What is the information that you need to prepare a cost plan

Once the sketch design has been completed and approved by the client, the task of allocating sums to the various elements can be taken place. The sum of these element cost targets should of course the total cost target for the whole scheme. In the case of elemental cost planning where cost limit apply, it is particularly important that this so. The following information will generally require for the preparation of a cost plan:

· Brief description about project: - At least this description should clearly mention about scope of the project, project details such as location, time period etc. It is not required more detailed description at very early stage.

· Drawings: - Which should at least include plans and elevations in sketch form. Then estimator can get an idea about quantitative data about physical product. That is useful to allocate money for elements.

· Materials/Quality: - Clients requirement of the Quality of the project. Depend on quality requirements cost planner can forecast cost for the materials for the overall project. Then estimator can allocate money from coat plan.

· Suppliers and Sub contractors: - To estimate cost for the project need these details as well as when preparing target cost for specific items like elevator systems these information should available. Even costing major elemental costs it requires supplier details.

· Contractual information: - Such as the method of securing tenders, bonds and guarantees, contract period etc. for allocate funds and select methods to provide that money.

· A comparable cost analysis from a previous project: - This is the most important information. Having this type of analysis planner can decide suitable method to prepare cost plan and forecast some budget for items. Not only can that using similar type of project cost plan estimator adjust that one for current usage.

· Schedule of work items: - This is the major way to preparing financial flow of the total project. Therefore this is very important information for preparing cost plan.

Selecting Proper Information

The easy method to prepare a cost plan is analyzing previous same kind of projects and build up estimate, cost plan etc for proposed project. That is the method that most Sri Lankan projects refers to prepare their project documents like project plans, cost plans, day work schedules etc. Therefore it is necessary to be aware of selecting proper information for preparing cost plan. When selecting proper information several things have to be considered.

· Scope of current project: - All the reference documents such as previous BOQ’s, Contract Documents, Schedules and current findings like cost indices etc. should be relate to proposed project scope. As an example for proposed housing project cannot be used school building project in Kandy area.

· Reliability of data: - Depend on scope of the project data; information which required preparing the cost plan can be selected. But all these information come out from the reliable source. Estimator cannot just imagine and use those things. Otherwise cost plan will be mislead total project.

· Accuracy of data: - If the information is reliable in order to establish a probable cost plan those information should be correct, because source is trusted one that may be not accuracy due to misleading or misunderstanding.

· Market condition: - Reference materials should prepare under the same type of market condition. As an example current situation of economy is under the recovery period, so reference project should be prepared same type of recovering market conditions.

· Up dated information: - Under same type of market condition selected data should be updated as appropriate to expected market values at the time of project completion stage.