What is Cost Modelling ?
INTRODUCTION Do you know what is cost modelling? Cost models, based on historical data, are great tools to aid high-level factor estimates. Cost models are computer models which take as input the relevant cost drivers of an object (such as a piece of equipment or an entire project), perform a calculation and return a cost estimation for that equipment or project. Cost models are technical aids which enable management decisions to be made in the context of building design. The primary function of cost models in this context is to provide reliable cost forecasts, either for the client or the contractor. More specifically, the management decisions supported by cost models include: • forecasting the total cost of construction. • comparing design alternatives. • forecasting the economic effects upon society of changes to design codes and regulations. Because clients undertaking construction projects will wish to have an understanding of their financial commitment, it is appr