Cost saving - Revision history

Designing Buildings at 10:32, 20 June 2022

2022-06-20T10:32:37Z

← Older revision		Revision as of 10:32, 20 June 2022
Line 1:		Line 1:
−	Cost saving is a simple term referring mainly to spending less money than planned, or money saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly with the aim of making cost efficiencies or savings such as ~~tender processes,~~ value engineering processes, cost benefit analysis and so on.	+	Cost saving is a simple term referring mainly to spending less money than planned, or money saved and not spent. In the design and construction of buildings it can be a crucial element of procurement within which processes are set up directly with the aim of making cost efficiencies or savings such as value engineering processes, cost benefit analysis and so on.

	In a construction project financial cost savings might be loosely categorised into two different types;		In a construction project financial cost savings might be loosely categorised into two different types;

−	* ~~operational~~ cost savings	+	* Operational cost savings.
−	* ~~capital~~ cost savings.	+	* Capital cost savings.

−	Operational cost savings refer to the savings associated with the running of a building once it is completed or prior to and after refurbishment. These costs might relate ~~merely~~ to service ~~provisons~~ such as electricity, gas, water sewage and those within the local vicinity such as waste collection and council services. In the case of buildings that house organisations these may extend further to cover overall running costs of their operation from that building, which might include staffing, office material and consumables. The definition of these is usually described in detail by local tax offices, some of which will relate to taxes ~~payed~~ yearly or taxes due to be paid over a period of years. These costs in a similar way might also be ~~desribed~~ in terms of time period as short term financial cost savings and longer term financial cost savings.	+	Operational cost savings refer to the savings associated with the running of a building once it is completed or prior to and after refurbishment. These costs might relate to service provisions such as electricity, gas, water sewage and those within the local vicinity such as waste collection and council services. In the case of buildings that house organisations these may extend further to cover overall running costs of their operation from that building, which might include staffing, office material and consumables. The definition of these is usually described in detail by local tax offices, some of which will relate to taxes paid yearly or taxes due to be paid over a period of years. These costs in a similar way might also be described in terms of time period as short term financial cost savings and longer term financial cost savings.

−	Capital cost savings refer to savings made on the initial purchase of equipment or materials that may be used over a number of years. The capital cost savings therefore need to be balanced with the number of years an item is likely to be used for. In tax terms this might be called depreciation or in a case where the capital costs claimed in the first year is higher (rather than spread equally over the years of use) accelerated depreciation, which is normally for equipment that might rapidly decrease in value. Capital gains tax is a tax on the increase in value of a capital asset (normally over a number of years) such as a house. There are mechanisms to delay the payment of this tax and ways to offset costs incurred during that time against the taxable increase in value, thus in effect creating a capital gains saving.	+	For more information see: Operational costs.

−	In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing a saving would be a reduction in some form. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other cost definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of ~~sutainable~~ development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding costs that lie beyond the financial, over longer periods of time, become a consideration. In this context terms such as whole-life costs and carbon costs might be discussed further when considering the design, construction and use of buildings.	+	Capital cost savings refer to savings made on the initial purchase of equipment or materials that may be used over a number of years. The capital cost savings therefore need to be balanced with the number of years an item is likely to be used. In tax terms this might be called depreciation or in a case where the capital costs claimed in the first year is higher (rather than spread equally over the years of use) accelerated depreciation, which is normally for equipment that might rapidly decrease in value.
		+
		+	For more information see: Capital costs.
		+
		+	In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing - a saving would be a reduction in some form. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other cost definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sustainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding costs that lie beyond the financial, over longer periods of time, become a consideration. In this context terms such as whole-life costs and carbon costs might be discussed further when considering the design, construction and use of buildings.
		+
		+	For more information about methods of cost saving on construction projects see: Cost control.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 20:11, 27 April 2022

2022-04-27T20:11:54Z

← Older revision		Revision as of 20:11, 27 April 2022
Line 1:		Line 1:
−	Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly ~~to result in~~ cost efficiencies or savings such as tender processes, value engineering processes, cost benefit analysis and so on.	+	Cost saving is a simple term referring mainly to spending less money than planned, or money saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly with the aim of making cost efficiencies or savings such as tender processes, value engineering processes, cost benefit analysis and so on.

