03 (a) A new shopping centre will be constructed by your company in 2024 based on your company good performance completing the same project in 2020. The new shopping center construction is twice the size, as compared to the previous construction back in 2020. The previous building costs, RM 500,000 where the cost index was 110 in 2020 and 492 in 2022. The cost capacity factor for similar building is 0.9. You must improve the earthwork which will cost RM 25,000. Project management is projected to cost 4% of all other construction costs. Berjaya Engineering is appointed for external works. They have experience in external works for three similar projects of building shopping centers consecutively, their learning rate is 90% can be assumed. In 2020, Berjaya Engineering built the external works in 480 hours. For this project, external works labor will be charged to your company at RM60 per hour and the material will cost RM 350,000.(i) Based on cost estimation for construction in2024, calculate the approximate cost of the new shopping centre.(ii) Estimate labor time of earthwork to find the material and labor cost for it. (iii) Calculate the construction and management cost of new shopping centre.(iv) Calculate the total estimated cost to construct the new shopping centre in 2024.
03 (a) A new shopping centre will be constructed by your company in 2024 based on your company good performance completing the same project in 2020. The new shopping center construction is twice the size, as compared to the previous construction back in 2020. The previous building costs, RM 500,000 where the cost index was 110 in 2020 and 492 in 2022. The cost capacity factor for similar building is 0.9. You must improve the earthwork which will cost RM 25,000. Project management is projected to cost 4% of all other construction costs. Berjaya Engineering is appointed for external works. They have experience in external works for three similar projects of building shopping centers consecutively, their learning rate is 90% can be assumed. In 2020, Berjaya Engineering built the external works in 480 hours. For this project, external works labor will be charged to your company at RM60 per hour and the material will cost RM 350,000.
(i) Based on cost estimation for construction in2024, calculate the approximate cost of the new shopping centre.
(ii) Estimate labor time of earthwork to find the material and labor cost for it.
(iii) Calculate the
(iv) Calculate the total estimated cost to construct the new shopping centre in 2024.
Step by step
Solved in 2 steps
