Order of cost estimate & Cost Planning Flashcards
801 What is an order of cost estimate?
NRM1 defines it as an estimate based on benchmark date for a similar type of project based on a Clients strategic definition or initial brief. The purpose is to establish affordability of a proposed development. It takes place prior to a full set of working drawings being produced. It forms the initial build up to the cost planning process. Order of cost estimates are a method of cost prediction.
802 Which RIBA stage is the order of cost estimate produced?
Stage 1 preparation and briefing
803 What are the RIBA stages of work?
- Strategic definition
- Preparation and brief (CE)
- Concept design (CP)
- Spatial coordination (CP)
- Technical design (CP)
- Manufacturing and Construction
- Handover
- In use
804 What is the difference between an order of cost estimate and a cost plan?
An order of cost estimate is prepared using the Clients strategic definition or initial brief usually without a full set of working drawings. Usually based on m2 rates or other functional units. A cost plan will be based on a set of working drawings. A cost plan is an estimate based on a specific design.
805 What is a cost per functional unit?
This takes the total cost of a building and spreads it across a number of functional units to give an indication of price per…. These costs usually are given in ranges to allow for a number of factors. One example would be if a hotel cost £1 million to build 100 bedrooms, then the cost per room would be £10,000.
806 What information should be included with an order of cost estimate?
- Covering letter
- Executive summary
- Cost limit
- Specification notes
- Assumptions
- Exclusions
- Drawings and other information used
- Schedule of value enhancing options
- Risk register
- Cash flow information
807 What is a cost plan?
An estimate based on a specific design. A statement showing an apportionment of an estimate between cost headings. This will not necessarily be in elemental form. Cost planning is a method of cost prediction.
808 Other than predicting the final project cost, what other benefits does a cost plan provide the project team?
Confirms if the design still meets the budget. Allows options for VM or VE. Provides the employer information upon which they can make commercial decisions.
809 Do you need a programme to complete a cost plan?
An outline programme would be beneficial as the prelims are priced on a weekly/monthly basis so something high level would be required. Key information required:
* Design and tendering periods
* Start on site date
* Construction period
* Completion date
810 Structure of an elemental cost plan?
Fill in
811 What sources of cost information and data are available when preparing a new estimate or cost plan?
- BICS
- Historic market data
- Current market data (speaking with contractors/subcontractors
- Pricing books such as SPONS
- Cost analysis and cost models
- Existing Client information – Benchmarking
812 How do you take into account the project location and why?
The BCIS provides location based indices. Construction projects in different areas of the county may have a different cost due to factors like:
* Cost and availability of labour
* Access to resources (plant and materials)
* Access to infrastructure (roads, rail and runways)
813 What is a cost plan risk allowance?
A pot of money set aside to deal with a known risk. For example contaminated ground
814 What might be included in the fee estimate?
- Consultant fees:
- Design team fees
- Other specialist consultants
- Surveys
- Contractor fees:
- Management and staff
- Specialist support staff
- Contractor/subcontractor design fees
- Framework fees
815 What benefit does the Client get out of accurate cost planning?
- Confirms of the scheme is affordable.
- Ensures the Client is in an informed position to make informed decisions.
- Can help with VM or VE decisions