Design Economics and Cost Planning Flashcards
Typical responsibilities of cost managers on construction projects?
Manage risk expenditure.
Avoid overspend.
Prepare pricing documents.
Evaluate tender bids.
Value CE’s.
Negotiate final accounts.
Produce cost estimates.
Which measurement rules represent industry best practice for capital building maintenance works?
NRM.
Name NRM documents?
NRM1 - for OCE and cost plans.
NRM2 - Detailed measurement for BoQs.
NRM3 - OCE and cost plans for maintenance.
NRM 1 structure?
1: General Intro.
2: Measurement rules for OCE.
3: Measurement rules for cost planning.
4: Tabulated rules of measurement for elemental CPlanning.
NRM 2 structure?
1: General intro
2: Detailed measurement of building works.
3: Rules of measurement for building works.
Structure of NRM 3?
1: Gen intro.
2: Measurement rules for maintenance works.
3: Measurement rules for OCE.
4: Cost planning of Maintenance works.
5: Calculation of annualised costs for Maintenance.
6: Elemental cost planning.
Is NRM mandatory for MRICS?
No, but if there are negligence allegations, then adjudicator would take account of guidance notes for competence.
Key elements of preliminaries identified in NRM2?
Site accomodation.
Site records.
Management and staff.
Temporary services.
Safety and environmental protection.
Mechanical plant.
Temporary works.
Cleaning.
Fees and charges.
Insurances.
What are the 4 risk categories under NRM?
Employer Change Risk.
Employer Other Risk.
Design Development Risk.
Construction Risk.
How does NRM define a “cost limit” for a project?
NRM1 - maximum expenditure a client is prepared to make.
How does NRM define the “base cost estimate” for a project?
Evolving estimate of known factors without allowances for risk or inflation.
What is an OCE?
An estimate based on benchmark data for similar projects based on client’s strategic definition or initial brief, to establish affordability.
When is an OCE produced?
RIBA 1 - Preparation and brief.
Difference between an OCE and a cost plan?
Estimate provides a possible cost based on employers requirements, often using m2 areas.
Cost plan is more detailed breakdown showing distribution of costs across the project.
Do you need a programme to complete a cost plan?
Preliminaries are presented as a weekly rate in developed plans. Some high-level dates are required.
NRM1 Elemental structure?
0 Facilitating works
1 Substructure
2 Superstructure
3 Internal Finishes
4 FFE
5 MEP
6 Prefabrications
7 Work to existing buildings
8 External Works
9 Prelims
10 Prelim OHP
11 Project/design team fees
12 Other development costs.
13 Risk
14 Inflation
How do you take account of project location in cost planning?
Factor applied based on location.
How would you calculate a total fee estimate, what component fees are included?
Consultant fees.
Contractor fees.
Others like planning permission.
How would you deal with an over budget cost plan?
Communicate the matter to the client and project team.
Identify areas for potential savings.
What are key reasons for cost overrun on projects?
Ambiguous client briefs or late changes.
Unrealistic estimates.
Uncoordinated design.
Unknown external factors.
Planning permissions.
What is BWIC?
Builders Work in Connection - allows other works to proceed such as MEP.
Why is VAT usually excluded from a cost plan?
Employers may incur different levels of VAT, finance team will deal with it.
What is wall-to-floor ratio?
Dividing the external wall area by GIFA.