DESIGN ECONOMICS AND COST PLANNING

Question 1

When was the RIBA Plan of Work last updated? What are the differences in the update?

Answer 1

• Guide now shows comprehensive sections on how each project stage works and an expanded glossary which details how each of the topics underpinning the Plan contribute to project success.
• Section on project strategies and how they allow a multitude of topics (from sustainability to health and safety) to be addressed as a project progresses.
• Advice on how sustainable outcomes and value of aftercare activities.
• BIM development reflected.
• Addresses modern methods of construction, and the importance of considering these earlier in the process.
• Clarity between Stage 2 and Stage 3. Acknowledges that Stage 2 is about getting architectural concept correct and signed off by the Client, and that Stage 3 is not about changing the concept, it is about design studies for portions of the building, detailed engineering analysis and getting the cost plan right.

Question 2

Can you give some examples of assumptions you’ve made on a cost plan/estimate previously?

Answer 2

• Prepared using current day pricing levels, with separate allowances for TPI and CPI.
• Any clarifications made by design team.
• No allowance has been made for any phasing of the works or working outside of normal working hours.
• The procurement strategy is assumed to be competitive lump sum with all works tendered under one main contract.
• Site has good ground conditions.
• Areas are as per the area schedule provided by the architect.
• Areas are intended for the production of the cost estimate only and should not be relied upon for any other purpose.

Question 3

What is the current inflation index?

Answer 3

o G&T Q4 TPI shows 1% fall in 2020.

o Outlook for 2021 has improved since last tender report from -1.5% to -1%.

Question 4

What is the difference between an Order of Cost Estimate and a Cost Plan?

Answer 4

Estimate - Gives a realistic max price on basic info (Stage 0-1)
Cost Plan - Shows the distribution of costs across the differing elements of works (Stage 2/3)

Question 5

Do you know any design efficiencies?

Answer 5

Wall to Floor ratio

External Wall Area by Gross Floor Area

Question 6

What are the advantages of a good wall to floor ratio?

Answer 6

show plate efficiency

Question 7

What is BIM?

Answer 7

For of 3D modelling that aims to reduce the inefficiencies in the construction industry
Better info management (increases collaboration & reduces potential for conflict)
Reduces time of measuring

Question 8

What are the NRM?

Answer 8

New Rules of Measurement 1: Order of Cost Estimating for Building Works
New Rules of Measurement 2: Rules of measurement for Building Works
New Rules of Measurement 3: Order of Cost Estimating for Building Maintenance Works

Question 9

What are the stages?

Answer 9

Stage 0 - Strategic Definition 
Stage 1 - Preparation and briefing 
Stage 2 - Concept Design 
Stage 3 - Design Development 
Stage 4 - Technical Design 
Stage 5 - Construction 
Stage 6 - Handover 
Stage 7 - in-use

Question 10

Can you give examples of assumptions?

Answer 10

Allowances for Prelims and OH&P 
Use of current day prices 
Measured to IPMS 
Normal working hours 
No phasing of the works

Question 11

Can you give examples of exclusions?

Answer 11

VAT
No allowances for out working hours
No allowances for phasing of the works
No land acquisition allowances

Question 12

Difference between a defined and undefined provisional sum?

Answer 12

Defined is where there is sufficient detail for the tenderer to put a sum and make necessary allowances for the program, planning and pricing

Undefined is where there is not enough information to give an allowance and thus the Contractor may be allowed to an EoT or Additional payments