Design Economics Flashcards

1
Q

What is the difference between a cost plan and Order of Cost Estimate?

A

A cost plan the construction costs broken down into the elements to understand the cost limit of each element of the building. Provides a frame of reference to develop the the design and maintain cost control.

An estimate is a forecast of construction cost.The purpose of an order of cost estimate is to establish affordability of a proposed development for a client.

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2
Q

What design detail would you expect in RIBA Stage 0 (Strategic definition and brief)?

A

Stage 0 is about determining the best means of achieving the client’s requirements.
An open mind is required because a building might not be the most appropriate solution.
Stage 0 is not about design or the practical details. It focuses on making the right strategic decisions and capturing them in a Business Case. The stage involves considering the pros and cons, Project Risks and Project Budget for a range of options and, where necessary, carrying out Site Surveys and corresponding planning appraisals, before undertaking a comparative analysis and recommending and ratifying the best option for delivering the Client Requirements.’

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3
Q

What design detail would you expect in RIBA Stage 1 (Preparation and brief)?

A

Stage 1 is about developing the detail of the brief and making sure that everything needed for the design process is in place before Stage 2. This includes ensuring that the brief can be accommodated on the site. Involves:
Developing an initial project brief. This may include; considering feedback from previous projects, defining overall spatial requirements, carrying out surveys and quantifying the budget.
Carrying out feasibility studies.
Undertaking a project risk assessment, including; planning risks, programme and procurement strategy.
Assembling the project team and defining their roles and responsibilities.

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4
Q

What design detail would you expect in RIBA Stage 2 (concept design)?

A

Stage 2 is about getting the design concept right and making sure that the look and feel of the building is proceeding in line with the client’s vision, brief and budget. Includes:

  • The design concept.
  • Outline specifications.
  • Schedules of accommodation.
  • A planning strategy.
  • The cost plan.
  • Procurement options.
  • Programme and phasing strategy.
  • Buildability and construction logistics.
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5
Q

What design detail would you expect in RIBA Stage 3 (detailed design)? - Now known as spatial coordination

A

The purpose of Stage 3 is to spatially coordinate the design before the focus turns to preparing the detailed information required for manufacturing and constructing the building. Includes:

  • Schedules of accommodation, including occupancy numbers for each space.
  • Key assemblies, component drawings and schedules
  • Structural plans sections, elevations and specifications:
  • Building services plans, sections and elevations
  • Fire strategy,
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6
Q

What design detail would you expect in RIBA Stage 4 (technical design)?

A

Stage 4 is about developing the information required to manufacture and construct the building. This requires information from the design team and the specialist subcontractors employed by the contractor, regardless of which procurement route is used. Includes:
By the end of the stage the architectural, structural and mechanical services design and specifications should describe all the main components of the building and how they fit together, any performance specified work should be defined and there should be sufficient information for applications for statutory approval to be completed. Room data sheets are also likely to have been prepared along with outline technical specifications.

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7
Q

What design detail would you expect in RIBA Stage 5 (construction)? now known as Manufacturing and construction.

A

Stage 5 is when the building is manufactured and constructed.

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8
Q

What design detail would you expect in RIBA Stage 6(handover and close out)?

A

By Stage 6 the building will be in use and the emphasis of the project team will have switched to closing out any defects and completing the tasks required to conclude the Building Contract.

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9
Q

What design detail would you expect in RIBA Stage 7 (in use)?

A

This is the period when the building is in use, lasting until the building reaches the end of its life.

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10
Q

What can you do to adjust costs for time and location?

A

Indices can be used which set a base for project data. Indices that can be used are cost and time.

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11
Q

How did you ensure NRM compliance with external walls?

A

This was measured on the external wall at the centre line using m2. The measure needed to be different where there were columns and beams as the wall build up differs here.

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12
Q

How did you ensure NRM compliance with internal walls?

A

This is measured on the centre line of the internal wall or partition. No deduction is made for door openings, screens or the like. The internal skin of external wall is included within external wall.

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13
Q

How did you ensure NRM compliance with external works?

A

This mainly consisted on hard and soft landscaping which was on a m2 basis, however also included counts for outdoor furniture, linear metres for external drainage and numbers for tree planting.

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14
Q

What section of NRM is external works?

A

8

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15
Q

What are the NRM subheadings for external works?

A
  1. 1 Site preparation works
  2. 2 Roads, paths, pavings and surfacing
  3. 3 Soft landscaping, planting and irrigation
  4. 4 Fencing, railings and walls
  5. 5 External fixtures
  6. 6 External drainage
  7. 7 External services
  8. 8 Minor building works and ancillary buildings
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16
Q

How do you know that quantities from BIM are correct?

