Design Economics Flashcards
What are the stages/phases of construction?
“Phase 1: Pre-Design
Phase 2: Design (Pre-Construction)
Phase 3: Procurement.
Phase 4: Construction and Monitoring.
Phase 5: Post-Construction (Closeout).”
What are the RIBA stages of work?
“The document organises the process of briefing, designing, constructing, operating and using a building. The current edition came into force in May 2013.
0 – Strategic Definition
1 – Preparation and Brief
2 – Concept and Design
3 – Developed Design
4 – Technical Design
5 – Construction
6 – Handover and Close out
7 – In Use”
What are the phases of design?
“According to the AIA; American Institute of Architects
1. Schematic Design,
2. Design Development,
3. Construction Documents,
4. Bidding,
5. Construction Administration.”
What level of information would you expect at each design stage?
”- Schematic / Concept design - General areas, elevations, outline specification, indication of M&E requirements.
- Developed design - steps towards coordination of design, detailed buildups and sections
- Full technical design - design info fully coordinated and ready to construct from.”
What is an order of cost estimate?
It establishes if a proposed project is affordable and if so, to set a realistic cost limit for the development project
What are the rules under which order of cost estimates and elemental cost plans are produced?
“NRM 1 - Order of Cost Estimates and Cost Planning for Capital Building Works
NRM 3 - Order of Cost Estimating and Cost Planning for Building Maintenance Works”
What are the rules under which order of cost estimates and elemental cost plans are produced - USA?
“Uniformat is a standard for classifying building specifications, cost estimating, and cost analysis in the U.S. and Canada.
MasterFormat or Construction Specifications Institute (CSI)’s, is the most widely used standard for organizing specifications and other written information for commercial and institutional building projects in the U.S. and Canada.
“
What is a Rough Order of Magnitude (ROM) Estimate?
Estimates of the effort and cost involved in completing a project. The ROM estimation process occurs early in the project life cycle and serves as a guide in the selection of strategies and planning options
What information do you need from a Client for a ROM?
“o Location
o Use
o GIA or functional unit
o If refurbishment required
o Details of site constraints
o Potential procurement options
o Storey heights
o Indicative spec”
What information do you need from the design team for a ROM?
“o Design study sketches for floor plates
o Roof plan
o Elevations / Sections
o Storey heights
o Areas schedule
o Indicative spec
o Definition of fit out
o Outline structural form”
How would a procurement route impact your Estimate
“· It may affect the risk allowances included.
· With traditional (Lump sum) procurement you are going out to tender on a more fully developed design so you would expect the risk allowances to be lower than if you were conducting a Design & Build.”
What information should a Cost Manager include in their Estimate
“· Project title
· Project description
· Executive Summary
· Statement of cost / Trade Summary
· Estimate details
· Area schedule
· Notes & Assumptions
· Exclusions”
What information should a Cost Manager include in a Construction Drawing Estimate?
“· Project title
· Project description
· Executive summary
· Statement of cost / Trade Summary
· Reconciliation with previous Estimate
· Area Schedule
· Information used
· Assumption
· Exclusions
· Value Engineering Options”
How do you issue your estimates
“· In draft for comment for review by design team and client
· Amend for any comments
· Formally issue to the client”
What is a cost plan? (UK)
“Provides an estimate of what the actual project cost is likely to be
Identifies the client’s agreed cost limit and how the money is allocated to different parts of the project
It is a development of the OCE and is based on more detailed design information”
What sources of information and cost data are available when preparing an order of estimate or cost plan?
”- Cost data from RS Means or BCIS
- Published pricing books
- Benchmarked or Historic cost data and information from previous projects
- Speaking directly with contractors, subcontractors and suppliers for cost information”
What is contingency?
A sum to cover unknown expenses or unmitigated risks during the project
How do you adjust costs for time and location?
“Time - Escalation; a provision in a contract that calls for adjustments in fees, wages, or other payments to account for fluctuations in the costs of raw materials or labor. Obtained via RS Means or in-house date with formula application
Location - Location factor indices available via my companies in-house tools.”
How do you prepare an estimate for MEP Works?
“Depends on the design (For earlier stages use $/sf rates)
Otherwise consult an MEP Specialist or Estimator in my team.”
What is the benefit of accurate cost planning?
“Confirms to the client if the scheme is affordable
Places 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, but also represents best value.”
What are Project / design team fees?
Fees associated with project/design team and other specialist consultants required for the building project. Sometimes referred to as Soft Costs.
What are General Requirements
The non-management indirect costs of executing the project, including items such as permits, security, dumpsters, fences and clean-up costs.
What are General Conditions / Preliminaries
The cost of managing a construction project. Examples include salaries for personnel like project managers, supervisors, engineers, field office staff.
What is inflation?
