type of cost model

8/20/2019 Type of Cost Model

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TYPE OF COST MODEL

1. Traditional model

a) Functional unit

Definition Advantage Diadvantage Functional unit met!od

etimating conit of c!ooinga tandard unit ofaccommodation andmulti"l#ing an a""ro$imatecot "er unit

Etimate % Standard unit of

accommodation $ cot&unit

For e$am"le'i. Sc!ool( univeritie( college

cot "er tudentii. *otel( !o"ital cot "er +ediii. ,oad cot "er -ilometeriv. Car "ar cot "er car

T!e te!ni/ue i +aed on t!e

fact t!at t!ere i uuall# omecloe relation!i" +et0een t!ecot of a contruction "roect

and t!e num+er of functionalunit it accommodate.

Functional unit are t!oe

factor 0!ic! e$"re t!eintended ue of t!e +uilding +etter t!an an# ot!er

More accurate t!an

im"le u"erficialmet!od

2o "u+li!ed cot

data

2ot ueful for 3one

off 4 "roect 5eful onl# for

client +od# involvedin continuou andconitent "rogramof imilar "roect

+) Su"erficial unit

Definition Advantage Diadvantage

6n Su"erficial unit met!odetimating( t!e area of eac!floor i meaured and t!enmulti"lied +# t!e cot "er/uare metre.

6n order to "rovide

com"ara+ilit# +et0een variou

5nit i meaningfulto all "artie

Mot cot data i

"u+li!ed in 7&m8 Etimate are

/uicl# and eail# "re"ared

Difficult to allo0 for effect of deigndeciion uc! a "lan !a"e( tore#!eig!t /ualit#( etc

Se"arate allo0ance

mut +e made for ite 0or and


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ground

e) A""ro$imate ?uantit#


A""ro$imate /uantit# met!odetimating i to etimate t!ecot to t!e em"lo#er of t!eirdeired c!eme

6t uual to +ae t!e "ricing of

uc! etimate on !itoricalcot data gleaned from t!eanal#i of t!e cot of imilar +uilding aduted to accountfor an# fluctuation in "rice

level and for "roectidio#ncraie

T!e accurac# of t!e etimate

0ill +e influenced +# t!e tateof t!e deign information( +ot!dra0ing and "ecificationnote

Mot accuratemet!od

Sim"le( relia+le

and accuratemet!od

Can clearl# reflect

adutment of/uantit# and&or/ualit#

Cot data readil#

availa+le

Timeconuming A""lica+le onl# to

+uilding 0or A""lica+le onl# in

later tage of cot "lanning

f) Elemental Cot Anal#i

Definition Advantage Diadvantage 6n Elemental met!od of

etimating( t!e +uilding idivide into element uc! afoundation( tructural frame(e$ternal envelo"e( internaldiviion( floor fini!e( etc.Eac! element i u+ dividedinto com"onent.

A rate i calculated for t!e

com"onent +# +reaing t!ecom"onent u" into itindividual item to +e "riced "er meaura+le unit of t!ecom"onent.

For e$am"le' A la+ can +e

+roen u" into concrete(

Fle$i+le( ada"ta+le

met!od( uited toStage @( C and D

Eail# undertood

+# all "artie Facilitate

com"arion +et0een "roect

Facilitate anal#i

of cot im"lication

of deign deciion

Timeconuming

*ig! level of

e$"ertie re/uired


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reinforcement( form0or( and "o0er floating.

Format of element code'

i. Element grou" ued in Stage

@ Outline Pro"oalii. 6ndividual element ued in

Stage C Setc! Deign andStage D Tender Document

g) @ill of ?uantitie


T!e +ill of /uantitie i a

document "re"ared +# t!e cotconultant =often a /uantit#

urve#or) t!at "rovide "roect"ecific meaured /uantitie of t!e item of 0or identified +#t!e dra0ing "ecificationin t!e tender documentation.

T!e /uantitie ma# +e

meaured in num+er( lengt!(area( volume( 0eig!t or time.

Pre"aring a +ill of /uantitie

re/uire t!at t!e deign icom"lete and a "ecification!a +een "re"ared.

Provide a conitent

+ai forcom"etitive +id o

t!at t!e contractor0!o i t!e motefficient and t!eleat e$"enive in "roviding t!e itemof 0or i liel# to +e commiionedfor t!e o+.

Provide an o"en

+ai for t!econtractB t!e client

"rovide ane$tenive and cleartatement of t!e0or !e&!ere/uire and t!econtractor tate t!e "rice at 0!ic!!e&!e i "re"aredto undertae t!e o+.

Provide a ver#

trong +ai forfinancialadminitration oft!e contract.

