Topic 7 - Financial Consideration

Is a fundamental skill for engineering firms and contractors

since important project decisions are based on costs.

_____________ in general consist of an initial investment (usually construction costs) and the

follow-on costs (ordinary payments, i.e. energy, utilities, cleaning and maintenance, irregular costs for renewal or replacement), while some life cycle costing methods also include the costs of demolition.

_________ of the construction project is a multi-stage operation.

The ________ of a building can be classified into capital expenditures, operation costs, and maintenance costs.

It tend to get more attention during design and construction, but there is also a great

opportunity to save on operation and maintenance.

To forecast the cost required to complete a construction project in accordance with the contract plans and specifications.

Two distinct tasks in estimating:

• to determine the probable real cost of the project

• to determine the probable real time to build the project

• to determine the probable design to build the project

• to determine the probable function to build the project

The estimator makes a take-off of all the different materials required on the project from the

plans and specifications.

The estimator estimates the hours needed to do the required work and then multiply by the

appropriate wage.

The cost of equipment includes ownership or rental fees, moving to the job site, erecting,

dismantling, and operating.