Design Economics and Cost Planning Flashcards

1
Q

What is the difference between a cost plan and Order of Cost Estimate?

A
  • A cost plan the construction costs broken down into the elements to understand the cost limit of each element of the building. Provides a frame of reference to develop the the design and maintain cost control.
  • An estimate is a forecast of construction cost.The purpose of an order of cost estimate is to establish affordability of a proposed development for a client.
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2
Q

What design detail would you expect in RIBA Stage 0 (Strategic definition and brief)?

A
  • Stage 0 is about determining the best means of achieving the client’s requirements.
  • An open mind is required because a building might not be the most appropriate solution.
  • Stage 0 is not about design or the practical details. It focuses on making the right strategic decisions and capturing them in a Business Case. The stage involves considering the pros and cons, Project Risks and Project Budget for a range of options and, where necessary, carrying out Site Surveys and corresponding planning appraisals, before undertaking a comparative analysis and recommending and ratifying the best option for delivering the Client Requirements.’
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3
Q

What design detail would you expect in RIBA Stage 1 (Preparation and brief)?

A

Stage 1 is about developing the detail of the brief and making sure that everything needed for the design process is in place before Stage 2. This includes ensuring that the brief can be accommodated on the site. Involves:

  • Developing an initial project brief. This may include; considering feedback from previous projects, defining overall spatial requirements, carrying out surveys and quantifying the budget.
  • Carrying out feasibility studies.
  • Undertaking a project risk assessment, including; planning risks, programme and procurement strategy.
  • Assembling the project team and defining their roles and responsibilities.
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4
Q

What design detail would you expect in RIBA Stage 2 (concept design)?

A

Stage 2 is about getting the design concept right and making sure that the look and feel of the building is proceeding in line with the client’s vision, brief and budget. Includes:

  • The design concept.
  • Outline specifications.
  • Schedules of accommodation.
  • A planning strategy.
  • The cost plan.
  • Procurement options.
  • Programme and phasing strategy.
  • Buildability and construction logistics.
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5
Q

What design detail would you expect in RIBA Stage 3 (detailed design)? - Now known as spatial coordination

A

The purpose of Stage 3 is to spatially coordinate the design before the focus turns to preparing the detailed information required for manufacturing and constructing the building. Includes:

  • Schedules of accommodation, including occupancy numbers for each space.
  • Key assemblies, component drawings and schedules
  • Structural plans sections, elevations and specifications:
  • Building services plans, sections and elevations
  • Fire strategy,
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6
Q

What design detail would you expect in RIBA Stage 4 (technical design)?

A

Stage 4 is about developing the information required to manufacture and construct the building. This requires information from the design team and the specialist subcontractors employed by the contractor, regardless of which procurement route is used. Includes:

  • By the end of the stage the architectural, structural and mechanical services design and specifications should describe all the main components of the building and how they fit together,
  • any performance specified work should be defined and there should be sufficient information for applications for statutory approval to be completed.
  • Room data sheets are also likely to have been prepared along with outline technical specifications.
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7
Q

What design detail would you expect in RIBA Stage 5 (construction)? now known as Manufacturing and construction.

A

Stage 5 is when the building is manufactured and constructed.

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8
Q

What design detail would you expect in RIBA Stage 6(handover and close out)?

A

By Stage 6 the building will be in use and the emphasis of the project team will have switched to closing out any defects and completing the tasks required to conclude the Building Contract.

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9
Q

What design detail would you expect in RIBA Stage 7 (in use)?

A

This is the period when the building is in use, lasting until the building reaches the end of its life.

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10
Q

What can you do to adjust costs for time and location?

A

Indices can be used which set a base for project data. Indices that can be used are cost and time.

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11
Q

How did you ensure NRM compliance with internal walls?

A

This is measured on the centre line of the internal wall or partition. No deduction is made for door openings, screens or the like. The internal skin of external wall is included within external wall.

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12
Q

How do you know that quantities from BIM are correct?

A

When checking my quantities, I always cross check with drawings, for example, the perimeter by height for external wall areas.

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13
Q

What effect did the precast concrete panels have on the main contractor preliminaries?

