Design and Economics Flashcards
How would you produce an Order of Cost Estimate for a project at the feasibility stage?
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.
Can you explain how you applied cost planning techniques to manage the design budget during a project?
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
How do market trends in construction costs influence your cost planning advice?
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.
Can you describe how you evaluated and advised on the building design efficiency?
Net to Gross ratio 65-75%
The higher the efficiency the more net space for the client
Lower efficiency can be due to shared spaces/circulation
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
What is life cycle costing
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
What value engineering items was on your schedule for HRW
Aluminium windows to UPVC (£500 unit saving)
(Review whether triple glazing is necessary and whether it was an over specification)
Tilled bathrooms to Wet wall (£750 a unit)
Review external works and where applicable replace paving with grass/gravel
Can you explain how you applied market-tested costs and benchmarking data to prepare a Stage 3 Cost Plan for the Harrow Road scheme?
I market-tested costs for key elements by obtaining supplier quotes and comparing these to the RLB cost database. Benchmarking data from previous projects was used for similar items, adjusted for inflation using BCIS indices. I then prepared a detailed cost breakdown and ensured accuracy by reconciling these costs against Stage 2, highlighting changes to the client.
What challenges did you encounter when reconciling cost changes between Stage 2 and Stage 3, and how did you address them?
One challenge was identifying the reasons behind significant cost movements. To address this, I liaised with the design team to understand the design changes and their cost implications. I documented these movements in a reconciliation report, providing a clear rationale for the client. This ensured transparency and helped the client assess whether the changes aligned with their budget.
. Can you discuss how the Net-to-Gross and Wall-to-Floor ratios you calculated influenced the client’s decision-making process?
I calculated the Net-to-Gross and Wall-to-Floor ratios to assess the building’s design efficiency. For example, I identified that a lower Net-to-Gross ratio was due to increased circulation space. By highlighting these inefficiencies, I advised the client on potential design adjustments, such as optimizing core layouts. This enabled the client to improve space utilization without increasing costs.
How did you ensure that the costs used for your Fit-out Cost Plan for NES were comparable to similar projects?
I compiled a benchmarking report using internal data from similar schemes. These costs were adjusted for inflation using BCIS and tender price indices. I also considered project-specific factors like location and specification. This approach ensured the fit-out cost plan was accurate and aligned with market trends, providing the client with reliable information for decision-making.
In the High Road West scheme, how did you ensure that value engineering proposals maintained quality and functionality?
I prepared a Value Engineering Schedule that listed potential savings, assessed against technical and functional requirements. I collaborated with the design team to review these proposals, ensuring they met the project’s standards. Acceptable items, such as using alternative materials, were presented to the client with detailed cost savings, ensuring that quality and functionality were not compromised.
Describe a scenario where you had to adjust costs due to unforeseen market conditions. What approach did you take?
Covid occured this caused a spike in material costs which were sourced abroad, I engaged with the market to look at alternatives within the UK and different suppliers and updated the client with a revised cost report explaining the market conditions and recommending contingency measures
How do you ensure cost estimates remain realistic throughout the design stages while accommodating client objectives?
I regularly review cost plans to reflect the latest design and market data. I also use benchmarking, market testing, and inflation adjustments to maintain accuracy. By engaging with the client throughout the process, I ensure their objectives are factored into the estimates, enabling informed decision-making.
What methodology do you use to present cost implications of design choices to clients effectively?
I use visual tools like cost breakdowns, charts, and reconciliation reports to simplify complex data. For example, I present side-by-side comparisons of design options, highlighting cost and programme impacts. This approach ensures the client understands the implications and can make well-informed decisions.
