Design Economics and Cost Planning Flashcards
(41 cards)
What is a cost plan?
A detailed understanding of the anticipated cost of a project during the design stages which will inform the budget.
What is a cost estimate?
A prediction of the cost of a project based on limited information.
What is NRM?
It is a suite of measurement rules for building projects which provides a consistent way to approach the estimation and cost planning process to allow all readers to interpret the information clearly.
What is in the suite of NRM?
- NRM1 - Order of cost estimating and cost planning
- NRM2 - Detailed Measurement of Building Works
- NRM3 - Order of cost estimating and cost planning for maintenance
What is the purpose of NRM2?
It allows Quantity Surveyors to measure and quantify designs in a structured manner for the preparation of BoQ’s.
How is risks dealt with under NRM?
It does not recommend to assess risks as percentages, but the risks are accurately quantified and priced.
What are the risk categories under NRM?
- Employer change risk
- Employer other risk
- Design Development risk
- Construction risk
What is the structure of NRM?
- Group Element
- Element
- Sub Element
- Component
What is included in Preliminaries?
- Site establishment
- Site accommodation
- Management and Staff
- Temporary Services
- Temporary Works
- Insurance, Bonds and Warranties
What is Order of Cost Estimating?
A high level estimation given on an elemental/ functional unit basis, i.e. cost per m2, cost per hotel key, etc.
The purpose is to give the likely cost of the project and indicate to the client to make budgetary considerations.
What are the stage/s when Order of Cost Estimates (NRM1) are performed?
During RIBA 0-3
What are the stage/s is when Detailed Measurement (NRM2) is performed?
During RIBA 4
How are Professional Fees at the Order of Cost estimating stage determined?
Through percentages using historical benchmarks
Name some Professional Fees which should be considered under Order of Cost Estimates?
- Design Team Fees
- Consultant Fees
- Surveying Fees
- Legal Fees
What is a Provisional Sum?
An allowance inserted into a contract price for an element of work that is undefined that a firm cost cannot be determined.
What are types of Provisional Sums?
Defined PSum: An item of work that has been described in sufficient detail, but the design is incomplete.
Undefined PSum: An element of work that is not described well enough and the design is not present.
Under the forms of contract you have used, how are PSums administered?
Under FIDIC and ICE forms of contract a PSum is expended through the Engineer’s instruction via an add and omit variation.
Under NEC, there is no facility for PSums.
What are the risks associated to PSums?
The actual cost and time in converting the PSum may exceed it’s allowance.
However, additional claim for prelims for Defined PSums are not accepted.
What are Prime Costs?
Cost elements that cannot be determined or agreed upon as a fixed price at the time of tender are instead covered by a Prime Cost rate, which applies solely to the supply of materials and excludes labour, plant, and overheads and profit
Under the forms of contract you have used, how are Prime Costs administered?
FIDIC and NEC do not allow for Prime Costs, whereas ICE contracts do.
This is administered through the variation process under the ICE contract.
What is the RIBA Plan of Work?
RIBA 0 - Strategic Definition
RIBA 1 - Preparation and Brief
RIBA 2 - Concept Design
RIBA 3 - Spatial Coordination
RIBA 4 - Technical Design
RIBA 5 - Engineering/ Construction
RIBA 6- Handover
RIBA 7 - Use
What is the purpose of a Cost Plan?
To inform the client of the estimated cost of a project throughout the design stages to enable them to make budgetary decisions.
What does a Base Cost Estimate include?
All costs in delivering a project, excluding risk and inflation.
i.e. professional fees, construction works, legal fees, etc.
What does a works cost estimate include?
- Prelims
- Construction costs
- OH&P
