Estimates & Cost Plans

Question 1

What types of estimate are there?

Answer 1

a) Budget / feasibility
b) Cost estimate
c) Cost plan

Question 2

How can a feasibility / budget be priced / presented?

Answer 2

• Rate per m2 or per functional unit
• May be presented as a range
• Benchmark the efficiencies (NIA:GIA, units per core, wall:floor, solid:glaze

Question 3

What information do you need to be able to carry out an estimate?

Answer 3

• Type of building (function)
• New build or extension
• Location
• Size
• Indication of quality
• Site visit

Question 4

What is the % error on an estimate?

Answer 4

10%

Question 5

What is the purpose of an order of cost estimate?

Answer 5

To arrive at a cost limit for the client and establish affordability

Question 6

Which design phases would you provide a cost estimate?

Answer 6

Stages 0-2

Question 7

What is included in a cost estimate alongside the cost?

Answer 7

• Construction cost
• Preliminaries
• Contractor’s OH&P
• Risk
• Inflation
• Assumptions & Exclusions
• Cost reconciliation
• Programme
• Benchmarking (Reconciliation)
• VE Proposals
• Basis of Estimate – drawings / specifications list

Question 8

Name the elemental structure of a cost plan?

Answer 8

• Facilitating Works
• Substructure – excavation and substructure
• Superstructure – frame, upper floors, external walls, roof, internal finishes
• FFE
• Services
• External works
• Prelims
• OHP
• Risks

Question 9

What is contingency?

Answer 9

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

Question 10

What are preliminaries?

Answer 10

• They define the scope of works
• Include the project, lists of drawings, description of the site, scope of work, details of management arrangements
• Often contain items for pricing which are general items needed by the contractor to carry out the work that cannot be attributed to specific items of work

Question 11

Name some preliminaries sections

Answer 11

Fixed
Time related
which should be based on the project particulars

Question 12

What should be considered when assessing preliminaries levels?

Answer 12

a) Length of contract
b) Location – accessibility, space restrictions, accommodation possibilities etc
c) Type of project – new build / refurb, tower / one story etc
d) Size of project
e) Need for temporary works
f) Need for security
g) Limitations on method and sequencing of works, working hours – supervision requirements
h) Sectional completion
i) Availability of services
j) Level of contractor’s designed works

Question 13

What would you consider when benchmarking? And how might you benchmark?

Answer 13

£/m2, £/unit, £/sq.ft

Location
Time
Abnormals
Procurement 
Tender strategy
Type of Contract

Question 14

What does TPI show?

Answer 14

Comparison of lowest accepted tender for new work to account for market conditions

Question 15

What is the BCIS?

Answer 15

• Provides construction cost and price information through publications, online services and price books

Question 16

What is a cost plan?

Answer 16

• It is used by the cost consultant to control the development of the design
• It identifies the client’s agreed cost limit and how the money is to be allocated to the different parts of the building

Question 17

What is the difference between a cost estimate and a cost plan?

Answer 17

• Cost plan is a plan of costs for the works in preparation for turning into a cost report to check against.
• Estimate is a forecast of construction cost

Question 18

What is an estimate? What is the % on cost certainty?

Answer 18

Carried out usually prior to Cost Planning
o Set a realistic cost limit
o Ascertain 85/90% cost certainty

Question 19

Explain the function of a budget estimate and how you would carry one out?

Answer 19

To provide budgetary and a true reflection on the clients budget

Question 20

What design info needed for OOC?

Answer 20

Accomodation schedule
Nr of units
Area Plans
Functionality
£/m2 allowances
Min Storey heights
NRM1 Risks

Question 21

What design info for a cost plan?

Answer 21

Stage Report (all disciplines)
Elevations
GAs
Landscaping
Specification (FFE)
Structural Design
BIM Model

Question 22

What have you excluded in one of your cost plans?

Answer 22

Brexit related impacts
Demolition of Interim Landscaping
Covid 19
Inflation
Professional Fees
VAT
Section 106
Stats

Question 23

What is the purpose of an OOC?

Answer 23

To form a cost limit for the client

Question 24

What is a cost plan? And its purpose?

Answer 24

An elemental breakdown of the Cost Plan which may be further developed

Enhances cost control throughout DD

Question 25

£/ft2 on benchmarking for a development like this?

Answer 25

£260 - £360/sq.ft

Question 26

In your Cost Plan did you factor in anything for Brexit, inflation etc?

Answer 26

Import Tariffs | Exchange rate

Question 27

How to build up a rate by first principles?

Answer 27

``` Don't have a rate to benchmark or pricing document. Labour Plant Materials OHP SC Design Prelims Risk ```

Question 28

What abnormals may you have on a cost plan?

Answer 28

Site Constraints Planning conditions Stats Pre-existing buildings

Question 29

What is included in Facilitating Works?

Answer 29

All elements included within Section 0 Demolition works, works involving the removal of hazardous and deleterious materials, and soil stabilisation

Question 30

What are the steps of undertaking a cost plan?

Answer 30

``` Establish a team for cost plan Upload Drawings to CATO Design queries & responses Prepare quants in line with NRM1 Prepare rates (market test / benchmark) Benchmark Reconciliation Submit draft for comment Issue final / present ```

Question 31

How would you include preliminaries in your cost plans?

Answer 31

Benchmark | Fixed / Time related costs as stipulated by NRM

Question 32

What is a cost reconciliation?

Answer 32

Reconciling from your original estimate showing elementally movements, showing the client where cost movements have been

Question 33

What are the constituent parts of your cost plan?

Answer 33

``` Building Works Estimate Preliminaries Design Team Fees OH&P Risk Allowance Inflation ```

Question 34

What would you use as a first instance to provide inflation to your cost plan?

Answer 34

Mace have direct tender returns from construction Greater visibility on actual tender returns More comparable projects to benchmark and TPI

Question 35

What would you adjust cost plans to consider different procurement routes?

Answer 35

As the design has been developed further I'd expect items such as Risk Prelims Design Fees to be different

Question 36

Have you managed the cost plan? If so, what was the process you undertook as a first instance?

Answer 36

Establish a team | Coordinate design queries and meetings

Question 37

How might costs differ based on the procurement route / tendering strategy?

Answer 37

All based on Design Risk Prelims Increase in prelims for two stage but likely less risk More risk / design fees in single stage

Question 38

What types of inflation are you aware of?

Answer 38

TPI | Construction

Question 39

What is Building Works, Base, Cost Limit?

Answer 39

Building - Facilitating, Building Works, Prelims, OHP Base - all above + design fees Cost limit - all above exl inflation

Question 40

Where would you expect tenders to come back against your cost plan?

Answer 40

Generally I'd expect this to be within 5% of my S3 Cost Plan, however, I would utilise visibility on tender returns to understand and ascertain what the market is showing on tender returns. Generally, Some higher / lower tenders Cost Plan is assessed on current market conditions Risks on projects

Question 41

How is a cost estimate impacted by procurement / tendering strategies?

Answer 41

TBC??