Design Economics & Cost Planning Flashcards
What is the 12 month look ahead in TPI
2.17%
Q3 2022 to Q3 2023
What has happened in the construction industry in the previous 12 months
“The TPI states prices have raised by 8.9%. However we have seen prices raise significantly above this.
material price fluctuations have been significant.
recent information suggests suppliers are concerned about the current market, supply, energy prices, interest rate increases, late payments
What is Net to Gross ratio
“Floor Plan efficiency rating
It is an indicator of rental value
Lettable space compared to overall”
What would be your typical exclusions from an estimate
"VAT S106 payments Archaeological findings Site acquisition costs Road closure costs Right of light issues Survey and investigations"
What is whole life costing
“WLC - Improved the understanding of true life time financial impact of investment in a built asset
Up to 80% of lifetime cost are determined at the early stages of design (concept/spatial)”
What time period would you typically assume for LCC
This is dependent on the client. Be that conclusion of a lease, functional life of building, whole building life duration, time to first refurb etc.
What is value management
“It is an analytical tool Value Management isa creative, problem-solving.process that uses a methodical approach to include the necessary parties and, working together, to achieve the best solutions for value from construction.
It is based on cost time and function
EXAMPLE: what is the best mix of different sizes and types of housing units in a residential development? This will depend on issues such as local demand, relative construction costs and planning constraints”
What is passive design
Passive design works to maximise the use of natural sources of energy. Such as solar gains
What are the RIBA stage of work
"0 - Strategic Definition 1 - Preparation and Briefing 2 - Concept design 3 - Spatial Coordination 4 - Technical Design 5 - Manufacturing and construction 6 - Handover 7 - Use"
What is life cycle costing
“LCC is decision making tool looking beyond construction into the operational cost of a building
CROME Construction Renewal Operational Maintenance End of life "
What is WLC
“WLC true financial impact of built asset include E/O CROME
Non construction costs
Income
Externalities”
What is the difference between WCL & LCC
LCC focuses only on the construction, maintenance, operation and disposal of the asset, whereas
WLC also includes client and user costs, such as project financing, land, income and external costs (those not born by parties to the construction contract – such as tenants)
What are the considerations or advice needed to give to clients on time cost quality and risk
They all cant be satisfied
How did you price on a £/m2
Based on benchmarked rates for example £1,900-£2,100/m2 for a house inclusive of uplifts
How did you price on a functional area
CP space, hospital bed, stadium seat
How do you benchmark
Logging all the agreed tendered rates for schemes, uplifting against location/ time to ensure comparable. Doing this based on scheme type
process of comparing similar schemes against one an other to ensure they are within the correct quantum/range
Who owns BCIS
RICS
What is BCIS
Leading provider of cost and price information
What is a feasibility estimate
Initial ROM estimate carried out at RIBA Stage 1
What is the difference between an estimate and a cost plan
“a. Cost Estimates
It is a high level exercise carried out at Stage 1&2 based on limited information
- Used for a business case
- Setting budget
b. Cost Plans
More detailed estimate carried out during RIBA stages 3&4. this is a plan to show how the funds will be allocated against developing deign”
When do you issue a cost estimate or a cost plan
"Cost estimate; RIBA 1 - Preparation & brief Cost plan; RIBA 2 - Concept Design RIBA 3 - Spatial Coordination RIBA 4 - Technical design"
How did you price a scheme at stage 3-4
“With a cost plan
Item rates - excavation, concrete footing, brick & block works, lean mix concrete, beam and block flooring, insulation DPM screed etc”
“What is NRM
What are the volumes”
“New Rules of Measurement
NRM 1 - Order of cost estimating and cost planning for capital building works
NRM 2 - Detailed measurement for building works
NRM 3 - Order of cost estimating and cost planning for building maintenance works”
How do you update for location factors
Location factor applied to adjust for location
What is BCIS all in TPI
“BCIS all in Tender Price Indices
Is a cost indices that forecasts the cost increase in tender prices from the period in which an estimate is done to the SOS date”
How do you calculate TPI increase
New number - Old Number =Difference/Old number *100%
What other Indices are available
“RCI - Resource Cost Indices - Calculates cost increase on construction projects
OPI - Output Price Indices - Calculates cost increases on labour plant and materials”
How do you allow for percentages, OH&P, Prelims & contingency
“Within our estimate we allow
Prelims - 13-15%
OH&P - 8-10%
Design Contingency - 3%
Professional fees 10%
For prelims if it a housing scheme we also pro rata the construction build rate to calculate the nr of weeks and apply a weekly run rate for prelims seen across other schemes.”
