Economic approach
The overall economic and social situation
of recent years has accentuated the need for controlling
construction costs. Both owners and designers have become
very aware of the need to lower costs, which is today one
of the most important parameters of a building project.
The economics of a project can only be validly grasped if
all factors influencing prices are accounted for in the
earliest phases of the design work. Since each operation
is specific, it must be evaluated both globally and in detail.
The geographic location ,size typology, phasing over time
or construction in several stages, the suitability of the
work schedule and procedures, the possibility of using industrialized
building processes and repetitiveness of the works must
all be taken into consideration in preparing a realistic
cost estimate.
The initial estimate must also be associated
with a suitable costing methodology, because the cost estimate
for a housing operation, for example, has little in common
with that for a complex hospital program.
During the
initial design concept/sketch design phases (and sometimes
even before) the design directives considerably affect cost,
even though the project is not yet sufficiently developed
for any conventional costing based on quantity surveying.
By employing ratios per functional building sector in association
with quantity surveying for the building envelope and specific
works, it is possible to evaluate project cost very quickly,
to identify elements penalizing the budget, and thus help
the designer improve upon the design.
However, this method
is not appropriate for major restructurization programs
which require a maximum of quantity surveying work and anticipatory
investigations relating to later phases of the design work.

Etablishing a precise and reliable
estimate for each of the design phases (building program,
design concept, schematic design, design development, contract
negotiations) is important but would appear insufficient.
The systematic analysis of modifications should explain
the changes that have occurred from one phase to another,
and should allow for action before presenting a project
whose budget has gone out of control.
A systematic analysis
of the efficiency of floor areas and built volumes should
also allow for the constructive criticism of any extra costs.
Experience has shown that the economic aspect of an operation
cannot be dissociated from its technical aspect. The critical
analysis of a technical solution from an economic standpoint
can only be valid if it is performed by an experienced building
technician who himself is practiced in designing works.
An appraisal of the technical specifications, their level
of requirements, the technical consistencies at interfaces
and any missing items can only be validly performed by an
specialist patrician. The consistency of the various approaches
to an operation and its optimization as a whole are the
key factors determining cost. Analytical methods based on
comparing the ratios and typical scales of a project with
reference data detect inconsistencies in “assembling” costs.
The final factor for cost control is tied to the organization
of construction works contracts. How the building trades
are organized, how the contractors are grouped together,
how temporal and phasing constraints are accounted for and
how site works methods are anticipated should be carefully
and strategically thought trough to ensure the most efficient
organization possible for building the project. And all
the above are based on the systematic synthesis of prices,
obtained as the result of having made many requests for
bids, and on thorough command of the costing methods shared
by all contractors.
