Design Economics & Cost Planning Level 2 Flashcards
On the Queensway retail fit-out, can you explain how you undertook the elemental cost plan?
I undertook the measurements in accordance with NRM1 for Group Elements 2 (Superstructure), 3 (Internal Finishes), 4 (Fittings, Furnishes & Equipment) and applied the Framework Rates for these particular elements. For Group Element 5 (services), I utilised in-house cost data based on a similar project undertaken, as the design was not yet available for this element of the work.
I then priced group element 9 (Main Contractor’s Prelims), 10 (main contractors OH&P) and 11 (Project & Design Team Fees).
The shell specification had not yet been finalised, so I priced this under Group Element 13 (Risk) as a design development risk.
On the Queensway retail fit-out, what adjustments did you make to the in-house services cost data?
The comparable data I utilised was from other project undertaken in Central London, so I did not need to adjust for location. However, these projects were from a few years prior, so I did adjust for time.
I did this using the Historic Cost Data Report that I produce for my client. This tracks the trend of inflation for different project types, and how the client is performing against BCIS inflation data.
On the Queensway retail fit-out, how did you determine the appropriate level of design development risk for the shell specification?
On the Canary Wharf Hospitality Project, can you explain the VE process used during the workshop - what criteria were used to assess appropriate changes approved?
So ahead of the workshop, I had collated the works at cost risk at an elemental level and cast the net of sharing these as wide as possible within the project team.
Then, in terms of the workshop itself, I asked all members of the project team to consider potential alternative cost effective solutions from the perspective of their respective role on the project.
I then took the team through each of the previously collated elements at cost risk, brainstorming ideas against the criteria which has been pre-agreed with the client - this was respecting the client’s look and feel requirements, with a view to reduce cost, whilst ensuring the programme was not put at risk, for example through any long lead in times, which may satisfy the desire to reduce cost but post risk to the time objectives of the project.
Then, it was a case of exploring all eventualities and discussing what was viable as a team. Examples included:
- splashback tiling to kitchen sink and bathroom sink areas, reducing the specification on these, to very much as low spec as the likes of Topps Tiles. Eventually, that was decided this was not necessarily durable, but this is the types of things we explored.
- Another example included, so the client had bespoke designed hanging rafters which were particularly large. We discussed reducing these in size, along with the potential impacts this could have on sprinkler design for example and cost associated with re-working this.
On the retail fit-out programme, can you outline the format and structure of your cost reports?
On the retail fit-out programme, can you outline the major assumptions, qualifications, exclusions you included in your cost report?
Yes, key exclusions would be VAT and any legal/estates team costs.
In terms of qualifications, I highlight that because the new stores cost reports are collated and issued the first week of the months for the end of the month prior, there could be potential time lapse in reports.
I also qualify my reports in terms of % of costs at budget stage, tender and final account in order to build a risk profile for the client with regard to outturn costs.
On the retail fit-out programme, can you provide an example of life cycle costing exercises that you have provided?