	In a construction project financial cost savings might be loosely categorised into two different types;		In a construction project financial cost savings might be loosely categorised into two different types;
Line 6:		Line 6:
	* capital cost savings.		* capital cost savings.

−	Operational cost savings refer to the savings associated with running a building once it is completed or prior to and after refurbishment. These costs might relate merely to service provisons such as electricity, gas, water sewage and those within the local vicinity such as waste collection and council services. In the case of buildings ~~housing~~ organisations these may extend further to cover overall running costs of their operation, which might include staffing, office material and consumables. The definition of these is usually described in detail by local tax offices, some of which relate to taxes payed yearly or taxes due to be paid over a period of years. These costs in a similar way might also be desribed in terms of time period as short term financial cost savings and longer term financial cost savings.	+	Operational cost savings refer to the savings associated with the running of a building once it is completed or prior to and after refurbishment. These costs might relate merely to service provisons such as electricity, gas, water sewage and those within the local vicinity such as waste collection and council services. In the case of buildings that house organisations these may extend further to cover overall running costs of their operation from that building, which might include staffing, office material and consumables. The definition of these is usually described in detail by local tax offices, some of which will relate to taxes payed yearly or taxes due to be paid over a period of years. These costs in a similar way might also be desribed in terms of time period as short term financial cost savings and longer term financial cost savings.

−	Capital cost savings refer to savings made on the initial purchase of equipment or materials that may be used over a number of years. The capital cost savings therefore need to be balanced with the number of years an item is likely to be used. In tax terms this might be called depreciation or in a case where the capital costs claimed in the first year is higher (rather than spread equally over years of use) accelerated depreciation for equipment that might rapidly decrease in value. Capital gains tax is a tax on the increase in value of a capital asset (normally over a number of years) such as a house~~, there~~ are mechanisms to delay the payment of this tax and ways to offset costs incurred during that time against the taxable increase in value thus in effect creating a capital gains saving.	+	Capital cost savings refer to savings made on the initial purchase of equipment or materials that may be used over a number of years. The capital cost savings therefore need to be balanced with the number of years an item is likely to be used for. In tax terms this might be called depreciation or in a case where the capital costs claimed in the first year is higher (rather than spread equally over the years of use) accelerated depreciation, which is normally for equipment that might rapidly decrease in value. Capital gains tax is a tax on the increase in value of a capital asset (normally over a number of years) such as a house. There are mechanisms to delay the payment of this tax and ways to offset costs incurred during that time against the taxable increase in value, thus in effect creating a capital gains saving.

−	In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other ~~costs~~ definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sutainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding ~~there is are~~ costs that lie beyond the financial ~~and tover~~ longer periods become a consideration~~, in~~ this context terms such as whole-life costs and carbon costs might be discussed further ~~which consiering~~ the design ~~and~~ construction of buildings.	+	In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing a saving would be a reduction in some form. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other cost definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sutainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding costs that lie beyond the financial, over longer periods of time, become a consideration. In this context terms such as whole-life costs and carbon costs might be discussed further when considering the design, construction and use of buildings.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 20:05, 27 April 2022

2022-04-27T20:05:03Z

← Older revision		Revision as of 20:05, 27 April 2022
Line 1:		Line 1:
	Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly to result in cost efficiencies or savings such as tender processes, value engineering processes, cost benefit analysis and so on.		Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly to result in cost efficiencies or savings such as tender processes, value engineering processes, cost benefit analysis and so on.

