## Key project life cycle stages & whole life cost (of a building)

Whole-life cost in the complete project life cycle is a critical factor when a client is planning for a new building. Clients and representatives of clients (consultant or planning team) should analyze the whole life cycle cost of a building at the very initial stage of the planning. This(Whole life cost analysis) should produce alongContinue reading “Key project life cycle stages & whole life cost (of a building)”

## Design Problems & Design method

Strategy and classification of design problems The strategy is an essential factor in resolving any kind of a problem. As same as that, ‘design method’ is the term that uses in building design. Usually, it follows a logical procedure even there is no ideal method in designing a building. For instance, we use objectivity toContinue reading “Design Problems & Design method”

## Project cash flow- Construction cost management

What we discuss here is, determining the actual flow of money for the contract duration by dealing with construction project cash flow. Also, the way to finalise the contract price. 1.0- Contract cash flow  When we are considering the project’s level, the difference between a certain project’s income and expense is named as “The project’sContinue reading “Project cash flow- Construction cost management”

## 3 – Subcontractors in construction industry

The maximum portion of tasks in a construction project is carried out by subcontractors. Most of the leading contractors in the modern construction industry are keen to use subcontractors than direct labours for their works. It allows them to minimise indirect overheads costs such as rental for labour camps, transports, insurance charges etc. Managing aContinue reading “3 – Subcontractors in construction industry”

## What is Life cycle costing

Life cycle costing-Explain with a simple example Whole life cycle costing (in construction) is the process of evaluating and estimating the total costs involved for building a project from the design stage to disposable stage. The building life cycle can divide into four key steps.  Planing & Design stage Construction stage Operation stage (maintenance &Continue reading “What is Life cycle costing”

## Construction cost calculation- Calculate unit price for Rate brake ups

Cost Estimation Construction cost calculation is not an easy task? Earlier estimators who worked in the industry estimated construction costs based on one assumptions. In those times subcontractng works are minimal. estimators estimates works only the company can carry out and complete a project with available resources( Labour, Material & plant). So at that time(earlierContinue reading “Construction cost calculation- Calculate unit price for Rate brake ups”

## Construction risk assessment at tender stage

In construction, Risk assessments are a very important factor in each stage of a project. Before the construction at the tendering stage, the contractor should do a proper risk assessment. There are two kinds of risk in the construction process. First one is the risks which can quantify (quantifiable risks). And the other one, whichContinue reading “Construction risk assessment at tender stage”

## Tendering process 1st step -decision to tender

The tendering process in construction-1st step Incorrect tendering and estimation process can lead a company into dangerous situations. Underestimation of a project can hurt owners and employees of the company at the construction stage. And overestimation can push the company out of the competition (tender rejections). Therefore any company should have a proper strategy orContinue reading “Tendering process 1st step -decision to tender”

## 6 most popular types of tendering methods in the construction industry

There are various types of tendering methods, to analyze, negotiate and award a project to a contractor. But We can only identify two types of contractual bindings in the construction industry. The first is a standing offer under a maintenance work for a specified period, and this contract type is rare compared to others. TheContinue reading “6 most popular types of tendering methods in the construction industry”

## 6 Steps of Value Engineering Methodology

Value engineering is also called value analysis in the construction industry, And it is the most crucial step in the value management process.  The Hard definition of Value engineering is, “Value engineering is the process of optimizing or improving project or product to deliver its maximum functionality or capabilities without spending much cost and without damaging the qualityContinue reading “6 Steps of Value Engineering Methodology”