Cost Planning

Question 1

What is Cost Planning?

Answer 1

Is an attempt to introduce more rigour and accuracy into the pre-contract costing process. The cost planning process commences with the preparation of an approximate estimate by the QS, and then the setting of cost targets, which are based upon elements.

Question 2

What is an Element?

Answer 2

Part of a building that fulfils a specific function or functions irrespective of its design, specification or construction i.e External Walls.

Question 3

What are cost targets?

Answer 3

Cost targets are based upon elements. As the design evolves these cost targets are checked for any under-or-overspending against the Architects details.

Question 4

What is Stage 0 of the RIBA plan of Work Stages

Answer 4

Strategic Definition

Question 5

What is the process of financial advice given at Stage 0 by the QS?

Answer 5

Order of Cost Estimate - to establish affordability of a proposed development
Cost Range - Financial limit

Question 6

What is Stage 1 of the RIBA plan of Work Stages

Answer 6

Preparation and Brief

Question 7

What is the process of financial advice given at Stage 1 by the QS

Answer 7

First Stage Estimate - Preliminary Estimate - single rate estimating - Lump Sum based on GIFA/GFA
Feasibility Study - cash flow predictions (i.e. s-curve)

Question 8

What is stage 2 of the RIBA plan of Work Stages?

Answer 8

Concept Design

Question 9

What is the process of financial advice given at Stage 2 by the QS?

Answer 9

Cost Plan 1/2 - elemental cost analysis
Single rate estimating
Cost Planning

Question 10

What is stage 3 of the RIBA plan of Work Stages?

Answer 10

Spatial Coordination

Question 11

What is the process of financial advice given at Stage 3 by the QS?

Answer 11

Cost Plan 3 - elemental cost analysis
Approximate Quantities
Cost Planning
Pre-tender estimate established (Confidential)

Question 12

What is stage 4 of the RIBA plan of Work Stages?

Answer 12

Technical Design

Question 13

What is the process of financial advice given at Stage 4 by the QS?

Answer 13

Cost Control and cost checking
Bill of Quantities produced, tender process
Compare the returned tender figure against the pre-tender estimate

Question 14

What is stage 5 of the RIBA plan of Work Stages?

Answer 14

Manufacturing & Construction

Question 15

What is the process of financial advice given at Stage 5 by the QS?

Answer 15

Cost Control/analysis and cost checking (variations etc.)

Financial Statements to the Client

Question 16

What is the floor area or m2 method?

Answer 16

The superficial method is a single price rate method based on the cost per metre of the building. This method is restricted to the early stages of design - approximate estimating

Question 17

What is the functional unit method?

Answer 17

The unit method is a single price rate method based on the cost per functional unit of the building, a functional unit being, for example, a hotel bedroom.

Question 18

What is the Elemental method?

Answer 18

The elemental method requires the calculation of element unit quantities (EUQs) and element unit rates (EURs) using the detailed rules of measurement contained in the NRM1.

Question 19

What is approximate quantities?

Answer 19

This is regarding as the most reliable and accurate method of estimating, provided that there is sufficient information to work on. Think stage 3 of RIBA plan of work stages. The quantities can be based on composite rates built up from data available in the office.

Question 20

Example of a composite item in a cost plan:

Answer 20

Excavate trench width exceeding 0.30m, maximum depth 1.00m; filling to excavations, disposal of excavated material off site, in situ concrete (20N/mm2 aggregate) foundation poured against the earth, 275mm cavity brickwork to 150mm above ground level, bitumen-based dpc, facings externally (everything grouped to-gether if measured in NRM2 items would be seperate)