What are the factors to consider when selecting a method of construction in performing activities?

What are the factors to consider when selecting a method of construction in performing activities?

The selection of construction methods is a complex decision process which consider multiple attributes such as cost, time, quality, physical characteristics of the element to build, characteristics of the construction method, the environment, the risk of each alternative, and available resources, among others (Youssef …

Why is it important for design engineers and architects to estimate costs with a reasonable degree of accuracy?

Inaccurate cost estimation is detrimental for construction projects. When costs are underestimated, there are many unforeseen expenses during the construction phase. Based on how the contract is structured, these costs may affect the owner, the contractor, or both.

What are the cost control techniques in construction?

Cost Control Techniques

• 1 – Planning the Project Budget. You would need to ideally make a budget at the beginning of the planning session with regard to the project at hand.
• 2 – Keeping a Track of Costs.
• 3 – Effective Time Management.
• 4 – Project Change Control.
• 5 – Use of Earned Value.

Which three are basic principles of contract pricing that contracting officers must follow?

(1) Adequate price competition. (ii) The reasonableness of all prices awarded is clearly established on the basis of price analysis (see FAR 15.404-1(b)). (B) If only one offer is received in response to a competitive solicitation, see 215.371-3. (3) Commercial items.

What are the general considerations for the selection of construction equipment?

FACTORS AFFECTING SELECTION OF CONSTRUCTION EQUIPMENT

• USE OF EQUIPMENT AVAILABLE WITH THE ORGANIZATION.
• SUITABILITY FOR JOB CONDITION WITH SPECIAL REFERENCE TO CLIMATIC AND OPERATING CONDITIONS.
• UNIFORMITY OF TYPE.
• SIZE OF EQUIPMENT.
• USE OF STANDARD EQUIPMENT.
• COUNTRY OF ORIGIN.
• UNIT COST OF PRODUCTION.

What do you think are the considerations in selecting the equipment?

The equipments selected should be easy to operate and maintain, acceptable to the operator and should have lesser fuel consumption. Reliability of Equipment: Equipment selected for the project must be reliable one.

Why is it important to estimate the cost of construction for a building project?

The estimate aids developers in determining the feasibility and profitability of a potential project. Perhaps, most importantly, an accurate estimation keeps all parties focused on delivering a project on time and under budget. It holds a developer and construction company accountable for increased costs and overruns.

What are the main reasons to document your cost estimate?

Documenting the cost estimate makes available a written justification showing how it was developed and aiding in updating it as key assumptions change and more information becomes available.

What is cost in use in building construction?

This entails Investigations relating to the total costs of building construction projects inclusive of initial capital costs, operating, maintenance and depreciation costs during the building life period, in order to provide an overview of the cost situation.

Why is cost important in designing a structure?

The importance of cost in design has achieved greater focus within the property and construction industry over the last decade. As a result, clients are now more open to considering a higher capital expenditure output at the start to provide lower operational costs and a commercially viable whole lifetime value.

What type of statistics might we use in contract pricing?

• Inferential Statistics. For example, in contract pricing, we can use stratified sampling of a proposed bill of materials to infer the degree it is overpriced or under-priced. Populations and Samples. The terms population and sample are used throughout any discussion of statistics.

Can contracting officers allow contractors to charge profit on G&A expenses?

This amount (COM) is added to the total cost of the contract after profit has been computed and added. G&A is computed and added to the sub-total of the contract without FCCOM. The contractor is not allowed profit on FCCOM. G&A, is added to the total cost input of the contract.

What factors should I consider when pricing my services?

Here are nine factors to take into consideration when pricing your services. 1. Your Costs. If your rate doesn’t include enough just to break-even, you’re heading for trouble. The best thing to do is sum up all your costs and divide by the number of hours you think you can bill a year. Whatever you do, DON’T think you can bill every hour.

Why is it so hard to set prices in business?

Pricing is often one of the most difficult things to get right in business. There are several factors a business needs to consider in setting a price: Competitors – a huge impact on pricing decisions. Costs – a business cannot ignore the cost of production or buying a product when it comes to setting a selling price.

How do you set the price of a service?

Costing out your price which essentially take all costs into account and the desired profit, and the total of these are used to set the price. When using this method, it is important to account for both indirect and direct costs. Direct costs are those you incur when delivering your service and typically include labor and materials.

Do you have a pricing process for your business?

Most companies don’t have a pricing process. Pricing is treated more like an event than a process. Whatever pricing model you select, account for these four elements: Well defined standards. Establish allowable discount ranges and other standards to ensure accountability and control and facilitate decision making.