Design Economics & Cost Planning Flashcards
What is an Order of Cost Estimate
- An Order of Cost Estimate is carried out between RIBA Stages 0-2 (0 - Strategic Definition/ 1 - Preparation and Briefing/ 2 - Concept Design)
- Typically used to establish if a project is viable and provide budget costings
- Design Information is limited
What is a Cost Plan
- The Design information has developed to a stage where the cost plan can be broken down elementally.
- Set out in accordance with NRM 1/ sub-structure, superstructure, internal finishes
- Costs can be established on a m2 basis.
- Typically from RIBA stage 2 onwards
What is the difference between Cost and Price
- Cost is the total for labour, plant, material, and management for a specific activity
- Price is the amount a Employer or Client will pay for the item or product and is made of the cost plus and contractors over heads and profit.
How to you proceed if the cost plan exceeds the clients budget
- Arrange a meeting with the client and design team to review the existing scope and see if are any Value Engineering alternatives to bring the project budget back in line with the clients expectations
- I would analyse the costs to see if there are any elements which are abnormally high. I would benchmark these costs against other projects my firm has on.
What is buildability
- Buildability is using the contractors knowledge and experience in the design stage.
- To generate ideas for effective and efficient methods of construction
What are the advantages of Buildability
Buildability can provide cost savings to the existing budget and lead to a more efficient programme.
Reduced capital and life cycle costing of a project
What is the floor to wall ratio
use to represent the cost efficiency of a building.
The lower the ratio the cheaper the building is to construction as there is less external envelope compared to the floor area
- typical wall to floor ratio 0.4-0.5
What is the most efficient building shape
based on wall to floor ratio a circle is the most efficient shape, however it has poor lettable space for fit-out.
- A square is therefore the most efficient shape
How would you prepare an estimate for M&E works
- initially I would ask an M&E engineer to undertake the works.
- For feasibility estimates M&E works could be calculated on a m2 basis or functional unit rate
What is a Section 106 agreement
It is an agreement between a Developer and the local authority that are negotiated in the context of granting planning permission
What is Construction Shell and core
Basic structure, services and envelope of a building.
What is a CAT A fit out
Provides a basic level of finish to the shell and core. For example suspended floor & ceiling, basic M&E
What is a CAT B fit out
Overlays CAT A provision with with bespoke elements which are bespoke to the occupants needs. For example, interior partitions, art etc.
Where can the Fit-Out definitions be found
in the BCO fit out guide
What is BWIC
drilling, fixing or penetrations to allow for service penetrations
What is the purpose of an order of cost estimate
establish if the project is viable/achievable.
What is a functional Unit
- A unit of measurement that considers the prime use of the building
- For example in a retail estimate the functional unit would be the lettable space
Where would you get the rates for a preliminary estimate
- benchmark against previous similar projects and historical cost data such as tender submissions or contract sum analysis
- SPONS & BCIS
what information do you need to be able to carry out an order of cost estimate
- Outline project brief/scope/ requirements
- Initial designs/ floor area/functional unit
- building location
- budget constraints
- Site Conditions
- Programme
- Procurement and Contract Strategy
What is the Purpose of a cost plan
- Used by cost consultant to control the development of design
- To provide a more detailed cost forecast for the project on an elemental basis and identifies clients agreed cost limit
what are the principal components of a cost plan
Construction costs
Preliminaries
Overheads & Profit
Contingency
inflation
Assumptions and exclusions
What is usually excluded from a cost esimtate
-VAT
- Ground Conditions
- S106 agreement
- Inflation
- Asbestos
- FF&E
Why is VAT excluded
- VAT is excluded because each client will occur different levels
- it is outside my knowledge of expertise
What is contingency
It is a set pot of money usually calculated as a percentage of the total contract sum, to account for any unknowns that may arise during the project.
