Question 01 Building A Purchasing Cost Legal costs associated with purchase Cost of improvement of the building Annual Maintenance

cost Annual energy cost Cost of repairs Future expansion cost Resale value of the building Rs. 400Mn 2% of purchase price Rs. 30Mn Rs. 30Mn Rs. 14Mn Rs. 10Mn (every 5 years) Rs. 60Mn (at 10th year) Rs. 100Mn TOTAL Discount factor 1 1 1 8.51 8.51 1.25 0.39 0.15 Present Value (Mn) 400 8 30 170.2 102.12 12.5 19.5 22.5

863.34

Building B Purchasing Cost Legal costs associated with purchase Cost of improvement of the building Annual Maintenance cost Annual energy cost Cost of repairs Future expansion cost Resale value of the building Rs. 600Mn 2% of purchase price Rs. 20Mn Rs. 20Mn Rs. 14Mn Rs. 15Mn (every 6 years) Rs. 200Mn TOTAL

Discount factor 1 1 1 8.51 8.51 1.06 0.15

Present Value (Mn) 400 8

10 85.1 102.12 15.9 0 37.5

967.24

Calculations Building A Legal costs associated with purchase = 400*2% =8Mn *Assume improvements of the building is done just after the purchasing Discount factor for Annual Maintenance = 1- 1/(1+r)^n r = 1- 1/(1+0.1)^20 0.1 = 8.51 = Discount factor for Annual energy

Discount factor for Annual Maintenance

*Assume that at the end of 20th year, there are no repairs Discount factor for repairs = 1/ (1+0.1)^5 + 1/ (1+0.1)^10 + 1/ (1+0.1)^15 = 1.25 Discount factor for Future expansion = 1/ (1+0.1)^10 = 0.39

Discount factor for Resale value of the building = 1/ (1+0.1)^20 = 0.15

Building B Legal costs associated with purchase = 600*2% =12Mn *Assume improvements of the building is done just after the purchasing
Discount factor for Annual Maintenance of Building A = Discount factor for Annual Maintenance of Building B = Discount factor for Annual energy of Building B

Discount factor for repairs

= 1/ (1+0.1)^6 = 1.06

+ 1/ (1+0.1)^12 + 1/ (1+0.1)^18

Discount factor for Resale value of the building = 1/ (1+0.1)^20 = 0.15

According to the given information, LCC of two buildings as follows LCC of Building A LCC of Building B = 863.34Mn =967.24Mn

Hence the company management have to be purchased Building A which has the lowest Life cycle cost.

(b) Utilities for services Disposal costs Technology Indirect costs associated with administration Licence Non-energy operation costs Cost of Management of the building Cost of Electricity Cost of Water supply Cost of Gas Cost of Equipments Lease payments(if any) Sanitary fittings At least have to mention five out of the above.

Question 02 ( 1) Superficial area method (2 ) Estimate = Area of each of the floors*Cost per m2 Most Popular preliminary estimating method Advantages Quick method Easy to employ as the rules for calculations are much more simple Directly relates to accommodation Allow comparison of different Designs Meaningful in its concept of measurement(m2) to both client and architect Allow comparison between buildings that differ in size and shape

Disadvantages Fails to take account of any variation in plan and shape or storey height * Try to highlight the advantages of this method by analysing the above mentioned points.

(3) Typical unit rate for a shopping complex : Rs. 80,000 95,000/Sqm Hence for this shopping complex assume unit rate as 90,000+100,000 = 95,000.00 2 Hence, Estimate = 8000sqm*95,000Rs/sqm =760Mn

(4)

* First explain what elemental cost planning technique is.

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. However it has following advantages. system of cost planning and Cost control Overcome the disadvantages of the preliminary estimating methods Form of construction, materials and labour content, quality of the element is compared with the element of analyzed building

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.

*then describe the information required to calculate by using an actual example. Ex: Construction of two storey office building