ABSTRACT
After reading this chapter, you should have an understanding about the role of facilities management and its relevance to the study of building costs in the construction industry. You should be able to:
22.1 INTRODUCTION
Building cost appraisal over 50 years ago was restricted to a concept relating to initial building costs alone. The emphasis was directed towards approximate estimating, which was largely required for a client’s budgeting and financial purposes. The practice also included the preparation of contractual information and documentation for tendering purposes and the preparation and agreement of final accounts. These procedures were applied to the actual building works or building contract alone. No consideration was given to the other costs for which a client would be involved. These were frequently described as the land costs, professional fees, furniture and fittings and maintenance. The importance of total costs and how initial construction costs might be better considered within the principles of overall total-cost appraisal were not envisaged. The consideration of future costs or costs-in-use was an idea that was not yet even being proposed by the industry. However, during the high levels of construction activity in the 1960s, it was recognised that the existing procedures were inadequate for meeting the needs of clients.
