Design Eco And Cost Planning

Question 1

Difference between cost estimate and cost plan

Answer 1

• uni • This is when the level of design information is more limited and allows a cost estimate to be prepared on a cost per m2 or cost per functional unit basis.
• A cost plan is produced typically at each RIBA Work Stage from Stage 2 onwards.
• As the design progresses more information can be included to eventually breakdown the estimated cost of the development elementally into each of its component’s parts such as sub-structure, superstructure, services & professional fees into an elemental cost plan format..

Question 2

Difference between cost and price

Answer 2

• The cast is the total cast of labour, plant, materials and management deployed for a specific activiry.
• The price is the amount a purchaser or client will pay for an item or product and is made up of the cost plus the main contractor’s profit margin.

Question 3

How would u proceed if cost plan exceeds the project budget

Answer 3

I would analyse the costs to assess the source of the increase and identify whether any element of wor is abnormally high against the order of cost estimate.
When the reason for the overspend is identified I would then look to propose value engineering optons to my client and design team to bring the forecast back in line with the project budget.

Question 4

Buildability

Answer 4

Buddability is harnessing the contractor’s expertise and knowledge during the design stage to generate ideas for effective and efficient methods of construction.
What are the advantages of buildability?

Question 5

Advantages of buildabilty

Answer 5

buildabilty can result in better programming, sequencing and construction methods.
• A quicker more efficient programme can be achieved.
• Reduced capital and life cycle costs of the building can be obtained.
• The quality in the finished buikding’s performance and maintenance charactensties can be improved

Question 6

What is wall to floor ratio

Answer 6

• This shows the relationship between the wall area and floor arca.
• It is used to show the cost efficiency of the building.
• The lower the ratio, the cheaper the building is to construct as there is less external envelope to construct in comparison to the floor area.

Question 7

Most efficient shape

Answer 7

• In theory a building with a circular floor plate building would offer the most efficient design as there is less wall to floor area.
• Powere a crate doese has a boor letable floor area and is difficult to fit out therefore a square

Question 8

How would prepare an estimate for m and e

Answer 8

Ask m and e specialists qs

Question 9

What is shell and core

Answer 9

• Shell and core is the basic structure, services and envelope of the building.
• This normally includes the fit out of landlord and common areas for example the reception, toilets, lifts & stair cores.
• Base services are typically terminated at entry points to each of the lettable floor plates however life safety services infrastructure is normally provided.

Question 10

What is BWIC

Answer 10

• BWIC stands for Builders Work In Connection and is usually set as a percentage of the services cost.
• BWIC accounts for the Main Contractor to perfor any drilling, fixing, cutting and penetrations to enable the services installation.
.

Question 11

What is an order cost estimate

Answer 11

Under NRM this is described as the determination of the possible cost of a building early in design stage in relation to the employer’s fundamental requirements.
• This takes place prior to preparation of a full set of working drawings or bills of quantities and foms the initial build-up to the cost planning process.

Question 12

Purpose of an order of cost estimates

Answer 12

To establish if the proposed building project is affordable and, if affordable, to establish a realistic cost limit.
• The cost limit is the maximum expenditure that the client is prepared to spend on the proposed building project.

Question 13

What is the format of a feasibility estimate or order of cost estimate

Answer 13

• This can be presented on a cost per m2, functional unit or elemental basis.
• It may also be presented as a range for example {700-850/m2.
• This may consist of element rates for the main elements of the building for example Substructure, Frame, Extemal Walls, Upper Floors & Roof.
• Any site abnormal costs or enabling works are also considered.
• Other inclusions are Preliminaries, Contingency, Inflation and location factor adjustments.

Question 14

What is a Functional unit

Answer 14

• A functional unit is a unit of measurement that considers the prime use of the building
• For example in the construction of a hotel or hospital the functional unit may be presented as a cost per bedroom or cost per bed.
• In a retail estimate the functional unit would be presented as the net lettable retail space.

