Cost Data

Question 1

What sources of cost data are there?

Answer 1

• Your own experience, pricing documents from projects you have worked on.
• Colleagues experience, pricing document from their projects.
• In house cost data such as F+G insight
• External cost data sources such as Building Cost Information Service (BCIS)
• Market tested rates
• Price books such a spons

Question 2

How do adjust cost data?

Answer 2

• Location & Time.
• Abnormals: procurement route and tendering strategy, size of the project, site specifics, any sequencing or acceleration of the programme, tender period, level of design.

Question 3

What is the current inflation for 2023 and 2024?

Answer 3

Current Gleeds Inflation year on year is circa 4%

Question 4

Can you explain to me how you obtained your cost data for the Lemon Tree House Cost Plan. How did you make sure the cost data was accurate?

Answer 4

I obtained data from our in house cost data base, I adjusted for both location and TPI by using BCIS all in TPI and TPI from Gleeds in house cost intelligence.
Also went to market for current prices e.g. frame contractors for concrete rates

Question 5

Whats a typical rate for concrete currently

Answer 5

£220/m3

Question 6

Whats a typical reinforcement rate for a slab

Answer 6

170kg per m2

Question 7

Can you please clarify how you calculated inflation and where you would obtain this equation?

Answer 7

• Calculation is given in NRM1
• TPI indices based on quarters are obtained from the BCIS database
• Date of Estimate/planned date of works = New TPI
• Date of information being used = Old TPI

Question 8

What is TPI

Answer 8

• Tender Price Index, indicates contractor pricing tendencies taking into account inflation and the economy.

Question 9

How do you apply TPI and BCIS index?

Answer 9

• Tender price index applied to tender stage.
• BCIS applied to mid point of construction.

Question 10

What would you include within your cost plan?

Answer 10

Executive Summary including costs
Assumptions and Exclusions
information Used
Elemental summary
Detailed Cost breakdown as per NRM1
Appendices such as VE register, reconciliation with a previous cost plan/estimate, area schedule, risk register

Question 11

Can you name some typical exclusions?

Answer 11

• Cost of purchasing land.
• VAT.
• Programme acceleration.
• Sequencing of the work.
• Out of hours working.
• Contamination.
• Ground obstructions.
• IT, AV.
• Cost associated with COVID-19.
• BREEAM
• Decanting
• Temporary accommodation

Question 12

Types of inflation?

Answer 12

• Tender inflation: the period from the estimate base date to the date of tender return.
• Construction inflation: the period from the date of tender return to the mid-point of the construction period.