−	In a construction project financial cost savings might be loosely categorised into two different types; operational cost savings ~~and~~ capital cost savings. Operational ~~costs~~ refer to the ~~costs~~ associated with running a building once it is completed or prior and after refurbishment. These costs might relate merely to service provisons such as electricity, gas, water sewage and those within the local vicinity waste collection and council services. ~~This maybe in some cases for~~ organisations ~~extended~~ further to cover overall running costs which might include ~~such things as~~ staffing and consumables. The definition of these is usually described in detail by local tax offices, some of which relate to ~~taxs~~ payed yearly or ~~taxesdue~~ to be paid over a period of years. These costs in a similar way might also be desribed in terms of time period as short term financial cost savings and longer term financial cost savings.	+	In a construction project financial cost savings might be loosely categorised into two different types;
		+
		+	* operational cost savings
		+	* capital cost savings.
		+
		+	Operational cost savings refer to the savings associated with running a building once it is completed or prior to and after refurbishment. These costs might relate merely to service provisons such as electricity, gas, water sewage and those within the local vicinity such as waste collection and council services. In the case of buildings housing organisations these may extend further to cover overall running costs of their operation, which might include staffing, office material and consumables. The definition of these is usually described in detail by local tax offices, some of which relate to taxes payed yearly or taxes due to be paid over a period of years. These costs in a similar way might also be desribed in terms of time period as short term financial cost savings and longer term financial cost savings.
		+
		+	Capital cost savings refer to savings made on the initial purchase of equipment or materials that may be used over a number of years. The capital cost savings therefore need to be balanced with the number of years an item is likely to be used. In tax terms this might be called depreciation or in a case where the capital costs claimed in the first year is higher (rather than spread equally over years of use) accelerated depreciation for equipment that might rapidly decrease in value. Capital gains tax is a tax on the increase in value of a capital asset (normally over a number of years) such as a house, there are mechanisms to delay the payment of this tax and ways to offset costs incurred during that time against the taxable increase in value thus in effect creating a capital gains saving.

	In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other costs definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sutainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding there is are costs that lie beyond the financial and tover longer periods become a consideration, in this context terms such as whole-life costs and carbon costs might be discussed further which consiering the design and construction of buildings.		In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other costs definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sutainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding there is are costs that lie beyond the financial and tover longer periods become a consideration, in this context terms such as whole-life costs and carbon costs might be discussed further which consiering the design and construction of buildings.

Editor: Created page with "Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of ..."

2022-04-27T15:40:00Z

Created page with "Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of ..."

New page

Cost saving is a simple term referring mainly to spending less money than planned, or saved and not spent. In the design and construction of buildings it is a crucial element of procurement within which processes are set up directly to result in cost efficiencies or savings such as tender processes, value engineering processes, cost benefit analysis and so on.

In a construction project financial cost savings might be loosely categorised into two different types; operational cost savings and capital cost savings. Operational costs refer to the costs associated with running a building once it is completed or prior and after refurbishment. These costs might relate merely to service provisons such as electricity, gas, water sewage and those within the local vicinity waste collection and council services. This maybe in some cases for organisations extended further to cover overall running costs which might include such things as staffing and consumables. The definition of these is usually described in detail by local tax offices, some of which relate to taxs payed yearly or taxesdue to be paid over a period of years. These costs in a similar way might also be desribed in terms of time period as short term financial cost savings and longer term financial cost savings.

In perhaps more philosophical terms cost might be described as something that is given, needed, or lost in order to get something else, a particular gain or thing. In this context finances can be considered as only one aspect in the interpretation of potential costs to be considered, other costs definitions that are increasingly being considered might be expanded to environmental costs and social costs. In particular the Brundtland report talks about the subject of sutainable development as one that "meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). In this understanding there is are costs that lie beyond the financial and tover longer periods become a consideration, in this context terms such as whole-life costs and carbon costs might be discussed further which consiering the design and construction of buildings.

= Related articles on Designing Buildings =

* Accounting.
* Approximate quantities cost plan.
* Budget.
* Business plan.
* Cash flow.
* Contract sum analysis.
* Cost control.
* Cost and bonus surveyor.
* Cost plans.
* Elemental cost plan.
* Estimator.
* Front-loaded costs.
* Initial cost appraisal.
* Interim certificate.
* New Rules of Measurement.
* Professional indemnity insurance.
* Whole life costing.
* Tender pricing document.
* Variations.
* Whole life solution

[[Category:DCN_Definition]] [[Category:DCN_Specification]] [[Category:Definitions]] [[Category:Sustainability]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Procurement]]