Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. Trends and factors are currently affecting the travel and tourism industry every day for example, booking on the internet, teletext and phoning call centres to book. A business metric is a quantifiable measure businesses use to track, monitor and assess the success or failure of various business processes. The main goal of. As a business owner, you must understand what is going on not just in your own business but also in your entire industry. The factors that are hurting and helping. ADVERTISEMENTS Sales Forecasting Meaning, Factors, Importance and Limitations Meaning Future is uncertain. Man thinks about future. He may be a businessman, a. Factors Affecting Construction Cost Estimating. Accurate estimation of the construction cost of a project is extremely important. One of the most unpleasant bits of news you may ever have to deliver to a client is that the cost of a project will be more than you had estimated. Construction cost estimating usually proceeds in one of two ways, either the client provides the designer with a maximum budget figure, the limit for construction costs, or there is a preliminary period of study under the schematic design phase in which possible schemes are developed and their respective costs estimated. Some factors can individually affect construction cost estimating include the project Size. ADVERTISEMENTS Some of the factors affecting the working capital of a company are as follows Factors Affecting the Working Capital The firm must estimate its. Supply chain strategies generally conform to one of six types. Choose the best one for your organization, and youll manage your business more effectively. The smaller the project in terms of scope or the number of square feet, the more it will cost per square foot. Contractors have a set of basic start up costs. These start up costs remain about the same in real dollars for everyproject. Thus for a very large and expensiove project, the start up costs will be a small percentage of the total construction cost. For a small project, since start up costs remain stable, they will constitute a large percentage of the total construction budget. If the cost of start up for any project is 4,5. However, if the total project cost is 3. Start up becomes a major cost factor when estimating construction costs for small to medium sized projects. Type. The type of project or the kind of space you are designing has an impact on estimating construction costs. The cost of construction depends on the time the contractors will need to execute the work, the degree of specialization of the work to be done, and the cost of the materials. Seasonal Factors Affecting Business' title='Seasonal Factors Affecting Business' />Different types of project have different levels of complexity and detail. Cara Premium Download Free Shutterstock. A school cafeteria wouldnt require the same amount of time, nor the same level of complexity, as a four star restaurant. Construction costs for the four star restaurant would be much higher than the cafeteria even though it probably would have smaller square footage. Clients may have difficulty understanding variations in costs. There are three variables in any project, and only two of these can be controlled at any one time. Huawei Lte Picocell. These variables are the level of quality willthe size of the building or space in terms of the total square footagethe total cost of the project. If a client wants a high degree of quality, the cost must be allowed to flex. If the client has a rigid budget, and a minimum quantity of square footage, then they must compromise on quality. In this instance cost and quantity are controlled, and quality must be allowed to vary. You must help the client decide whether quality, size, or cost is the their biggest priority and explain what the trade offs are in terms of the other variables. Special Construction. Complexity can greatly increase the cost of the project. These conditions may include renovations, heavy loading, i. Renovation, especially if it requires altering or moving structural components, can be costly because it necessitates demolition as well as building. Quantities of files and books are heavy so the flooring may require additional structural support. Special construction may also be necessary to shield surrounding spaces from noise, fire and other hazards. Project accessibility. Sites may be difficult to access, either geographically or because the space is used during business hours, requiring that the project be scheduled for off hours. This can be a problem when adjacent spaces have sensitive equipment, or when construction materials containing hazardous chemicals are used in the construction process. You will be surprised how many construction materials do in fact contain hazardous chemicals. This presents a unique problem which has yet to be adequately addressed, because even if the area under renovation can be physically isolated from other areas of the building, very often the HVAC system has not been readjusted, and these chemicals are often circulated throughout the area or building, creating hazards for occupants. This situation is especially critical in permanently enclosed office buildings those whose windows are non operating, i. The most frequent culprits in terms of hazardous chemicals are glues, paint removers, mastics, carpet backings, and synthetically produced building materials. Be alert for these chemicals toulene, xylene, formaldehyde, mineral spirits, naphtha, and other kinds of organic solvents. In summary, these factors can increase the time and effort needed by the contractor and result in an increased cost of construction isolating areas under renovationproviding physical access to move materials, equipment, and construction personnel to the siteensuring periods of work when construction will not disrupt the on going operation of the company. Project clarity. Occasionally there may be a situation where the designer cant provide complete and accurate information to contractors. These conditions frequently occur when projects are located in old buildings for which there are no drawings or specifications documenting the existing structure and conditions. In these situations it is impossible to know absolutely what is inside of walls without conducting X ray investigations, which are occasionally done under extreme conditions, or other building components involved in the renovation. Uncertainty of conditions should give both the construction estimator and the contractor pause. Unknown conditions can increase both the risk and the complexity of construction, and some allowance must be made in the costs estimates, particularly if problems are suspected. Project Difficulty. Other factors can also raise costs The project schedule may be tight, e. Sub contractors may have to work over time or neglect other projects in order to finish work on time. This will raise the contractors price for the work because many people will need to devote more hours in a short period of time to the work, increasing the stress on workers, removing them from other projects on which the contractor is working, making coordination of trades more difficult, and finally presenting the possibility of needing to pay time and a half to union laborers which most construction trades are in many states. Level of detail may also make the project more difficult and costly. Costs will escalate if there are many components to the work and if components must occur in very tight order or concomitantly, requiring the general contractor to closely coordinate the building trades on the job. Client difficulty. If the client has been difficult during the design process, these difficulties will affect the construction process. A demanding client who may anger construction crews, an indecisive client who may wish to make changes up to the last minute or later will obviously raise costs. The clients problematic behavior is difficult to explain, let alone bill. It may be wise in these cases to incorporate a larger than normal contingency into your cost estimates allowing these difficulties to be accommodated without having to point out to the client that they themselves are the problem. Contractor problems. A client wants to work with a particular contractor. You know that sometimes this contractor may underbid the project, i. They submit a lower bid than competitors to secure the project. Business News, Personal Finance and Money News.