Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Omar Assoc RICS prep > Design Economics and Cost Planning > Flashcards

Design Economics and Cost Planning Flashcards

1
Q

Where can a QS find guidance on benchmarking?

A

RICS Practice Standards UK - Cost Analysis and Benchmarking, 1st edition 2011

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is cost analysis?

A

A full appraisal of costs involved in previously constructed buildings

Aimed mainly at providing reliable information that will assist in accurately estimating cost of future buildings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What may cost analysis be used for?

A
  • Estimating costs for similar buildings
  • Estimating costs for similar construction elements
  • Comparing the cost of design options at an elemental level
  • Cost modelling design solutions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is benchmarking?

A

The process of collecting and comparing data internally or externally to identify the ‘best in class’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an elemental cost plan?

A
  • A critical breakdown of the cost limit of the building into cost targets for each element
  • Updated as design progresses, ensures project remains in budget and provides value
  • also provides work breakdown structure and cost breakdown structure, useful for packaging up works for procurement later on
  • Early elemental cost plans will be total construction cost of project divided into elements by percentages
  • Later elemental cost plans will be ‘measured’ based on actual quantities and materials required
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the purpose of cost planning?

A
  • To ensure the client can afford the project

- To ensure the client is getting value for money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the benefits of recording historic cost data?

A
  • Provide an accurate record of the project as constructed
  • Creates a means of modelling the projects costs
  • Help inform the design development and cost
    planning processes of planned, similar projects
  • Project cost data can be an indication of construction economy activity which can be used for future projects (if enough data)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What information would you expect to find with a historic cost analysis?

A
  • Contract details
  • Description of project
  • GIA & NIA
  • Contract Sum
  • Base date
  • Location
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the BCIS?

A

Building Cost Information Services - Cost and price information is collected by BCIS from across the UK construction industry, then collated, analysed, modelled, interpreted and made available to the industry to facilitate accurate cost planning.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does standardising the cost analysis format (using NRM e.g. on BCIS) provide?

A
  • Ability to collect and compare data across a large volume of construction projects
  • A definition of cost allocation
  • Data for trend analysis over time
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the two key parameters that will influence construction costs?

A
  • Location

- The state of the construction economy at the time (date)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why may construction costs be different for different locations?

A
  • Availability of materials
  • Transportation costs
  • Availability of local and specialised labour
  • Ease of access to site
  • Availability of services to site
  • Local labour costs
  • Proximity to amenities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What parameters does the BCIS offer?

A
  • Location
  • Time
  • Build type (new build, refurbishment)
  • Building use (school, residential, offices)
  • GIA
  • AC/no AC
  • Basement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When is the BCIS base date for TPI?

A

1985 = 100 all in TPI

2010 = 100 Scotland

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why would you not use TPI/CPI to calculate the inflation of a specific construction cost?

A

TPI/CPI not specific to a construction cost, they relate to the overall movement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the key steps in benchmarking?

A
  • Data collection
  • Data comparison
  • Data analysis
  • Action
  • Repeat
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why is benchmarking useful?

A

Creates targets for similar projects, trying to improve on previous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Aside from total construction cost, what other factors can be benchmarked?

A
  • Cost/net m2
  • Cost/gross m2
  • Cost/bed
  • Cost/pupil
  • CO2 emissions
  • Sustainability rating
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

With regards to confidentiality, what considerations should you make before presenting in house benchmarking data?

A
  • Ask Employer’s permission to use the data

- Do not label source of data, e.g. title the costs as “Project A - West London School”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why is it good to show a range of benchmarks rather than just those closest to the mean?

A

It is good to show the potential risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the link between cost analysis and benchmarking?

A

Cost analyses are required for the benchmarking process.

Cost analyses are collected/compared/analysed to reveal the best in class - the benchmark.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a feasibility estimate?

A

A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the format of a feasibility / budget estimate?

A
  • A rate per m2 or functional unit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What information do you need to carry out a feasibility estimate?

A
  • Function of building (office, hospital)
  • Type of build (new build, refurbishment)
  • Location
  • Size
  • Quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the %age error of a feasibility estimate generally?

