Advanced Cost Management

This subject is not offered in 2014.

120 hours

Admission to MC-CONMG2Y Master of Construction Management (200 points)

OR completion of the first 100 points of MC-CONMG3Y Master of Construction Management (300 points)

OR approval of the subject coordinator.

Microsoft Excel

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Successful project development depends on pro-active cost management from feasibility through to design, tender and construction, to the completion and useful life of the project. This subject examines applications of economics, management, law and statistical techniques to construction cost economics and management.

Topics include:

advanced cost modelling techniques with parametric and probabilistic cost estimating methods; cost-in-use studies and life-cost approach to building evaluation (LCC in practice); feasibility studies and financial decision-making; value management; tender analysis; construction claims, conflict and dispute management; professional practice in quantity surveying including professional ethics; the role of quantity surveyors during construction as it affects the valuation of preliminaries, fluctuations, change orders and accounts, provisional sums and prime cost sums, as well as the role of quantity surveyors in risk assessment.

Principles of professional liability in quantity surveying practice are also examined.

Upon completion of this subject, students should be able to:

1. Evaluate a contractor’s tender based on priced Bill of Quantities or Builders Quantities and prepare a tender evaluation report.
2. Apply parametric and probabilistic estimating methods to project cost estimation.
3. Develop, evaluate and interpret a life cycle cost model for a simple commercial building using Microsoft Excel spreadsheet.
4. Describe and analyse the role of quantity surveyors in risk assessment as well as the principles of professional liability in quantity surveying practice.
5. Identify and describe some of the emerging and future roles and responsibilities of quantity surveyors in the construction industry.

• Group assignment equivalent to 1000 words (20%) due in week 5, focussing on a financial feasibility discounted cashflow analysis and / or coupled with a life cycle cost assessment of a hypothetical project from the perspective of the developer.

• Group assignment equivalent to 2000 words (30%) due in week 10, focusing upon updating the financial feasibility (assignment 1), and undertaking a limited Value Management workshop with design students from an allied subject.

• Two hour examination equivalent to 2000 words during the examination period (50%) focussing on advanced cost management theories and techniques covered during the semester. A minimum mark of 40% has to be achieved in the examination in order to pass this subject.

This subject is not available as a breadth subject.

At the completion of the subject students should have developed the following skills and capabilities:

1. decision making and analytical skills as applicable to cost management i.e. economic analysis of project and project components;
2. effective participation as a team member and communication;
3. project evaluation, monitoring and cost reporting;
4. information gathering, analysis and interpretation;
5. understanding and application of professional ethics and conduct in practice.