Adjustments and Alterations of Information to Prepare Cost Plan

As previously mentioned in this report, available information plays a big role during pre contact stage even in the Cost Planning process. But this available information is obviously out dated and referring to previous project. Therefore estimator cannot use this available information as it is and that data should adjust in appropriate way. Any kind of data relate to any project will cover Cost, Quality or Time of the project. Following list express what are the adjustments and alterations should do.

a. Time Factor: - Reference project is out dated one. Therefore estimator has to introduce a factor to adjust unit rate of an activity. These factors can be produced by analyzing price indexes or number of previous projects.

b. Location factor: - Cost of Labour, plant and materials are different from place to place. Therefore before building up target cost for an element, available data should alliterate with suitable location factor.

c. Quality factor: - Though reference project scope is similar to proposed project quality of the work items may be different. As an example previous data relate to grade 2 timber doors and windows and proposed project will be used grade 1 timber. Therefore there should be a correction factor to correct that different.

d. Size: - With the different of size of the project total cost plans will be change. Therefore there should be a method to adjust size of the project.

These are the major adjustments and alterations should refer when preparing very early stage of the preparing cost plan, because at very early stage of the project there is little information about the project.