A

When checking my quantities, I always cross check with drawings, for example, the perimeter by height for external wall areas.

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17
Q

How much do precast concrete panels cost per m2?

A

Market tested rates for the precast RC panel range between £500 and £600/m2.
Insulation was between £20 and £40 for each layer.
The metal stud range between £25 and £50.
Plasterboard was at £10/m2 each layer.

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18
Q

What were the cost implications for installing windows on precast concrete panels?

A

Installing windows on precast concrete panels cost an additional £50 per window for the increased risk, time and labour and this was factored in my external wall rate.

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19
Q

What were the cost implications for special design features and what were they?

A

This included articulations proposed by the architect and the costs for these was for extra time and risk detailing the precast panels. The extra rate was between £50-£150/m2 extra.

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20
Q

What effect did the precast concrete panels have on the main contractor preliminaries?

A

Using precast concrete panels meant that there would be less time on site as it is quicker construction than other methods such as traditional brick. This would reduce the preliminary running costs

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21
Q

What value engineering did you propose for One Woolwich?

A

On One Woolwich I looked at FFE specification, external walls, type of window frames

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22
Q

What elemental costs changed in your Pines Way order of cost estimates between stage 0 and 2?

A
  • Facade reduced after design development meant there was less blocks which were bigger
  • Cost increase for internal wall and partitions as OCE was based on a full measure and not benchmark
  • Substructure increase as based on actual measure and not £100/m2 gia
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23
Q

What were the efficiency changes in your table of efficiencies for Pines way?

A

The W:F ratio reduced from 0.7 to 0.55.

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24
Q

What were the laborers hourly rates in the Bath area compared to elsewhere?

A

In Bath these rates were circa £25/ hour compared to £30/hour in London.

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25
Q

Why are costs different in different locations?

A
  • Wages
  • Site logistics
  • Proximity to services and supplies
  • Availability of labour
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26
Q

How is the NRM set out?

A

NRM1 comprises four parts:

  • Part 1 sets out the context and definitions.
  • Part 2 explains how to prepare an order of cost estimate.
  • Part 3 explains how to prepare an elemental cost plan.
  • Part 4 provides tabulated rules of measurement for the preparation of cost plans.
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27
Q

What were the key exclusions in your OCE?

A
VAT
Inflation
Legal costs
Planning costs
Unexpected ground conditions
Land acquisition costs
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28
Q

How did you build up your preliminaries costs?

A

This can be done using the NRM preliminaries book.

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29
Q

What is an alternative to applying inflation within the OCE?

A

Fluctuation clauses can also be applied. This includes option A, B and C.Changes in taxation.
Changes in the cost of labour, transport and materials (sometimes referred to as ‘escalation’).
Increases in head office or administrative costs.

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30
Q

What is the BCIS ?

A

BCIS is the Building Cost Information Service of the Royal Institution of Chartered Surveyors (RICS). It is described by RICS as ‘the leading provider of cost and price information to the construction industry and anyone else who needs comprehensive, accurate and independent data.’

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31
Q

How did you go about carrying out the cost plan?

A
  • Understand design – which RIBA stage is it? – check NRM which lists what is required for stage 2 and stage 3
  • Query design
  • Split elements to team – order of take-off – agree timescales
  • Begin quantification
  • Prelims
  • OHandP, Contingency
  • Market testing/ rate testing
  • Assumptions, exclusions, drawing list, exec summary
  • Include benchmarking exercises
32
Q

What is the importance of a cost plan?

A

To understand in an elemental form the costs of the project and how to control the costs.

To inform the design team in changes to reflect the cost.

33
Q

What is the cost target?

A

Once broken the cost plan into elements, the cost target is an elemental target.

34
Q

What is an automatic parking system?

A

A mechanical system to transport cars to and from parking spaces (rather than the driver) in order to eliminate much of the space wasted in a multi-story parking garage.

35
Q

What is a cost analysis?

A

A systematic breakdown of existing cost data to allow for an extent of examination and comparison with other similar projects.

36
Q

What are external factors that can affect cost?

A

1) location of the building project

2) state of the construction economy (and general economy) at the point in time when construction cost is established

37
Q

What can effect the cost of a building?

A
  • floor areas
  • efficiency ratios
  • number of storeys
  • basement
  • functional units
  • number of weeks to complete
  • method of tender ( cost reimbursement, GMP, lump sum)
  • procurement and risk associated
  • location of project
  • base date for project
  • number of tenderers
  • sustainability rating
  • type of building
  • outline specification of the works - pike v strip or concrete v steel
38
Q

What is the difference between GMP and lump sum?