What is a value for money statement
“VFM - It a brief tender report that provides the client with our recommendations for tender award.
This is not based on the cheapest it is based on the optimum price to deliver the scheme at the require quality.
”
How did you compare the extra care scheme noted in your SOE to identify cost differences?
“Used our benchmarked rates for Extra care schemes
Ensured they were of a similar size and scope (We do a lot of works with the same client so were able to compare directly with schemes of the same scope)
This gave an indication of cost and identified where cost areas were high. Which allowed for further analysis of why e.g. curtain walling, atrium space”
How do you compare schemes through benchmarking
As noted above comparing similar size and scope/ quality re base to location if required and uplift against BCIS TPI
What is the typical life cycle of a house
70-100 years
what is the typical replacement times for certain parts of a house
Roof - 40-50 years
Windows & doors - Min 20 years
Driveway - 15 min years
Fencing 10-15 years
Boiler 10-15
What are the key headline factors of design consideration when designing and developing a scheme
“Time - Duration. When the client needs to make money from the scheme. Impact of delay (Legislation Part L&F)
Cost - What client can afford
Quality - What quality can be delivered in the time and the budget
Risk - What risk is the client willing to take”
What is a wall to floor ratio
“Efficiency rating
Ratio of external wall area to internal floor area, shows efficiency of buildings
The lower the rating the more efficient the building 0.3W:F mean there is 0.3m2 of wall to 1m2 of floor area
0.4-0.5”
what is a good wall to floor ratio
Anything below 0.5 is considered efficient
What RIBA stage would you start NRM cost planning
RIBA Stage - Concept Design Stage 2
What is included in your cost plan/estimate
“Cost Estimate
Front cover QA Sheet Content Executive summary Assumptions & Exclusions Estimate
Cost Plan (As above but including)
VE Options
Cashflow
Statement of changes since previous issue”
What do you do to market intelligence of other regions
“Re base based on location
Calculate percentage difference between location factors and adjust rate accordingly”
How is Risk delt with through the cost planning process
“Through the five below options:
- Risk avoidance - Avoid risk/ design out, look at a different site etc
- Risk reduction - Mitigate/ Change design, different material, different method, change strategy
- Risk Transfer - Pass the risk to contractor
- Risk share - Risk not fully transferred some risk maintained, Prov sum
- Risk retention - Risk that cannot be controlled remains with the client.”
What is the CPC TPI/inflation increase based on
“The CPC TPI forecasts is based on a survey that has been completed with contractors in the residential sector
Asking a series of questions such as;
- Capacity/ order book % for upcoming years
- Pipeline
- Procurement trends
- Inflation trends; OH&P, Prelims, sub con changes”
What RIBA stage would you issue a pre tender estimate
RIBA Stage 4 Technical design
What percentage variance in a PTE
5%
What efficiency ratios would you use to understand the efficiency of a scheme
“Net to Gross - The variance between lettable areas and the overall area inclusive of communal, lifts, stairs etc.
Wall to floor - the efficiency of wall area to floor area more wall to floor area the less efficient.”
What are some initial areas you would suggest for value engineering for a supported living
“Corridor width
Apartment size - NDSS
Removal of/ review of communal spaces
Façade review (curtain walling, cladding, etc)”
Typical exclusions for a stage 2 cost plan
“VAT
Local authority costs
Abnormal services
Abnormal foundations
Post contract fees
Site acquisition costs”
What is the difference between BCI & TPI
TPI - forecast increase in construction costs from estimate toSOS
Building Cost Indicies - measures the change in the cost to the building contractor of obtaining his input costs of labour and materials before adding his profit
What is the current TPI
377
