Flashcards in Cost Planning Deck (20)
What is Cost Planning?
Is an attempt to introduce more rigour and accuracy into the pre-contract costing process. The cost planning process commences with the preparation of an approximate estimate by the QS, and then the setting of cost targets, which are based upon elements.
What is an Element?
Part of a building that fulfils a specific function or functions irrespective of its design, specification or construction i.e External Walls.
What are cost targets?
Cost targets are based upon elements. As the design evolves these cost targets are checked for any under-or-overspending against the Architects details.
What is Stage 0 of the RIBA plan of Work Stages
What is the process of financial advice given at Stage 0 by the QS?
Order of Cost Estimate - to establish affordability of a proposed development
Cost Range - Financial limit
What is Stage 1 of the RIBA plan of Work Stages
Preparation and Brief
What is the process of financial advice given at Stage 1 by the QS
First Stage Estimate - Preliminary Estimate - single rate estimating - Lump Sum based on GIFA/GFA
Feasibility Study - cash flow predictions (i.e. s-curve)
What is stage 2 of the RIBA plan of Work Stages?
What is the process of financial advice given at Stage 2 by the QS?
Cost Plan 1/2 - elemental cost analysis
Single rate estimating
What is stage 3 of the RIBA plan of Work Stages?
What is the process of financial advice given at Stage 3 by the QS?
Cost Plan 3 - elemental cost analysis
Pre-tender estimate established (Confidential)
What is stage 4 of the RIBA plan of Work Stages?
What is the process of financial advice given at Stage 4 by the QS?
Cost Control and cost checking
Bill of Quantities produced, tender process
Compare the returned tender figure against the pre-tender estimate
What is stage 5 of the RIBA plan of Work Stages?
Manufacturing & Construction
What is the process of financial advice given at Stage 5 by the QS?
Cost Control/analysis and cost checking (variations etc.)
Financial Statements to the Client
What is the floor area or m2 method?
The superficial method is a single price rate method based on the cost per metre of the building. This method is restricted to the early stages of design - approximate estimating
What is the functional unit method?
The unit method is a single price rate method based on the cost per functional unit of the building, a functional unit being, for example, a hotel bedroom.
What is the Elemental method?
The elemental method requires the calculation of element unit quantities (EUQs) and element unit rates (EURs) using the detailed rules of measurement contained in the NRM1.
What is approximate quantities?
This is regarding as the most reliable and accurate method of estimating, provided that there is sufficient information to work on. Think stage 3 of RIBA plan of work stages. The quantities can be based on composite rates built up from data available in the office.