (Sears et al. 2015). The functions required in the development of the operations would help in forming the management of the operations of successive development operations. The alignment of the operations would help in easing the development of the aligned operations. The alternative function alignment would be helpful in forming the deployment of the activities. The alignment of the functions would tend to align the functional development. The alternatives would help in easing the deployment of the operations.

Value Cost Analysis: The value cost analysis would help in forming the development of the operations and form the development of the successive alignment of operations. The value cost analysis would help in easing the development of the value cost analysis and the alignment of the operations (Brodszky et al. 2014). The analysis of the value cost would help in easing the management of the activities and the sincere alignment of the activities for development of the operations. The value cost analysis is done for ensuring that the program management would help in forming the development of the analysis of the value of the materials used.

Re-Engineering: The re-engineering is used for the analysis of the effective and improved system development (Burtonshaw-Gunn 2017). The reengineering of the objectives would help in forming the deployment of the existing functions and form the improved functional development of the operations that are helpful for the alignment of the inclusive activities. The re-engineering would allow the formation of the operations and alignment of the successive deployment of the operations. The re-engineering would help in forming the supplementary deployment of the effective operation development. The re-engineering process would help in easing the implication of the operations.

Conclusion

It can be concluded from the assignment that the role of cost budget development had been helpful for the alignment of the activities and development of the successive and effective development of the operations. The major factors that had helped in forming the management of the effective integration for the alignment of the successive development were assigned for the deployment of the operations. The cost budget estimation had helped in forming the analysis of the costs that had been incurred in the project. The report had highlighted that the preparation of the cost budget preparation was based on the 4 factors like conservative approach, consultation, time management, and excellent documentation. The four types of cost estimation methods that were implied for the calculation of the final cost of the project of Al Batinah Expressway and they are analogy, parametric, engineering, and actual costs. The study had helped in analysing these methods for the evaluating the cost estimation of the project. The study inferred that the   modern methods of construction is cost efficient and consumes very less amount of resources. Hence, the overall cost expended for the completion of the project activities would be altered with the inclusion or exclusion of the improved methods of construction. The rules set by NRM2 had addressed all the aspects of construction development for bill of quantities production. It had also set out the information required for the implication of the effective implication development. The various cost management tools were Profitability Analysis, Budget Plan, and Cash Flow Statement for project. The methods of value engineering were functional analysis, standardization of components, alternatives of functions, value cost analysis, and re-engineering.

The implication of the effective operations and cost budget estimation for the development of the operations had been helpful for the improved operations of the Al Batinah Expressway. The following recommendations can be implied for the alignment of the operations and development of the successive integration methods.

Utilization of SDLC: The implication of SDLC would help in developing effective design of Al Batinah Expressway for the alignment of the architecture design development.

Implication of Project Management Principles: The project management principles would help in easing the project operations of Al Batinah Expressway.

Alignment of Operation Development: The operation development would help in forming the successive alignment of Al Batinah Expressway project.

References

Araújo, F., Gonçalves, J. and Fonseca, J.E., 2016. SAT0581 Cost Savings with Biosimilars in Rheumatology: A Systematic Literature Search of Budget Impact Analysis. Annals of the Rheumatic Diseases, 75, p.879.

Armstrong, S., Amorosi, S.L., Erickson, G., Patel, P. and Stein, K., 2015. Medicare beneficiary out-of-pocket spending for stroke prevention in non-valvular Atrial Fibrillation: a budget analysis. Value in Health, 18(3), p.A40.

Ascione, F., Bianco, N., De Stasio, C., Mauro, G.M. and Vanoli, G.P., 2015. A new methodology for cost-optimal analysis by means of the multi-objective optimization of building energy performance. Energy and Buildings, 88, pp.78-90.

Bilinski, A., Neumann, P., Cohen, J., Thorat, T., McDaniel, K. and Salomon, J.A., 2017. When cost-effective interventions are unaffordable: Integrating cost-effectiveness and budget impact in priority setting for global healthcare programs. PLoS medicine, 14(10), p.e1002397.

Boardman, A.E., Greenberg, D.H., Vining, A.R. and Weimer, D.L., 2017. Cost-benefit analysis: concepts and practice. Cambridge University Press.

Brodszky, V., Baji, P., Balogh, O. and Péntek, M., 2014. Budget impact analysis of biosimilar infliximab (CT-P13) for the treatment of rheumatoid arthritis in six Central and Eastern European countries. The European Journal of Health Economics, 15(1), pp.65-71.

Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. Routledge.

Chhatwal, J., Kanwal, F., Roberts, M.S. and Dunn, M.A., 2015. Cost-effectiveness and budget impact of hepatitis C virus treatment with sofosbuvir and ledipasvir in the United States. Annals of internal medicine, 162(6), pp.397-406.

