Thread by @UjenziBora

Importance of Cost Planning Your Building Project.

A Thread 🏛🏗🧵

#Costing
#Building
#Construction
#KnowledgeSeries

1. Construction projects are dynamic and continually changing.

✍🏿 You need to be able to anticipate challenges

✍🏿 Identify potential risks, and

✍🏿 Manage costs so you don’t get caught off guard when the unexpected happens.

2. Do it BEFORE ground breaking.

✍🏿 If you’re in the planning stage of a construction project, cost planning will help you set a budget for all project expenses that come with it.

✍🏿 Consider material costs, labor, subcontractor costs, and specialist services like Electricity

3. Eliminate Surprises!

✍🏿 Cost planning helps you identify areas where your project has high risk — like a slim budget or tight timeline — which is useful information for financiers.

✍🏿 Knowing this up front will save you from potential pitfalls and unpleasant surprises.

4. What’s Included in a Building Cost Plan?

To bookend the cost management process, you’ll want to create a procurement plan and a cost summary.

✍🏿 The procurement plan will help you outline the process of securing contracts with suppliers and vendors.

✍🏿 The cost summary will include all the numbers that went into calculating your budget:

🔨 Cost of materials and labour.

🔨 Preliminary Costs like permits, inspection fees, hoarding costs, site iffice cost, Sanitation etc

🔨 A Bill of Quantities. Talk to a Quantity Surveyor

Q. Where do you start?

✍🏿Identify the Scope of Your Project.

🔨The scope will identify the necessary labour and materials you’ll need, which will in turn help you calculate the cost.

Check

🔨Overall building size
🔨 Construction type
🔨 Special features like rooftop gardens.

The overall building size is the biggest determinant of cost.

At the beginning, you have much control in this even before a design is done.

If a house costs Kes. 40,000 per square metre, a 100 Square Metre house will roughly cost you Kes. 4,000,000 to build.

The next step is to Estimate Material Costs.

🔨 Account for any unique factors that may increase your building costs. For example, steel prices have been on the rise the last 6 months.

🔨 If you’re unsure of the costs associated with certain materials, you can visit suppliers.

The next step is Estimating Labour Costs.

🔨 Labour costs can vary widely, depending on the region where you’re building, the type of work you need done, and the skills of the people doing it.

🔨 Allow for overtime hours or any additional expenses like Insurance.

✍🏿 To estimate labour costs, you can use the services of a quantity surveyor or reach out to a construction company to get a quote from a project manager.

✍🏿 The Institute of Quantity Surveyors of Kenya (@IQSKenya) publishes latest Cost Information.

You can purchase the book📗

Next.

✍🏿 Identify Subcontractor Costs.

🔨These are the expenses associated with hiring outside construction companies to handle tasks like excavation, site grading, concrete work, or electrical work.

To estimate subcontractor costs, you can request a bid from a contractor.

The END.

Kindly follow @UjenziBora for Threads like this which help you understand better the Building Process.

Retweet the first tweet to help someone on the building journey.

- Qs. Nahinga @sacrinos, Ja Mjengo 🔨

ub.co.ke

Lastly,

You can also read this as a blog in our Knowledge Series.

🔨🏗🏛Importance of Cost Planning Your Building Project.
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