Charlotte's Questions Flashcards
When developing a cost estimate / plan, what rules would you refer to?
New Rules of Measurement 1
Can you please summarise what the RIBA Plan of Works looks to achieve and at what stages you would expect to undertake a cost estimate / cost plan?
Summarise…
Stage 0 - Initial/rough order of cost estimate
Stage 1 - order of cost estimate
Stage 2 - formal cost plan 1
Stage 3. - formal cost plan 2
Stage 4 - For al cost plan 3 / Pre-tender estimate
You mention utilising difference cost information sources, can you please advise what ones you are aware of and how you would look to adjust this information to ensure it is applicable to your project?
The main source would be using our in-house Market Rates app. I would also use quotations where possible and also information from tender returns. I may also use BCIS or Spons.
I would adjust rates taking into account time and location.
In your submission you state that for the Portland park project you used ‘benchmark data’ what do you mean by this? What might you need to do to benchmark information to make it relevant?
Once the cost plan had been completed we were able to calculate a cost per m2. I was then able to find similar projects using our benchmarking app from past projects, adjust their rates in terms of time and location, and check they were comparable.
When looking at project preliminaries as part of cost planning, what considerations would you need to make to allow you to best estimate these?
The value of the works and the length of the construction programme.
Look at similar sized jobs to get a weekly amount and apply to the full amount of weeks???
In Portland park project you mention applying tender and construction inflation – can you explain why these inflation costs are separate?
Tender Inflation
An allowance included in the order of cost estimate or cost plan for
fluctuations in the basic prices of labour, plant and equipment, and
materials during the period from the estimate base date to the date
of tender return.
Construction inflation
An allowance included in the order of cost estimate or cost plan for
fluctuations in the basic prices of labour, plant and equipment, and
materials during the period from the date of tender return to the
mid-point of the construction period.
You mention including assumptions and exclusions, please provide an example of some typical assumptions and exclusions you would contain within a cost estimate?
Assumptions:
1. Priced on current market conditions. Any allowance for price fluctuations is included in the tender and construction inflation allowance.
2. No unforeseen ground conditions, contamination (material on site is inert) or archaeological findings.
3. Assumed normal weather patterns (nothing extreme)
Exclusions:
1. Unforeseen ground conditions - costs for removing contaminated soil, archaeological finds or rock are not included
2. Land acquisition costs
3. Client supplied items
4. Out of hours working
5. Force Majeure events (pandemics or natural disasters)
6. Changes to the scope
Given the current market how would you capture inflation within a cost plan?
I would include for tender and construction inflation. At the time of the stage 3 cost plans this was…
You reference that you are in receipt of Turner & Townsend’s UK Market Intelligence Reports and that you include a section on market conditions within your reports to Clients – what does the latest market report tell us about the market conditions? In particular about OH&P for Tier 1 contractors?
It tells us that the market in the north east is buoyant and there are a lot of projects to tender for. Because of this the tier 1 contractors can pick and choose which jobs they want to tender for.
They appetite for the single stage market is low as tenderings costs are high, which is a risk for contractors in a competitive environment.
It has also been noted that OH&P rates are more likely to nearer 6% than those neared 3% in recent years.
On Portland park you mention that some of the VE examples came with Health and Safety concerns – what were these? Is it your place to advise on Health and Safety viability?
Some of the options that arose were swapping a ramp for steps, and removing handrails at the top of the steps.
While it wasn’t my place to advise on health and safety matters as such, I did have the knowledge that removing them could potentially be in breach of the Disability Discrimination Act and shouldn’t be considered just to save money.
As you will be aware there has been some recent changes to JCT with the release of JCT D&B 2024 form of contract, are you able to outline two changes to the suite?
- Professional indemnity insurance
- Notifications are now permitted by Email (other than termination payments)
- Decisions on EOTs – given within 8 weeks than previous 12. New or additional inform must be requested within 14 days of receipt of the claim(there was no such limit under D&B 2016)
- Ground conditions – now covers asbestos / contaminated material et previously only antiquities
- Insolvency – change in legislation
You note within your submission that you have experience of bespoke contracts – what are the pros and cons of bespoke forms?
What project did you use bespoke on?
Pros:
1. Client has the ability to add terms in that…
2.
Cons:
1. Bespoke contracts haven’t been ‘tested’ in courts therefore if any conflicts occur there is no past ‘experience’ to compare to
2.
You state on Mandela building that you collated the contract documents – what are the key sections of contract documents?
What information may you need from the Client to complete the contract documents?
You note on Mandela building refurb that the legal team agreed contract amendments – can you give me an example of an amendment made to the standard form?
