GUIDELINES FOR COST CONTROL IN HOSPITAL BUILDINGS

Abstract

Control of costs is not just a book keeping process; rather it has become an intrinsic part of the whole architectural process. The control of building costs is now much more important than in the past. This is mainly due to four pressures: �â� �¢ Pace of development in building is increasing �â� �¢ Clients requirement are more complicated �â� �¢ Clients organization are large �â� �¢ Modern practices in designing, where new technology and materials are used. The result of integration of cost control with design process will be better planning, more efficient professional service, and more satisfied client. In case of hospitals, Since human life is at stake, the justification of capital expenditure may be taken for granted. However, the mounting financial pressure that is created by the escalating construction and operating cost of hospitals requires much effort to be directed to ensure that not only the functional requirements of the hospital are met, but also its financial goals �â� � goals that relate to its business plan. Hospital stakeholders depend on reliable cost advice to make strategic project decisions. The main objective of capital cost planning is to ensure that the project is finished within an allowable and reasonable budget, within the expected time and to give the client value for money. A successful cost plan at project inception will help to establish an appropriate budget that relates to and is feasible within the business plan. Due to the complexity of hospital design and the variety of stakeholders who are involved, the possibility for cost blow-outs is much greater than for other projects. In order to provide value for money to all parties concerned, pragmatic early cost advice is iv required. Cost analysis of building projects will reveal appropriate cost distribution between various parts of the project. The combination is an ability to establish budgets for new projects that reflect not only the anticipated physical structure, but also the unique mix of functions. Historical cost information is adjusted for time, location, quality and other construction market factors to create a realistic capital allowance complete with prudent contingent allowances. It is not intended to be a treatise on how to build hospitals; rather, it is an identification of some of the key issues and processes that inflate the cost of construction, and suggestions of how to control these costs. The Guidelines address specific areas of concern which collectively influence the cost control process. Each concern taken individually may not produce a significant result, but acted upon collectively can result in measurable cost controls.