16412 Cost Management 4: Advanced Cost Management

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 16207 Cost Management 3: Cost Planning

Description

This subject covers advanced estimating and cost management techniques and procedures used by contractors. This includes tendering practices and cost monitoring, control and remedial action during the course of a project. The practical issues and problems faced by contractors in estimating project costs and securing work are examined in detail as are the strategies used by contractors to achieve competitive advantage. The subject also explores other decision-making techniques such as investment appraisal, feasibility studies and cost benefit analysis. The subject utilises contemporary software applications and explores leading edge industry practices such as electronic measurement, linking automated quantities to estimating databases/systems and the integration of the estimating process with building information modelling (BIM) systems.

Subject learning objectives (SLOs)

1.	Demonstrate an understanding of PMBOK Competency Units/Knowledge Areas in Project Cost Management
2.	Demonstrate an understanding of advanced digital technology in design, estimating and cost management
3.	Understand the concept of bidding theories and tendering practices/analysis, early contractor involvement (ECI), Design and Construct (D&C) procurement system, infrastructure cost management and post-contract cost control
4.	Understand the concept of investment appraisal and techniques
5.	Use computer software in design, measurement and estimating, construction program
6.	Use Building Information Modelling Systems and visualization

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

• Apply a variety of communication skills and technologies in professional contexts. (C.1)
• Work effectively in project teams in professional contexts. (C.2)
• Operate effectively within the social, legal and technical framework of the design and construction process. (P.1)
• Apply the body of knowledge underpinning construction project management practice. (P.2)
• Effectively manage the interface between design and construction processes for projects. (P.3)
• Develop strategic advice for clients on the costs and benefits of various courses of action involving construction projects and financing options. (P.5)
• Source evaluate and use information to approach new projects/problems. (R.1)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Teaching and learning strategies

This subject adopts the hybrid learning method, which combines face-to-face learning with online resources. The learning activities in this subject involve a variety of standard lectures delivered by the lecturer/guest speakers, tutorial sessions/workshops, group-based assignment tasks. The tutorial/workshop sessions will give immediate feedback to students' group assessment task and to provide professional comments and advices. Students are further supported through the use of Canvas offering subject materials and information moderation with the subject coordinator.

Students will collaborate in small groups (6 students each group) to develop a Construct Only Tender for a building development project assigned by the subject coordinator, that involves attending complusory workshops and meetings with industry mentors, tender presentation, and submission of final tender report. An on-line test will cover all topics in the subject, to assess students understanding of course content and their level of competency in applying what they are learning.

Content (topics)

This subject covers advanced estimating and cost management skills and procedures used by contractors for the preparation of 'real world' competitive tender documents and tender submission. Topics include, but are not limited to, the following:

• the concept of investment appraisal and techniques;
• the concept of bidding theories and tendering practices/analysis, early contractor invovement (ECI), D&C procurement system, infrastructure cost management and post-contract cost control, etc.;
• the use of computer software in design, measurement and estimating, construction program.
• the use of Building Information Modelling and visualization for tender
• thje application of artiifical intelligence (AI) and/or machine learning in construction cost management

Assessment

Assessment task 1: Construct Only Tender Submission (Presentation and Report)

Intent:	Students are required to collect data, prepare and submit a Construct Only Tender for a project using a variety of computer software (Group work but individually assessed and negotiated mark).
Objective(s):	This task addresses the following subject learning objectives: 1, 2, 3, 5 and 6 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.1, C.2, P.3, P.5 and R.1
Type:	Report
Groupwork:	Group, individually assessed
Weight:	60%
Criteria:	Assessment criteria will be provided in additional assessment information. All late submissions without previous agreement with the subject coordinator/lecturer are going to be addressed as per Faculty policy without exceptions.
Criteria linkages:	Criteria Weight (%) SLOs CILOs Understand the concept of cost management 25 1 C.1 Contribute to group work 10 2 C.2 Contribute to complete a tender 25 3 P.3 Contribute to use computer software to design and price the project 25 5 P.5 Contribute to the tender presentation 15 6 R.1 SLOs: subject learning objectives CILOs: course intended learning outcomes

Assessment task 2: Reflective Essays

Intent:	Students are required to submit two reflective essays on topics presented by guest speakers (Individual assignment)
Objective(s):	This task addresses the following subject learning objectives: 3, 4 and 5 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.1, P.1 and P.2
Type:	Essay
Groupwork:	Individual
Weight:	20%
Length:	500 words in length each
Criteria:	Assessment criteria will be provided in additional assessment information.
Criteria linkages:	Criteria Weight (%) SLOs CILOs Complete reflection essay on the topics 60 3 C.1 Demonstrate an understanding of report writing 20 4 P.1 Overall presentation and referencing 20 5 P.2 SLOs: subject learning objectives CILOs: course intended learning outcomes

Assessment task 3: Online Test

Intent:	An online test covering all subject contents
Objective(s):	This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.1, P.2 and R.1
Type:	Quiz/test
Groupwork:	Individual
Weight:	20%
Criteria:	Assessment criteria will be provided in additional assessment information.
Criteria linkages:	Criteria Weight (%) SLOs CILOs Understand the concept of cost management 10 1 P.1 Understand the use of digital technology 5 2 P.2 Understand the concept of these topics 65 3 R.1 Understand investment appraisal and techniques 20 4 P.1 SLOs: subject learning objectives CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.

Required texts

1. Hardin, B. (2009), BIM and construction management: proven tools, methods, and workflows, Indianapolis, Ind., Wiley Pub.

2. PMI (2013), A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th Ed, Project Management Institute, Newtown Square, PA.

3. Flanagan, & Jewell, C. (2018). New code of estimating practice. Wiley.

Recommended texts

1. Ashworth, A. (2002), Pre-contract studies: Development economics, tendering and estimating, Blackwell Science, Oxford.

2. Ashworth, A. (2004), Cost studies of buildings 4th Edition, Pearson Education Ltd., Essex.

3. March, C. (2009), Finance and control for construction, Spon Press, London.

References

1. AIB (1995), Guide to Estimating Practice for Building Work, 6th Edition, Australian Insitute of Building, Canberra.

2. Ashworth, A. and Hogg, K. Willis (2002), Practice & Procedure for the Quantity Surveyor. 11th edition, Blackwell Science, London.

3. Hardin, B. (2009), BIM and construction management: proven tools, methods, and workflows, Indianapolis, Ind., Wiley Pub.

4. Malden, M.A. (2005), Knowledge management in construction, Blackwell Publication, Oxford.

5. Popescu, C. (2003), Estimating building costs, Marcel Dekker, NY.

6. Pratt, D.J. (2006), Estimating for residential construction, Thomson Delmar Learning, Clifton Park, NY.

7. Sommerville, J. (2006), Implementing IT in construction, Taylor & Frances, London.

8. Rawlinsons Australian Construction Handbook (2024), Edition 42, Rawlinsons Publishing, Perth, Western Australia.