NRM Cost Definitions

NRM Cost Definitions

1. Authorised budget

   • approved estimate value

2. Base date of cost data

   • date of the rates/prices taken 4 benchmarking for a basis for caluclations

3. Base cost estimate

   • estimate without risk or inflation

4. building works

   • Componants measured + incorporated in 2 elements 1 2 8 (substructure/superstructure etc).

5. building work estimate

   • sum of cost target for elements 1 to 8

6. component

   • measured item that forms a part of an element

7. construction inflation

   • allowance in OofC/CP for fluctuations in plant/labour/materials from date of tender return to mid-point of construction period.

8. cost check

   • comparing current est. costs against previous cost targets for elements + sub elements

9. cost per functional unit

   • unit rate X no.functional units = building works est. (exc prelims; OH&P)

10. £/m2 or GIFA

    • unit rate when X by GIFA = total building works est (exc. Prelim & OH&P)

11. cost target

    • recommended total expenditure for an element

12. Deflation

    • downward movement of av level prices and/or costs

13. element

    • maj part of a group element e.g. wall finishes

14. Element Unit Quantity (EUQ)

    • unit of measurement that relates soley to quant of the element or sub element e.g. area of ext walls or area of windows

15. Element unit rate (EUR)

    • total cost of an element/ EUQ
    • e.g. EUR of ext wall = total cost 4 ext walls/ EUQ of ext walls
    • inc. cost for materials/labour/plant/prelims/OH&P
      • EUR can Exclude prelim/OH&P/& other allowances such as risk

16. Element cost plan

    • breakdown of cost limit into target costs of each element
    • shows distribution of cost amongst elements
    • provides work breakdown structure (WBS) and cost breakdown structure (CBS) which helps for work packages

17. Elemental Cost analysis

    • full apraisal of costs in prev constructed bdg - provide info 2 assit in estimating costs of future bdgs.
    • use as a basis for cost elemental cost plans

18. Elemental Method

    • budget setting technique
    • OofC based on an elemental B.down of a bdg project. uses element unit quantities (EUQ) and element unit rates (EQR)

19. Employer

    • owner/dev

20. Enabling works

    • work completed ahead of main building contract
      • e.g. demos/cont land rem/soil stablisation

21. Estimate Base date

    • date cost ,lmit est
      • helps with calc of inflation

22. Facilitating works

    • component in group 0
      • e.g. demos/ soil stabilisation

23. Facilitating works Estimate

    • costs of group 0
      • exc. bdg wks est./ prelims/OH&P

24. Facilitating works & Building Works estimate

    • cost target of grps 0 to 8
      • Exc. prelims/OH&P

25. Formal cost plan

    • elemental cost plan reported to emp on completion of a specific RIBA Work Stage/ OGC Gateway

26. Functional Unit

    • unit of measurement used to represent the prime use of the building e.g. hospital bed/hotel bed/school pupil

27. Functional unit method

    • budget setting tech - selecting a functional unit X projected no, of units by an appropriate cost/ functional unit

28. Gross External Area (GEA)

    • Area of the bdg measured externally (ext face of perim walls) at each floor levell

29. Gross Internal Floor Area (GIFA)

    • Area of bdg measured 2 internal face of perimeter walll @ each floor level

30. Group Element

    • heading used 2 describe facets of elemental cost plan e.g. substructure

31. Inflation

    • upward movement of av. prices or costs

32. Main Contractor (MC)

    • MC respon 4 total construction and completion process of the building projj.
    • Named a Prime contractor in Public sector/defense projects

33. MC OH&P

    • Assoc with head office admin proportioned to each contract plus MC return on capital investment
    • Excl. subbies OH&P as its included in unit rates

34. MC Preliminaries

    • Items that cannot be allocated to a specific element
    • Inc. e.g. temp services; site staff; site est.

35. Net Internal Area (NIA)

    • Usuable area within a bdg measured to int face of perim walls @ each floor level

36. OGC Gateways

    • key decision pts wihtin the OGC gateway process

37. OGC Gateway process

    • process of examin programmes + proj @ key decision pts in LC
    • Look ahead 2 provide assurance that emp. can progress 2 nxt stage
    • OGC Gateway 1 to 5
    • normally 3 reviews before commit 2 invest
    • Public procurement
      • emphasis 2 exam business case which req. assessment of the total dev. cost of bdg.

38. Option Costs

    • est. of cost for various design solutions

39. Order of Cost Estimate (OofC)

    • determine possible cost of bdg in early design stage

40. Prime Cost Sum

    • sum of money included in a unit rate 2 b expended on mat/goods from suppliers
      • e.g. supply only ceramic tiles/ furniture etc.
    • excl. fixing/install/ancillary/sundry materials or MC/subbies design fees,prelims, OH&P

41. Residual risk

    • risk retained by emp.

42. Retail Area

    • NIA for retail

43. RIBA Plan Of Work

    • procedure dealing with steps in decision making.
    • identifies responsibilities of design team @ each stage