Design Economics & Cost Planning

Question 1

What are the different stages of the RIBA plan of work?

Answer 1

0 - Strategic Definition
1 - Preparation and Briefing
2 - Concept Design
3 - Spacial Coordination
4 - Technical Design
5 - Manufacturing & Construction
6 - Handover
7 - In use

Question 2

Difference between an Order of Cost Estimate and a Cost Plan

Answer 2

OCE - usually based on a clients initial brief or requirements and very little detailed design information. Usually this is a cost per m2 or cost per functional unit.
Cost Plan - an estimate based on more detailed design where it’s possible to quantify works elementally and apply rates.

Question 3

How would you select appropriate benchmark data?

Answer 3

I would use a combination of past similar project and BCIS data.

When benchmarking I would select the 4 most similar against my clients brief, adjust for time and location and any abnormals.

Question 4

What is inflation and how is it dealt with under NRM?

Answer 4

Inflation is the fluctuation of prices and fall in purchasing power of money - for example increases in labour, plant, materials and equipment.

Tender inflation - allowance from estimate base date to date of tender returns.

Construction inflation - allowance from tender returns to the mid point of construction.

Question 5

What is the difference between Lifecycle Costing and Whole Life Costing?

Answer 5

LCC - Cost of constructing and operating a building.
WLC - Overall picture of the project including purchase of the land, construction and income from the project.