STUDIES FOR QUANTITY SURVEYING

SCHOOL OF CONSTRUCTION AND QUANTITY SURVEYING

COLLEGE OF BUILT ENVIRONMENT (CBE)
UiTM SHAH ALAM
BQS556 : CONSTRUCTION ECONOMICS II
ASSIGNMENT
CFAP224 Bachelor of Quantity Surveying (Hons) : Part 04
Semester: MAC-AUGUST 2025

INTRODUCTION
Elemental Cost Analysis (ECA) is an essential component in the study and practice of construction
economics. It provides a systematic breakdown of a building’s cost into elements based on their function,
enabling meaningful cost comparisons and informed decision-making for future projects. The preparation
of an ECA is particularly significant during the cost planning stage, offering valuable insights into the
distribution of construction costs and the impact of design choices on overall expenditure.

This assignment is designed to expose students to the practical application of cost analysis through the
preparation of a complete Elemental Cost Analysis for a real construction projectThe assignment aims to
strengthen students’ analytical skills, enhance their understanding of cost distribution, and prepare them
for future professional roles in quantity surveying and cost management.

ASSIGNMENT OBJECTIVES (Aligned with Syllabus Content)

1. Apply knowledge of cost analysis methodology
To enable students to understand and apply the systematic breakdown of building cost data
according to elemental structure, as prescribed by the RISM’s ECA Manual.
2. Interpret and utilize tender documents and cost data
To develop students' ability to extract, interpret, and analyse relevant information from accepted
tender documents, working drawings, and Bills of Quantities.
3. Demonstrate the ability to prepare a professional Elemental Cost Analysis
To provide hands-on experience in preparing Form 1 (Project Info), Form 2 (Elemental Summary),
and Form 3 (Brief Specifications) following industry standards.
4. Illustrate the cost distribution of building elements
To enhance students’ understanding of how construction costs are allocated among various building
elements, and the implications of cost proportions on building design and efficiency.

INSTRUCTIONS
• Groups are free to choose any building type (e.g., residential, institutional, commercial, etc.), subject
to lecturer’s approval.
• The project selected must be tendered out within 2014 – 2024.
• The ECA must be prepared based on accepted tender data, not the final account.
• Follow the standard format and principles provided in the Manual for Preparation of ECA by RISM.

REQUIRED SUBMISSION CONTENTS

Each report must include the following:

A. Project Background
• Project name, location, client type, and description
• Details of the contract and tender process
• Site condition, design complexity, and market conditions at time of tender

1
B. ECA Documentation (Based on ECA Manual)
• Form 1 – Project Information
• Form 2 – Summary of Element Costs (with calculations)
• Form 3 – Brief Specifications

C. Cost Benchmarking
In this section, students are required to carry out a cost benchmarking analysis for their selected
project. The objective is to evaluate how the unit cost of the project compares to relevant industry
benchmarks, enabling a better understanding of cost efficiency and market competitiveness.

Scope of Benchmarking:
• Building Works and External Works:
o Benchmark the cost per square metre (RM/m² GFA) for each element (e.g., substructure,
superstructure, finishes, etc.) against reliable published cost data from recognised
sources such as:
▪ PWCIC (Public Works Cost Information Centre)
▪ Arcadis International Construction Cost Reports
▪ BCISM (Building Cost Information Services Malaysia)
▪ CIDB Malaysia Cost Data
o Identify and comment on any significant deviations from the benchmarked rates. Provide
possible justifications (e.g., project location, design complexity, material quality, market
condition at tender time).
• Services (e.g., M&E works):
o Benchmark the services cost as a percentage (%) of the total construction cost rather
than RM/m².
o Compare with industry standard percentages typically reported in benchmarking
publications or cost data repositories.
o Discuss how the services proportion aligns or differs from standard benchmarks, and
what factors may have influenced the variance.
Expected Deliverables:
• Summary table comparing your project’s unit costs (RM/m² and services %) with benchmarked
data.
• Graphs or charts to illustrate cost comparison, if applicable.
• Brief commentary highlighting any major differences, reasoning behind them, and implications
on project cost performance.

D. Supporting Documents
• Drawings : Floor plans, sections, and elevations (A3 size)
• Calculation of Gross Floor Area (GFA), usable area, circulation area, and ancillary area.
• General Summary of Contract Sum (including cost breakdown)

2
 ASSESSMENT CRITERIA FOR ELEMENTAL COST ANALYSIS (ECA) REPORT

Assessment Criteria Description Weight

(%)
Project Information Completeness and clarity of project background, client details, 15%
(Form 1) contract particulars, market conditions, and design
characteristics.
Elemental Cost Accuracy and consistency of cost distribution, unit rates, 20%
Summary (Form 2) element quantities, and RM/m² values. Must reflect logical
costing and proper use of tender data.
Brief Specification Clear, concise, and relevant descriptions of materials and work 10%
(Form 3) specifications for each element. Should align with drawings and
cost data.
Cost Benchmarking Comparison of project cost/m² and services % with published 15%
benchmarks. Depth of analysis, identification of variances, and
explanation of cost deviations.
Supporting Inclusion and correctness of: Gross Floor Area (GFA) 20%
Documents (GFA, calculation, sketch plans/elevations (to scale), and summary of
plans) contract sum with breakdown.
Quality of Cost Logical reasoning in cost apportionment, understanding of cost 10%
Analysis relationships among elements, ability to identify cost anomalies
or insights.
Presentation and Professional layout, formatting, organization of content, 10%
Format appropriate referencing, clear labels on drawings, and
adherence to report writing conventions.
TOTAL 100%
Reduced to 20%

GROUP PRESENTATION INSTRUCTION

As part of the Elemental Cost Analysis (ECA) assignment, each group is required to deliver a formal oral
presentation to communicate their findings and analysis. This presentation serves to evaluate your
understanding of cost modelling and your ability to present technical information clearly and confidently
in a team setting.

Presentation Guidelines:
Duration : 15–20 minutes per group (including Q&A session).
Format : Group presentation (all members must participate).

Medium: Microsoft PowerPoint or any other suitable visual aid.

Content must include:
• Project background
• Summary of cost information (key highlights from ECA Form 1, 2, and 3)
• Gross Floor Area (GFA) calculation and cost per m²
• Significant cost elements and design-cost implications
• Visuals: Sketch plans, elevations, cost tables/charts
• Key findings and conclusion

3
GROUP PRESENTATION ASSESSMENT CRITERIA

Assessment Criteria Description Marks

(%)
Understanding & Demonstrates clear understanding of the use of cost 25%
Application of Cost information and ECA in cost modelling. Accurately explains
Information findings, including benchmarking.
Leadership & Team Evidence of leadership in managing the task; balanced 20%
Collaboration participation, coordinated delivery, and team synergy.
Organization & Flow of Content is logically structured from introduction to 15%
Presentation conclusion. Ideas are well sequenced and transitions are
smooth.
Visual & Supporting Slides and visuals (e.g., forms, drawings, benchmarking 15%
Materials tables, GFA, graphs) are well-designed, clear, and support
the oral delivery effectively.
Communication & Delivery Presenters are confident, articulate, and engaging. Good 25%
Skills use of language, eye contact, posture, and voice
projection. Minimal reading.
TOTAL 100%
Reduced to 10%

Prepared by:
Sr Dr Anis Sazira Bakri
Resource Person for BQS556
April 2025