Cost Control

SECTION 1

COST CONTROL

CHAPTER 1

INTRODUCTION

LEARNING OUTCOMES

After reading this chapter, you should have an understanding of what this book is about. You should be able to:

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Understand the purpose and importance of cost control Identify the nature of cost advice Appreciate the nature of construction economics and economic analysis objectives Appreciate the main components of design method Appreciate the environmental impact of construction projects

1.1 WHAT THIS BOOK IS ABOUT Cost Studies of Buildings is about the understanding and application of costs to building and other structures. One of its aims is to ensure that scarce and limited resources are used to best advantage. It is about ensuring that clients receive the best value for money for the projects that they construct. As buildings have become more complex and clients have become better informed the techniques and tools available have become more extensive. The use of information technology has also provided a new array of possibilities particularly in the ease of modelling different design and construct solutions. The book has been divided into three sections. The first of these provides a context for the material that follows later. It includes a simplified analysis of the construction industry since building costs cannot be studied in a vacuum but need to be considered within the industry to which they are applied. A more detailed study of the industry can be found in The Construction Industry of Great Britain by Roger Harvey and Allan Ashworth (Butterworth-Heinemann 1997). It has also been thought appropriate to include a brief history so far of the subject of building economics. The subject material in general is provided under a number of different titles and descriptors. It has variously been described as building economics, cost planning (although this definition now means something completely different) and cost control. 3

4 Cost Studies of Buildings The second...