Question 15

Where would you get rates from for a preliminary estimate

Answer 15

Previous similar projects and historical cost data such as previous tender submissions or a contract sum analysis.
• Other sources may include estimating price books such as Spons or Laxtons, the Building Cost Information Service or specialist contractors.

Question 16

What info do u need to be carry out an order of cost estimate

Answer 16

Floor area or number of functional units.
• Storey height.
• Whether raised access floors or deep suspended ceiling are envisaged.
• Initial floor plans, roof plans, elevations and sections.
• Requirements for refurbishment to existing buildings and enabling works.
• Indication of specification and quality.
• Indicative programme, procurement and contract strategy.
• Budget & cashflow constraints.
• Site conditions, probable ground conditions.
• Indicative M&E design intent, availability of utility services and the sustainability strategy.
• Details of professional fees, development costs, VAT and treatment of inflation. sections.

Question 17

What is a cost plan

Answer 17

•• The cost plan presents the estimated cost of the development into an elemental or functional format.
• It shows how the design team proposes to distribute the funds available on the different elements of the proposed building.

Question 18

Purpose of a cost plan

Answer 18

I It is used by the cost consultant to control the development of the design.
• It identifies the client’s agreed cost limit and how the money is to be allocated to the different elements of the building,

Question 19

When would u use a cost plan

Answer 19

Add Irish

Question 20

Principal component

Answer 20

• Construction costs.
• Preliminaries.
• Contractor’s OH&P.
• Contingency.
• Inflation.
• Assumptions.
• Exclusions.
• Arca Schedule.
• List of Drawings & Specifications adopted.

Question 21

Name the main elements of an elemental estimate

Answer 21

•substructure
Excavation.
• Disposal.
• Foundations.

Superstructure.
o Frame.
o Upper floots.
• External walls. o Roof.
• Internal finishes,
0 Services,
o External works.

Question 22

What is excluded from cost estimate

Answer 22

Professional fees.
VAT.
Client decant costs.
Loose fxzares and fittings.
Intianon.
Site acquisition conts.
Section 106 Agrement.
Removal of asbestos.

Question 23

Why is vat excluded in cost estimates

Answer 23

Because different clients will incur different levels of VAT, for example charities may not be subject to
VAT.
• We would not be in a position to know the correct rate unless informed of it.

Question 24

What is contingency

Answer 24

A sum incladed within the estimate to cover unknown expenses or untitigated risks during the project.

Question 25

How is contingency assessed

Answer 25

• The amount included should reflect the risks and unknown specific items associated with the project. • During the early design stages a contingency allowance can be included as an overal percentage of the cost estimate at around 5%-10%. • As mote design information becomes available a risk register can be compiled and each item assigned a probability and cost impact. The total cost of risk register items can then be included as the project contingency.

Question 26

How do u take account of inflation when preparing a cost estimate

Answer 26

I take into account inflation through the use of Tender Price Indices and include adjustments for Construction Inflation and Tender Price Infiation.

Question 27

What time period would construction inflation be included for

Answer 27

•I would allow for Construction inflation from the anticipated start of the project to the mid way point of the projoct.

Question 28

What is meant by the base date within a cost estimate

Answer 28

• The base date refers to the date on which rates and prices contained within a cost estimate are based on. • These are included for the basis of calculations for example if adjusting the rates for inflation in the future, the base date can be used as the starting point from which inflation would be adjusted.

Question 29

TPU stand for

Answer 29

Tender price indices

Question 30

What do TPIs show

Answer 30

• They reflect changes in the level of tender prices over a period of time. • The price adjustments take into account the level of inflation depending on current and forecast market conditions.

Question 31

Where can u obtain TPI info from

Answer 31

• The service I use to obtain Tender Price Indices is the Building Cost Information Service. • Larger cost consultancies also produce their own in-house tender price forecasts.

Question 32

Why do u need to take account for location

Answer 32

• Inflation needs to be accounted for to anticipate the changes in the prices of labour, plant and materials We need to account for inflation from the date the cost estimate is produced to the anticipated start date of the project. • This is to ensure accuracy of the estimate for the client and to ensure the project remains within the cost limit that has been established.

