Managing the Development of Building Projects for Better Results

First published in 1981, updated for web presentation, Dec. 2000

Introduction | Principal Parties | Project Plan | Improving Performance
Project Life Cycle | Bar Chart Schedule | Manpower Loading Data
Information Explosion | Final Cost | Design Stages | Cost Effectiveness
Choices | Construction Costing | Value Management | Design Review
Cost of Building Ownership | Practice and Value Management | Summary

Making the Right Choices

There is also here an interesting anomaly. The more elegant and simple the solution to meet the design criteria, the cheaper the cost of both construction AND the detailing effort. It is well worth searching for.

The next question is how early and how detailed should cost effective comparisons be made? Bear in mind that, while it is easier to draw comparisons the more detailed costing efforts become, it is also easier to "lose sight of the woods for the trees". How often does one find a project team's design, schedule and cost functions getting "bogged down in detail"?

To state the obvious, cost-effective analysis should only be taken to the level of detail commensurate with the stage in the project and the ability to draw reasonable comparisons and hence make selections from amongst options.

This suggests that different guidelines should be set for evaluating costs at different stages of the project. These should range from macro levels during conceptual analysis to medium levels for design evaluations to micro levels during construction. Such values may also vary according to the relative emphasis on the various project restraints, such as the relative importance of budget versus time.

Bear in mind that a time delay near the end of the project is far more expensive, and therefore more important, than one earlier on by virtue of the much higher carrying costs.

Cost Effectiveness  Cost Effectiveness

Home | Issacons | PM Glossary | Papers & Books | Max's Musings
Guest Articles | Contact Info | Search My Site | Site Map | Top of Page