Design Economics & Cost Planning Level 1 Flashcards
What level of information would you expect in order to produce an order of cost estimate?
I would expect:
- location of the site
- statement of building use
- spatial requirements
- requirements for refurbishment
- quality and sustainability aspirations
- fit-out requirements
- details of enabling works or site specific info
- indicative programme
- H&S info
- budget / cashflow restraints
- design studies or sketches
- schedule of areas
How does NRM influence your procedure?
In relation to cost planning, I utilise NRM1:Order of Cost Estimating & Cost Planning for Capital Building Works, as it provides guidance on how to measure, quantify and present construction costs.
For example, the differing group elements within an elemental estimate, or the constituents of a cost plan.
What would your figure look like in an order of cost estimate?
cost per functional unit
How does a Cost Plan differ from an estimate?
Cost plans involve a comprehensive analysis of all project aspects and their associated costs. The result of a cost plan is a detailed overview of the project’s costs at differing stages.
In contrast, cost estimates are less precise and resemble predictions based on limited available project data
How do you bring together cost data from different sources?
What do you understand by the term location factor?
When comparing costs of construction in 2 different locations, costs are likely to differences in these locations (such as availability of materials, local labour costs, ease of access to sites etc). Therefore BCIS have published a set of location factors to adjust construction cost analysis data to reflect location impact.
What factor would you apply to a project from say Bristol to one in Central London?
When would you use Spons in a Cost Plan?
It can assist in calculating but also checking costs within cost plans. For costs relating to
- labour constants
- rate build ups
- material prices
In relation to indices, what is the current tender price inflation forecast?
What are the principal components of a cost estimate?
- works cost estimate
- base cost estimate
- cost limit (excluding inflation)
- cost limit (excluding construction inflation)
- cost limit (including inflation)
- VAT assessment
How would the grouping of buildings in a proposed development affect your cost plan?
The nature of the interlinkages between the buildings can reduce cost. For example:
t would impact the cost of interlinkages between the buildings, common services and shared elements. For example:
- cost per unit for shared elements such as external walls
- if semi-detached or terraced, the combined use of the party wall
- use of common services such as rainwater services
- discount on bulk purchases through economies of scales
Can you give me examples of site factors you would consider in preparing a cost plan?
- any sloping
- likelihood of contaminated ground
- demolition of existing buildings
- adequacy and condition of existing mains services
- H&S information, such as presence of asbestos
- site area
What is the different between an element cost plan and a comparative cost plan?
Elemental cost plans provide a detailed breakdown of costs.
Comparative cost plans offer a comparison of project costs against industry benchmarks.
What is the difference between an order of cost estimate and a cost plan?
An OCE is an estimate based on benchmark data for a similar type of project based on the client’s strategic definition or initial brief. Its purpose is to establish affordability of a proposed development for a client.
Whereas, A cost plan is an estimate based on a specific design. A statement showing an apportionment of an estimate of or an agreed budget between cost headings.
Can you give me examples of benchmarking techniques?
Internal benchmarks - involved comparing current projects to past projects within the same organisation or client. This helps in understanding how the company is evolving and improving over time.
External benchmarks - compare a project against industry standards of competitors projects. This provides a broader perspective and identified industry wide best practices.
