Factors That
Influence
Project Costs
BUILDING COST VARIABLES
• There are a number of important
factors that influence a project's
final cost, not just construction
costs and furnishing expenses
(Figure 6.1). The client often FIGURE 6.1 Diagram illustrating the various elements that
typically make up the overall cost of a building.
prepares a budget that includes
anticipated cost schedule.
Below are some of the major
elements that will impact the
projects final costs.
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Construction Costs
Building Type:
Types of Building
Occupancy:
• The type of
occupancy is
considered one of • RESIDENTIAL
the major cost • COMMERCIAL
variables. It defines
what features the • INDUSTRIAL
building is likely to • EDUCATIONAL
have. For example,
a TOWNHOUSE has • INSTITUTIONAL
entirely different cost • RELIGIOUS
characteristics from
a HOSPITAL • RECREATIONAL
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Construction Costs
Building Complexity:
• A building's
complexity is an
important factor in
its total final cost.
A warehouse will obviously cost much less than, say, a biometric
research facility. Likewise, the complexity or otherwise of a building's
exterior and interior elements, can have a detrimental impact on its
overall cost. Curves, recesses, and cantilevers add to a building's cost.
Building systems also vary depending on their complexity or
simplicity. For example, a complex cladding exterior wall system will
cost more than a simple stucco finish.
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The superstructure is approximately
100m by 20m and has four storeys.
Numbers say more than words:
450 glass panels
steel roof at the courtyard: 102 ton
steel superstructure: 1500 ton
heaviest steel element: 380 ton
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ANTWERP PORT HOUSE
Building Material
Building Quality:
• The quality of building
materials and systems will
greatly impact building cost.
For example, granite is more
expensive than brick or
stucco.
• Certain types of mechanical
systems are more costly than
others.
• The aesthetic quality of a
building's design also impacts
its value.
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Building Size and Shape:
• Obviously, all things being equal,
the larger the building's size, the
more it will cost to construct.
However, economies of scale
can reduce costs for larger
projects, resulting in a lower
unit cost.
• Unit cost is also reduced
when there is repetition.
For example, it is cheaper
to build a row of 15
townhouses than it is to
build two.
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Building Size and Shape:
• A building's size is
determined by estimating
the net square feet
required to satisfy
predetermined
requirements and criteria.
• Also, the ratio of net square SHAPE ON PLAN The shape of a building
feet to the gross square has an important
feet needed to enclose effect on cost. As a
general rule the simpler
them is a design decision the shape of a
and can significantly building, the lower will
impact the overall be its unit cost. Let us
illustrate this as follows:
construction cost.
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IRREGULAR SHAPES
We note that both plans have exactly the same floor
areas, yet building B is far more expensive due to the
shape of its design. Reasons for the increase in costs
are:
1. Building B has a higher perimeter/floor area ratio and requires 6%
more external walling to enclose the same floor area than A.
2. Setting out costs will be increased by as much as 50%.
3. Excavations will cost between 6% and 20% more.
4. Drainage costs will increase by approximately 25% due to the
extra manholes and extra length of piping needed.
5. Additional costs will also result from other elements of the building
such as the walling and roofing due to the work being complicated
by the shape.
It can therefore be concluded that the
irregular shapes of buildings add to their
overall cost.
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REGULAR SHAPES
BUILDING A BUILDING B
CASE A
Area on plan = 400m²
Length of walling = 80m
Assume 3m high walling @ 2,200.00/m²
Then cost/m² = 80 x 3 x 2,200 ÷ 400
= 1,320.00/m²
CASE B
Area on plan = 400m²
Length of walling = 208m
Assume 3m high walling @ 2,200.00/m²
Then cost/m² = 208 x 3 x 2,200 ÷ 400
= R 3,432.00/m²
The length of building B thus resulted in an additional expense
of 844,800.00 over that of Building A.
Low-rise buildings
utilize different types of
foundations and
construction and
mechanical systems
than high rise buildings,
which in turn impact
the overall costs in
different ways.
Example of a table giving square foot and cubic foot
costs for different building types (in US). In the
Building Construction Cost Data for 2002 by RS
Means, there are 59 separate categories for costing
buildings.
Building Location:
There are numerous site and
location factors that directly
impact the cost of
construction-
size and shape of the site, its
topography, soil, geology,
and climate
Both direct and indirect
construction costs are also
affected by location.
Site
The slope and shape of a site might dictate the shape of the
building especially where the floor to lot area ratio (FLAR)
approaches one. 13
Building Location:
An identical building constructed in different regions
(or different countries) will have differing costs due to
variations in the costs of labor, material and services
in each locality (Figure 6.6). For example, cost of
materials for a dense urban area may be higher due
to traffic and site storage limitations.
Irregularly shaped sites may require special
consideration when designing or during construction.
Steep slopes as well as those with poor soil or
unstable geology conditions will typically require
more engineering and foundation work, as well as
additional utility service connections for the structure.
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Other Factors:
There are numerous other factors
that impact construction costs,
including:
• productivity,
• weather conditions and
season of year,
• safety requirements,
environmental
considerations,
• availability of adequate
energy,
• skilled labor
• building materials,
• etc.
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Conclusion: Function
i.e. Factory shapes depend on the form of
machines used and the production layout.
It is important that both architect Schools and hospitals rely on natural
and client are fully aware of the lighting and therefor tend to be
additional costs (or savings) that rectangular in shape. Hotels are
probably will arise from even orientated towards the best view.
small changes in the shape of the
building. Site
The slope and shape of a site
They can then adopt a might dictate the shape of the
rudimentary cost benefit building especially where the
approach in considering the plan to plot ratio approaches
advantages of different shapes in one.
seeking a suitable balance
between cost, aesthetics and
functional aspects. Economics
Office buildings with depths up to 18m lease more
Although the square building is readily to smaller businesses as areas can be easily
the simplest plan in shape, one split to accommodate different concerns. Buildings
must remember that the shape often become a function of the owner’s financial
of a building is dictated by success and tend to reflect this in the use of
materials and design detail.
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