Design, Economics and Cost Planning - Level 1 Flashcards
Tell me three factors that affect the cost of construction during the design phase.
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Tell me three factors that affect the maintenance cost of a building.
- choice of materials
- location - exposure to weather extreme
- use
Explain the relationship between the costs of making a design change versus the phase of a building project.
The earlier in a project the change is made the smaller the cost impact to the project -
- no wasted costs as would be if partially constructed and work needs to be re-done
- if later on then may restrict how the design change can be implemented - may limit to more expensive alternative
- earlier the cost may be just the cost of new design by professional - cost of new design.
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Tell me the sources of cost data you are aware of?
- in house from previous tenders / final contract
- BCIS
- Spons
What is cost planning?
predicting the capital or life-cycle cost that is accurate, consistent and reliable given the information available.
Cost planning is a tool for considering how different values of an independent variable affect a dependent variable under a given set of assumptions.
Tell me three aims of cost planning
- ensure success of project (that it meets the client objectives)
- ensures that client can afford project and budgets accordingly
- Ensures client gets value for money
Tell me two techniques you can use for financial control of construction projects during the pre-construction stage.
Cost planning: approach to cost control that ensures cost certainty at contract stage. Closely monitors design process to ensure it stays within determined cost limits
Elemental cost plan: simplifies the costing process by breaking down construction costs into basic building elements such as materials, labour equipment
Comparative cost analysis: uses cost data from past projects to estimate cost for a new project. Comparison of costs among different projects facilitates better decision making.
Bench marking: this is performance measurement tool used to compare the cost, time, quality and functionality aspects of the project.
What is the difference between a cost plan and a cost estimate?
Cost planning: comprehensive analysis of all project aspects and associated costs, resulting in overview of costs at different stages
Cost estimates: provide single snapshot off estimated final construction cost during specific point in design development
What do you understand by capital cost?
Capital cost is the cost of purchase
One time expense incurred
What do you understand by life cycle cost?
Ongoing cost for operation or maintenance - series of payments over whole life of asset
Tell me about the various stages of cost planning.
- Formal cost plan - Order of Cost Estimate (OCE) based on concept design
- Cost plan 1 - linked back to original OCE and any deviation between figures should be explainable
- Cost plan 2 - based on increased design information
- Cost plan 3 - technical design has been developed and can be used to prepare pre-tender estimate.
What do you understand by work stages or construction project phases?
RIBA plan of work stages
What are the RIBA plan of work stages?
Stage 0 - strategic definition
Stage 1 - preparation and brief
Stage 2 - Concept design
Stage 3 - Spatial Coordination
Stage 4 - Technical design
Stage 5 - Manufacture and Construction
Stage 6 - Handover
Stage 7 - Use
When were these last updated?
2020 to include sustainable construction
Talk me through the adjustments that may be required for factors during cost planning or estimating.
- Location
- Date
if data has been taken from a project in different geographical location may need to be adjusted.
If tender prices have changes - do a tender price adjustment to allow for inflation between initial design and tender for example
Tell me why location may need to be adjusted for during cost planning.
The prices for a project in one location may not be accurate in a different location - for example in London often prices very different to Cornwall -
- less labour so prices are higher in London (more demand)
- Harder to get materials in Cornwall - less choice and transport costs
- parking restricted in London and access may be harder
Tell me why a specification may need to be adjusted for during cost planning.
At initial stages the specification of finishes may not be part of the known design.
Or may be that cost data is from project where finish was higher or lower specification.
Adjustment will need to be made as design develops and specification is finalised.
Note in particular any prime cost sums where spec not known.
Tell me why time may need to be adjusted for during cost planning.
Tell me why market forces may need to be adjusted for during cost planning.
How may regional factors affect the cost of a construction project?
What is a base cost estimate?
What is the difference between inflation and fluctuation?
What is cost limit during cost planning?
What is a PC sum?
The quantities of work whose extent is known but whose specification has yet to be determined
