This article focuses on Cost Models that are used in building construction. A good knowledge of them can help cut the cost while building your house.

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 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 say 4 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, say 3.5 Million Naira 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 should 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 some features would have been deliberately excluded in the design in order to make it fit into the cost plan, you may have to add some much desired features (like special finishes, fittings and fixtures, etc) within your initial retention budget (in this case, the 500,000 NGN left). 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 can be 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 consideration of the cost implication of the design at the initial stage.  This is the most common case in practice. When this happens, subsequently the project owner lured to this expensive design begins to run helter-skelter to source for additional funds to complete the project and this is not usually a funny experience.

Think carefully and make the right choice of cost model to adopt for your next building project.



For more information, contact McDEN Building Construction via,
Tel: 08091887673

Email: mcdenbuilding@yahoo.com

Or

www.facebook.com/mcdenbuildingconstruction

For more information, contact McDEN Building Construction via,
Tel: 08091887673, 07056821490

Email: mcdenbuilding@yahoo.com, wale_adm@yahoo.com

Or

www.facebook.com/mcdenbuildingconstruction
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