Building Economic

The only assignment of this subjects is basically to update a cost plan and compare such cost plan to lowest tender received. After we have updated the cost plan, we were asked to spot out any potential bills, which later to be reduced to lower estimated cost without changing any designs and specifications.

We used to similar past year projects' ECA (Elemental Cost Analysis) to compare with our current updated cost plan. We found out that our Provisional Sums and Contingency Sums in our cost plan is 2 times higher compared to similar past year projects. So, we made the adjustment for both provisional sums and contingency sums and managed to bring down overall estimated cost up to 7.56%.

The following part of assignment is not an easy task, our group has a lost our direction at first after we just completed update and adjust our cost plan. We are not sure how to compare the new updated cost plan with the lowest tender which we received after the tender been issued out.

Then, we working at our best to find the solution for this matter like discussing with others group, asking our lecturer and etc. Finally, based on limited given information, we choose to work "backward" for comparing our own cost plan with the lowest tender.

From the comparison process, we learned several scenarios could be happen if the gaps between our own cost plan with lowest tender. Such scenarios can be like the price of reinforcement steel has increased once we have issued out the tender to tenderer, thus the tenderers have submitted with higher building structural cost and others work items cost which affected by such increment price of the reinforcement steel.

Conclusion, these assignment works assisted us to set up strong basic ground for us to have more understanding these process, like which to be added into consideration and which to be excluded.