An upward movement in average level of prices or costs. Often included as an allowance in cost estimates for fluctuations in the basic prices of labor, plant, equipment and materials
“Why is construction inflation taken to the mid-point and not the end?
As by the mid-point of construction you would expect the vast majority of packages to have been let and those costs would be fixed, leading to no further inflation
What are the 2 types of inflation?
“Tender / RFP inflation - an allocation included in the Estimates for fluctuations in prices of labor, plant, materials and equipment during the period from the estimate base date to the date of RFP returns.
Construction inflation - same as above but during the period from date of RFP return to mid-point of the construction period.”
“What is the calculation to work out inflation?
The number of months to the mid-point of construction divided by 12 and multiplied by the TPI factor (Tender Price Indicator Factor)
What is Life Cycle Cost (LCC)?
An objective method for measuring and managing the lifetime costs of any project or asset. In construction, it enables design options to be compared from a lifetime perspective to reduce overall costs.
What costs are considered in Life Cycle Cost (LCC) analysis?
”- purchase
- maintenance
- operational
- financing
- depreciation
- end-of-life costs.”
What are the advantages of LCC?
- Long term value
- Green building certification credits
- Reliable planning and reduced risk
What are potential disadvantages of LCC?
“1. Components are not always kept until the end of a buildings life, due to changes in fashion and style
2. Costs associated with defects cannot be predicted.”
“What factors affect the design economics of a building?
“· Shape of building (circle most efficient)
· Net to gross floor area efficiency
· Wall to floor ratio (between 0.3 – 0.5 good)
· Storey height”
What is the most efficient shape of a building
A circle. A square after that.
What is Gross Internal Area (GIA)?
The area of a building measured to the internal face of the perimeter wall at each floor level
What is Net Internal Area (NIA)?
The usable area within a building measured to the internal face of the perimeter walls at each floor level. Certain spaces are excluded such as stairwells and elevators
What is Useable Square Foot (USF)?
The total usable floor area of a space or building. USF is measured from the outside or outer surface of any exterior walls and windows, including the middle of any interior walls that are adjacent to other spaces, hallways or common areas
What is Rentable Square Foot (RSF)?
The usable square feet plus a portion of the building’s common space. Common spaces are areas usable by all tenants in the building and include, hallways, lobbies & public restrooms.
What factors should be considered when benchmarking?
”- Project size in square foot.
- Cost / unit ($/sf)
- Location
- Total cost.”
Define benchmarking?
The process of comparing the estimated cost of a project against other similar projects.
What are the key stages in the benchmarking process?
“1. Decide which projects to benchmark against. Simialr size, value, scope of work, etc.
2. Document your current processes.
3. Collect and analyze data.
4. Measure current performance against the data you’ve collected.
5. Implement the changes if required.
6. Store data for future benchmarking purposes.”
What is shell & core?
“The basic structure, services and envelope of a building
AND
Fit-out of the landlord areas”
What is build-ability?
Harnessing the contractors expertise and knowledge during the design phase.
What are the advantages of buildability?
“Better programming / sequencing of construction methods
Improved quality
Improved building performance and maintenance characteristics”
What is a CAT B Fit-Out?
Overlays the CAT A Provision with bespoke elements particular to the needs of the tenant
What is a CAT A Fit-Out
“‘Developers Fit-Out’
Provides the generic requirements to suit most developers”
What is Value Engineering?
It is a structured process that aims to maximise value of elements without detriment to function or quality.
What is Value Management?
Exploring how value could be provided for a project at a strategic level by helping to develop the right project brief.
When does VM / VE take place?
Generally earlier stages of a project and once designs and specifications have been developed.
What are the benefits of VM / VE?
- Reduce project cost by focusing specifically on the functional requirements of the project and then considering what alternative approaches can be adopted.
- earlier consideration of design, buildability and maintainability can encourage the different project team members to discuss ideas in a structured way and seek more efficient or effective ways
of achieving the required project outcomes.”
What are the problems of VM / VE?
1 Not enough time
2 Lack of precision
3 Not starting the process early enough.
4 Missing Stakeholders in decisions.
5 revisiting previous decisions.”
What is a Risk Register?
A risk management tool generally adopted as a central repository for all risks and threats identified.
What are the steps of VM / VE?
ICADP
1 information gathering
2 creative thinking
3 analysis, evaluation and shortlisting
4 development
5 presentation.”
What is a Risk?
An uncertain event or circumstance that, if it occurs, will affect the outcome of a programme/project.
What are Response/mitigation strategies to Risk?
- Risk Avoidance
- Risk Reduction
- Risk Transfer to the Contractor
- Risk Sharing - Employer & contractor.
- Risk retention - by employer.
How can Risk be categorised on the Risk Register?
“1. Design development risk
2. Construction risk
3. Employer change risk
4. Employer other”
