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Assessment task 3 Material and plant costs
Purpose of assessment
To identify physical resources requirements for project.
This assessment task accounts for 15% of total assessment.
Download and complete the.tafevc.com.au/holmesglen/pluginfile.php/50388/mod_assignment/intro/CPCCBC4004A_assessment3coverSheet.pdf”>Assessment 3 Cover Sheet save a copy, and then upload it WI the submission.
Cut and Paste the Questions below into a text editor such as WordPad or Microsoft Word and answer the questions. Include both the Text file and the PDF Assessment Cover Sheet in your submission.
Assessment task
Prepare a list of plant and equipment that needs to be used on-site. Describe how you find out about the costs involved in using these items.
Identify at least three materials in each of these categories and describe how you find out the costs for obtaining those materials. Include the stakeholders you would contact.
Standard items
Prime cost items
Provisional sum items
Material and Plant costs
Material and plant cost are among the most important cost in any particular project irrespective of the industry it is in. This is because of the aspect that material and plant include most of the elements that are required in the management of any project. Material and plant cost in any project management includes analyzing the expenses of the project in the domain of land acquisition, planning and feasibility studies, Architectural as well as engineering design, construction cost such as materials, equipment along with labor among others. Supervision of construction site, insurance, financing, machinery, inspection of site, testing of construction site and others are among the most important cost of plants and materials that are associated with any particular project. For this particular project of construction, the above-mentioned aspects of cost will be taken into consideration. This will also help in estimating the overall project. Some of the plants and equipment to be used in the site are provided hereunder.
Items
Architect cost
Provisional sum items
Contract cost
Provisional sum items
Permit cost
Provisional sum items
Machinery
Standard items
Equipments
Standard items
Labor
Standard items
Design
Prime cost items
Structure
Prime cost items
Engineer cost
Prime cost items
Cost related to Machinery, Equipments, and Labor will be calculated on the basis of present market price of the same.
DEFINITION OF ‘PRIME COST’
A business’s expenses for the materials and labor it uses in production. Prime cost is a way of measuring the total cost of the production inputs needed to create a given output. By analyzing its prime costs, a company can determine how much it must charge for its finished product in order to make a profit. By lowering its prime costs, a company can increase its profit margin and/or undercut its competitors’ prices.
A Provisional Sum is an estimate given by the builder for materials and labour, for a particular part of the project where a fixed sum cannot be provided. The cost must be estimated with care and skill. The builder should always retain his suppliers and subcontractors quotes and written estimates for these items as proof of reasonable enquires having been made. If the builder wishes to increase the cost of a Provisional Sum or Prime cost item, the homeowner can request the builder to quantify the extra claim when claiming payment for that item. A builder who has a ‘guess’ at the likely cost for these items invariably prices them too low. When the builder seeks to recover a higher sum from the owner, they will inevitably face a dispute.