A

Using precast concrete panels meant that there would be less time on site as it is quicker construction than other methods such as traditional brick. This would reduce the preliminary running costs

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14
Q

Why are costs different in different locations?

A
  • Wages
  • Site logistics
  • Proximity to services and supplies
  • Availability of labour
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15
Q

What is the BCIS ?

A

BCIS is the Building Cost Information Service of the Royal Institution of Chartered Surveyors (RICS). It is described by RICS as ‘the leading provider of cost and price information to the construction industry and anyone else who needs comprehensive, accurate and independent data.’

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16
Q

How did you go about carrying out the cost plan?

A
  • Understand design – which RIBA stage is it? – check NRM which lists what is required for stage 2 and stage 3
  • Query design
  • Split elements to team – order of take-off – agree timescales
  • Begin quantification
  • Prelims
  • OHandP, Contingency
  • Market testing/ rate testing
  • Assumptions, exclusions, drawing list, exec summary
  • Include benchmarking exercises
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17
Q

What is the importance of a cost plan?

A
  • To understand in an elemental form the costs of the project and how to control the costs.
    • To inform the design team in changes to reflect the cost.
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18
Q

What is a cost analysis?

A

A systematic breakdown of existing cost data to allow for an extent of examination and comparison with other similar projects.

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19
Q

What are external factors that can affect cost?

A

1) location of the building project
2) state of the construction economy (and general economy) at the point in time when construction cost is established

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20
Q

What can effect the cost of a building?

A
  • floor areas
  • efficiency ratios
  • number of storeys
  • basement
  • functional units
  • number of weeks to complete
  • method of tender ( cost reimbursement, GMP, lump sum)
  • procurement and risk associated
  • location of project
  • base date for project
  • number of tenderers
  • sustainability rating
  • type of building
  • outline specification of the works - pike v strip or concrete v steel
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21
Q

How can cost data be shown?

A
  • tables
  • trend charts and graphs
  • pie charts
  • scatter diagrams
  • waterfall diagrams
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22
Q

Why is the contract duration a factor of cost?

A
  • A longer contract may increase the cost of preliminaries (insurances, contractors compound, staffing etc).
  • Constructing under time pressure may carry a price premium ( working out of hours, out of sequence, number of different contractors).
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23
Q

What are abnormals?

A

Costs which are considered project specific. Classified as such because they have a notable cost consequence.

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24
Q

What is the difference between life cycle costing and whole life costing?

A
  • Life cycle cost accounts for all relevant costs over a defined period of time (the period of analysis).
  • Whole life costs can include costs associated with the provision of construction works that are not included in the clients costs.
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25
Q

What are the three types of lifecycle costs?

A
  • construction costs
  • maintenance costs (hard facilities management - redecoration, periodic inspection, periodic maintenance, unscheduled corrective and responsive maintenance, planned and preventive maintenance)
  • operation costs (soft facilities management - all costs incurred in running and managing the facility - IT services, cleaning, waste management, catering, rent, insurances, utilities)
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26
Q

What is life cycle costing?

A

Life cycle cost accounts for all relevant costs over a defined period of time (the period of analysis).

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27
Q

Where can you get LCC data from?

A
  • Unstructured historical data - estate managers
  • Structured historical data- BCIS running cost analysis
  • Data from modelling
  • data from manufacturers, suppliers and specialist contractors
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28
Q

What is an order of cost estimate?

A

The determination of possible cost of a building(s) 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 forms the initial build-up to the cost planning process.’

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29
Q

What is BIM?

A

Building information modelling.

NOT a software - It is a PROCESS

It provides architecture, engineering and construction professionals information and tools to efficiently plan, design, construct and manage buildings and structures

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30
Q

What are the levels of BIM?

A

Level 0: Unmanaged CAD (Computer Aided Design).
Level 1: Managed CAD in 2D or 3D.
Level 2: Managed 3D environment with data attached, but created in separate discipline models.
Level 3: Single, online, project model with construction sequencing, cost and life-cycle management information.

31
Q

What are the dimensions of BIM?

