Forecasting costs and value

The quantity surveyor has the responsibility for providing accurate and timely cost advice throughout the duration of a project to a variety of organisations including the client and architect. NRM1 suggests three methods for preparing cost estimates and cost plans: floor area method or m2 method; functional unit method for example per bed space, per house type and per m²of retail area; and elemental method (individual elements). The elemental method requires the calculation of element unit quantities (EUQs) and element unit rates (EURs) using the detailed rules of measurement contained in NRM1. Interpolation is a technique used in the early stages of the design sequence when information, drawn or otherwise, on the proposed project is in short supply. Cost planning is a continuing process that gradually becomes more detailed as the design process progresses. Differences in price levels between cost analysis and cost plan data are adjusted using building cost indices, location indices, and tender price indices.