Elemental cost planning
Encyclopedia
Elemental cost planning is a system of Cost planning and Cost control, typically for buildings, which enables the cost of a scheme to be monitored during design development.
1951 saw the publication of the Ministry of Education Building Bulletin No 4 which essentially introduced the concept of elemental cost planning to the UK construction industry. Its Author was James Nisbet. The concept has been refined and developed over more than 50 years in the UK by BCIS
(the Building Cost Information Service of the Royal Institution of Chartered Surveyors).
Elemental Cost Planning relies upon the adoption of a Standard Form of Cost Analysis for buildings which allows costs to be compared on a common format and forms the basis of the benchmarking analysis central to the concept of Elemental Cost Plans.
It should :-
Elemental cost planning is often referred to as 'designing to a cost' or 'target cost planning' since a cost limit is fixed for the scheme and the architect must then prepare a design not to exceed this cost.
1951 saw the publication of the Ministry of Education Building Bulletin No 4 which essentially introduced the concept of elemental cost planning to the UK construction industry. Its Author was James Nisbet. The concept has been refined and developed over more than 50 years in the UK by BCIS
BCIS
The Building Cost Information Service, known as BCIS, is a leading provider of cost and price information for the UK construction industry. It is a part of the Royal Institution of Chartered Surveyors.- BCIS Website :...
(the Building Cost Information Service of the Royal Institution of Chartered Surveyors).
Elemental Cost Planning relies upon the adoption of a Standard Form of Cost Analysis for buildings which allows costs to be compared on a common format and forms the basis of the benchmarking analysis central to the concept of Elemental Cost Plans.
It should :-
- Ensure that the tender amount is close to the first estimate, or that any likely difference between the two is anticipated and is acceptable.
- Ensure that the money available for the projects is allocated consciously and economically to the various components and finishes.
- Always involves the measurement and pricing of approximate quantities at some stage of the process.
- Aim to achieve good value at the desired level of expenditure.
Elemental cost planning is often referred to as 'designing to a cost' or 'target cost planning' since a cost limit is fixed for the scheme and the architect must then prepare a design not to exceed this cost.
See also
- Cost overrunCost overrunA cost overrun, also known as a cost increase or budget overrun, is an unexpected cost incurred in excess of a budgeted amount due to an under-estimation of the actual cost during budgeting...
- Comparative cost Analysis
- BCISBCISThe Building Cost Information Service, known as BCIS, is a leading provider of cost and price information for the UK construction industry. It is a part of the Royal Institution of Chartered Surveyors.- BCIS Website :...
- BCIS submits data exchange standard for UN ratification.http://www.bcis.co.uk/site/scripts/news_article.aspx?newsID=137