A property developer is exploring the feasibility in participating in a land auction for a plot of land of $13,000$ m$2.$ The land is designated for non$-$industrial $($excluding godown, hotel and petrol filling station$)$ purposes. The board of directors of the developers wishes to build two high rise residential building to maximize the profitability. Assume you are the quantity surveyor of the developer, the land auction team is now seeking your advice on construction cost estimation for completing their residual method calculations and thus advise the feasibility on the proposed land acquisition.

Due to time limitations$,$ no detail design nor foundation design are available at the moment. The outline design is anticipated of two residential building with $40$ storeys each, accumulate to $80,000$ m$2$ CFA. The superstructure construction works is scheduled to commence in $2026$ Q$2$ and hence the main contract should at least return in $2025$ Q$2.$

The board has considered a previous completed in$-$house project with similar CFA $(75,000$ m$2)$ and similar footprint for each building $($same two high rise building but of $37-$storeys height$).$ The works was completed on $2023$ Q$2$ and the main contract was returned on $2020$ Q$1$ with a contract sum of $$3,300$M $($refer Appendix I$).$

It is anticipated that there should have more curtain wall in the fa$$ade design and similar interior design but with upgraded electrical appliances and kitchen cabinets $($from local made to imported$).$ The board expected the construction cost will only be increased by around $5\%$ and serve this as the budget and ask opinion from your side.

As a quantity surveyor, discuss your approach in

$($i$)$ prepare the cost estimate $($assumptions$,$ information required, etc.$)$

$($ii$)$ coordinate with design team to meet the cost limit$.$

$($iii$)$ improve the accuracy of the cost plan.

In answering the above, you are required to make reasonable assumptions for information that was not been provided. In addition, references should be provided in support your arguments where appropriate.

Appendix I

Cost Plan of Previous Completed Project

a$)$ CFA: $75,000$ m$2$

b$)$ Site Area: $12,500$ m$2$

c$)$ Building Footprint: $1,900$ m$2$

d$)$ Nos. of Flat: $890$ units

Construction Cost

A$.$Ground Investigation is $$5,000,000$

B$.$Foundation $($bored pile$)$ is $$100,000,000$

C$.$Main Contract

C$1.$ Building Carcase $($including Curtain Wall$)$ is $$1,800,000,000$

C$2.$ Interior Fitting Out Works $($excl$.$ iii. & iv$.)$ is $$700,000,000$

C$3.$ Kitchen Cabinet is $$100,000,000$

C$4.$ Electrical Appliance is $$30,000,000$

C$5.$ Building Services Works is $$500,000,000$

C$6.$ External Works is $$120,000,000$

C$7.$ Works Outside Site boundary is $$80,000,000$

D$.$ Miscellaneous Packages is $$50,000,000$

Total Construction Cost is $$3,485,000,000$

$$/$CFA ft$2$ is $$4,317/$ft$2$