Design and Economics

Question 1

How would you produce an Order of Cost Estimate for a project at the feasibility stage?

Answer 1

At the feasibility stage, I would:

Use the RICS NRM1 framework to establish the basis of the estimate.

Apply functional unit rates (e.g., cost per square meter or per bed for hospitals) using benchmark data from similar projects.

Adjust for location, inflation, and specific project conditions.

Include allowances for preliminaries, contingencies, and professional fees to provide a comprehensive estimate.

Question 2

Can you explain how you applied cost planning techniques to manage the design budget during a project?

Answer 2

I developed an Elemental Cost Plan during the design stage using NRM1 to break down costs into elements (e.g., substructure, superstructure). I compared the evolving design against the budget at each stage and flagged over-budget elements for value engineering. For example, substituting precast concrete panels for in-situ concrete reducing costs

Question 3

How do market trends in construction costs influence your cost planning advice?

Answer 3

I regularly review market trends, such as fluctuations in steel prices or labour shortages, and adjust cost plans accordingly. For example, during a recent project, I identified rising timber costs early and advised the client to lock in prices through advanced procurement, saving approximately 10% compared to projected increases.

Question 4

Can you describe how you evaluated and advised on the building design efficiency?

Answer 4

Net to Gross ratio 65-75%
The higher the efficiency the more net space for the client

Floor to Wall ratio 0.4-0.6

External wall is a key cost driver the higher the ratio the more expensive the construction costs

Question 5

What is life cycle costing

Answer 5

Life Cycle Costing (LCC) is a systematic process used to evaluate the total cost of ownership (TCO) of a building, facility, or asset over its entire life span. This includes initial capital costs, operational costs, maintenance, repair, replacement, and end-of-life disposal or decommissioning costs.

• Capital costs
• Operational cost
• Maintenance and repair costs
• Replacement costs
• End of life costs