Design economics and cost planning (L2) Flashcards
On the Cornhow to Stainburn project, what information did you use to prepare your cost plan?
o Location of the site
o Forecast commencement date
o Indicative programme
o Various drawings such as utility drawings, drawings of proposed pipework arrangement
o Materials list providing information on fittings and number, type of pipe and diameter
o NMS framework contractor OH&P percentage
o One map – to view existing local UU assets and measure length of pipework
o TTRO requirements
How did you ensure the cost data you used was relevant?
o Similar items were selected from SPONS civil engineering and highways works price book 2020 which were updated for
Time i.e. inflation occurring between the base data of cost data and estimate base date and also
Location using the index in SPONS
o In-house cost data was used for the main contractors preliminaries build-up to price the different components
o TTRO fee from relevant council website and therefore up to date at the time of the cost plan
o I am aware that when using other sources of cost data such as in-house cost data, the cost data should be properly analysed to ensure it is similar in character to the proposed works and unit rates should be adjusted to reflect prices current at the estimate base date (i.e. adjusted to remove construction inflation allowances made by the main Contractor)
Did you need to adjust this in any way? if so what for and how did you do this?
o Yes
o Rates from SPONS civil engineering and highway works price book 2020 were adjusted for both
Time i.e. inflation occurring between the base date of cost date and estimate base date and also
Location using the index in SPONS
o I am aware that when using other sources of cost data such as in-house cost data, the cost data should be properly analysed to ensure it is similar to in character to the proposed works and unit rates should be adjusted to reflect prices current at the estimate base date (i.e. adjusted to remove construction inflation allowances made by the main Contractor)
How did you assess and apply inflation?
o I made separate allowances for:
Tender inflation – to account for inflation from the estimate base date to tender return date and
Construction inflation – to account for inflation from the tender return date to the mid-point of construction
o This was done through the use of Tender Price Indices published by the BCIS
o I am aware that when using other sources of cost data such as in-house cost data, the cost data should be properly analysed to ensure it is similar to in character to the proposed works and unit rates should be adjusted to reflect prices current at the estimate base date (i.e. adjusted to remove construction inflation allowances made by the main Contractor)
How did you ascertain/estimate the level of OHP and prelims?
o Main Contractor Preliminaries
A separate allowance was made for main Contractors preliminaries
I am aware that preliminaries are a cost-significant element directly influenced by the construction method and
Need to be checked at each formal cost plan with a more detailed approach taken as more information becomes available i.e. a build-up in accordance with group element 9
Allowance can be made either based on a percentage addition derived from assessment of main Contractors preliminaries found on previous projects or
A detailed build up in accordance with group element 9 if sufficient information is provided
I was able to build the main contractors preliminaries up in detail including for temporary traffic lights due to TTRO requirement
In-house cost data was used to price the individual components
o Main Contractor Overhead and Profit
I made a separate allowance for main Contractors overheads and profit based on a percentage addition to the sum of the construction works estimate and main contractors preliminaries estimate
I am aware that this percentage should be derived from assessment of main contractors overhead and profit found on previous project and so
I used the NMS framework contractor OH&P percentage
Tell me about a specific risk you have costed?
o I have costed a construction risk associated with the risk that site conditions specifically in relation to existing services are different from the utility drawings provided
o This was a perceived risk due to the absence of any site investigation
o The impact of this event occurring was costed and a probability percentage of the risk occurring assigned the sum of which was included in the cost plan
o The risk build up mainly included extended contractor preliminaries for a period of time to allow for assessment and resolution
How do you deal with risk in your cost plans?
o Risks are dealt with as a separate allowance that is added to the base cost estimate
o Project specific risk registers are prepared complete with risk estimates
o Risk allowances are properly assessed and built up and not simply a percentage addition
o This is continually updated throughout the formal cost plan stages and
o Separate allowances are made for:
Design development risks
Construction risks
Employer change risks
Employer other risks
How did you ensure accuracy?
o The accuracy is dependant on the quality of the information supplied
o The more information provided, the more reliable the outcome will be
o Where little or no information is provided, the QS will need to qualify accordingly
What exclusions did you list and why?
o Any allowance for pipework being laid a greater depth due to the limited information provided
o Exposing of off excavated material off-site and importing new
o Adjustment to the SPONS labour and plant rates in relation to the Multiplier Table for various site conditions for working due to absence of site investigation information
o VAT as specialist advice must be sought to ensure correct rate are applied
What was the outcome of this?
o The Project Manager was acceptable of the exclusions
o However, I am aware of that making clients aware of exclusions is required and may lead to them asking for the item to be included