A

A GMP is an agreement between a contractor and client, typically at an early stage where the contractor will take the design risk as well as construction. There may be a target cost element added.

39
Q

What is benchmarking?

A

Something that serves as a standard by which others may me measured.

40
Q

How can cost data be shown?

A
  • tables
  • trend charts and graphs
  • pie charts
  • scatter diagrams
  • waterfall diagrams
41
Q

Why is the contract duration a factor of cost?

A

A longer contract may increase the cost of preliminaries (insurances, contractors compound, staffing etc).

Constructing under time pressure may carry a price premium ( working out of hours, out of sequence, number of different contractors).

42
Q

What are abnormals?

A

Costs which are considered project specific. Classified as such because they have a notable cost consequence.

43
Q

What are the three types of lifecycle costs?

A
  • construction costs
  • maintenance costs (hard facilities management - redecoration, periodic inspection, periodic maintenance, unscheduled corrective and responsive maintenance, planned and preventive maintenance)
  • operation costs (soft facilities management - all costs incurred in running and managing the facility - IT services, cleaning, waste management, catering, rent, insurances, utilities)
44
Q

What is life cycle costing?

A

Life cycle cost accounts for all relevant costs over a defined period of time (the period of analysis).

45
Q

Where can you get LCC data from?

A
  • Unstructured historical data - estate managers
  • Structured historical data- BCIS running cost analysis
  • Data from modelling
  • data from manufacturers, suppliers and specialist contractors
46
Q

What is the difference between life cycle costing and whole life costing?

A

Life cycle cost accounts for all relevant costs over a defined period of time (the period of analysis).

Whole life costs can include costs associated with the provision of construction works that are not included in the clients costs.

47
Q

What is an order of cost estimate?

A

The determination of possible cost of a building(s) early in design stage in relation to the employer’s fundamental requirements. This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.’

48
Q

What was the quality issued with brick slips?

A

Maintenance issues. Brick slips falling off.
Brick slips can fail for innocuous reasons such as poor bonding, but their detachment or bulging could also be a sign of a more worrisome issue such as movement, concrete frame shortening, and transfer of loading due to lack of horizontal soft joints and infill wall head restraints.

49
Q

What is BIM?

A

Building information modelling.

NOT a software - It is a PROCESS

It provides architecture, engineering and construction professionals information and tools to efficiently plan, design, construct and manage buildings and structures

50
Q

What are the levels of BIM?

A

Level 0: Unmanaged CAD (Computer Aided Design).
Level 1: Managed CAD in 2D or 3D.
Level 2: Managed 3D environment with data attached, but created in separate discipline models.
Level 3: Single, online, project model with construction sequencing, cost and life-cycle management information.

51
Q

What are the dimensions of BIM?

A

2D. Two-dimensional graphical information.
3D. Three dimensional graphical information.
4D. Time and programme information.
5D. Cost information.
6D Facilities management information.
7D: information flowing from the building, explaining this as; ‘The cube of six dimensions define what the built asset is “about”, but the seventh is information “from” the sensors and analytics which increasingly help to commission and run the asset.’

52
Q

What are the benefits of BIM?

A

1) Improved visualisation of the project, communication of design intent (allows better planning and design that takes best advantage of available space and resources)
2) Improved multidisciplinary collaboration
3) Reduced re-work (see potential problem areas before the error is made in the physical world)
4) 4D improves planning. Builders and manufacturers can optimise their construction activities and team coordination
5) 5D enables the development of more efficient, cost effective and sustainable constructions
6) 6D use leads to an overall reduction in energy consumption
7) 7D optimises asset management from design to demolition

53
Q

What are the challenges that face BIM?

A

1) Compatibility with users - Not yet universally used, many professionals may not use BIM
2) Quality of information - Rubbish in, Rubbish out
3) Legal issues - Legal implications of BIM have not yet been broadly tested
4) Cost of software - BIM software is expensive.
5) Lack of expertise - Few experts in the field, may require extra investment in training and education

54
Q

What has changed in RIBA 2020?

A

The biggest addition to the new RIBA Plan of Work comes in the form of the new sustainably project strategy. This challenges design teams to design with a focus on sustainable outcomes from the outset of the project. In addition to the sustainability changes, this update has concentrated on improving the guidance in relation to the planning process, procurement and information requirements at each stage. Most importantly we have set out detailed stage descriptions and new guidance on core project strategies

55
Q

When is the governments net zero carbon strategy to be implemented?

A

By the year 2050.

56
Q

On the Bath scheme, why was inflation included? And why was it calculated from the midpoint of construction?

A

I advised that I could include inflation, so that the cost was more accurate at the time of construction and not at the base date.

57
Q

How did you value engineer on One Woolwich? What is value?

