Level 2 - Design Economics and Cost Planning Flashcards
Can you tell me some of the key factors that would be required from the client to establish the brief at Stage 0?
1) Identify client’s Business Case and Strategic Brief and other core project requirements.
2) Initial considerations for assembling the project team.
3) Establish Project Programme.
4) Pre-application discussions may be required to test the robustness of the Strategic Brief.
5) Review Feedback from previous projects.
Where do you source data from in order to prepare accurate cost plans and provide the client with accurate cost advice at the front end of a job?
- BCIS database
- In house cost data
- Pricing books / published cost data
- Clients own cost data
You should also make reference to understanding the data and what it is telling you. In particular the fact that you will need to take account of location factors, indexation, project specifications etc.
What is the difference between an elemental cost plan and a trade cost plan?
Understand the differences between different types of cost plans. An elemental cost plan follows the standard elemental heading identified in the Standard Method of Measurement and BCIS elemental breakdowns. A trade cost plan follows trade packages – often so it can be sent out for pricing to contractors easily
How did you develop your initial cost plan through the pre tender phase of the job, ensuring all parties understand the financial position of the project?
Here you will need to describe the process of developing a cost plan from scratch and identifying the drawings / source information from which it is based. You would then be expected to communicate the cost plan to the client - sit down with the client and talk them through the entire cost plan in detail – identifying areas of uncertainty and risk along with contingency allowances. The client will need to understand everything in detail. You will also no doubt have a similar meeting with the design team. As design develops, the cost plan must be updated in accordance with the design information available. Contingencies and risk are replaced with firm costings where appropriate. The key here is ensuring that the differences between the current cost plan and the previous version are explained in detail to all parties. You should also describe how if prepared properly, the cost plan can be used as a very effective management tool to control the pre contract design process.
How would you deal with a cost plan that is over the clients budget?
As identified in level 2, the communication of cost plans is extremely important. It is the clients chance to understand the costs associated with the project, and your opportunity to explain everything in detail. You need to do this in a clear and concise manner. Often cost plans come in at more than a clients budget. In these circumstances you need to approach matters in a positive manner, identifying areas where potential savings can be made – possibly in terms of material specification or re-design. Reference needs to be made to value engineering alongside the design team. A question like this presents a good opportunity to refer to a project that you have actually worked on and draw upon your practical experience of what actually happened.
How would you identify risk within the cost plan?
There are several issues to cover here. Firstly, the cost plan should include a level of contingency which generally covers unforeseen events on site – this needs to be explained to the client. Secondly you may have provisional or PC sums within the cost plan. These need to be explained to the client along with the risks of each. Finally, you may also have a risk register or risk schedule, which will include risks identified by the project team. As the design develops and the cost plan develops, hopefully the risks will either be designed out or mitigated to a manageable level, to a point where the risk register only includes a small number of risks.
Can you tell me what the RIBA stages are:
- Stage 0 Strategic Definition
- Stage 1 - Preparation and Brief
- Stage 2 - Concept Design
- Stage 3 - Developed Design
- Stage 4 - Technical Design
- Stage 5 - Construction
- Stage 6 - Handover and Close Out
- Stage 7 - In Use
Stage 0 Strategic Definition is a new stage in which a project is strategically appraised and defined before a detailed brief is created. This is particularly relevant in the context of sustainability, when a refurbishment or extension, or indeed a rationalised space plan, may be more appropriate than a new building. Certain activities in Stage 0 are derived from the former (RIBA Outline Plan of Work 2007) Stage A – Appraisal.
Stage 1 Preparation and Brief merges the residual tasks from the former Stage A – Appraisal – with the Stage B – Design Brief – tasks that relate to carrying out preparation activities and briefing in tandem.
Stage 2 Concept Design maps
exactly to the former Stage C –
Concept.
Stage 3 Developed Design maps broadly to the former Stage D – Design Development – and part of Stage E – Technical Design. The strategic difference is that in the RIBA Plan of Work 2013 the Developed Design will be coordinated and aligned with the Cost Information by the end of Stage 3. This may not increase the amount of design work required, but extra time will be needed to review information and implement any changes that arise from comments made before all the outputs are coordinated prior to the Information Exchange at the end of Stage 3.
Stage 4 Technical Design comprises the residual technical work of the core design team members. At the end of Stage 4, the design work of these designers will be completed, although they may have to respond to Design Queries that arise from work undertaken on site during Stage 5. This stage also includes and recognises the importance of design work undertaken by specialist subcontractors and/or suppliers employed by the contractor (Performance Specified Work in JCT contracts) and the need to define this work early in the process in the Design Responsibility Matrix.
Stage 5 Construction maps to the
former Stage K – Construction to
Practical Completion – but also
includes Stage J – Mobilisation.
Stage 6 Handover and Close Out
maps broadly to the former Stage
L – Post Practical Completion –
services.
Stage 7 In Use is a new stage which includes Post-occupancy Evaluation and review of Project Performance as well as new duties that can be undertaken during the In Use period of a building.
When is an order of cost estimate produced? How can this be presented?
Stage 1/2 - Based on the information available - risk to be factored in.
When is a cost plan produced? How is this normally presented?
Stage 3/4.
How do you allow for risk / design development, when cost planning?
5% stage 4,
10% stage 3,
15% stage 2
20% stage 0/1
What do you allow for prelimaries? What other methods are there? What is the typical %?
This varies from project to project depending on the size of the scheme. It is generally proportionately higher for the smaller schemes.
Variable prelims vs fixed prelims.
Programme being resourced to understand what is required throughout the project duration.
…the cost of administering a project and providing general plant, site staff, facilities, and site based services and other items not included in the rates.’
What is the difference between a variable and fixed prelim?
Expand on - give examples.
Can you tell me in basic steps in carrying out life cycle costing?
- Define brief for analysis
- Analysis of problem
- Structuring and doing calcs
- Validating and interpreting results
Why do we do life cycle costing?
- To predict a cashflow
- Option appraisal - assess options at various stages, inform tender appraisal where costs are included for post construction.
Can you identify the levels at which life cycle costing occurs?
Review
