Design Economics & Cost Planning Flashcards
What is IPMS?
International Property Measurement Standards
How would you cost preliminaries at Stage 2 vs at Stage 4?
Stage 2 - Benchmark on £/week based on programme
Stage 4 - Full bottom up review of NRM2 Appendix B and C which itemises the typical Preliminaries elements and enables to effectively cost on the basis of the Construction Programme and expected works.
When is best to go into planning?
Stage 2 is common, but Stage 3 ensures that the areas have been Spatially Coordinated so there is less likeliness for change to massing
What suitable Design Contingency would you include at every RIBA stage?
Stage 2 - 10-15%
Stage 3 - 5-10%
Stage 4 - 0-5%
Difference between a Pre-Tender Estimate and a Cost Plan?
- Pre Tender Estimate is based on the tender documents only.
- Cost Plan has allowances for notional elements of design or elements / risk which is not yet drawn or to be drawn.
What are the components of a Pre-Tender Estimate?
- Executive Summary
- Assumptions & Exclusions
- Cost totals
- Design & Documents Basis
How would you order a Cost Estimate?
NRM1, each element is sorted into Group Elements, with the inclusions listed in each section (e.g Internal Finishes has Wall, floor and ceiling finishes).
Also refer to Appendix D and E of NRM2
How can you adapt a cost plan based on location?
- BCIS Location indices.
- Knowledge of benchmark schemes in the area (CPC have 7 offices across the UK).
- Discussions with agents on Sales Values.
How do CPC update clients on inflation?
Quarterly updates published.
Reviewing typical goods on the market and reporting on quarterly change and giving reasons for market change, whether that be;
- Market strength
- Lack of labour
- High fuel costs
- High import costs
The document also gives a view on the next 3 years.
What deliverables as a cost consultant do you do at every RIBA stage?
Stage 1 -
Stage 2 - Issue tender for management contract, or Stage 2 cost plan
Stage 3 - Issue tender for D&B
Stage 4 - Issue tender for Traditional?
Stage 5 - Contract obligations
Stage 6 - Final Account agreement
What sort of scheme do you find on BCIS?
Name some different tenures you have come across?
- Build to Rent
- Affordable rent
- Market sale
How do CPC report on building efficiencies?
Benchmark and break down costs into;
- Wall to Floor ratio - 45%-55%
- Glazed to Solid ratio - ~30%
- Units per core per floor - 7-10 nr
- NIA: GIA - 75%-80%
- Average slab thickness - 200mm-225mm
This helps with monitoring and understanding the efficiency metrics of a building, so see where new developments could improve or to highlight where they are efficient. It does depend on the type of development / shape of the building.
Can you give an example on a time where you saved the client money?
- 54 The Bishop’s Avenue - Extensive VE exercise had to be carried out due to the costs being over the client budget. I arranged a VE workshop and requested 5-10 items from each design discipline which I could cost and put in front of the client. I also went through the design myself and plucked out items to be pro-active and bring to the table some ideas. This was then reviewed and items were moved to accepted / rejected. This got the cost nearer to the client budget, and got the design team working towards the budget.
Why did you market test so early on for The Bishop’s Avenue?
- Market volatility on concrete and steel at the time, and given the budget problems we needed to be sure of what we were suggesting needed to be Value Engineered.
Give an example of when you have successfully Value Engineered on a project?
- The Bishops Avenue - VE -£5m
- Escapade - VE workshop on finishes to bring design and contractor down to the budget and make scheme viable.
- Westbury - Triple glazed suggested to meet required U value targets. I spoke to the market and managed to suggest a product which achieved the required u value and meant it was only needed on one elevation to deal with acoustic requirements (near a road).
What is the purpose of Life Cycle Costing and have you used this process on a scheme?
Considers costs over the whole life of a project and includes servicing costs and replacement costs.
- Implemented on Horizon 120, suggested materials which had a shorter life span and would need to be replaced whilst also suggesting alternatives which would have a lower Life Cycle cost. This was submitted for the consideration of the Design Team
What is a right of light agreement?
A “right to light” is an easement that gives a landowner the right to receive light through defined apertures in buildings on his or her land.
What is the difference between a Cost Estimate and a Cost Plan?
Cost Estimate - high level exercise for assessing the financial viability of a project and to set out an outline budget for the scheme.
Cost Plan - Is a budget distribution technique implemented during design. It involves the critical breakdown of the cost limit into cost targets for each element of the building.
Information required at different design stages
RIBA Stage 2 - Plan, Elevation, Sections, Spec
RIBA Stage 3 - Plan, Elevation, Section, Spec
RIBA Stage 4 - Plan, Elevations, Details, Sections, Spec, Schedules, Co-ordinated architecture + M&E + Structural drawings
What services are you aware that the BCIS provides?
- TPI - Quarterly updates on the Tender Price Index
- Location indices - Adjustment on costs which are relevant to a difference in location
- Dayworks rates
- Materials and labour rates that you can benchmark, forecast at a regional level.
How can you price Variations?
In accordance to Valuing Change guidance note;
1. to be valued at the same rates and prices set out in the contract
2. use the relevant rates and prices set out in the contract as a basis for valuation, with reasonable adjustments for changes in quantity, conditions and character
3. new rates or prices to be derived from the reasonable cost of executing the work, together with reasonable profit
4. the engineer can determine a provisional rate or price until such time as an appropriate rate or price is agreed or determined
5. use of daywork, for work of a minor or incidental nature, if the engineer agrees.
What is Schedule 2?
Schedule 2 Variations.
In paragraph 2.2 it requires the contractor to submit the contractors estimate within 14 days of the date of the relevant instruction, unless agreed otherwise (priced ECR).
The Contractor then has 7 days to receive the instruction as the validity period, unless amended. This was amended to 14 days on Horizon 120.
What types of estimate are there?
- budget / feasibility
- cost estimate
- cost plan
