Design Economics & Cost Planning - General Flashcards
What is the difference between an order of cost estimate and a cost plan?
Cost Estimate is a high level forecast of construction cost
Cost plan is construction costs broken down into the elements
What is a cost plan?
Presents the estimated construction cost into a structural elemental or functional format
What is the difference between cost and price?
Cost = Labour, plant, materials and mangement for an activity
Price = Amount the purchase will pay (Cost + Profit)
What is build-ability?
Harnessing the contractors expertise and knowledge during the design phase
What are the advantages of buildability?
Better programming / sequencing of construction methods
Improved quality
Improved building performance and maintenance charachteristics
What is a wall to floor ratio?
Relationship between wall area and floor area
Used to show cost efficiency (Lower Ratio = CHEAPER)
What is shell & core?
The basic structure, services and envelope of a building
AND
Fit-out of the landlord areas
What is a CAT A Fit-Out
‘Developers Fit-Out’
Provides the generic requirements to suit most developers
What is a CAT B Fit-Out?
Overlays the CAT A Provision with bespoke elements particular to the needs of the tenant
How do you prepare an estimate for M&E Works?
Depends on the stage (For feasibility use £/m2 rates)
Otherwise consult an M&E Specialist in my team
What is s106 agreement?
Agreements between planning authorities and developers and are planning obligations
What pricing books are you aware of?
SPONS
BCIS
What sources of data do you use to quantify construction costs?
BCIS Online
SPONS
Benchmarking
Tenders (Feedback Forms)
What is BWIC?
Builders Work In Connection
- Set % typically
What is an OCE?
Order of Cost Estimate
The determination of possible cost of a building early in the design stage in relation to the ERs
What is the purpose of an OCE?
Establish if the building project is affordable and looks to establish a cost limit
What is the typical format of an OCE / Feasibility Estimate?
Rate per m2 / Functional Unit / Element rates
*depends on the amount of info available
What is a functional Unit?
Method of measurement used to represent a prime use of a building e.g. beds, desks, apartments
What information do you need to consider for an OCE?
- Location
- Type of Building
- Floor Area
- Floor to Ceiling Height
- Design Information
- Client Requirements (Brief)
- Programme
- Quality
- Budget / Cashflow restraints
- Site Conditions
- Site Visit
What is the purpose of a cost plan?
Used by the cost consultant to control the development of design
What are the principle components of a cost plan?
Construction Cost
Preliminaries
OH&P
Contingency
Inflation
Assumptions & Exclusions
Area Schedule
Information Used
Why is VAT Excluded?
Different clients incur different levels of VAT
What is contingency?
A sum to cover unknown expenses or unmitigated risks during the project
What are NBS Preliminaries?
Define the scope of works
Include project particulars
Often contain items for pricing which are general items needed by the contractor to carry out the work the cannot be attributed to specific items of work
Name some Preliminaries sections?
Project Particulars
The site / existing buildings
Description of the works
What should be considered when assessing preliminaries?
Length of contract
Location
Type of project
Size of project
Need for temporary works
Need for security
Limitations on method and sequencing
Sectional completion
Sevices
How do you account for inflation when benchmarking or cost estimating?
Using TPI indexes
What does TPI stand for?
Tender Price Index
How do you take account of location?
Location factor / indices
Why do you need to take account of location when benchmarking?
Different market conditions in different locations
Different cost of materials / wages etc
What are the RIBA Plan of Work 2020 stages?
0 - Stategic Definition 1 - Preparing & Briefing 2 - Concept Design 3 - Spatial co-ordination 4 - Technical Design 5 - Manufacturing and Construction 6 - Handover 7 - Use
What is the RIBA Plan of work?
RIBA Plan of works organises the process of;
1. Briefing 2 designing 3. delivering 4. maintaining 5. operating
a building, which act as guidance for services to follow
What is VE
Value Engineering
Organised approach at providing the necessary functions at the lowest cost without detrimental effect to quality or performance
What is VM
Concerned with making explicit what value means to the client
When does VE occur?