A

10%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What in an order of cost estimate?

A

Stage 0, stage 1.

A means 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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the principle components of an order of cost estimate?

A
  • Construction costs
  • Prelims
  • OH&P
  • Contingency
  • Assumptions
  • Exclusions
  • Area schedule
  • Basis of estimate (drawings etc)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is generally excluded from an order of cost estimate?

A
  • Professional fees
  • VAT
  • Client direct costs
  • FF&E
  • Inflation
  • Asbestos removal
29
Q

Why would VAT be excluded?

A

Different VAT applies to different clients. We wouldn’t know unless informed.

30
Q

How would you assess the amount required in the contingency?

A
  • Risk assessment, apply costs to each risk item

- Risk congintency should decrease as design develops and design becomes more certain

31
Q

What is the purpose of a cost plan?

A

It is used by the cost consultant to control the development of the design

32
Q

What is the difference between a cost estimate and a cost plan?

A

An estimate is a forecast of costs, whereas a cost plan is a detailed build up that evolve as the design develops.

33
Q

What is RPI?

A

Retail Price Index. Measures inflation, including all household goods and services as well as mortgage payments, council tax etc.

Always a higher rate than CPI. Used for student loans.

2.7% Jan 2019

34
Q

What is CPI?

A

Consumer Price Index. Measures inflation of all household goods and services, excluding mortgage payments etc.

2% Jan 2019

35
Q

What are the 5 design factors that have the biggest commercial implications on a project?

A
  • Shape of building (simpler is cheaper, also improves wall - floor ratio)
  • Size of building (economies of scale, lift core shared over larger spaces improves net:gross ratio)
  • Height (up to 3 storeys, extra storeys get cheaper due to shared footprint. Above 3 storeys, price increases due to foundation requirements & larger core decreasing net:gross)
  • Grouping of buildings (grouped together = less external perimeter/facade costs)
  • Circulation (less circulation means more lettable space which is good, however too little jeopardises fire safety & comfort)
36
Q

What is the base rate?

A

The official interest rate set by the Bank of England.

0.75% Jan 2019

37
Q

What is the construction PMI?

A

Purchasing managers index. Above 50 suggests the construction industry is expanding

January 2019 52.8

38
Q

Construction output recorded an all-time level high in November 2018. What were the main drivers?

A

Strong growth in private new housing, private commercial new work, and public housing repair and maintenance, which increased by 3.1%, 2.3%, and 5.8% respectively.

39
Q

What is the format of a cost plan?

A 
Executive summary 
Financial summary 
Reconciliation
Benchmarking data
Graphical analysis 
Area schedule
Assumptions and exclusions
0 Facilitating works 
1 substructure
2 superstructure
3 internal finishes 
4 FFE
5 M&E
6 Prefab
7 Works to existing 
8 External works 
9 Prelims 
10 OHP
11 Project/design fees
12 Other development/project costs 
13 Risk
40
Q

What are the key design factors that influence the cost of a building?

A
  • Size
  • Building density
  • Shape
  • Height
  • Circulation space
  • Wall to floor ratio
41
Q

What non design factors can effect the cost of construction?

A
  • Inflation
  • Location
  • Economic environment
  • Accessibility
  • Availability of skilled labour/suppliers
42
Q

What is value management?

A

A method of highlighting possible opportunities to create value within a project. Proactive. Strategic level, early in project timeline.

VM gives each and every project a clear path to create value through the understanding of client objectives as well as the needs and wants of the stakeholders (functionality / cost / time).

Eliminate unnecessary cost from a strategic level.

43
Q

What is value engineering?

A

VE is a method used to eliminate any unnecessary costs at a technical level, in order to achieve value for money on a project.

VE methods and techniques can be used throughout the life cycle of a project, from strategic definition (very early design) to handover and close out. Generally formal cost plan 1, 2, 3.

44
Q

What is the current construction PMI?

A

[CHECK]

45
Q

How is the construction PMI derived?

