Design Economics and Cost Planning Flashcards
Why is the purpose of cost plans?
To detail how the budget is being distributed among the elements of the project and provide the expected financial position of the project for the Client and Design Team. Can help to identify areas of overspend.
Ensures the Client is provided with value for money.
What is an order of cost estimate?
A cost estimate is usually carried out at RIBA Stages 0-1 on varying levels of information. Used to determine the feasibility of projects for a Client and set cost limits / budgets.
What information would you require in order to create an order of cost estimate?
The information available can vary, but the minimum would be the nature of project, location, size (area or functional unit), Client desired budget, indicative programme. Previous cost data to inform rates.
What documents are there to assist in producing an order of cost estimate?
RICE Code of Measuring Practice and NRM 1
What is the Code of Measuring Practice?
Code of Practice issued by the RICS to provide a succinct, precise definition to permit accurate measurement of buildings and land.
Do you use IPMS?
International Property Measurement Standards brings about the international harmonisation of national property measurement standards with the aim of providing internal standards understood by all in the built environment.
What design information would you expect at RIBA Stage 2?
General arrangement drawings and area schedules at minimum. Cost Plan built up elementally but largely still produced on a £/m2 basis throughout. A design report detailing some finish standards to assist with informing rates.
Why is it important to qualify your cost plans and estimates?
To detail the basis and assumptions made when costing the works where there is not sufficient information. This informs the Client and Design Team what the cost is based on and helps facilitate design decisions.
Also protects the QS should the final design be considerably higher spec and as such, higher cost.
What is the NRM?
RICS New Rules of Measurement. A suite of documents issued by the RICS which intend to standardise cost estiming / cost planning / detailed measurement of building works to facilitate consistency, benchmarking and avoid disputes.
NRM1: Order of cost estimating and elemental cost planning.
Provides a structured basis for measuring building works and presents consistent approach for other key cost components (preliminaries, risk) when cost estimating / cost planning.
NRM2: Detailed measurement of building works.
Detailed measurement for the purpose of obtaining a tender price.
NRM3: Order of cost estimating / cost planning for building maintenance works.
What the key components of a cost estimate?
Facilitating works Building works Preliminaries OHP Risk allowance Inflation
What is meant by a functional unit?
Where building use can be easily defined by a particular function. For example, £/seat of a stadium.
What would you typically expect on a £/seat for a stadium?
Of course this is dependent on the level of sport and client requirements. We delivered Headingley Stadium at £3000/seat however some lower league stadiums can be around the £1900/2000/seat mark.
What is the BCIS?
Building Cost Information Service. A database produced by the RICS containing cost and price information for the construction industry.
What is the current TPI from the BCIS?
2020 showing -1.8% however is showing inflation of +2.3% for 2021.
Why might you use your in house indices instead of the BCIS?
We have a dedicated in house team for analysing tender returns from within the firm. As a result, these indices are likely to be more applicable to the projects I am working on than the BCIS, which takes account of all tenders across the built environment.
How do you calculate a % increase in TPI from index numbers?
Simple percentage equation. Forecast date index - base date index x 100
What is the different between tender and construction inflation?
Tender inflation is calculated from the base date to the date of tender return. Construction inflation is taken from the date of tender return to the mid-point of the construction programme.
(Fluctuations in the basic prices of labour, plant, equipment and materials)
What is the RIBA Plan of Work?
National model for categorising the process of building works from inception to use into key stages.
Why is the RIBA model useful?
Helps decide timelines for deliverables from the design team and informs fee proposals.
What changed in the RIBA Plan of Work in 2020?
Incorporation of sustainability issues, digitisation of the the industry. Also timing in relation to planning applications and procurement.
How does the level of design change as a project moves through the stages?
Stage 2: General arrangement drawings, some specification information, design reports, area schedules
Stage 3: Coordinated MEP and structures design, internal walls, doors, FF&E schedule
Stage 4: Technical design information suitable for constructing the works, all drawings and specifications, door schedules, finishes schedules
When obtaining rates for a cost plan, what do you use? Which one do you think is most reliable and why?
Usually previous data from recent relevant projects, or rates from the market.
Rates from the market are accurate at the base date and hence could be considered the most reliable.
What should be included within the cost plan document to support your costs?
Basis, notes, assumptions, area schedule, exclusions, cost summary, cost backup.
What is inflation?
The upwards movement in the average level of prices or costs. The decrease in value of currency.
