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1 – 10 of 36PAUL S.H. POH and R. MALCOLM W. HORNER
A rich variety of cost models is used in the world's construction industries. In countries exposed to British practice, the use of traditional bills of quantities is common…
Abstract
A rich variety of cost models is used in the world's construction industries. In countries exposed to British practice, the use of traditional bills of quantities is common. Elsewhere, bills of quantities may not be used at all. This paper briefly reviews the nature and purpose of cost models both in the UK and in south‐east Asia. It explains how the principle of cost‐significance can lead to a simplified method of measurement which is both well‐structured and sufficiently accurate ‐ a half‐way house between traditional bills and a single lump sum. By way of example, the derivation of a cost‐significant model for student hostels in Singapore is presented. Representing no more than a first step, the problems still to be resolved are outlined. Nevertheless, the techniques seem to hold much promise for the future, and others are encouraged to explore where they might most effectively be applied.
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This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/eb014361. When citing the article, please…
Abstract
This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/eb014361. When citing the article, please cite: Bernard J. La Londe, Douglas M. Lambert, (1975), “Inventory Carrying Costs: Significance, Components, Means, Functions”, International Journal of Physical Distribution, Vol. 6 Iss: 1, pp. 51 - 63.
Bernard J. La Londe and Douglas M. Lambert
Inventory carrying costs comprise a number of different cost components and generally represent one of the highest costs in the physical distribution system. This, combined with…
Abstract
Inventory carrying costs comprise a number of different cost components and generally represent one of the highest costs in the physical distribution system. This, combined with the fact that inventory levels are influenced by the configuration of the logistics system, demonstrates the need for an accurate assessment of inventory carrying costs if the appropriate cost tradeoffs are to be made within the firm. Currently, most of the companies that consider the costs of holding inventory use estimates or traditional industry benchmarks. In fact, many corporations do not consider inventory carrying costs in decision making although such costs are substantial and real. Although a number of authors have addressed the types of costs that should be considered and have estimated that such costs range from 12% to 35%, there is not a generally accepted methodology for determining inventory carrying costs or for that matter even a framework for developing such costs. The purpose of this article is to present a methodology, based on existing literature in the fields of accounting, distribution and production, that can be used by managers to determine the cost of carrying inventory for their companies. In addition to providing a framework that can be applied in the “real world”, some specific uses for the inventory carrying cost figure are explored.
Renewable energy costs.
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DOI: 10.1108/OXAN-DB240332
ISSN: 2633-304X
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Considering sustainability during the cost estimating process is vital for the successful integration of sustainable features within a construction project. The UK Government has…
Abstract
Purpose
Considering sustainability during the cost estimating process is vital for the successful integration of sustainable features within a construction project. The UK Government has adopted the principles of sustainable development, and social housing projects now have to achieve the EcoHomes “very good” rating as a prerequisite to Government grant funding. This policy has important implications for all those organisations involved in new social housing building projects and it will place sustainability and its assessments at the heart of housing procurement practice. The purpose of this paper is to examine the pre‐construction evaluation practices of sustainable housing projects in the UK.
Design/methodology/approach
A survey was undertaken to capture data regarding the importance and the cost significance of sustainable factors from a randomised sample of 600 quantity surveying, housing associations, and architectural organisations based in the UK. An initial and follow‐up administration of the postal survey generated an overall response of 41.5 per cent. Relative rankings for EcoHomes factors according to their perceived importance and their cost impact on the price of housing projects are established, and the work identifies the factors that should be considered in order to develop a model that links the project price forecasting and the evaluation of sustainability together at the feasibility stage of social housing projects.
Findings
EcoHomes factors were ranked in this survey according to their importance as follows: “energy”, “materials”, “pollution”, “water”, “health and well being”, “ecology and land use”, and finally “transport”. These results revealed that the environmental aspects of sustainability continue to be the most common aspect of sustainability to be considered, as compared to the economic or social benefits of the potential project irrespective of organisational type responding to the survey. As a result the work identified a need to develop an aid for practitioners to use when involved in the early stage evaluation of sustainable social housing projects.