A

Surveys are sent out to construction firms

46
Q

What does the construction PMI show us?

A

The health of the construction industry, if the number is above 50 the industry is expanding, below 50 contracting.

47
Q

What is the base rate and who sets it?

A

0.75%, Bank of England

48
Q

Who is the governor of the Bank of England?

A

Mark Carney (June 2019 - will change soon)

49
Q

What is the CPI?

A

Consumer Price Index

1.9% May 2019

50
Q

What is the RPI?

A

Retail Price Index

3% June 2019

51
Q

What’s the difference between CPI and RPI?

A

CPI official.

RPI seen as more useful, unofficial. Includes housing costs e.g council tax and mortgages.

Calculated differently.

52
Q

Where do you find definition of order of cost estimate?

A

NRM1

53
Q

When would you use a cost plan?

A

Stage 2, 3, 4

54
Q

Name the RIBA stages and what would be included?

A

0 - Strategic definition: Identify business case/strategic brief. Establish project programme.

1 - Preparation and brief: Develop project objectives, project budget. Develop programme.

2 - Concept Design: Issue final project brief, architectural, structural and MEP concept designs, Stage 2 Cost Plan. Develop programme, sustainability strategies.

3- Developed Design: Issue architectural, structural and MEP developed designs, Stage 3 Cost Plan. Responsibilities matrix. Develop programme, sustainability strategies.

4 - Techncial Design: Issue architectural, structural and MEP developed designs, Stage 3 Cost Plan. Responsibilities matrix. Develop programme, sustainability strategies.

5 - Construction: Off-site and on-site constuction, resolution of design queries, agree variations, valuations and issue interim payment certs.

6 - Handover & close-out: Hand possession of site over to client. Handover O&Ms, DLP begins.

7 - In use: After 1 year if all snags made good issue Certificate of MGD and release retention.

55
Q

How do you market test design components?

A

Get specification. Give supplier details and measures. Subcontractors for installation rate.

56
Q

What is a Contract Sum Analysis?

A

Part of a tenderers submission breaking down the contractors price. Typically used in a DB.

57
Q

What assumptions would you use in a Cost Plan?

A

Lead, asbestos, ground info, procurement strategy, programme, design information, quantities, OOH works.

58
Q

What would be typically excluded from Cost Plan?

A

VAT, inflation, legal fees. We do not advise on VAT.

59
Q

How would you describe value?

A

The usefulness to the client. Value can therefore vary between clients.

Clients may value quality, sustainability, cost, status.

60
Q

List some standard design queries when tenders have been received?

A
  • Confirm cost is in line with spec

- Firm up PSUMs if possible

61
Q

How would you manage value engineering?

A
  • QS REVIEW COSTS
  • Discuss what is pushing costs up w/in design team
  • DT workshop, discuss options
  • Send over to client
62
Q

Define contingency?

A
  • Design development
  • Construction risk
  • Employer risk
63
Q

Compare defined vs undefined provisional sums

A

Defined = Work not completely designed, but nature of work is known, how and where work is to be fixed to building, quantity that indicates the scope of work known, and specific limitations identified.

Undefined = Work not completely designed, information required for PSUM to be defined not available. No allowance has been made in Contractor’s prelims or programme for undefined PSUMs.

64
Q

Define shell and core?

A

Vertical distribution. Landlord areas (core & external), base plant, building substructure and superstructure,

65
Q

Define Cat A

A

Shell and core + horizontal service distribution, surface finishes, RAF & suspended ceilings, blinds.

66
Q

Define Cat B

A

Cat A + Partitions, IT/AV, further FCUS, tea points, final finishes & branding, reception areas, feature lighting, sometimes furniture

67
Q

What would client direct generally include?

A

Chairs, desks

68
Q

What is a cost target?

A

The recommended total expenditure for an element. The cost target for each element is likely to be derived from a number of sub-elements and components.

69
Q

What are the types of risk that you would allow for in an order of cost estimate/cost plan?

A
  • Design development risk
  • Construction risk
  • Employer change risk
  • Employer other risk

Omar Assoc RICS prep (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions