T022 Design Economics & Cost Planning - Cost Estimates & Cost Plans

Robert Binks
Flashcards by Robert Binks, updated more than 1 year ago
Robert Binks
Created by Robert Binks over 6 years ago


Flashcards on T022 Design Economics & Cost Planning - Cost Estimates & Cost Plans, created by Robert Binks on 09/06/2014.

Resource summary

Question Answer
What types of estimate are there? Budget / feasibility Cost estimate Cost plan
What is a feasibility estimate? A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme
What is the format of a feasibility / budget estimate? Rate per m2 or per functional unit May be presented as a range
What is a functional unit? The ‘factors which express the intended use of the building better than any other’ E.g. number of bedrooms in a hotel, number of beds in a hospital
What information do you need to be able to carry out a feasibility estimate? Type of building (function) New build or extension Location Size Indication of quality Site visit
What is the % error on a feasibility estimate? 10%
What is a cost estimate? A forecast of the possible cost of a building based on historical data
When would you do one? Stage C/D
What are the principal components of a cost estimate? Construction costs Preliminaries Contractor’s OH&P Contingency Inflation Assumptions - programme Exclusions Area Schedule Basis of Estimate – drawings / specifications list
Name the main elements of an elemental estimate Substructure – excavation and substructure Superstructure – frame, upper floors, external walls, roof, internal finishes Services External works
What is usually excluded from a cost estimate? Professional fees VAT Client decant costs Loose fixtures and fittings Inflation Site acquisition costs Section 106s Removal of asbestos
Why is VAT excluded? Because different clients will incur different levels of VAT, might not be applicable We would not be in a position to know the correct rate unless informed of it
What is the % error on a cost plan? 5%
What is contingency? A sum included in the estimate to cover unknown expenses or unmitigated risks during the project
How is contingency assessed? The amount included should reflect the risks and unknowns specific to the project. During early estimates when little information is available it is common to include a %. At the end of stage C it is usually 10%. This should reduce as more information becomes available and the unknowns decrease At the end of Stage E it is usually 5% (2.5% design and 2.5% construction contingency). It is common to have a higher % for refurbishment work due to the higher level of unknowns and therefore risks
What are preliminaries? They define the scope of works Include the project particulars, lists of drawings, desciprtion 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
Where do you find the guidelines to prepare preliminaries? SMM7
Name some preliminaries sections A10 – project particulars A54 – provisional sums
What should be considered when assessing preliminaries levels? Length of contract Location – accessibility, space restrictions, accommodation etc Type of project – new build / refurb, tower / one story etc Size of project Need for temporary works Need for security Limitations on method and sequencing of works, working hours – supervision requirements Sectional completion Availability of services Level of contractor’s designed works
How do you take account of inflation when benchmarking / cost estimating? Through the use of TPIs
What does TPI stand for? What do TPIs show? Tender Price Index, reflects changes in the level of pricing contained in the lowest accepted tenders for new work to take account of market conditions – compares against base rates
Where can you get this information from? BCIS TPI forecasts – published in Building In house forecasts
How do you take account of location? Why do you need to take account of location? Through the application of location indices Different market conditions in different locations Different cost of materials, different wage rates etc – impact on tender levels
What is BCIS? Building Cost Information Service Provides construction cost and price information through publications, online services and price books
What is a cost plan? Presents the estimated cost into a structural elemental or functional format It shows how the design team proposes to distribute the funds available on the elements of the proposed building.
What is the purpose of a cost plan? 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.
What is the difference between a cost estimate and a cost plan? 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
What is buildability? What are the advantages of buildability? Harnessing the contractor’s expertise and knowledge during the design stage. Better programming, sequencing and construction methods – a quicker construction time Lower capital and life cycle costs Improved quality in the finished building’s performance and maintenance characteristics
What is a wall to floor ratio? This shows the relationship between wall area and floor area It is used to show the cost efficiency of the building The lower the ratio the cheaper the building as there is less external wall area per m2 of floor area
What is the most efficient shape? A circle BUT this is not the most efficient shape as it has a poor lettable floor area – difficult to fit out THEREFORE a square is the best
