House Building Cost

8/13/2019 House Building Cost

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NUST INSTITUTE OF MANAGEMENT SCIENCES

MANAGERIAL ACCOUNTING

FINAL TERM PROJECT

Submitted To

Mr. Sabir Jafri

Submitted By

Abbas Kazim Shah

Anila Muhammad

Fatima Syed

Muneeb Ahmed Khan

Sadaf Mansoor

Syed Usman Wazir

Batch

BBA-2K5 B!

Submissio !ate"

January 25" 2##$



Ac#o$%ed&emets

We %ould li&e to 'en our (ratitude to the su''ort and (uidan)e 'ro*ided to us for the

)om'letion of our 'ro+e)t.

First and foremost" %e %ould li&e to than& God A%mi&hty. By ,is (ra)e and

blessin(s" %e %ere able to )om'lete the 'ro+e)t su))essfully.

Also" %e are (reatly than&ful to Ms' Fatima Aya( Ar)hite)t!" Ma) * Shau#at

Mehmood ro'erty onsultant!" M+' Musha++a, ontra)tor!" M+' Ahmed Mi+(a

ontra)tor! / a host of other sho-#ee-e+s. We are hi(hly obli(ed and %ould li&e to

than& them for 'ro*idin( us %ith all the rele*ant information for our 'ro+e)t. 0eedless

to say" %ithout their )oo'eration it %ould ha*e been *ery diffi)ult for our 'ro+e)t to

materialize.

For 'uttin( u' %ith o))asional limited a))essibility and mood s%in(s" and for al%ays

bein( there for moral su''ort and en)oura(ement" our s'e)ial than&s (o to the most

im'ortant 'eo'le in our li*es - ou+ -a+ets'

We %ould also li&e to than& our )ourse instru)tor" M+' Sabi+ Ja,+i for his 'er'etual

su''ort and (uidan)e throu(hout our 'ro+e)t %or&. Without his assistan)e it %ould

ha*e been im'ossible to )om'lete the desi(nated tas&.



E.ecuti/e Summa+y

For our term 'ro+e)t of Mana(erial A))ountin(" %e %ere re1uired to (i*e the )ost of

)onstru)tion of a house and (i*e a )om'etiti*e bid )onformin( to the )urrent mar&et

trends.

ur (rou' undertoo& this 'ro+e)t" by )ondu)tin( mar&et resear)h of the 're*alent rates

and trends. We di*ided our 'ro+e)t into three 'arts i.e. obtainin( multi'le )om'etiti*e!

rates from different )ontra)tors and su''liers" sele)tin( the best o'tions and (i*in( a)om'etiti*e bid.

3he )osts in our 'ro+e)t" for )omin( u' %ith the final bid 'ri)e" %ere di*ided into four

se(ments. lot 'ri)e and ar)hite)t fee formed the first t%o se(ments. ontra)tor )ost

and material )osts formed the third and fourth se(ment.

Finally" our (rou' %as able to rea)h a )on)lusi*e bid -+ice o, Rs' 012341567 for

the )onstru)tion of an unfurnished house.



S-eci,icatios !emaded By The Custome+

Follo%in( are the s'e)ifi)ations of the house demanded by the )ustomer4

Basic +e8ui+emets

• Kanal 'lot in 6,A 7slamabad

• 5 Bedrooms %ith atta)hed %ashrooms in)ludin( master bedroom!

• 2 Kit)hens

• 6ra%in( room

• 6inin( room

• 2 3.8 loun(es

• 2 Store rooms

• Ser*ant 1uarter

• 3erra)e

• or)h

Uti%ities 9 Accesso+ies

• 9eyser

• ,eaters

• A:s

• oo&in( ran(e

Note

3he )ustomer demanded that the house should be of ;A: or ;B: )ate(ory. 3hese

)ate(ories im'ly the use of im'orted material or *ery hi(h 1uality a&istani material.



BID

For

House



Bid Fo+ Cost+uctio O, :ouse

7t is bein( notified that our (rou' 'resents the follo%in( bid for the )onstru)tion of a

house" a))ordin( to the re1uirements 'ro*ided by the buyer.

BI! PRICE " Rs' 01234156;

S'e)ifi)ations

• 1 kanal house (90’x 50’)

• Covered area of 4988 square fee



S-eci,icatios O, The :ouse

9i*in( the )ost stru)ture of the house" our (rou' not only too& into )onsideration the

re1uirements of the )ustomer< buyer but also ensured that the )ost 'ro*ided should be

of a (ood 1uality house" suitable for the 'osh lo)ality sele)ted. Follo%in(

s'e)ifi)ations of the house are im'ortant to mention" to (i*e an insi(ht into the main

elements of the house.

• !he "ro"osed #onsru#$on s$e $s %lo &o' *ree 4 %hase 1

exens$on DH+ Isla,a-ad'

• !he d$,ens$ons of he "lo are 50’ x 90’'

• !he oal #overed area of he "lo $s 4988 square fee'

7t is 'ertinent to mention here that the )osts ta&en for the 'ro'osed )onstru)tion of the

house may seem relati*ely hi(h" but this is due to the use of hi(h 1uality materials" as

demanded by the )ustomer.

3he rele*ant )ost details for the house are bein( 'resented in the atta)hed sheets.



Notes to the ,iacia% statemets

<' 3he statements ha*e been 're'ared in a))ordan)e %ith the &no%led(e obtained

from the )ourse of a))ountin(.

5' We ha*e di*ided the o*erall )osts into three )ate(ories namely 6ire)t Materials

6M!" 6ire)t =abor 6=! / Manufa)turin( *erhead M,!. 3he head of M,

does not in)lude the indire)t material )osts be)ause of the fa)t that all the material

)osts are a))ounted for in the dire)t material )osts for the reason that %e are

'ro*idin( a finished 'rodu)t to the )ustomer<buyer. 3hese materials )ome as a 'art

of the 'a)&a(e bein( 'ro*ided to the )ustomer based on his s'e)ifi)ation"

therefore" do not )ount as indire)t material )osts.

=' 3he 'rofit mar(in of #> has )onsensually been de)ided by our (rou' &ee'in( in

*ie% the )urrent mar&et trends.

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House Building Cost