We are familiar with public sector projects becoming abandoned white elephant projects….but this can be the fate of smaller private building projects. |
The two major cost models relative to the project design are; Cost
to design (CTD) and Design to Cost (DTC). Cost to design simply means putting
up a design first and then estimating the total construction cost from the
design usually without formally tying it to any budget while Design to cost
entails stating your budget for the project first, then ensuring that the
project is designed to be completed within that budget.
For instance using the recommended DTC model, a project owner can
approach a designer/contractor with let say four Million Naira to construct a simple
bungalow and achieve his/her desires within it in the following simple steps;
- First, you discuss the development
idea/concept with the designer/contractor
- Thereafter you reveal your initial budget
and retain the balance
- Then request that the designer/contractor
provide two or three design options that can be achieved within your budget and
based on your specifications (e.g. It may consist of 3 beds -all rooms
en-suite, French-style windows, an ante-room, slanting height, a court yard
etc).
However it is strongly recommended that you
employ the service of a designer/contractor with good knowledge of both design,
estimation and construction from the start as it is in common knowledge that
most independent designers/architects aren’t good estimators or alternatively
you co-engage a Quantity Surveyor to achieve your cost goal (You will have to
pay for this service say around 5% of the total project cost).
- Once the preliminary site investigation is
completed and the building designs and cost estimates are ready, you then
choose the most appealing design. Do not hesitate to pre-inform the
estimator/contractor to simplify the cost estimates by breaking it into two
main sections one showing the Material cost/schedule and the other, the labour
cost/schedule (which will include the contractor’s profit so that it can be
negotiated separately). You have to study the estimates carefully and compare
for consistency with the design.
- Because you may have to add some much
desired features (like special finishes, fittings and fixtures, etc) within
your initial retention budget. But don’t
use all of it; keep a fraction for contingencies, and
- You
are good to go.
However in the Cost-to-Design
model, the project owner/landlord is highly disadvantaged in that the
designer/contractor may come up with fabulous designs that may be far beyond
your budget because there have been little or no communication of the cost implication of the design at the
initial stage.
Think
carefully and make the right choice of cost model to adopt for your next
building project.
No comments:
Post a Comment