Timeconuming

8) 2ontraditional Model

a) Statitical&Econometric Model


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Anal#e cot 0it!in a relevant range( 0!ic! i t!e limit 0it!in 0!ic! a cot

etimate ma# +e valid. ,elevant range for a "roection i uuall# +et0een t!e u""er and lo0er limit

=+ound) of "at activit# level for 0!ic! data i availa+le.

regreion anal#i


6n tatitical modeling(

regreion anal#i i atatitical "roce foretimating t!e relation!i"among varia+le

6t include man# tec!ni/ue

for modeling and anal#ing

everal varia+le( 0!en t!efocu i on t!e relation!i" +et0een a de"endent varia+leand one or more inde"endentvaria+le

T!e etimate of t!e

unno0n "arameter o+tainedfrom linear leat/uare regreionare t!e o"timal

Etimate from a

+oard cla of

"oi+le "arameteretimate under t!euual aum"tionare ued for "rocemodeling

6t ue data ver#

efficientl#. oodreult can +eo+tained 0it!relativel# mall dataet

T!e t!eor#aociated 0it!linear regreion i0ellundertoodand allo0 forcontruction ofdifferent t#"e ofeail#inter"reta+letatitical intervalfor "rediction(cali+ration and

o"timiation

Out"ut of

regreion can lieoutide of t!e range(1G

6t !a limitation in

t!e !a"e t!atlinear model canaume over long

range T!e e$tra"olation

"ro"ertie 0ill +e "oi+l# "oor

6t i ver# enitive to

outlier 6t often give

o"timal etimate oft!e unno0n "arameter

caual model


Etimating a""roac! +aed on

t!e aum"tion t!at futurevalue of varia+le i a

,eliance on

!itorical data irelativel#

,eliance on

!itorical data ma# +e t!e onl# readil#


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mat!ematical function of t!evalue of ot!er varia+le=)

5ed 0!ere ufficient

!itorical data i availa+le( and

t!e relation!i" =correlation) +et0een t!e de"endentvaria+le to +e forecated andaociated inde"endentvaria+le=) i 0ell no0n

Alo called caual forecating

model

ine$"enive Com"utational tool

allo0 for more datato +e ued t!an fornontatitical

met!od

availa+le( coteffective +ai foretimating cot

Anal#t mut +e

alert to cotactivit#

c!ange

+) ,i&Simulation Model

A imulation model tae t!e form of a et of aum"tion a+out t!e o"eration of t!e

#tem( e$"reed a mat!ematical or logical relation +et0een t!e o+ect of interet

in t!e #tem

Monte Carlo imulation


Com"utation intenive

forecating tec!ni/ue a""lied0!ere tatitical anal#i ie$tremel# cum+erome due tot!e com"le$it# of a "ro+lem=uc! a /ueuing or 0aitingline "ro+a+ilitie( orinventorie involving millionof item).

5ed onl# 0!ere t!e "ro+lem

!a a c!ance =random)com"onent( and i u+ect toun"redicta+le influence( itimulate =model) a ituationon t!e +ai of current and "at=!itorical) data.

6n t!e imulation "roce( it

com"ute an e/uation

Straig!tfor0ard and

fle$i+le Com"uter oft0are

mae imulationmodel ea# todevelo"

Ena+le anal#i of

large( com"le$(real0orldituation

Doe not interfere

0it! real 0orld

#tem Ena+le tud# of

interaction Ena+le time

com"reion Ena+le t!e

incluion of real0orld

Often re/uire long(

e$"enivedevelo"ment "roce

Doe not generate

o"timal olutionB iti a trialanderrora""roac!

,e/uire manager

to generate allcondition andcontraint of real

0orld "ro+lem


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=mat!ematical model)t!ouand or million of time(eac! time inecting randomnum+er to come u" 0it! arange of "oi+ilitie or

outcome of "oi+le action.

Larger t!e num+er of

com"utation( t!e greater t!e "ro+a+ilit# =according to t!ela0 of large num+er) ofa""ro$imating t!e futureevent"rovided t!e ma$imumamount of no0ndata iincor"orated into t!e model

com"lication


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a""ro"riate 0a# foratif#ing t!etae!older needand 0ant

inconitent ue of


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6n t!e field of artificial

intelligence( neurofu#refer to com+ination ofartificial neural net0or and

fu# logic

T!e c!ance of

error are almot niland greater andaccurac# i

ac!ieved 5tilied in carr#ing

out re"etitive andtimeconumingta efficientl#

Ena+le to tore

enormou amountof data

Cot incurred in t!e

maintenance andre"air

type of cost model

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