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