What is the difference between cost and price? Cost is the total of labour, plant, materials and management deployed for a specific activity Price is the amount a purchaser / client will pay for an item or product – it is cost plus profit
What information would you expect the design team to provide at stage D? Detailed design information approaching that of tender documentation.
How would you prepare an estimate for M&E works? I would ask an M&E specialist surveyor to undertake the estimate For feasibility estimates the M&E amount would be included in the m2/functional unit rate
What is GEA? Gross External Area This is the area of the building measured externally at each floor level
What is GIA? Gross Internal Area This is the area of the building measured to the internal face of the perimeter wall at each floor level Excludes external open sided balconies, fire escapes, canopies, external walls, fuel stores
What is NIA? Net Internal Area This is the area of usable space measured to the internal face of the perimeter wall at each floor level Excludes the above and internal structural walls and columns, spaces with headroom less than 1.5m, corridors and circulation space used in common, permanent lift lobbies, toilets, cleaners cupboards, plant rooms
Where are all of these defined? The Code of Measuring Practice, 6th Edition, published by the RICS
What is the purpose of the Code of Measuring Practice? Provides precise definitions to permit the accurate and consistent measurement of buildings
What would you expect the percentage of NIA to GIA / GEA to be? It depends on the type of project being undertaken (school, hospital, office etc…) If it were an office build I would expect the NIA to GIA to be in the region of 70-85%, where 70% is not good and 85% is excellent.
Where do you get cost information from? In house historic data Benchmarks BCIS Building cost models SPONS and other price books (Laxtons etc) Sub contractors and suppliers
What do you measure in accordance with? SMM7 or NRM2
What does SMM7 stand for? What does it do? Standard Method of Measurement, Edition 7 SMM7 identifies the unit to which the work is measured and the requirements of measuring the works. SMM7 is authorised by agreement between the Royal Institution of Chartered Surveyors and the Construction Confederation.
How do you measure steel under SMM7 – and what other items would you measure in association? Under SMM7 steel is measured in Tonnes. Other items to measure in association with steelwork include framing erection, permanent formwork, cold rolled purlins and cladding rails, isolated structural member, filing hollow sections, surface preparation, surface treatment and localised protective coating. (G)
How do you measure brickwork walls under SMM7 – and what other items would you measure in association? Under SMM7 brickwork walls are measured in m2. Other items to measure in association with brickwork include: Isolated piers, Isolated casings, Chimney stacks, Projections, Arches, Brick reinforcement, Sundry items, Forming cavity, Closing cavities
What is a Section 106 agreement? They are also referred to as planning obligations They are typically agreements between local authorities and developers negotiated in the context of granting planning consent
What sort of things is the Section 106 agreement money spent on? Affordable housing New open space or environmental improvements New roads and transport capacity Health and education facilities
What is construction to ‘shell and core’? The basic structure, services and envelope of the building AND the fit out of landlord / common areas E.g. reception, toilets, lifts, cores, base services are terminated at breakout points to floors, life safety services infrastructure
What is a CAT A fit out? Also known as a ‘developer’s fit out’ Provides the generic requirements to suit most developers E.g. life safety elements and basic fittings - suspended ceiling tiles, raised floors, carpet, lighting, power distributed to floor plates
What is a CAT B fit out? Overlays the CAT A provision with bespoke elements particular to the needs of the building user to enable the tenant to occupy and use the space E.g. partitions, power distributed to floor boxes, data cabling, artwork and branding, upgrading CAT A finishes and toilet finishes etc
Where could you find the definitions for these? British Council of Offices (BCO) fit out guide
What is BWIC? BWIC stands for Builders Work In Connection and is usually set as a percentage of the services cost. Depending on the size of the job and complexity will determine the percentage of BWIC. BWIC accounts for any drilling, fixing, cutting etc… that the builders do whilst undertaking the services. BWIC can be measured in accordance with SMM7 when doing a BOQ’s.
What cost would you expect for a new build city centre office tower in London? What cost would you expect for a CAT A fit out to that office? What about a CAT B fit out? What cost would you expect for a retail shopping centre? Know what your own schemes have cost
What cost would you expect for a warehouse? What cost would you expect for a hotel? What cost would you expect for city centre residential tower? Know what your own schemes have cost.
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