Claxton, K., Martin, S., Soares, M., Rice, N., Spackman, E., Hinde, S., Devlin, N., Smith, P.C. and Sculpher, M., 2015. Methods for the estimation of the National Institute for Health and Care Excellence cost-effectiveness threshold. Health technology assessment (Winchester, England), 19(14), p.1.

Darmon, N. and Drewnowski, A., 2015. Contribution of food prices and diet cost to socio economic disparities in diet quality and health: a systematic review and analysis. Nutrition reviews, 73(10), pp.643-660.

Dos Santos, R.F., Alves, F., Urbich, M., Villa, G. and Farsky, P.S., 2017. Budget Impact Analysis Of Adopting Evolocumab In The Brazilian Private Healthcare System For Patients With Uncontrolled LDL-C And High Cardiovascular Risk. Heart failure, 2(1.9), pp.0-5.

Ferrufino, C., Kowal, S., Morris, L., Patel, K., Falla, E. and Bouchet, C., 2017. Budget Impact Analysis of Supra-Ciliary Microstent Device Utilization In Primary open Angle Glaucoma Patients In A Spanish Hospital Outpatient Setting. Value in Health, 20(9), p.A577.

Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.

Francis, D.B., Cervera, M.A. and Frazeri, G.J., 2017, August. Radar sensitivity budget analysis for a network of skywave over-the-horizon radars. In General Assembly and Scientific Symposium of the International Union of Radio Science (URSI GASS), 2017 XXXIInd (pp. 1-4). IEEE.

Greene, J.P., Kyaw-Tun, L.W., Rahman, R., Che Othman, E., Hassan, A., Mohamed, M., Akhtar, M., Owen, J., Bertuzzi, A., Walshe, J. and McDermott, R., 2016. Cost effectiveness of therapeutic clinical trials for the Irish Health Service Executive: A single centre analysis of hospital and state budget cost savings.

Gregory, D., Scotti, D.J., Buck, D. and Triadafilopoulos, G., 2016. Budget Impact Analysis to Estimate the Cost Dynamics of Treating Refractory Gastroesophageal Reflux Disease With Radiofrequency Energy: a Payer Perspective. Managed care (Langhorne, Pa.), 25(5), pp.42-50.

Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.

Hong, N.J.L., Clarke, G.M., Yaffe, M.J. and Holloway, C.M., 2016. The cost of accuracy: A budget impact analysis of whole-mount histopathology processing for patients with breast cancer undergoing breast conservation. Journal of Cancer Policy, 9, pp.1-7.

James, E., Trautman, H., Szabo, E. and Tang, B., 2017. Budget Impact Analysis of Switching Chemotherapy Patients Using Granulocyte Colony-Stimulating Factors (G-CSFs) from Pegfilgrastim to Short-Acting G-CSFs in the United States.

Jeong, K., Koo, C. and Hong, T., 2014. An estimation model for determining the annual energy cost budget in educational facilities using SARIMA (seasonal autoregressive integrated moving average) and ANN (artificial neural network). Energy, 71, pp.71-79.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kyriopoulos, D., Tsiantou, V., Papageorgiou, L., Theodoropoulou, F. and Athanasakis, K., 2017. Cost-Minimization and Budget Impact Analysis of Rituximab SC VS Rituximab IV for Non-Hodgkin’s Lymphoma (NHLs) in Greece. Journal of Cancer Therapy, 8(08), p.726.

Lock, D., 2017. The essentials of project management. Routledge.

Luo, Y., Zheng, B., Fang, Y. and Yin, X., 2016. Effects of Relationship and Contract Governance on Construction Project Performance: Review and Prospects. In ICCREM 2015 (pp. 639-649).

Martínez-Rojas, M., Marín, N. and Vila, M.A., 2015. The role of information technologies to address data handling in construction project management. Journal of Computing in Civil Engineering, 30(4), p.04015064.

Messori, A., Peyvandi, F., Trippoli, S., Palla, R., Rosendaal, F.R. and Mannucci, P.M., 2018. High-titre inhibitors in previously untreated patients with severe haemophilia A receiving recombinant or plasma-derived factor VIII: a budget-impact analysis. Blood Transfusion, 16(2), p.215.

Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), pp.202-217.

Muennig, P. and Bounthavong, M., 2016. Cost-effectiveness analysis in health: a practical approach. John Wiley & Sons.

Nas, T.F., 2016. Cost-benefit analysis: Theory and application. Lexington Books.

Orfanos, P., Wright, E.J. and Munk, V.C., 2016. A Budget Impact Analysis to Estimate The Economic Consequences Of Introducing The Combination of Avastin+ Tarceva for The Treatment of First Line Epidermal Growth Factor (EGFR) Metastatic Non-Small Cell Lung Cancer (NSCLC). Value in Health, 19(7), p.A720.

