3.2 Project Costs and Value Flashcards
What is a functional unit?
A unit of measurement that represents the prime use of a building or part of a building (Appendix A)
Gross internal floor area (GIFA) definition in IPMS 2
The floor area measured to the internal extent of the internal dominant face and to any Notional Boundaries and External Floor Areas
How can some quantities be calculated without design?
Gross internal floor area or/and functional units
How do we determine the rates?
-An estimate based on benchmark data for a similar type of project based on the client’s strategic definition or initial brief
-Purpose: to establish affordability of a project development for a client
-Cost limit: the maximum expenditure the client is prepared to make in relation to the completed building. it includes construction costs, the cost of professional services, certain other project costs, items required post completion and during its operation, and risk allowances
What is benchmark data?
Data from a project that has been tendered and analysed (and logically judged to be correct)
The projects that generate the benchmark data must be similar to the project for which cost is being predicted. This means it should:
-Have a similar gross internal floor area
-Serve a similar function
-be of similar scale (I.e. number of storeys)
-Be of similar construction
Similar is subjective-where expert judgement comes into play
The projects generating the benchmark data does not have to be:
-Constructed in a similar location but you want it to be in the same country
-Recently constructed, although more recently constructed projects may offer more realistic data (but this is dependent on the economic climate)
What are the sources of benchmark data?
Order of preference:
1. From within your organisation. Contractors and cost management businesses are becoming increasing adept at storing structured cost information
2. From the Building Cost Information Service (BCIS)-licensed service operated by the RICS (available to all, not just registered members. UK based data. Other countries may have similar offerings
3. Price books (such as Spons). Useful for some aspects. Last resort in this case.
How long does cost planning last?
Cost planning (typically) continues until the project is tendered (so the end of the cost planning process will be determined by the issue of tender documentation)
-goes through stages 2-4
What is a common way to structure a cost plan?
-Elementally, this enables cost targets to be determined per element. It offers more granular level of cost prediction, increasing reliability of prediction and enabling value management of design
Break down into group element:
I.e.
1 Substructure
2 Superstructure
Then you breakdown group elements into elements
I.e. Superstructure is broken down into Frame, External Walls etc
Understanding elements
Level 1=Group elements into elements (say 2 Superstructure)
Level 2=Element (say 2.6 Windows and external doors)
Level 3= Sub-element (say 2.6.1 External windows)
Level 4=Component (say 2.6.1.1 Window 900x900)
Why do we use the same standard structure for cost planning and cost analysis?
- Predict costs with acceptable accuracy
- Drive value
When we use historic data for benchmarking, we don’t just want to rely on one set of project data if it can be avoided
When we have a design, what quantities are we going to calculate?
-Gross internal floor area-can and will always be calculated for a building
-Functional unit-may be appropriate to calculate for a building
Need to understand and calculate the quantities associated with the group elements, element, sub-element and component
Element unit quantity
-Unit of measurement that relates solely to the quantity of the element or sub-element itself (e.g. the area of the external walls, the area of windows and external doors, and the number of internal doors), or is sufficiently representative of the group element
Example element unit rates-NRM1
-Substructures (m2)
-Frame (m2)
-External walls (m2)
Internal doors (nr)
-Space heating and air conditioning (m2)
-Lift and conveyors (nr)
