Design economics and cost planning

Question 1

Can you name some sources of cost data?

Answer 1

BCIS
Internal and external benchmarking
tender returns

Question 2

What are the stages of cost planning?

Answer 2

Stage 1 - feasibility 
Stage 2 - Concept design
Stage 3 - Developed design
Stage 4 - Technical design
Stage 5 - Construction.

Question 3

How cost planning assists in the financial control of projects
during the design development stage

Answer 3

• More robust and reliable cost forecasting, which gives confidence to funders and results in less conditional authorisation by funding boards
• Accurate detailing of final users’ needs, which engages them in the sign-off process, offers less avenue for change and avoids the scope creep that is caused by generic, outline cost plans.
• Change Control is more defined and better managed when tied to a detailed cost plan.
• The implementation team is better informed through a comprehensive, detailed briefing document.