Design Economics and Cost Planning (Level 3) Flashcards
What are different sources of cost data?
Tendered Rates, BCIS Database, Market Testing, Pricing Books e.g. Spons
What are the stages of cost planning?
RIBA Plan of works stages 0-7
Cost estimate 1-2, Cost planning from 3-4.
What are the types of cost estimates?
Floor Area Method - GIA multiplied by rate
Fuctional Unit Method - Multiply the number of functional units by a cost per functional unit
Elemental Method - individual elements are measured and costed, they are then combined
What is TPI?
Tender price inflation is inflation on cost estimates from the period of the estimate to the base date of the tender return.
What is BCI?
Building Cost Inflation is inflation on cost estimates from date of tender return to the midpoint of the construction programme.
What are the most costly parts of a building?
Façade, Substructure, MEP
What is Value Engineering?
is the process of adding value to a project and this can be by either reducing cost or increasing expenditure. Its more reactive and can be later on in the project.
What is Value Management?
A review of essential project functions or performances and analysing how optimum value for money can be achieved by these processes. This is undertaken earlier in the project and more proactive.
What factors affect costs?
Location & Building Use
Specification and Target Sales Value
Logistics and Site Constraints
Availability of Material and Labour
Transport Costs and Routes
Neighbours
What is a good net to gross ratio?
Anything above 75%
What is a good wall to floor ratio?
0.3-04
What is an order of cost?
Area vs rate
What are some things that you exclude from the cost plan?
Land acusition, VAT, Client seperate contnigency
What is the difference between cost and price?
- The cost is the total cost of labour, plant, materials and management deployed for a specific activity.
- The price is the amount a purchaser or client will pay for an item or product and is made up of the cost plus the main contractor’s profit margin.
How do you proceed if the cost plan exceeds the project budget?
- I would analyse the costs to assess the source of the increase and identify whether any element of work is abnormally high against the order of cost estimate.
- When the reason for the overspend is identified I would then look to propose value engineering options to my client and design team to bring the forecast back in line with the project budget.
What is buildability?
Buildability is harnessing the contractor’s expertise and knowledge during the design stage to generate ideas for effective and efficient methods of construction.
What are the advantages of buildability?
- Buildability can result in better programming, sequencing and construction methods.
- A quicker more efficient programme can be achieved.
- Reduced capital and life cycle costs of the building can be obtained.
- The quality in the finished building’s performance and maintenance characteristics can be improved.
What is a Section 106 agreement?
S106s are agreements between local authorities and developers that are negotiated in the context of granting planning consent.
Where could you find the definitions for S&C, CAT-A and CAT-B?
The British Council of Offices (BCO) fit-out guide.
What information do you need to be able to carry out an order of cost estimate?
- Building Location.
- The type of building.
- Floor area or number of functional units.
- Storey height.
- Whether raised access floors or deep suspended ceiling are envisaged.
- Initial floor plans, roof plans, elevations and sections.
- Requirements for refurbishment to existing buildings and enabling works.
- Indication of specification and quality.
- Indicative programme, procurement and contract strategy.
- Budget & cashflow constraints.
- Site conditions, probable ground conditions.
- Indicative M&E design intent, availability of utility services and the sustainability strategy.
- Details of professional fees, development costs, VAT and treatment of inflation.
What are the principal components of a cost plan?
- Construction costs.
- Preliminaries.
- Contractor’s OH&P.
- Contingency.
- Inflation.
- Assumptions.
- Exclusions.
- Area Schedule.
- List of Drawings & Specifications adopted.
Name the main elements of an elemental estimate
- Substructure.
- Excavation.
- Disposal.
- Foundations.
- Superstructure.
- Frame.
- Upper floors.
- External walls.
- Roof.
- Internal finishes.
- Services.
- External works.
What is usually excluded from a cost estimate?
- Professional fees.
- VAT.
- Client decant costs.
- Loose fixtures and fittings.
- Inflation.
- Site acquisition costs.
- Section 106 Agreement.
- Removal of asbestos.
Why is VAT excluded?
- Because different clients will incur different levels of VAT, for example charities may not be subject to VAT.
- We would not be in a position to know the correct rate unless informed of it.