A

2D. Two-dimensional graphical information.
3D. Three dimensional graphical information.
4D. Time and programme information.
5D. Cost information.
6D Facilities management information.
7D: information flowing from the building, explaining this as; ‘The cube of six dimensions define what the built asset is “about”, but the seventh is information “from” the sensors and analytics which increasingly help to commission and run the asset.’

32
Q

What are the benefits of BIM?

A

1) Improved visualisation of the project, communication of design intent (allows better planning and design that takes best advantage of available space and resources)
2) Improved multidisciplinary collaboration
3) Reduced re-work (see potential problem areas before the error is made in the physical world)
4) 4D improves planning. Builders and manufacturers can optimise their construction activities and team coordination
5) 5D enables the development of more efficient, cost effective and sustainable constructions
6) 6D use leads to an overall reduction in energy consumption
7) 7D optimises asset management from design to demolition

33
Q

What are the challenges that face BIM?

A

1) Compatibility with users - Not yet universally used, many professionals may not use BIM
2) Quality of information - Rubbish in, Rubbish out
3) Legal issues - Legal implications of BIM have not yet been broadly tested
4) Cost of software - BIM software is expensive.
5) Lack of expertise - Few experts in the field, may require extra investment in training and education

34
Q

What is the disadvantage of using benchmark data?

A
  • Project specific abnormal costs
  • Market changes
  • Inflation
35
Q

What is the difference between tender inflation and construction inflation?

A

Tender inflation is from estimate base date to tender return date. Construction inflation is from date of tender to mid point of construction.

36
Q

What are the purposes of a cost plan, other than cost control?

A
  • Develop employer and designer awareness of cost proposals and desires
  • Ensure employers get value for money

-Advise designers on practical and balanced design within budget

37
Q

What is ICMS?

A
  • The International Construction Measurement Standards (ICMS) is an international standard which aims to provide greater global consistency in construction costing.
    • It is not a detailed method of measuring construction works, but ‘a high level benchmarking and reporting framework for international cost classification, reporting and comparison.’
38
Q

Why is lifecycle costing carried out?

A
  • To predict a cashflow (perhaps to construct a budget)
  • To carry out an option appraisal (to decide which option is preferable in cost terms)
39
Q

How did you prepare Pre- Tender Cost Estimate on GMH Project?

A
  • I reviewed the Client’s brief to ensure compliance with the drawings and my measurements.
  • I reviewed and drawings, specification and BIM model issued for tender (RIBS Stage 4)
  • As the project allows for sectional completion (by floor) prepared separate sub section of the Pre-Tender Cost Estimate for each floor
  • I used Causeway which is Mace internal cost planning tools to create the PTE
  • I took measurements in line with NRM1 for the following elements:
    • Demolition – strip out and dismantle of existing ceilings, floor finishes and internal partitions
    • Superstructure – Internal walls and partitions and internal doors
    • Internal finishes – wall finishes, floor finishes ceiling finishes
    • Fittings, furnishing and Equipment – custom made joinery, catering fittings, sanitary appliance systems
  • I priced the works based on mixture of market price for specialist (custom made joinery), Mace internal cost data and Spon’s pricing book for comparation of the rates. When using Mace internal cost data base, I adjusted the rates for inflation and location factors
  • As per Client’s requirements the PTE included the Contractor’s Preliminaries and OHP based on percentage
  • In addition to the building works, my PTE also included the Project Description, Introduction, Exclusion and Inclusions, Schedule of Area and Information used.
  • I have also included for the analysis of the PTE with benchmarking analysis.
40
Q

How did you advice the Client about regarding the cost on GMH Project.

A
  • I revised Client’s Requirements, Design drawings, BIM model and specifications
  • I prepared the PTE which included detailed measurement and pricing of building works, and Preliminaries and OHP based on percentage.
  • I issued the PTE to the Client in a form of report
  • I arrange a meeting with the Client to explain the aspects, inclusions and exclusions and comparison with the budget and the key changes from RIBA Stage 3 Cost Plan
41
Q

What was the GIA on GMH Project?

A

approx. 16,000 m2

42
Q

What was the cost per meter square on GMH project in PTE?

