Design Economics & Cost Planning

Question 1

What sorts of things do you need to consider when looking at benchmarking cost data for new projects?

Answer 1

• Time
• Location
• Abnormals on the project being used as a benchmark and the new project

Question 2

How could the form of contract affect your estimate?

Answer 2

Different ways contracts are managed i.e.
- more admin heaving contracts may incur more professional fees.
- d&b contract would incur lesser design fees preconstruction

Question 3

What is the difference between a cost plan and an estimate?

Answer 3

• Estimate is a higher level based on limited design information. Typically priced by m2 or functional unit.
• A Cost Plan is based on more detailed design information where its possibly to quantify works and broken down elementally in accordance with nrm1

Question 4

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

Answer 4

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 5

How would you select appropriate benchmark data?

Answer 5

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 6

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

Answer 6

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 7

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

Answer 7

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.