Scenario Creatinno One Developments Limited (Client) would like to invest and develop a Residential Condominium Project on a piece of land acquired in Singapore recently. The Client has engaged your...

Introduction: The client, Creatinno One Developments Limited required our consultancy services for assessing the elemental cost of the project named as develop a Residential Condominium Project on a piece of land acquired in Singapore recently. For that client provided to us the plan layout along with some design sketch diagram, which is incomplete. So that certain assumption required to be taken in order to complete this task. Due to budgetary constraints of the client, the aim of client seems to know about how much investment is required, if executed. Gross internal area is assessed with elemental unit of various items. Based on the information provided by you, the detailed report of cost plan has been prepared by elemental cost estimating approach, though different method of estimation are given in literature.
The various factors like building cost index, cost escalation, contingencies, added in the schedule of rate while preparing the report.
Necessary changes if needed should be made in the report before the date of tender.
Literature review:
Study being carried out about various cost estimate methods with the aim to select a viable method of cost estimation amongst the different method available. Some of the methods are presented below.
i) Unit Valuation Method:
This is preliminary method of cost estimate. This is adopted when a client asked a preliminary general estimate for a building project, if undertaken in execution.
The basis of the estimate is number of persons or units of accommodation whatever so should occupy in proposed project. The total estimated cost of the proposed building is given by following formulae
The total estimate cost = No. of repetitive unit X rate per unit. The method look likes a very simple but the cost computation of a single unit is extremely difficult.
ii) Floor Area Method:
This method of cost estimation is totally relying on calculating total floor area. The construction cost is derived from the cost per square meter of sample projects. To get estimated cost for the proposed project, unit rate should be multiplied with the total gross floor area (GFA) of the proposed project. In this method, cost derived is only for the building construction cost so there is a need to include the costing for other factor separately including the costing of preliminary, piling, mechanical & electrical works, external works and contribution to Local Authority to get more accurate estimates.
There is a vide variation seen in the definition of gross floor area. Some expert says that the gross floor area of all floors (GFA) measured to the outside of containing walls. (Pratt 2004). Some say that total floor area of the building on all floors is measured between the internal faces of the enclosing external walls, and it includes internal walls, partitions, columns, stairs, chimney breasts, lift shafts, corridors and the like. (Ibrahim, 2006)
Some adopted the floor Area shall mean the gross floor area of all enclosed spaces fulfilling the functional requirements of the building measured flat on plan to the internal face of the enclosing walls (PWD notes for ATDA format)
There are two ways of getting gross floor area (GFA) of a...