Design Economics and Cost Planning

Question 1

What are the elements of an elemental Cost Plan?

Answer 1

1. Building Works cost (Facilitating works and Building works)
2. Contractor Preliminaries
3. Contractor OH&P
4. Professional fees
5. Other project costs
6. Risk
7. Inflation

Question 2

What are the four types of risk included in a Cost Plan?

Answer 2

1. Design development risks
2. Construction risks
3. Employer change risk
4. Employer other risks

Question 3

Provide an overview of NRM

Answer 3

1. 3 documents relating to measurement of building works
2. Consist of:
   - NRM 1 OCE and CP for capital building works
   - NRM 2 Detailed messurement for building works
   - NRM 3 OCE and CP for building maintenance works
3. Published by RICS

Question 4

What method of cost estimating would younuse in the earlier stages of design and how?

Answer 4

1. Order of Cost Estimate
2. Measured on a cost per m2 or unit basis

Question 5

What are the two types of inflation included in a Cost Plan?

Answer 5

1. Tender inflation
2. Construction inflation

Question 6

How is tender inflation calculated?

Answer 6

Period from estimate base date to date of tender return

Question 7

Hownis construction inflation calculated?

Answer 7

Period from the tender return date to the mid-point of construction period.

Question 8

How do you determine the rates for a particular element in your cost plans?

Answer 8

1. Cost pricing books such as SPONS
2. Contractor procurement packages in a two stage tender
3. Contract sum analyses or Pricing Schedules
4. Costs submitted in variations or CEQs
5. Requesting quotations from suppliers

Question 9

What’s the structure of NRM1?

Answer 9

1. General information
2. Measurement rules for cost estimating
3. Measurement rules for cost planning
4. Tabulated rules of measurement for elemental cost planning

Question 10

What’s the use of early stage cost estimating?

Answer 10

1. Can help to set a client’s budget
2. MORE HERE?!

Question 11

What’s the use of cost planning during a project?

Answer 11

• Ensure value for money for client
• Make client/designer aware of cost implications of requirements
• procude advice to designers
• Keep expenditure within cost limit
• Allow client to make informed decisions