Your company have been approached by a logistics company to provide a quick feasibility estimate of a new warehouse along the R21 near OR Tambo Airport.

A recently newly (Jan2021) completed warehouse in the same vicinity with an area of 3500m2 and 4.8m high walls was built for R92m. The new facility has an area of 4500m2 with walls of 5.9m high. The cost index for South Africa in Jan 2021 was 150 and now 157 in Jun 2022.

Question 4 

What would the proposed estimate and cost ranges for the newly warehouse 2022 in South Africa by using the Area Physical Dimension Estimating Method?

Answer rating: 100% (QA)

To estimate the cost of the proposed new warehouse in 2022 using the Area Physical Dimension Estimat... View the full answer