01 Dec 2017
One of the factors that Mr. Hashim should consider is the Accessibility. The site should be easily accessible by automobile and within walking distance of some potential users. Mr. Hashim should also count in the safety of the location whereby it would be safe for potential users to work in the proposed location.
Next, is the Visibility of the office block. It is important that a prominent location is required so that the users can easily identify the office block. Visual Quality is also one of the factors that should be taken as the quality of the existing neighborhood or surroundings needs to complement with the office block. For example, it is not appropriate to set up an office whereby the surrounding buildings are residential buildings.
Moreover, Mr. Hashim should consider on the Site Capacity whereby the site should be large enough to provide sufficient space for the users including parking space or for future expansion. Most importantly, Mr. Hashim should consider on the rental cost or the building cost of the proposed office property. It should be reasonable or to say atleast following his budget. This is to ensure that the rentals or price of the office block are affordable so that he can run his business accordingly and in the same time his business can be profitable.
Lastly, Mr. Hashim should also consider the Facilities provided around the office property. For example, the presence of restaurants, cafes and department stores which will be really beneficial for him and his workers as they will not need to travel far to have there meals during Break hours.
Value is usually meant by the sum of original cost estimates and assumptions. Although in building economic terms, value can be defined as the measure of benefits that an individual or company can gain either form goods or service. In construction, value is what the building is worth based on various market rates. It can be said that the as the demand and supply for a particular building or product increases, the value will also increase accordingly. Value can also be the amount of money that say, an asset has for a certain time period whether at present or any other time. There are few factors that can affect the value of a certain building. As for example the Location of a proposed project as a 2 Story Bungalow build in the center of the city has a different Value compared to a 2 Story Bungalow built in the village.
Cost can be defined as the expenses or actual cost of a given project. In other words, it can also be defined as the total price of the project itself beginning from the design process to the finishing. This can be related to the components of cost which are the labor cost, material cost, plant and equipment cost, overhead cost and also the profit. These components can majorly affect the cost. For example, during the construction process of a given project, there happens to be a major breakdown on the equipment used. This will surely affect the end cost of the project.
Calculations:(Floor Height = 3m)
External Wall Area (EWA) = (10+10+10+10) X 3 = 120
Gross Floor Area (GFA) = (10 X 10) = 100
EWA GFA = 120100 = 1.2
Calculations:(Floor Height = 3m)
External Wall Area (EWA) = (10+5+15+5+10+5) = 150
Gross Floor Area (GFA) = A (10 X 5) + B (10 X 5) = 100
EWA GFA = 150100 = 1.5
Gross Floor Area (GFA)
(10 X 10) = 100
A(10 X 5) + B(10 X 5) = 100
External Wall Area (EWA)
(10+10+10+10) X 3 = 120
(10+5+15+5+10+5) = 150
(ii) Cost- It is the total cost of the project to be finished up or completed. The cost of a given project should be carefully analyzed and controlled from over budgeting and causing problems to the build team and especially to the client. Cost can come from the proposed land the project to be built, the materials used for construction and other various factors.
(iii)Quality- It is based on the finished product and will be judged by the
client itself either from the quality of design, its looks and its overall function. It is also judged through the ability of the contractor to execute the project in such a way that the finished product is according to the client expectations and that the finished product does what it is intended.
For example, Mr. Kumar is deciding to further expand his current business. He currently owns a 2 Block Restaurant and now he is deciding to extend his restaurant. Although, there are a few factors that have to be suggested by Mr. Kumar’s consultant in order to minimize the total end cost of the project itself. It would be great for Mr. Kumar to have a specific time line for the construction of the new extension of his current restaurant. This is to ensure that expenses for the project will be used by the best way possible and that his investment is profitable. Having a very short time period of construction process would only burden him as the cost of the construction process will be a bit more expensive but in the other hand, this will result in a great quality in it. The extension of the restaurant will surely be able to have a return on Mr. Kumar’s investment if it has a short time period of construction time and will eventually incur a high price, but in the end have a great quality on the project.
Whereby Standards in the construction industry is more to achieving a recognized level of quality within an organization. For example, to ensure that a proper standard of insulation is done and the proper standard of carpentry is done on a house according to the given standards within an organization. For Standards, there are also several certifying bodies in Malaysia. For example, SIRIM QAS International Sdn. Bhd. And Bureau Verritas Certification Sdn. Bhd. Which is responsible of controlling the standards on the construction products in Malaysia.
Secondly, is the Appraisal Cost, whereby it is usually influenced by a third party. Appraisal Cost or also know as Inspection Cost where its main function is to identify defective products before the products are shipped to costumers. For example, some sample of the products pass through another inspection test or quality test before being certified to be packed and shipped to the costumers.
Lastly, is the Inter Failure Cost whereby this cost is divided into two, which are Internal Failure Cost and External Failure Cost. Internal Failure Cost is a result from identification of defects before they are shipped to customers while the External Failure Cost include warranty, repairs and replacements of the product.
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