A

£1,300 /m2

43
Q

How the cost increased from previous stages? (On GMH)

A
  • Stage 1 - £900/m2
  • Stage 2 - £950/m2
  • Stage 3 – £1,000/m2
  • Stage 4 – £1,300/m2
44
Q

What are the typical costs per square meters for offices?

A
  • Light Intervention - £200- £500 (Average: £350 £’s/m2)
  • Medium Intervention - £500- £1,000 (Average: £750 £’s/m2)
  • Heavy Intervention - £1,000- £2,000 (Average: £1,500 £’s/m2)
  • Very heavy Intervention - £2,000- £3,500 (Average: £2,750 £’s/m2)
  • New build - £2,000- £4,000 (Average: £3,000 £’s/m2)
45
Q

Why did the cost increase on GMH during the RIBA Stages?

A

Mainly due to design development and changes to the scope. However, VE was undertaken during RIBA Stage 4 to reduce unnecessary cost

46
Q

What was the scope changes and design development on GMH during Stage 4? (3 examples)

A
  • design development – increase in cost due to development of some bespoke joinery systems – for example lockers with hard wood finishes and unregular shape.
  • specification changes – addition MP room added to be design into the high quality spec
  • painting the existing plasterboards at level 4 added
  • new raised access floor added
47
Q

What is a PTE?

A

The pre-tender estimate (PTE) is the final estimate of the likely cost of the works that are described in completed tender documents prepared to seek tenders (offers) from prospective suppliers

48
Q

Is it PTE included in contract Documents?

A

No, the pre-tender estimate itself is not included in the tender documents. It’s use for comparations with the budget and for example at GMH Project to compare tenderers return with the PTE.

49
Q

What is the purpose of PTE?

A

PTE is the final estimate of the likely cost of the works that are described in completed tender documents prepared to seek tenders (offers) from prospective suppliers.

  • final comparison with the budget and cash flow estimate confirming that the Client has sufficient budget available
  • It also gives a basis for assessing and comparing tenders when they are returned.
50
Q

What was the difference between PTE and Tenderer Returned Cost on GMH?

A

PTE - £20M (£1,300/m2)

Tender 1 – £18M (£1,100/m2) – 15% lower than PTE

Tender 2 – £21M (£1,350/mw) – 5% higher than PTE

This was after tender normalisation

51
Q

How is demolition measured in line with NRM1 on GMH?

A

The demolition works were measured in line with Element 0.2 as the work included soft strip work – preparatory to refurbishment

  • strip out and dismantle of existing ceilings, floor finishes and internal partitions – measured by GIA
  • Removing existing fixture (kitchen fittings and appliance, removing sanitary appliance and fittings) measured to item
52
Q

Where are demolitions works covered in NRM1?

A
  • Group element 0: Facilitating works
    • 0.2 Major demolition works
  • Group element 7: Work to existing buildings
    • 7.1 Minor demolition work and alteration works
53
Q

What demolition works are covered under Element 0.2 Demolition works?

A
  1. Demolition works including demolition of the entire buildings, major part of the buildings, temporary propping to existing basements, periodic technical inspection, removal of temporary props, removal of wailings)
  2. Soft strip including preparatory to demolition or refurbishment
54
Q

How are internal walls finishes were measured in line with NRM1?

A
  • NRM Group Element 3: Internal finishes
    • Element 3.1 Wall finishes including finishes to wall and columns [m2], picture rails, dado rails [m], Protection strips, corner protections etc [nr/m]
    • the area is measured for each type of the wall finish separately and based on thee surface area of the wall to which the finishes is to be applied. No deduction for vids (openings, doors, windows)
55
Q

What types of wall finishes did you measured on GMH?

A
  • Timber panelling
  • Ceramic Wall Tile
  • Porcelain Wall Tile – toilets
  • Water-borne paint system
56
Q

What was typical price per square meters of wall finishes on GMH?

A
  • between £15 and £50 per square meter
57
Q

What is water-borne paint system?

A

A waterborne coating is an environmentally friendly surface treatment that uses water as a solvent to disperse the resin used to make the coating or paint: Water takes 80% of the solvent used.

58
Q

How are internal floor finishes were measured in line with NRM1?

