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Group 2 Total Project Cost

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24 views19 pages

Group 2 Total Project Cost

Uploaded by

kurtieberber
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TOTAL

PROJECT
COST
Kurt Faustino
Marc Arvin Legaspi
01
PROFESSIONAL
ENGINEERING
COST
PROFESSIONAL ENGIEERING COST
REFERS TO THE EXPENSES INCURRED
FOR THE SERVICES PROVIDED BY LICENSED
PROFESSIONAL ENGINEERS. THESE COSTS
COVER A WIDE RANGE OF ACTIVITIES
RELATED TO ENGINEERING PROJECTS,
INCLUDING DESIGN, ANALYSIS,
CONSULTATION, PROJECT MANAGEMENT,
PROFESSIONAL ENGIEERING COST
EXAMPLE:
A HOMEOWNER PLANS TO BUILD A SMALL
SHED IN THEIR BACKYARD AND NEEDS TO
DETERMINE THE SOIL'S BEARING CAPACITY TO
ENSURE THE FOUNDATION CAN SUPPORT THE
STRUCTURE. THEY HIRE A LOCAL ENGINEERING
FIRM TO CONDUCT SOIL TESTING AND PROVIDE A
REPORT ON THE SOIL'S BEARING CAPACITY. THE
PROFESSIONAL ENGIEERING COST
LABOR COST: PHP 3500/HOUR
2500(8) = PHP 28,000
MATERIAL COST: ESTIMATED EQUIPMENT AND
MATERIAL COST IS PHP 15,000
OVERHEAD EXPENCES: 15% OF THE LABOR COST
28,000(0.15) = PHP 4,200
TOTAL COST: PHP 47,200
02
CONSTRUCTION
COST
CONSTRUCTION COST
IT REFERS TO THE TOTAL EXPENSE
INCURRED IN COMPLETING A
CONSTRUCTION PROJECT. IT ENCOMPASSES
ALL COSTS ASSOCIATED WITH THE
PROJECT, INCLUDING SUPERVISION,
MATERIALS, SUPPLIES, LABOR, TOOLS,
EQUIPMENT, TRANSPORTATION, AND OTHER
FACILITIES UTILIZED
CONSTRUCTION COST
THERE ARE FOUR MAIN ELEMENTS THAT MAKE UP
CONSTRUCTION COSTS.
 COST OF MATERIALS – IT REFERS TO THE EXPENSES INCURRED
IN ACQUIRING THE NECESSARY RAW MATERIALS AND SUPPLIES
TO BUILD STRUCTURES

 LABOR COSTS – IT IS THE SALARY PAID TO CONSTRUCTION


WORKERS, AS WELL AS THE SALARIES OF PROJECT MANAGERS,
SUPERVISORS, AND OTHER STAFF

 EQUIPMENT COSTS - COVER THE RENTAL OR PURCHASE OF


EQUIPMENT NEEDED FOR CONSTRUCTION, SUCH AS
CONSTRUCTION COST
CONSTRUCTION COSTS CAN BE CATEGORIZED INTO TWO
MAIN TYPES

 DIRECT COSTS - EXPENSES DIRECTLY RELATED TO THE


PHYSICAL CONSTRUCTION OF THE PROJECT, SUCH AS
MATERIALS, LABOR, AND EQUIPMENT

 INDIRECT COSTS - ALSO KNOWN AS OVERHEAD COSTS,


ARE EXPENSES NOT DIRECTLY RELATED TO
CONSTRUCTION BUT NECESSARY FOR THE PROJECT'S
COMPLETION, SUCH AS ADMINISTRATIVE COSTS,
INSURANCE, AND PERMITS
03
LEGAL, LAND, AND
ADMINISTRATION
LEGAL, LAND, AND
ADMINISTRATION
Legal Fees- may refer to the costs associated with legal services. These
costs may include attorney fees, court costs, and other associated costs.

real estate and land acquisition fees- various costs associated with
closing on an investment property. The fee is paid from a buyer to a
lender and can include expenses like underwriting, agent commissions,
and construction charges.

Building permit- Building permits are government approvals required


before construction begins on a new or existing building. allow local
governments to ensure that construction and renovation work is
completed in accordance with f and local codes and ordinances.
LEGAL, LAND, AND
ADMINISTRATION
printing(construction documents)- include the blueprints, specifications,
and necessary documentation for your project. these documents is
essential for several reasons Ensuring that all necessary permits and
approvals are in order. Confirming that the design meets local building
codes and regulations.

Builder's risk insurance- is a special type of property insurance which


indemnifies against damage to buildings while they are under
construction.

A construction bond- is a type of surety bond used by investors in


construction projects. The bond protects against disruptions or financial
LEGAL, LAND, AND
ADMINISTRATION
Construction Interest Expense- is an interest that accumulates on a
construction loan used to construct a building or other long-lived
business asset.

represents interest payable on any borrowings—bonds, loans, convertible


debt or lines of credit.
04
STAFFING AND
FINANCIAL COST
STAFFING AND FINANCIAL COST
To be specific, salaries and Interest on loans or bonds
benefits personally issued to the projects as
involves in the project is well as other payment
under the staffing cost associate with obtaining
including the Engineers, financing relies in the
Architects, Surveyor, financial cost.
construction Worker and
Support Staff.
STAFFING AND FINANCIAL COST
This indirect cost can be significant and outside the knowledge and
control of the civil engineer working on the project it's important to
work closely with the client to estimate these costs accurately by
collaborating with a client to estimate this indirect costs accurately
as a part of the total project cost estimate civil engineers can help
ensure that all relevant cost components are included in their
analysis this can help prevent unexpected cause overruns during
construction and ensure that projects are completed on time and
within budget.
05
CONTINGENCY
ALLOWANCE
A Contingency Allowance is a reserved budget
intended to handle unexpected events,
uncertainties, or alterations that might occur during
project execution. It functions as a financial safety
measure, offering project managers the flexibility
to tackle unforeseen challenges without
compromising the project's overall success.
To provide for intangible costs, contingencies should
routinely be added to the basic cost estimate. It is common
practice to add 20% or more to the estimated probable total
project cost at the completion of the study end report phase,
reducing this to perhaps 10% at the completion of the final
design and perhaps to 5% when the construction bids become
known. Larger or more complex may require higher
contingencies.

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