Chapter 5

ELEMENTAL COST
ANALYSIS
Introduction

◈ An Elemental Cost Analysis (ECA) can be

defined as “a systematic breakdown of the
cost of a building to a Client into the various
building/ construction elements in terms
which are meaningful to both the Client and
the members of the Design Team.”
The main aims of ECA:

◈ to enable the design team to determine how

much had been spent on each building element.
◈ to assess whether a balanced distribution of
costs have been achieved amongst the various
elements of the building.
◈ to provide comparison of costs of the same
element that may be used in different buildings.
◈ to obtain cost data for use in the cost planning for
other projects.
Principles of Cost Analysis

The basic principle for the analysis of the cost of the

building work are as follows:
1. A building within a project shall be analysed
separately.
2. Information shall be provided to facilitate the
preparation of estimates based on abbreviated
measurements.
3. Analysis shall be in stages with each stage giving
progressively more details, the detailed costs in
each stage should equal the costs of the relevant
group in the preceding stage.
Principles of Cost Analysis (cont’d)
4. Preliminaries shall be dealt with as a separate item
(not apportioned amongst elements).
5. Lump Sum adjustments shall be spread pro-rata
amongst all elements of the building(s) and
external works based on all work excluding Prime
Cost and Provisional Sums contained within the
elements.
6. Professional fees shall not form part of the cost
analysis.
7. Contingency Sum to cover unforseen expenditure
shall not be included in the analysis.
Principles of Cost Analysis (cont’d)

8. The principle cost unit of all elements shall be

expressed in RM to two decimal places per
square metre of Gross Floor Area.
9. A Functional Unit Cost shall be given.
10. The Definition of Terms shall be as given in the
Manual.
11. The List and Contents of the Elements shall be
as given in the Manual.
 General Instructions and Project
Information
 This information is generally provided at the beginning of the
cost analysis. It contains vital information about the project
which often cannot be quantified.
 The following information is required to be provided on the
total project.
 Building type and code - Identifies the building type, since
for future analytical purposes a project of a similar type will
be required. Projects are usually grouped under their type
for filing purposes.
 Client- Indication should be given the type of client e.g.
private or government.
 Location- The location of the project should be given
noting the city and state. E.g. Petaling Jaya, Selangor. The
location may be reported less precisely if the client so
desires.
 General Instructions and Project Information

 Tender date- A date fixed for closing of tender.

 Project details- A brief description of the building being
analysed and of the total project of which it forms part. Any
special or unusual features affecting the overall cost not
otherwise shown or detailed in the analysis.
 Site conditions- Site conditions with regard to access,
proximity of the buildings and construction difficulties
related to topographical, geological or climate condition.
Site condition prior to building, e.g. woodland, existing
building, etc.
 General Instructions and Project Information

 Contract- Details of the contract conditions used

and the contract period. A short contract period
may indicate that a rapid construction time was
required, and this will probably have been
reflected in the contract prices.
 Market conditions- Short report on tender
indicating the level of tendering, local condition
with regard to availability of labour and
materials, keenness and competition.
General Instructions and Project Information

 Contract particulars- Information on how the tender was

poured, who stipulated the contract period, the number of
tenders invited and returned and whether increased costs
were included.
 Competitive tender list- this will show whether the
successful tender was in line with the other prices or
whether it was underestimated. The list will also show
whether these prices were from local or national
companies.
 Design/shape information- This section attempts to
quantify the design in terms of cost significance. The
information provided includes floor areas at different levels,
the number of functional units in the building, the wall-to-
floor ratio and storey heights, etc.
General Instructions and Project Information

◈ Brief cost information- The final section under this

heading provides for any analysis of the contract
sum, identifying the amounts of prime cost and
provisional sums. It should be noted that the higher
these sums are,
 Definition of Terms
ELEMENTS
 The standard list of elements to be used for elemental
cost analysis is as describe under ‘List and contents of
elements’. The cost of each elements must conform with
the appropriate list of items shown for each element and
to the principles of analysis.
◈ Enclose spaces
 All spaces which have a floor and a ceiling and enclosing
walls on all sides for the full or partial height.
 Open balustrades, louvres, screens, columns and the like
shall be deemed to the enclosing walls.
 Definition of Terms

◈ Basement floors
 All floors below the ground floor.
◈ Ground floors
 The floor which is nearest the level of the
outside ground.
◈ Upper floors
 All floors which do not fall into any of the
previously defined categories.
Definition of Terms

◈ Gross floors area

 Total of all enclosed spaces fulfilling the functional
requirements of the building measured to the internal face
of enclosing walls or columns, doors and the like as
stated.
 Internal area occupied by partitions, columns, internal
structural or party walls, stairwells, lift walls and the like.
 Includes lift, plant, tank rooms and the like above main
roof slab.
 Definition of Terms
◈ Net floor area
 Net floor area shall be measured within internal face of the
enclosing wall as ‘usable’ ‘circulation’ and; ancillary’.
◈ Roof area
 Plan area measured across the eaves overhang or the
inner face of parapet walls.
 Includes area covered by roof lights.
 Sloping and pitched roofs should be measured on plan
area.
◈ External wall area/enclosing wall area
 Areas of all enclosing walls measured on the outer face to
the full storey height for each floor over all windows, doors,
beams, columns, etc.
Definition of Terms

◈ Wall to floor ratio

 Calculated by ending the enclosing wall area by the
gross floor area to three decimal places.
◈ Element ratio
 Calculated by dividing the net area of the element by the
gross floor area to three decimal places.
◈ Storey height
 Height measured from floor finish to floor finish.
 For single storey buildings and top floor of multi-storied
buildings, the height shall be measured from floor finish
to underside of ceiling finish.
Definition of Terms

◈ Functional unit
 The functional unit shall be expressed as net usable floor
area or as number of units of accommodation.
◈ Total cost of element
 This is cost of each element and the items comprising it
should correspond with the contents of each elements.
◈ Cost per square metre gross floor area
 This is the total cost of element divided by the gross floor
area of the building.
 Definition of Terms
◈ Element unit quantity
 In the analysis, the cost of element is expected in suitable
units which relate solely to the quantity of the element
itself.
◈ Element unit rate
 This is the total cost of the element divided by the
element unit quantity. In effect, it includes the main items
and the labour items of the element expressed in terms of
that element’s own parameter.
List and Contents of Elements

1. Substructure
2. Superstructure
3. Finishes
4. Fitting and furnishing
5. Services
6. External works
7. Ancillary buildings
8. Recreational facilities