OBJECTIVE

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To introduce members of the public who are involved with building projects to certain of the cost implications of design variables so as to enable them to evaluate and implement a rudimentary cost benefit approach to future projects.

BACKGROUND TO THE PROBLEM

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Let us look at a practical problem which has cropped up many times in the past and, I am sure, you have come across as well.

Buildings A and B are designed to meet the same needs i.e. both are office blocks or hotels, shops, houses, etc., yet when comparing the costs per m² of floor area, we find that Building A costs say R10,000/m² while Building B only costs R7,500/m². Further analysis shows that they have the same external and internal finishes with similar roof and floor constructions. In fact there seems no apparent reason why the rates should not be exactly the same.

This exercise is meant as a guide to enable you to explain such discrepancies in a more meaningful way.

 

Written for the ASAQS website by Bert van den Heever,  Bert van den Heever QS Inc. based on notes obtained during his MBL studies