Design Economics & Cost Planning Flashcards
What were the learning outcomes from your CPD session on cost planning?
- Learning outcomes were how between RIBA Stage 0-2 the purpose is to understand if the project is feasible for the client and if so help set a realistic cost limit.
- From RIBA stage 2 onwards a cost plan helps the cost consultant control the development of design and shows the client how the money is spent between each element of the building.
What is NRM1 and what is the purpose of the document?
- The RICS New Rules of Measurement 1 is for Order of Cost Estimating and Elemental Cost Planning of capital building works.
- This provides a structured basis for measuring building works and for the production of Cost Estimates and Cost Plans.
What are the main factors effecting design economics?
Factors which can effect design economics can include:
- Scope and Complexity
- Materials
- Location
- Availability of labour
- Regulations
What does the percentage of circulation space show?
- It shows the design efficiency of a building.
- A lower percentage indicates more efficient use of space, while a higher percentage suggests that a significant portion of the floor area is allocated to circulation.
Describe to me the RIBA Plan of work stages?
Stage 0 - Strategic Definition
Stage 1 - Preparation and Brief
Stage 2 - Concept Design
Stage 3 - Developed Design
Stage 4 - Technical Design
Stage 5 - Construction
Stage 6 - Handover and Close Out
Stage 7 - In Use
How do you use the BCIS location Indices?
- Location indices are used in construction and building projects to adjust cost estimates based on the geographic location of the project.
To adjust cost estimates based on the location, use the following formula:
Adjusted Cost =
(BCIS Location Index for Project Location)
(BCIS Location Index for National Average)
×
Original Cost Estimate
The result will give you an adjusted cost estimate that accounts for the regional variations in construction costs.
What is the purpose of a feasibility estimate?
- RIBA Stage 0-2 the purpose is to understand if the project is feasible for the client and if so help set a realistic cost limit.
What were the causes of high inflation in Q2 of 2022?
Causes of high inflation in Q2 of 2022 were:
- High inflation of construction materials across the industry.
- High Inflation rates in the UK Economy.
- Impact of the Russia/Ukraine War.
What does NRM1 detail about how risk should be used and allocated?
It is recommended that separate allowances be made for each of the following:
- Design development risks
- Construction risks
- Employer change risks
- Employer other risks
What made you recommend a separate construction contingency on the HTA project?
- When producing the initial feasibility for HTA I recommended to the client to hold an inflation percentage against the current construction costs.
- This was due to extremely volatile prices of construction materials during Q4 of 2021.
What is value engineering and how did you go about this on the HTA project?
- Value engineering is an organised approach to reduce cost on a project without detrimental affects to quality or performance.
- Firstly, the Value Engineering tracker was updated to assess all potential options on the project to reduce costs with detrimental impacts to quality or performance.
- I then ensured weekly VE workshops were held and included all relevant stakeholders including the client, design team, technology department and project team.
- During the calls, the VE tracker was discussed and I asked the client to assign a code to each of the potential options which included, easy wins, if we have to, only in an emergency.
- This enabled to understand the viable scope areas to target on this project.
What was the advice you gave to colleagues regarding key CAT A and CAT B elements?
- Advice included high increases in cost that I had seen in a recently tendered project of key fitout elements.
- This included plasterboard partitioning and suspended ceiling grid systems.
