Design Economics / Cost Planning Flashcards
What is Life cycle costing?
Decision making tool to establish the initial and future (build and running) cost of a building over its life time. Capital Operation Replacement Demolition
What is whole life costing?
Similar to life cycle costing but gives the full financial impact of the building (CORD + Land acquisition).
What are the NRM documents and their titles?
NRM 1 – Order of cost estimating and cost planning for capital building works
NRM 2 – Detailed measurement for building works
NRM 3 – Order of cost estimating and cost planning for building maintenance works
What are the key cost drivers when preparing a cost plan?
Building plan Building shape Building height Building size Buildability Construction method – Steel vs concrete
What are the RIBA Plan of works?
0 – Strategic Definition 1 – Preparation and Brief 2 – Conceptual Design 3 – Spatial Coordination 4 – Technical Design 5 – Construction and manufacturing 6 – Handover 7 - Use
What is Benchmarking and why do we do it?
Allows us to measure performance on a given project against a set standard.
Carried out at the early stages of design to set a cost limit before too much time is spent on design.
How is benchmarking carried out?
Collecting information on; Contract details – type of contract used, start and competition dates Project description GIA and NIA Location
What is the structure of a Cost Plan?
QA sheet Contents Page Basis and Assumptions - VIP Exclusions - VIP Executive summary Cost summary Area Schedule Benchmarking Analysis Risk and Opportunities Measured Works
What are typical assumptions in a cost plan?
Competitively tendered
Risk and contingency allowances
What are the typical exclusions in a cost plan?
Section 106 / 278
VAT
Site Surveys
Professional fees
What does a cost plan do?
Gives an estimate of the final out-turn cost of a project
Assists in financial control
Based on specific design information
What is a cost estimate?
Forecast of possible cost based on historic data, split out elementally
What is the difference between a cost plan and a cost estimate?
Cost estimate gives an idea of the likely out-turn cost and breaks it down into elements
Cost plan gives itemised rates to indicate how the budget will be spent
What cost would you typically allow for a Cat A fit out in central London?
£50/ft²
What is Value Management?
A systematic review of essential project functions or performance, focused on achieving the best value for money. Includes overall view of a project including capital and recurrent costs.
What is Value Engineering?
A systematic approach that seeks to enhance value by eliminating unnecessary costs whilst maintaining function
Is Value Engineering only about cutting costs?
No – about streamlining the design, eliminate unwanted costs and improve function and quality
How would you adjust costs for time?
Indicies
What is TPI?
A measure of the movement of building prices paid by clients
Tender Price Index
In buoyant times can move faster than BCI
Inflated to start on site date
What is BCI?
A measure of movement of building labour and material costs.
Building Cost Index
No element for OH&P
Inflated to mid-point of the project
What is Aecoms current TPI?
Central London November 2019 – 117.3
Annual growth of 1.5%
UK November 2019 – 119.8
Annual growth of 3.5%
2015 is 100 as a perspective
What is AECOMs current BCI?
November 2019 – 116.4
Annual growth of 3.9%
What are some current location indices?
Inner London – 1.06
Outer London – 1.00
Yorkshire – 0.87
Where do you source data to accurately prepare cost plans and advice?
BCIS data?
In house cost data
Published cost data - SPONS
What are some typical efficiencies?
Net to gross – NIA / GIA – over 70% is good
Wall to floor - Wall area / GIA below 40% is good
What is a Feasibility estimate?
Based on historical data and uses functional area / unit to give initial budget
£/ft² - office
£/seat – theatre
£/key – hotel
How would you improve the wall to floor ratio of a building?
Reduce floor to ceiling height – more slabs
Change the building shape – Circle – more expensive but most efficient, square is cheapest
What factors affect the price of a development?
Procurement Route Location Size of project Market conditions Site specific issues – soil conditions or archaeological remains
What is the minimum information you’d need to prepare a cost estimate for a new client?
Size – functional units
Location
Time – Indicative programme
Use – 5* hotel, office or warehouse?
How would you advice a client that they are designing to the best value?
Benchmarking
Are there any limit of liability type statements or wording that should be included in a cost plan?
Exclusions
How is contingency defined under NRM?
Design Development Risk
Construction Risk
Employer Change Risk
Employer Other Risk
What would you consider when benchmarking?
Date Location Size Procurement route Form of contract Scope – any unique aspects of the design Contract sum Programme duration Elemental breakdown Construction cost /m² or per function unit
Any extra information in the benchmarking report I did for Derwent?
Project data sheets, area analysis and overhead comparison
Data sheets for;
Reception in relation to GIA = £7/ft²
WC in relation to GIA = £12/ft² or £25k a cubicle
Cladding = c.£800 - £1,600/m²
Cat A Lighting = c.£10/ft²
What is COMP?
Code of Measurement Practise 6th edition – GIA NIA etc.
What has replaced COMP?
RICS Property Measurement 2nd Edition
What is a Post Tender Estimate?
An estimate between receiving tenders and entering a contract – tracks any change
How did you advise on the design economics of paving in site C
Had to factor in the cost of the slip resistance and finish – flamed or water jet finish to achieve correct R rating
Cost of Granite vs marble and longevity of each
How would you evaluate and advise on the use of historic data and the considerations to be taken into account?
Indicies after 3 to 5 years should be flagged as beyond then indicies stop being as useful
How did you advise the client on the LCC of the paving?
Advised that the marble was more expensive (construction cost? than the granite.
the slip finish (water jet) needed redoing every 10 years for the marble unlike the granite. (higher maintenance cost)
Was it an issue that i did the Stage 4 Cost Plan and the PTE on Wedge?
Understand it’s not best practice
because of resourcing i carried out the PTE
however had someone not familiar with the project verify it
