Cost Management

This subject has the following teaching availabilities in 2016:

170 hours

OR

approval from subject coordinator

Basic Computer Applications

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

This subject deals with pre-construction cost management process. It aims to give students the knowledge of the processes involved in establishing and maintaining client’s budget at the design stage. It provides students with skills needed to effectively monitor the budget for a simple building project on a regular basis during the design stage by cost planning of evolving design, and preparing cost estimate at detailed design and tender documentation stage. Topics covered include Design Economics; Cost planning and control in building design: cost estimating procedure and simple cost modeling techniques. Quantification, measurement, and documentation including the following aspects: purpose and preparation of Bill of Quantities (BoQ); Processes of preparing BoQ including: taking-off, working-up, abstracting and billing; types of bill formats and their uses; basic principles of measurement and description of works: the use of Australian Standard Method of Measurement (SMM) for construction works in practice, principles of measurement and description of the following: Groundwork, Concrete (including reinforcement and formwork), Masonry, Timber Pitch Roof, and Internal Finishes for simple residential building. Pricing of measured items: building-up of unit rates. Introduction to computerised measurement. Tender process.

Upon completion of this subject students should:

• Be able to describe the role of cost management of building works.
• Be able apply the Australian Standard Method of Measurement to quantification of the works for simple buildings.
• Be able to measure and prepare bill of quantities for ground works; masonry; concrete/reinforcement and form work; simple timber pitched timber roof; roofing, and finishes.
• Be able to price measured building work items.
• Be able to describe the application of computer software to measurement of building works.
• Know how to apply cost forecasting methods at pre-construction stage.
• Be able to explain the theory and practice of competitive tendering.

• Practical exercise using complex residential building (group assignment) focusing on measurement of Masonry and Finishes, 1000 word equivalent per student due week 5, 20%
• Practical exercise (individual assignment) focusing on measurement of Roofing and Woodwork, 800 word equivalent due week 7, 15%
• Practical exercise (individual assignment) focussing on measurement of Groundworks and Concrete, 800 word equivalent due week 9, 15%
• Group assignment focusing on production of Priced Bill of Quantities, 600 word equivalent due week 11, 10%
• Two-hour end of semester exam 2000 word equivalent, 40%

Hurdle requirement: Students are required to achieve a mark of at least 40% in the exam in order to pass the subject. Attendance and participation in 80% of the tutorials is a mandatory requirement for passing the continuous assessment component of this subject

1. Marsden, P. (1998) Basic Building Measurement, NSW University Press
2. AIQS et al (1990) Australian Standard Method of Measurement, AIQS & MBCHAA.
3. Smith, J. and Jaggar, D. (2007) Building Cost Planning for the Design Team, 2nd edition, Elsevier, Oxford.

This subject is not available as a breadth subject.

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

• Effective participation as a team member.
• Written, verbal and visual presentation of ideas
• Correct use of technical terminology relating to cost planning and quantification of building works
• Information gathering and critical synthesis skills
• The ability to apply relevant processes and standards to specific examples
• Identification and familiarity with building components
• Understanding of construction documentation used in residential construction.