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• Are all these costs controllable? <br /> The prime candidates for cost control are: building construction, building interiors and site <br /> development. Control of these components will indirectly control the majority of development <br /> costs which, for the most part, are calculated on the cumulative cost of the aforementioned. <br /> Usually land costs tend to be fixed by marketplace, availability, and suitability factors and <br /> are therefore not "controllable" in the same sense. Various sites can and should be investigated <br /> where practical and in addition to ascertaining their purchase price, the possible effects on <br /> building construction (rezoning requirements, topography, subsoil conditions, availability of <br /> services) ought to be thoroughly investigated prior to purchase. In addition, the site should be <br /> related to the actual building requirements (considering possible future expansion) and be no <br /> larger than necessary. <br /> Once a budget is approved, what are the opportunities for cost savings? <br /> Opportunities for capital cost savings tend to vary dramatically over the various program, <br /> design and construction stages. Following the feasibility study which determines the opportunity <br /> to proceed with the project or not, and following the program which defines the project cost <br /> Emits, the opportunity for greatest savings occurs after programming and during the earliest <br /> concept trial stage when several solutions in each element of the various design concepts are <br /> under examination. It diminishes rapidly once design concept is selected and detailed design <br /> gets underway. At bid stage the potential drops to about 10 per cent and thereafter deteriorates <br /> during construction. More often than not, extra costs are experienced when construction is under <br /> • way and nears completion. This is the prime reason to establish and maintain a construction <br /> contingency in project budgeting. <br /> OPPORTUNITIES FOR COST SAVINGS IN A PROJECT <br /> DESIGN 'I CONSTRUCTION >I <br /> 100 t <br /> N <br /> �` ,--- Program <br /> Z 60 <br /> Concept <br /> > 60 <br /> Q L <br /> N 40 <br /> Detailed <br /> Design Bid <br /> 20 L <br /> • Construction <br /> 0 <br /> T I M E 8 <br />