A
  • NRM Group Element 3: Internal finishes
    • Element 3.2: Floor finishes including 1. finishes to floor[m2], specialist flooring systems[m2], skirtings [m] and 2. Raised access floor [m2]
    • measured as the surface for each type of the floor to which the finishes apply
59
Q

What types of floor finishes did you measured on GMH?

A
  • Raised access floor system
  • Carpet tile system
  • Vinyl floor system
60
Q

What was typical price per square meters of floor finishes on GMH? Was raised floor any different?

A
  • Raised access floor - £85 per m2
  • Other floor finishes – between £30 and £70 per m2
61
Q

What is raised access floor?

A

A raised access flooring system is an elevated floor that is laid above a sub floor, often a concrete floor slab, in order to leave an open space or void between

62
Q

How are internal ceiling finishes were measured in line with NRM1?

A
  • NRM1 Group Element 3: Internal finishes
  • Eleme 3.3 Ceiling finishes including 1 – Finishes to ceiling, 2 – False ceiling 3 Demountable suspended ceilings
  • the area measured for each type of ceiling finish is the surface are if the ceiling soffit to which finish apply.
63
Q

What types of ceiling finishes did you measured on GMH?

A
  • unit (modular) suspended ceiling system
  • Gypsum board suspended ceiling system
  • Water-borne paint system to new and existing plasterboard ceiling systems
64
Q

What was typical price per square meters of ceiling finishes on GMH?

A
  • Unit (modular) suspended ceiling system – between £65 and £85 per m2
  • Gypsum board suspended ceiling system - £45 per m2
  • Water-borne paint system to new and existing plasterboard ceiling systems £10 per m2
65
Q

What is suspended ceiling?

A
  • Suspended ceilings are secondary ceilings suspended from the structural floor slab above, creating a void between the underside of the floor slab and the top of the suspended ceiling.
  • the gap is normally between 10 and 20 cm
66
Q

How are suspended ceiling being installed?

A
  1. Measure the dimensions of the room to be able to accurately design the suspended ceiling grid
  2. Establish size of the drop of the ceiling and measure around the perimeter of the room.
  3. The false ceiling is hung from a bracket fixed to the underside of the floor slab, supporting a series of interlocking metal sections that form the grid
  4. When the grid has been fitted, installations can be made for lighting, speakers, air conditioning and anything else that needs to be concealed within the ceiling.
  5. The final stage is to place the chosen tiles within the frame to complete the finished suspended ceiling. There are a variety of tiles that can be used, dependent upon the chosen aesthetic.
67
Q

How are internal wall and partitions measured in line with NRM1?

A
  • Group element 2: Superstructure
    • Element 2.7: internal walls and partitions including 1 – Walls and partitions, 2 – Balustrade and handrails, 3 – Moveable room dividers, 4 – Cubicles.
  • internal walls and partitions are measured on the centre line of the internal wall or partition. No deduction is made for door openings, screens etc.
68
Q

What types of internal wall and partitions did you measured on GMH?

A
  • double glazed partition panels
  • Gypsum board partition panels
69
Q

What was typical price per square meters of internal wall and partitions on GMH?

A
  • double glazed partition panels - £300/m2
  • Gypsum board partition panels - £60 to £70 depending on acoustics barrier.
70
Q

How are internal doors measured in line with NRM1?

A
  • Group element 2: Superstructure
  • Element 2.8: Internal doors
  • Measured by nr; internal details of the door to be stated including number of the door leaves 9nr), size of the each door leaf (mm) and overall size of the opening 9mm)
71
Q

What types of doors do you know?

A
  • Wood door
  • Sliding doors
  • Steel doors
  • Internal and external
  • French doors
72
Q

What was typical per internal door on GMH?

A
  • between £1,000 and £2,000 fully ironmongery depending on the size
73
Q

How are the Fittings, furnishings and equipment measured under NRM1?

A

as per Group Element 4, Element 4.1 Fittings, furnishings and equipment including 1. General Fittings, 2. Domestic kitchen, 3. Special purpose FF&E, 4.Signs, notices 5. Works of art 6. Non0mechanichak and non-electrical equipment,

measured by nr