Pil, L., Hoorens, I., Vossaert, K., Kruse, V., Tromme, I., Speybroeck, N., Annemans, L. and Brochez, L., 2017. Cost-effectiveness and budget effect analysis of a population-based skin cancer screening. JAMA dermatology, 153(2), pp.147-153.

Reyes-Urueña, J., Campbell, C., Diez, E., Ortún, V. and Casabona, J., 2017. Can we afford to offer pre-exposure prophylaxis to MSM in Catalonia? Cost-effectiveness analysis and budget impact assessment. AIDS care, pp.1-9.

Russo, V., Rago, A., Papa, A.A., Bianchi, V., Tavoletta, V., DE, S.V., Cavallaro, C., Nigro, G. and D’Onofrio, A., 2017. Budget impact analysis of rivaroxaban vs warfarin anticoagulation strategy for direct current cardioversion in non-valvular atrial fibrillation patients: the MonaldiVert economic study. Minerva cardioangiologica.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Sears, S.K., Sears, G.A., Clough, R.H., Rounds, J.L. and Segner, R.O., 2015. Construction project management. John Wiley & Sons.

Shen, Y., Tuuli, M.M., Xia, B., Koh, T.Y. and Rowlinson, S., 2015. Toward a model for forming psychological safety climate in construction project management. International journal of project management, 33(1), pp.223-235.

Stiglitz, J.E. and Rosengard, J.K., 2015. Economics of the Public Sector: Fourth International Student Edition. WW Norton & Company.

Sullivan, S.D., Mauskopf, J.A., Augustovski, F., Caro, J.J., Lee, K.M., Minchin, M., Orlewska, E., Penna, P., Barrios, J.M.R. and Shau, W.Y., 2014. Budget impact analysis—principles of good practice: report of the ISPOR 2012 Budget Impact Analysis Good Practice II Task Force. Value in health, 17(1), pp.5-14.

Thornton, J.D., 2015. Re: Saunders R, Lian J, Karolicki B, Valentine W. The cost-effectiveness and budget impact of stepwise addition of bolus insulin in the treatment of type 2 diabetes: evaluation of the FullSTEP trial. J Med Econ 2014; 17 (12): 827-36. Journal of medical economics, 18(6), pp.433-434.

Trautman, H., Szabo, E., Lo-Coco, F., James, E., Gabriel, S., Zhou, J., Pathak, A. and Tang, B., 2016. Budget impact analysis of treating chemotherapy patients with health care provider-administered Tbo-Filgrastim, Filgrastim-Sndz, and Filgrastim in the United States.

Trautman, H., Szabo, E., Lo-Coco, F., James, E., Gabriel, S., Zhou, J., Pathak, A. and Tang, B., 2016. Budget Impact Analysis of Treating Chemotherapy Patients with Patient-Administered Tbo-Filgrastim, Filgrastim-Sndz, and Filgrastim in the United States.

Walker, A., 2015. Project management in construction. John Wiley & Sons.

Wang, Z., Pearce, S.J., Lin, Y.C., Zervas, M.N., Bartlett, P.N. and Wilkinson, J.S., 2016. Power budget analysis for waveguide-enhanced Raman spectroscopy. Applied spectroscopy, 70(8), pp.1384-1391.

Wetzelaer, P., Lokkerbo, J., Arntz, A., van Aselt, T., Smit, F. and Evers, S., 2017. Cost-effectiveness and Budget Impact of Specialized Psychotherapy for Borderline Personality Disorder: A Synthesis of the Evidence. Journal of Mental Health Policy and Economics, 20(4), pp.177-190.

Whiting, P., Al, M., Burgers, L., Westwood, M., Ryder, S., Hoogendoorn, M., Armstrong, N., Allen, A., Severens, H. and Kleijnen, J., 2014. Ivacaftor for the treatment of patients with cystic fibrosis and the G551D mutation: a systematic review and cost-effectiveness analysis.

Xie, X., Schaink, A., Wang, M. and Krahn, M., 2015. Pulmonary Rehabilitation for Postacute Exacerbations of Chronic Obstructive Pulmonary Disease (COPD): A Cost-Effectiveness and Budget Impact Analysis. Health Quality Ontario.

Yet, B., Constantinou, A., Fenton, N., Neil, M., Luedeling, E. and Shepherd, K., 2016. A Bayesian network framework for project cost, benefit and risk analysis with an agricultural development case study. Expert Systems with Applications, 60, pp.141-155.

Zheng, X., Le, Y., Chan, A.P., Hu, Y. and Li, Y., 2016. Review of the application of social network analysis (SNA) in construction project management research. International journal of project management, 34(7), pp.1214-1225.