Task-03

The Strategic Forum Olympic Task Group requests you to provide a budget for the entire project for organizing funds. What is the preliminary estimating technique/s you would choose estimate the cost of the whole project? Give for your selection. The primary function of approximate or preliminary estimating is to produce a forecast of the probable cost of future project. The following methods are normally used for early price estimating although they are sometimes referred to as approximate methods. Estimating technique can be classified as below; Single Rate Method Conference estimate Financial method Unit method Superficial area method Superficial Perimeter method Cube rules Story enclosure method Multi Rate Method Approximate quantities Elemental estimation Cost modeling

I selected those Unit method superficial area method and approximate quantities methods for our Olympic venues construction. Unit method This method seeks number of beds or seats or etc., and we want the previous data for this same method estimation. In our case gave the seats numbers (80,000 seats). And also I can get the previous data from Beijing Olympic stadium. And this method can be used Functional building. The reason for select this method Easy to understand and remember Useful method for estimating the cost limit / budget We have seats numbers and previous data for adjustment Estimate = seats of an accommodation x cost / unit. Superficial area method - In this method the total floor area of the Olympic venues on all floors is measured between the internal faces of the enclosing external walls, with no deductions for internal walls, partitions, stairs, landings, and passages. This Method depends on square Area of the building. The reason for select this method It is fairly readily understood by a Sri Lankan government Most published cost data is expressed in this form Easier to adjust for varying storey height other than other method Rapid method. So client can decide his decision earlier Estimate = gross floor area x unit cost (cost/m2). Approximate quantities method - Approximate quantities priced at rates produced at the time the quantities are computed provide the most reliable method of approximate estimating, possibly using a single price rate method as a check. It does however involve more work that any of the other methods and there are occasions when lack of information precludes its use. Composite price rate items are obtained by combining or grouping bill items. The reason for select this method fairly detailed More accurate than other methods Uses composite items
These are the preliminary estimation method we can select, but the most suitable method is approximate

quantities method other than two. But we can use these three preliminary estimation methods also.

Task-06
Construction of the main stadium was planned to start on august 2009 and complete by august 2013. Due to the request of the Sri Lankan government, the organizing committee has to start the project on 01st week of July 2010. Explain how this could affect the post contract cost control functions. Note: Answers should be concise directly addressing the question and unnecessary reproduction of theories will lead to lower grades The project which was five years had be expedited by 11 months. According this way the project duration has been reduced from five years to four years and one month. This will surely affect the cost of the project and the post contract cost control functions because when the duration is reduced the amount of financial commitment by the client is affected inversely. This not only affect cost of the Project but also the post contract cost of the post contract cost control. The main method used to control the post contract costing depends on the selection of the contractor and in determining the prices. The main aim of the contractor is to maximize his project while the client is founding on whether he is getting the maximum output for the money he has invested. The post cost controlling affects all portion of the project. Because the tender sum has to be received accordingly to the change occurred. The type of the contract has to be changed and also the contract has to be changed and also the numbers of suppliers and sub-contractors have to be changed. The letter of quotation has to be received and large quantities of goods have to be purchased at one order. The design has been changed and also the specification has to change. The bills of quotation have to receive changing all the contacts of bills of quantities such as Prime cost sum and provisional sum. The Design approved by the authorities and also should considered client requirements if any additional work could be removed from the present design. The financial control starts from inception and continues until the final certificate is issued by the architect. The factors affecting the costs are the methods used for selection of contractor, determination of prices for both the tender sum and the final account. The methods used for selecting the contractor and for determining the price are constantly under review. The post control cost includes the followings they are interim valuations, certificates for payments, cash flow control, budget control, financial statements, analyzing the current and future final costs for the project, final account and the agreement of the final certificate and the settlement of claims. Interim valuations Certificates for payments Cash flow control Budget control Financial statements Analyzing the current and future final costs for the project Final account The agreement of the final certificate and the settlement of claims Attendance at site meetings Preparation of documentation for sub contractors and suppliers, Examining of quotation and invoices Advising on contractual implication Negotiation Preparation special reports on cost implication