Design Economics & Cost Planning Flashcards
What is a Wall to Floor Ratio?
The quantity of external wall per unit of floor area. It is intrinsically linked to shape, form and efficiency.
What is a good Wall to Floor Ratio?
Between 0.3 and 0.5
Can you name 4 different sources of cost data?
1) Pricing Books (SPONS)
2) BCIS
3) Market Testing
4) Benchmarked Data
How would you adjust for location costs?
Using BCIS location factors.
What types of inflation would you need to account for in a Cost Plan?
1) Tender Inflation.
2) Construction Inflation
What is Tender Inflation?
Inflation from the Base Date to the start on site date.
What us Construction Inflation?
Inflation from the Start-on-Site date to the Mid-Point of construction.
As stated in your summary of experience, what are “Other” cost factors to consider outside of Inflation & Location?
1) Abnormal costs such as unusual ground conditions.
2) Ambitious BREEAM targets
3) Potentially exchange rates / Interest rates
What is included within a Cost Plan?
1) Front Cover
2) Document Control
3) Contents
4) Executive Summary
5) Project Specific Details
6) Dashboard
7) Reconciliation
8) Main Summary
9) Elemental Summary
10) Cost Detail
11) Area Schedule
12) Information Used
13) Exclusions
14) Pricing Notes
How does an Order of Cost Estimate differ to a Cost Plan?
An OCE is undertaken during the earlier stages of design, and therefore information is more limited. As a result, it is likely that there will be high level cost allowances as well as higher levels of risk allowances due to the limited design.
As stated in your Summary of Experience, why would you use NRM 1 in a Stage 4 Cost Plan rather than NRM 2?
NRM 1 was used because is typically used for Cost Planning, whereas NRM 2 is used for “Detailed Measurement for Construction Works” such as BOQ’s.
What is meant by the “Description of Works” in a cost plan?
By stating this in my summary of experience, I meant updating the referencing to each item in the cost detail of the cost plan. For example, I updated the finishes references to align with the Architect’s finishes schedule.
You mentioned in your Summary of Experience that the Cost Plan for PwC Manchester had between Stages 3 and 4 and were overbudget. Is this not something that could have been identified at Stage 3?
Yes, however in the case of PwC Manchester, the Client was under a strict budget and wanted to save on Design Fees. As a result, the Stage 3 design that was issued was based off of floor plans, without a detailed schedule or report.
On the ITB (Project Confidential), how would costs not borne by the Client be valued and paid for in valuations?
There was a clear split between Contractor works and Client Direct works. This was set out in the “MoU” (Memorandum of Understanding). Due to the confidentiality of the project, the security works had to be completed by the Client directly as noone else was able to know of the locations of security cameras and systems, therefore the Contractor’s scope was to provide power and any builders work before that point.
What does BCIS stand for?
Building Cost Information Service
