Question 2 (a) Explain the factors contributing to the substantial increase in the construction cost unit rate as compared to the past project based on the elemental cost plan, Figure Q1. (10 marks)

(b) Advise the client on the value engineering option(s) to optimise the carpark provision for the project. In your advice, you are to explain the options and indicate the potential cost saving and assumptions based on your recommendation(s). (20 marks)

Cost plan for ABC Condominium based on actual awarded sum s Descriptions Elemental cost Substructure Works $6,000,000 N Civil & Structural Works $30,000,000 3 Walls $5,000,000 Wall Finishes $3,000,000 5 Floor Finishes $9,000,000 6 Ceiling Finishes $1,500,000 7 Doors and Windows $5,000,000 8 Roof and Finishes $15,000,000 9 Carpentary & Joinery $8,000,000 10 Metal works $5,000,000 11 Sanitary & Fittings $6,000,000 12 Signages & Sundries $1,000,000 13 Mechanical Works $12,500,000 14 Electrical Works $5,550.000 15 External Works $7,500,000 Sub-Total $120,050,000 16 Preliminaries $12,005,000 Total Construction Cost $132,055,000 Figure Q1: Cost Plan for ABC Condominium