Originality/value
This paper provides useful information on the pre‐construction evaluation practices of sustainable housing projects in the UK.
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Michele Florencia Victoria, Srinath Perera, Alan Davies and Nirodha Fernando
The purpose of this paper is to identify and compare cost and carbon critical elements of two office buildings, and to help achieve an optimum balance between the capital cost…
Abstract
Purpose
The purpose of this paper is to identify and compare cost and carbon critical elements of two office buildings, and to help achieve an optimum balance between the capital cost (CC) and embodied carbon (EC) of buildings.
Design/methodology/approach
Case study approach was employed to study cost and carbon critical elements of two office buildings as it allows an in-depth and holistic investigation. Elemental estimates of CC and EC were prepared from BoQs of the two buildings by obtaining rates from the UK Building Blackbook. Pareto principle (80:20 rule) was used to identify carbon and cost critical elements of the two buildings, and the significance hierarchies of building elements were compared.
Findings
Substructure, frame and services were identified as both carbon and cost critical elements responsible for more than 70 per cent of the total CC and EC of both buildings. Stairs and ramps, internal doors and fittings, furnishings and equipment were identified to be the least carbon- and cost-significant elements contributing less than 2 per cent of total CC and EC in both buildings. The hierarchy of cost and carbon significance varies between buildings due to the difference in the specification and design.
Originality/value
The increasing significance of dual currency (cost and carbon) demands cost and carbon management during the early stages of projects. Hence, this paper suggests that focusing on carbon and cost-intensive building elements is a way forward to keep both cost and carbon under control during the early stages of projects.
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Elcin Tas and Hakan Yaman
The objectives of this paper are to discuss the constraints stemming from the unstructured nature of the cost estimation practice in Turkey and introduce a generic computer aided…
Abstract
Purpose
The objectives of this paper are to discuss the constraints stemming from the unstructured nature of the cost estimation practice in Turkey and introduce a generic computer aided building cost estimation model based on a cost significant technique for Turkish construction sector public projects in its detailed design phase.
Design/methodology/approach
The research design was based on the simplified version of the bill of quantities method and a cost significant estimating model works on a cost database was suggested to overcome the problems. Underlying principles and basic steps of cost estimation based on cost significant work packages was explained by means of manual calculations.
Findings
In order to automate the manual building cost estimation process, the software based on cost significant work packages was developed.
Research limitations/implications
The software is currently in the testing phase and is being used for educational purposes. Making use of both public sector and current market prices in the cost estimation process, increasing number of projects stored in the database for more accurate results, estimating costs of different types of projects and calculating the cost significant value factor more precisely by using statistical techniques, those being employed by global cost models are suggested for future research.
Practical implications
As the number of the similar projects in database is increased, the accuracy of the cost estimation is also increased.
Originality/value
Estimators and graduate students can use the software to estimate building cost of public housing projects in its detailed design phase.
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SUNIL M. DISSANAYAKA and MOHAN M. KUMARASWAMY
Time and cost are usually critical to construction clients. Given the many contributory factors, improved quantitative models of time and cost may help clients to predict project…
Abstract
Time and cost are usually critical to construction clients. Given the many contributory factors, improved quantitative models of time and cost may help clients to predict project outcomes at the outset, and also at different stages of the project life span. These can also help to compare deviations in significant contributory factors, and to suggest corrective actions. Multiple linear regression (MLR) and artificial neural networks (ANN) were applied in developing such quantitative models in a research project based in Hong Kong. A comparative study indicated that ANN had better prediction capabilities than MLR by itself. Significant factors identified through quantitative models developed, indicated that time over‐run levels were mainly governed by non‐procurement related factors (e.g. project characteristics and client/client representative characteristics), while cost over‐run levels were significantly influenced by both procurement and non‐procurement related factors (e.g. project characteristics, client/client representative characteristics and contractual payment modalities). A parallel approach yielded interesting comparisons of the variations of mean time and cost over‐runs, when comparing groups of projects using different procurement sub‐systems, from the Hong Kong sample.
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