Occurs during design whereas VM occurs at the outset / start of project
What happens during the VE process?
Design team come together
Ideas brainstormed
Alternatives actioned and potentially implemented
What are the VE Phases?
- Information Phase
- Speculation Phase
- Evaluation Phase
- Development Phase
- Presentation Phase
What are life cycle costs?
The costs that will be incurred over a defined period of operating and maintaining a building or asset
What are the advantages of life cycle costing?
Long term decision making
Material selection
Lower operational, replacement and maintenance costs
Plan future maintenance strategy
Sustainability measure
What are the disadvantages of life cycle costing?
Components are not always replaced at end of life
costs of defects caused by bad workmanship / faults cannot be predicted
uncertainty of available data
Client may sell building after construction
Why do we carry out benchmarking?
- Ensure value for money against the industry
- Measure against a KPI
What are capital allowances?
Tax relief on capital expenditure for fixed assets
What is the purpose of cost planning?
Ensure Client gets value for money
Alerts team of cost consequences from changing design
Allows designers to design within a budget
How do you deal with abnormal items in your cost plan?
I would identify them as a provisional sum with a lump sum value against it
How would check reliability of you cost plan?
Benchmark
Check distribution of costs
What is the difference between a cost plan and cost analysis?
Cost plan = Framework of construction costs across elements
Cost Analysis = Provides an elemental breakdown of an actual tender
What is a unit rate?
Cost of labour, plant, material, Sub-Contractor OH&P
What design factors influence cost?
Wall;Floor Ratio Type of Building Specification GIFA Location Proximity to others Time when work will be carried out
What is NRM 1?
New Rules of Measurement 1: Order of Cost Estimating and Cost Planning for Capital Building Works
What is NRM 2?
New Rules of Measurement 2: Detailed Measurement for Building Works
Define GEA
The area of a building measured externally at each floor level
Define GIA
The area of a building measured to the internal face of the perimeter walls at each floor level
Define NIA
The usable area within a building measured to the internal face of the perimeter walls at each floor level
What is the BCIS?
Building Cost Information Services
What are the examples of risk allowances?
Design Development
Construction
Employer Change
Employer Other
What is typically included under a design development risk allowance?
Design Change
Estimating Data Change
3rd Party Risks
Legal Agreements
Examples of Construction Risk Allowances?
Site Conditions / Discoverable
Location
Prevention of work
Examples of Employer Change Allowances?
Scope Change
Acceleration
Change of brief
Example of Employer Other Risk Allowances?
Postponement
Premiums
Handover Acceleration
What is tender inflation?
Estimate base date —> date of tender return
What is construction inflation?
Date of tender return —> mid point of construction period
What does GEA include?
Perimeter wall thickness
Areas occupied by internal walls
Entrance hall / atriums
Internal balconies
Outbuildings which share one wall with the main building
What does GEA exclude?
External open-sided balconies
Canopies
Parking areas / roof terraces
greenhouses / garden stores
What is included under GIA
Areas occupied by internal walls
Atriums / entrance halls
Lift rooms
Services accomodation
Loading bays
Garages
What is excluded under GIA
Perimeter wall thickness
External open sided balconies
Canopies
Voids under structural floors
Greenhouses / garden stores
What is included under NIA
Atria at base level
Entrance halls
Lift lobbies
Kitchens
cupboards
Ramps
What is excluded under NIA
Common areas in entrances
WC, lifts, cleaners rooms
Stairwells
Lift lobbies
corridors / circulation spaces
Internal structural walls
Headroom less than 1.5m
What is IMPS 1?
GEA
What is IPMS 2?
GEA
What is IMPS 3 (Office)?
NIA
Internal dominant face
What does the RICS Code of Measuring Practice 6th Edition relate to?
GEA
GIA
NIA