A

On One Woolwich, value engineering opportunities included:

  • Change of green roof specification
  • Using traditional brick instead of cladding
  • Stick curtain walling instead of unitized.
58
Q

Did you have any part of the design?

A

No I was only informing to get to the projects target cost.

59
Q

What is the disadvantage of using benchmark data?

A
  • Project specific abnormal costs
  • Market changes
  • Inflation
60
Q

What is the difference between tender inflation and construction inflation?

A

Tender inflation is from estimate base date to tender return date. Construction inflation is from date of tender to mid point of construction.

61
Q

What are the fluctuation clauses?

A

A- Contribution and levy and tax (changes such as taxes, national insurance and other forms)
B- Labour and materials cost (cost to the contractor of labour and materials current at specific time. Where contract permits, price adjusts for actual changes).
C- Formula adjustment ( instead of actual increase in materials and equipment, the contract stipulates a formula).

62
Q

What are the purposes of a cost plan, other than cost control?

A
  • Develop employer and designer awareness of cost proposals and desires
  • Ensure employers get value for money
  • Advise designers on practical and balanced design within budget
63
Q

What is project indexation (indices)?

A

A location factor will look at the country, region and district, for example in London the LF is 110. The TPI will look into the time period in quarters, so for example in Q1 2012 the TPI was 215 and in Q4 2018 this increased to 333. If a project cost £2,000/m2 in 2012 one would need to work out the appropriate benchmark projects TPI x LF and divide this by the new projects TPI x LF and times this figure by the £2000/m2

64
Q

How does the BCIS tender price indices make sure that the costs are relevant to the tender process?

A

The TPI can be adjusted relative to the method of contractor selection.

65
Q

What are the problems with using price indices?

A
  • Project specific abnormals

- Some elements of the cost may increase a lot due to very local price differences (eg a lack of bricklayers in Bath)

66
Q

What are the difference in cost between One Woolwich old cost estimate and adjusted cost estimate on inflation only?

A

The increase between Q1 2012 and Q2 2018 was 47% and the project increased from £107m to £158m.

67
Q

Did you carry out your own quantification of the One Woolwich?

A

Yes when I prepared my OCE this was based on my own measures. I found the measures to be mostly consistent however there were some key rates which were questionable including:

  • Stair per flight only £2.5k
  • External brickwork through wall only £120/m2 - advised to be £450/m2
  • Lifts were at £4.5k a level where i would advise between £10 and £13k.
68
Q

Did you consider the lifecycle cost for the 3 external wall options in Clapham Park?

A
  • Cost of construction, operation and maintenance.

-

69
Q

What does the risk management guidance note tell you?

A
  • Identifying risks
  • Types of risk
  • Managing risks
  • Mitigation strategies
  • Risk registers
  • Risk and procurement
70
Q

What are the consultations regarding ICMS and NRM1?

A

There is the need to align and interface the specific classification system of ICMS with the original NRM classifications.
Initially, this will take the form of an overview statement
of the linkage between the two and, subsequently, the
publication of revisions to both NRM 1 and NRM 3 so that they both fully align with the ICMS classifications.

71
Q

What is ICMS?

A

The International Construction Measurement Standards (ICMS) is an international standard which aims to provide greater global consistency in construction costing.

It is not a detailed method of measuring construction works, but ‘a high level benchmarking and reporting framework for international cost classification, reporting and comparison.’

72
Q

Why is lifecycle costing carried out?

A
  • To predict a cashflow (perhaps to construct a budget)

- To carry out an option appraisal (to decide which option is preferable in cost terms)

73
Q

What is the difference from ICMS and IPMS?

A

The ICMS project followed work on the development of International Property Measurement Standards
(IPMS). IPMS established standards for measuring the floor areas of buildings. For ICMS, a key element
was that ICMS would be compatible and accord with IPMS.

74
Q

How do MVHRs work?

A

A balanced heat recovery ventilation system (MVHR) works by continuously extracting air from the wet rooms within your property (e.g. kitchens and bathrooms) and simultaneously pulling in fresh air from outside which is filtered, introduced and extracted via a network of ducting.

75
Q

What is a comfortboard and how do they work?

A

A rigid mineral wool insulation sheathing board that is non-combustible, water-repellent, fire-resistant and sound absorbent. A comfortboard is an exterior non-structural insulation sheathing that provides a continuous layer of insulation around the commercial or residential building envelope.

76
Q

What is the reason for applying inflation to midpoint?

A

‘…an allowance included in the order of cost estimate or cost plan for fluctuations in the basic prices of labour, plant and equipment, and materials during the period from the date of tender return to the mid-point of the construction period.