PC3

INFORMATION SYSTEM (IS)

structured system used to collect, store, process, and distribute information to support decision-making, coordination, and control within an organization

PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

organized system that supports project planning, execution, monitoring, and control by providing timely, accurate, and relevant project information

HARDWARE

• Computers, servers, mobile devices used on-site and in offices

SOFTWARE

• Applications for scheduling, cost control, reporting, and documentation

DATABASE

Central storage of project data (costs, schedules, BOQs, reports)

PROCEDURES

Rules and processes for data entry, updating, and reporting

PEOPLE

Project managers, engineers, planners, and stakeholders who use the system

COST ENGINEERING

discipline that applies engineering principles and techniques to the management of project costs

COST ENGINEERING

involves estimating, controlling, and analyzing costs throughout the project life cycle

COST ESTIMATION

Predicting costs at different stages of the project

COST CONTROL

Monitoring and controlling costs during execution

BUDGETING AND FORECASTING

Allocating resources and predicting future expenses

VALUE ANALYSIS AND COST OPTIMIZATION

Ensuring efficiency without compromising quality

CONSTRUCTION COST

total expenditure required to complete a construction project

DIRECT COSTS

Materials, labor, equipment directly used on site

INDIRECT COSTS

Overheads, permits, temporary facilities, insurance

CONTINGENCY COSTS

Unforeseen expenses due to design changes or delays

DIRECT COST

Costs that are directly attributable to construction work

INDIRECT COST

Costs not directly tied to construction activities, but necessary for project completion

FIXED OR LUMP SUM COST

Pre-determined costs agreed upon before construction begins

VARIABLE COST

Costs that change depending on the quantities of work done, materials used, or labor hours

CONTINGENCY COST

Funds set aside for unforeseen events, uncertainties, or changes during construction

SUNK COST

Costs that have already been incurred and cannot be recovered

PRELIMINARY ESTIMATES

rough calculations made before detailed design or detailed quantities are available

COST PER SQUARE METER

Simplest method. Uses historical data of similar projects. Estimated Cost = Floor Area (sqm) x Cost per sqm

STIPULATED SUM / UNIT PRICE METHOD

Contract specifies a fixed amount for the project

COST PLUS METHOD

Contractor is reimbursed for actual costs plus a fixed fee or percentage for profit

WORK BREAKDOWN STRUCTURE

• hierarchical decomposition of the total scope of work required to accomplish project objectives and produce deliverables, as defined by PMI

CSI MASTER FORMAT

• standardized system for organizing construction specifications and information, developed by the Construction Specifications Institute (CSI) to provide common language and simplify document management

ESTIMATING FORMATS

• defines how costs are organized, presented, and calculated based on the available project information

UNIT PRICE ESTIMATES

Useful for projects where quantities are well defined but total scope may vary.

DETAILED ESTIMATES

• Provides a comprehensive, itemized breakdown of all components 

AREA ESTIMATES

• Uses a standard cost per unit of area 

• Quick method for preliminary or conceptual estimates 

ASSEMBLIES / BILL OF QUANTITIES

Provides quantities and descriptions for tendering and contractor pricing

CONTINGENCIES

Allowance for uncertainties, risks, and unexpected expenses. Usually expressed as a percentage of total estimated cost.

TAXES AND FEES

Mandatory government charges associated with construction. Must be included to avoid budget shortfalls.

PROFIT / MARKUP

The contractor’s gain for completing the project and taking on risk.

UNIT COST THEORY AND PRACTICE

cost of performing a specific unit of work or providing a unit of material, and it is essential for accurate construction cost estimating

THEORETICAL UNIT COST

• calculated during the estimation stage, using standard rates for labor, materials, equipment, overhead, and profit

PRACTICAL / MARKET-ADJUSTED UNIT COST

real-world cost that reflects current market conditions, such as seasonal price changes in materials, labor availability, and local supply constraints

SUBCONTRACTOR COSTS

expenses paid to specialized contractors hired to perform specific portions of a project, such as electrical work, plumbing, or finishing

BILL OF MATERIALS (BOM)

• structured list of raw materials, components, and assemblies required to construct a project

BILL OF QUANTITIES (BOQ)

• detailed document listing work items with measured quantities prepared from drawings and specs

VARIATION ORDER (VO) BILLING

• May include additional work (additive) or deducted work (deductive). 

FINAL BILLING

• Includes all remaining unpaid balances. 

PROGRESS BILLING

• The most common type of billing. 

• Submitted periodically (usually monthly). 

• Based on the actual accomplished work during a specific period.

SUBCONTRACTOR COST SCHEDULING

• process of planning when subcontracted works will be executed and when payments to subcontractors will be made throughout the project lifecycle

EQUIPMENT COST SCHEDULING

• process of planning when construction equipment will be used, how long it will operate, and how much it will cost throughout the project duration

CONSTRUCTION COST PLANNING

• systematic process of estimating, controlling, and managing the costs of a building project from inception to completion

COST PLANNING PROCESS

• creates a continuous cycle where initial estimates are turned into actionable budgets, coordinated with schedules, controlled during execution, and refined through feedback

PROJECT SCHEDULING FLOWCHART

• visual representation of the logical sequence of construction activities from start to completion

MATERIAL COST SCHEDULING

• process of planning when materials are needed, how much they cost, and when payments will be made throughout the project timeline