5.1 Significance:
5.1.1 The application of elements (see 3.1.1 and Terminology E833) to the description and the summary and analysis of building construction cost provides a consistency, commonality, and utility through all stages of design that other forms of estimate presentation do not.
5.1.2 This practice describes a simple format for elemental cost analysis presentation that is both valuable and informative when used during the various design stages of construction development.
5.2 Use—Users include owners, developers, contractors, cost professionals, estimators, architects, engineers, quantity surveyors, facility managers, and others involved in property development, construction, maintenance, and management.
5.2.1 Reporting—Cost reports structured by elements provide estimates, summaries, and analyses by applying “Cost to Function.” This application works whether the approach is “Design to Cost” or “Cost to Design.” Value analysis is greatly assisted through the allocation of estimated cost to elements.
5.2.2 Controlling—Comparison of progressively more detailed estimates is simplified where cost is allocated to appropriate elements regardless of design or specification, permitting efficient review and checking of new estimates. Design estimating using elements allows for benchmarking and the setting of cost limits (baseline) for a building design from the outset, and also permits the establishment of an elemental cost plan (see 3.2.1). Baseline records and cost plans are accessed and compared with current reports.
5.2.3 Recording—Historic and baseline cost records are easily kept for all forms of building construction, and in a format that can be used for the planning and design of future projects.
5.2.4 Other Uses—Elemental summaries and analyses are equally useful in forensic estimating and in quantitative risk analysis.
5.2.5 Relationship to “Trade” Estimating—Traditional trade (or construction) estimating summarizes cost to a product, or trade classification. This is valuable when construction work has been fully specified or contracted, but is less so through the planning and design stages. The two systems (trade and elemental) are compatible in that they both relate to the same end product, for example, a building; they differ solely in the way cost is aggregated. Each estimate form can be converted to the other by coding or allocating each construction component to an appropriate trade/product division or element. During design evolution, changes in design and specification can make trade estimates difficult to compare with previou......