Design Economic and Cost Planning Flashcards
What are the factors influencing accurate cost estimating
- Design information available
- Cost data available
- Volatility of the market
What are the different stages of cost planning
Stage 0 – Strategic definition
Stage 1 – Client brief
Stage 2 – Concept Design
Stage 3 – Spatial co ordination
Stage 4 – Technical design
Stage 5 -Construction
Stage 6 - Handover
Stage 7 - In use
What are the different external factors influence cost on a construction project
- Government regulations and policies
- Inflation
- Interest rates
- Government targets
- Material and labour cost
- Employment
What is the difference between cost and price?
Cost is the total of labour, plant, materials and management deployed for a specific activity
Price is the amount a purchaser / client will pay for an item or product – it is cost plus profit
What types of estimates are there?
Order of Cost estimate (OCE)
(elemental) Cost plan
What is an order of cost estimate?
The determination of possible cost of a building early in the design stage (stage 0 -1) base on benchmark data in relation with the Employer’s fundamental requirements.
It forms the basis of the cost planning process.
What are the elements of a cost estimate?
Facilitating works
Building works
Contractors prelims
Contractors OH&P
Design Fees
Why is VAT excluded?
Because different clients will incur different levels of VAT, might not be applicable
We would not be in a position to know the correct rate unless informed of it
What is a cost plan?
Presents the estimated cost into a structural elemental or functional format
It shows how the design team proposes to distribute the funds available on the elements of the proposed building.
What are the elements of a cost plan?
Facilitating works
Substructure
Superstructure
External works
Main contractor Prelims
Main contractor OH&P
Project design fees
Other project cost (Client direct cost)
Risk
Inflation
What are the main purposes of a cost plan?
- ensure clients are provided with value for money
- make clients and designers aware of the cost consequences of their requirements
- provide advice to designers that enables them to arrive at practical and balanced designs within budget
- keep expenditure within the cost limit approved by the client
- provide robust cost information with which the client can make informed decisions.
For you Kings Hill Project how did you present your cost plan
- Introduction/Summary
- Cost Summary
- Status of the cost plan
- Details of the drawings, specifications and other information on which the cost plan was based
- Exclusions/Assumptions/risk
- Cost breakdown
What is contingency?
A sum included in the estimate to cover unknown expenses or unmitigated risks during the project.
Where do you get cost information from?
- In house historic data
- Benchmarking
- BCIS
- Building cost models
- SPONS and other price books (Laxtons etc)
- Sub contractors and suppliers
What guidance notes are you aware of in relation to cost planing
Cost analysis and benchmarking, 2nd edition, August 2024
Cost prediction, 1st edition, November 2020
What is the different between value engineering and value management
VM - the process maximizing project value undertaken at early design stages before it been coordinated
VE - the process maximizing project value undertaken after the design has been developed.
What is the difference between an order of cost and a cost plan?
- An estimate provides a possible cost based on the employer’s requirement and is the initial phase of the cost planning process.
- A cost pan is a more detailed elemental breakdown and shows how the cost is distributed across the project.
Other than predicting a final cost, what other benefits does a cost plan provide?
- Designers are aware of the cost implications of their proposals
- Provides information to allow for the employer to make informed commercial decisions
Do you need a programme to complete the cost plan?
Yes, this is required to work out the prelim (based on a prelim run rate and inflation
How do you structure an elemental cost plan?
As per NRM1 -
Facilitating works
Substructure
Superstructure
Internal finishes
FF&E
Services
Prefab units and building units
Works to existing building
External works
Main contractor prelims and OH&P
What source of cost information and data are available when preparing a new estimate or cost plan?
- BCIS
-Spons - Pricing document from previous projecrs
- Speaking to contractors, subcontractors
- Benchmark data from previous projects
What is a cost plan risk allowance?
A quantitative allowance set aside against future unknowns requirements and uncertainty of outcome
What benefit does a client get out of accurate cost planning?
- To confirm if a scheme is affordable
- Place the client in an informed position to make commercial decisions
- Acts as a value management tool to ensure the client gets a building which meets their needs and also represent best value
How would you deal with a cost plan which is over budget?
- Communicate the matter to the client and project team
- Identify area where potential saving could be made
