target price method and building element cost estimation robert ven, joona hannonen, mimmi sjöblom,...
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![Page 1: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/1.jpg)
Target price method and building element cost
estimation
Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom
![Page 2: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/2.jpg)
Origins
- Development started after World War 2 in Britain
- In Finland in the 80’s (Nora software 1982)
- Haahtela-index and Haahtela-nomenclature 1998
- Index updated every year, latest version according to price level of
January 2015
- Current nomenclature according to Talo 2000
![Page 3: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/3.jpg)
Target price method- Way to calculate the price of a construction project or an existing
building
- For the calculation spaces need to be assigned a specific purpose- bathroom, bedroom, living room etc.
- The spaces are given an area to meet the demand of that purpose
- In value calculation / repair calculation, the condition of each space must also be measured
- no repair needed, some repair needed or even total renewal
- Used to define
- the cost of a new construction
- the cost of a repairing construction
- the value of a current building
![Page 4: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/4.jpg)
Target price method
- Target costing has been used for decades in manufacturing
- Adapted the benefit the construction industry
- The target price is set by the characteristics of the end product
- The target price is calculated in the beginning of a project and can be used as a base for more detailed planning
- Target price method can be used to e.g.
- set a budget for a construction project
- assess the value of an existing building
![Page 5: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/5.jpg)
Target price method
Process:
1.Define customer needs
2.Calculate maximum project cost
3.Calculate maximum project cost with current methods
4.Step 3 - Step 2 = cost-reduction required
5.Design the product
6.Monitor process
7.Cost improvements
![Page 6: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/6.jpg)
Target price method
- Several different systems available
- In Finland the most widely used software is Taku - Haahtela
- Customer language instead of developer language
- Initial data required
- Inputs regarding soil and urban environments important
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Target price method
The following is a target pricing example done with the Taku software
- Location: Lappeenranta
- Wholesale-central
- Net floor space of 4460 m2
- Plot area of 21000 m2
![Page 8: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/8.jpg)
Target price method: example4460 m2 inside21000 m2 plotwholesale terminal
![Page 9: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/9.jpg)
Target price method: example4460 m2 inside21000 m2 plotwholesale terminal
![Page 10: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/10.jpg)
Building element cost estimation
- Trade name of Haahtela-kehitys Oy
- Estimating the price of the building according to nomenclature or with modeling software
![Page 11: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/11.jpg)
Building element cost estimationMain objectives:
1.To reveal the distribution of costs in construction projects
2.To compare the cost of the same element in different projects
3.To obtain and use cost data for future projects
![Page 12: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/12.jpg)
Building element cost estimation
Can be used for new construction projects or repair projects as:
- Budgeting the construction project
- Estimating the cost changes according to specific design
- Controlling the economy of construction projects
- Base for construction procurement
- Estimating the total price of the building
![Page 13: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/13.jpg)
Building element cost estimation
Includes calculation of:
- Dimensions of structures
- Price of structures
- Price of construction services
- Price of property expenditure
- Operational costs
- Financing costs
- Construction procurement reservation
![Page 14: Target price method and building element cost estimation Robert Ven, Joona Hannonen, Mimmi Sjöblom, Alexander Åkerlund, Joachim Björnström, Tomi Blom](https://reader030.vdocuments.us/reader030/viewer/2022032722/56649f445503460f94c65106/html5/thumbnails/14.jpg)
Building element cost estimation
- Haahtela / Talo 2000 nomenclature includes three different pricing categories: Low price, normal price, high price.
- All the prices are presented without tax, so the value-added tax 24% should be added to price calculations
- Reference level is a trade name of Haahtela and it is used as an example to compare costs or for early design to help estimate costs
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Building element cost estimation
Plans
Measurement
Pricing
Comparing
http://site.timewiseconsultants.com/CADD.html
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Building element cost estimation
Building Information Modeling
http://www.amvicsystem.com/bim
http://www.cadserviceslondon.com/architecture-bim-services.php
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“Building Cost Information System”, Istanbul Technical University, Turkey
Taku, Haahtela Corporation, Finland
http://www.az.itu.edu.tr/downloads/papers/vol04-01/pdf/08yaman-%2004n1.pdf
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UNIFORMAT II Classification for Building Elements, USA
Talo-2000 nomenclature, Finland
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