Question 33

BCIS stand for

Answer 33

Building cost information service

Question 34

What is BCIS

Answer 34

Provides construction cost and price information through publications online services and price books

Question 35

Where do u get cost info from

Answer 35

• Previous Tender Submissions. • Previous Contract Sum Analysis. • Benchmarks. • BCIS. • Building cost models. • SPONS and other price books such as Laxtons. • Specialist sub-contractors and suppliers.

Question 36

Is is VE

Answer 36

Value engineering. VE is an organised approach aimed at providing the necessary functions of the building taking into account the clients objectives at the lowest cost, without detrimental affects to quality, reliability, performance or delivery.

Question 37

What is VM

Answer 37

Value Management is the proactive process of defining what value means to a client and putting procedures in place to ensure that maximum value is delivered for the client, first time. • In comparison, Value Engineering fors one of the processes under Value Management and is a reactive procedure to bring the anticipated cost of the development back in line with the project budge when a potential overspend is identified.

Question 38

What is value and what does it mean

Answer 38

Value is a measure of worth taking into account the overall usefulness and benefits that are delivered in relation to cost being paid for it. • Value is a complex concept and means different things to different clients. • For example a short term developer looking to sell a building on completion will place greater value on a cheaper out-tum cost whereas a developer occupier may place more importance on a higher quality building with lower operating costs.

Question 39

What happens during the VE process

Answer 39

The design team will typically be brought together in a meeting including the Client, Quantity Surveyor, Architect, Engineers and potentially the Main Contractor and specialist subcontractors. • The team will pool together their expertise and suggest different value engineering proposals. • The chairperson of the mecting should monitor the proposals against the clients' objectives around value. • • It is the chairperson and teams responsibility to deliver increased value for money by offering cost effiective solutions without compromising the overall usefulness of the building when considering the clients objectives.

Question 40

Why is VM needed

Answer 40

Each construction client has their own specific objectives and definition of what value means to their organisation. • Client organisations are sometimes made up of different working groups with contrasting priorities. • If agreements concerning the definition of value are not reached then chances of perceived failure of the project increases. • VM is needed to reach an agreement on what value is defined as and to reach a shared understanding on the objectives that are being sought.

Question 41

What are lifecycle costs

Answer 41

The costs that will be incurred over a defined period of operating and maintaining a building or an asset including repair, maintenance, replacement, cleaning, decorating, services provision and disposal.

Question 42

Advantages of life cycle costing

Answer 42

Life cycle costing allows consideration of the long term implications of a decision. • It enables informed decisions to be made on material selection. • Life cycle costing can result in lower operational, maintenance and replacement costs. • It can also be used to plan future maintenance requirements ensuring easier access and less disruption

Question 43

Disadvantage of life cycle costing

Answer 43

Future costs are optional and the costs of maintenance can always be deferred. • Components are not always replaced due to end of life which is impossible to assess at design stage. • The cost of defects caused by bad workmanship and design faults cannot be predicted. • It is hard to predict life spans, future inflation and maintenance requirements over long periods.

Question 44

What costs should be considered in life cycle costing

Answer 44

Capital costs. • Operational costs. • Maintenance costs. Replacement costs. Disposal costs.

Question 45

Where can u get info about maintainance costs

Answer 45

Building Maintenance Cost Information Service (BMCIS) - part of BCIS. • From sub-contractors and suppliers.

Question 46

How does payback period method work

Answer 46

It judges an investment in terms of the time period over which the invested sum is returned in cost savings. • The increased expenditure on a higher quality component is viewed as the investment' and the savings provided in the form of future costs is viewed as the 'revenue. • The best option would be the one that repaid the investment in the shortest time.

Question 47

What sort of materials is the payback period method used for

Answer 47

• This is often used to evaluate the options for incorporating sustainable technologies. • It is considered suitable for elements that have a very high initial capital cost but will 'pay back' this initial investment over a period of time in terms of reduced running costs.

Question 48

Why might a client accent higher capital costs

Answer 48

For prestige reasons. • When considering that the replacement or repair may be inconvenient even if the solution is cheaper.