Preliminary Cost Estimate Example A 35,000 m2 building is desired for Faylakah Island, Kuwait with completion estimated to be by end of 2021. The desired configuration and construction are very similar to those of a 45,000 m2 building completed in Kuwait City, in December 2010, with a cost of KD 3,596,000. Apply the following factors: 1. Time factor: Building cost Index in January 2011 - 2750 Building cost Index in January 2022 - 4200 2. Location factor: Kuwait City Location Index 4200 Faylakah Island Location Index 5150 3. Capacity Factor: ( Use cost-capacity factor = 0.6) 4. Soil Condition: Faylakah has poor soil conditions than Kuwait City. (Therefore allow 7% cost difference). 5. Quality: The building in Kuwait is high quality while Faylakah has medium quality. (Therefore allow 10% cost difference). 6. Competition: Since the project is far away, the competition for Faylakah is small (Allow 5% cost difference) Preliminary Cost Estimate Example A 35,000 m2 building is desired for Faylakah Island, Kuwait with completion estimated to be by end of 2021. The desired configuration and construction are very similar to those of a 45,000 m2 building completed in Kuwait City, in December 2010, with a cost of KD 3,596,000. Apply the following factors: 1. Time factor: Building cost Index in January 2011 - 2750 Building cost Index in January 2022 - 4200 2. Location factor: Kuwait City Location Index 4200 Faylakah Island Location Index 5150 3. Capacity Factor: ( Use cost-capacity factor = 0.6) 4. Soil Condition: Faylakah has poor soil conditions than Kuwait City. (Therefore allow 7% cost difference). 5. Quality: The building in Kuwait is high quality while Faylakah has medium quality. (Therefore allow 10% cost difference). 6. Competition: Since the project is far away, the competition for Faylakah is small (Allow 5% cost difference)