construction cost management

Faculty of Engineering, Environment and Computing

7111EEC

Module Title

Assignment Brief

Module Title Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper Cost Management	Individual: (ML delete as appropriate)	Cohort (Sept/Jan/May)	Module Code 7111exq
Coursework Title (e.g. CWK1) Cost management of Construction projects (CW1)	Hand out date: 14th September 2 0 20
Lecturer	Due date and time: Date: 9th November 2020 Online: 18:00:00
Estimated Time (hrs): 15 Word Limit*: N/A	Coursework type: CW 1	This is the Pass/Fail Core assessment
Submission arrangement online via Aula: File types and method of recording: Submission is to be via 1 PDF file covering all tasks Mark and Feedback date (DD/MM/YY): Mark and Feedback method (e.g. in lecture, electronic via Aula): Written feedback Via Aula

Module Learning Outcomes Assessed: 2. Use concepts and principles in the preparation of budget costings and evaluate analytical estimating methods for building and civil engineering projects. 4. Evaluate and apply a range of estimating methods for cost advice – including approximate estimating, operational estimating, unit rate estimating and preliminaries using various examples (excavation and earthwork; concrete work; brickwork and blockwork) and bidding strategies 5. Critically evaluate the analytical estimating methodologies and their applications to given case studies with particular emphasis on industry and professional standards such as NRM1.

Assignment – Scenario A mixed use development is being proposed for the outskirts of Coventry. You will be required to develop an initial unit estimate using either Functional or superficial methods. You will be allocated one of the scenarios below, you will then need to develop the estimate and then present it to the group showing all of your calculations. Create a presentation of your work and submit it on the day above, you will then need to present your work. The available options are – i) Car Park – 850 Car Park Spaces Q1 2023 You will be developing a suitable unit estimate calculation individually based on your own historic data collection. This will be presented to the entire group Via Teams or during the Campus based sessions, immediately following submission.

Notes: 1. You are expected to use the Coventry University APA style for referencing. For support and advice on this students can contact Centre for Academic Writing (CAW). 2. Please notify your registry course support team and module leader for disability support. 3. Any student requiring an extension or deferral should follow the university process as outlined here. 4. The University cannot take responsibility for any coursework lost or corrupted on disks, laptops or personal computer. Students should therefore regularly back-up any work and are advised to save it on the University system. 5. If there are technical or performance issues that prevent students submitting coursework through the online coursework submission system on the day of a coursework deadline, an appropriate extension to the coursework submission deadline will be agreed. This extension will normally be 24 hours or the next working day if the deadline falls on a Friday or over the weekend period. This will be communicated via your Module Leader. 6. *(ML’s delete if not applying to this assessment) Assignments that are more than 10% over the word limit will result in a deduction of 10% of the mark i.e. a mark of 60% will lead to a reduction of 6% to 54%. The word limit includes quotations, but excludes the bibliography, reference list and tables. 7. You are encouraged to check the originality of your work by using the draft Turnitin links on Aula. 8. Collusion between students (where sections of your work are similar to the work submitted by other students in this or previous module cohorts) is taken extremely seriously and will be reported to the academic conduct panel. This applies to both courseworks and exam answers. 9. A marked difference between your writing style, knowledge and skill level demonstrated in class discussion, any test conditions and that demonstrated in a coursework assignment may result in you having to undertake a Viva Voce in order to prove the coursework assignment is entirely your own work. 10. If you make use of the services of a proof reader in your work you must keep your original version and make it available as a demonstration of your written efforts. 11. You must not submit work for assessment that you have already submitted (partially or in full), either for your current course or for another qualification of this university, with the exception of resits, where for the coursework, you maybe asked to rework and improve a previous attempt. This requirement will be specifically detailed in your assignment brief or specific course or module information. Where earlier work by you is citable, i.e. it has already been published/submitted, you must reference it clearly.  Identical pieces of work submitted concurrently may also be considered to be self-plagiarism.

Mark allocation guidelines to students (to be edited by staff per assessment)

0-39	40-49	50-59	60-69	70+	80+
Work mainly incomplete and /or weaknesses in most areas	Most elements completed; weaknesses outweigh strengths	Most elements are strong, minor weaknesses	Strengths in all elements	Most work exceeds the standard expected	All work substantially exceeds the standard expected

This document is for Coventry University students for their own use in completing their assessed work for this module and should not be passed to third parties or posted on any website. Any infringements of this rule should be reported to facultyregistry.eec@coventry.ac.uk.

Marking Rubric (To be edited by staff per each assessment)

0

0

0

GRADE	ANSWER RELEVANCE	ARGUMENT & COHERENCE	EVIDENCE	SUMMARY
First ≥70	Innovative response, answers the question fully, addressing the learning objectives of the assessment task. Evidence of critical analysis, synthesis and evaluation.	A clear, consistent in-depth critical and evaluative argument, displaying the ability to develop original ideas from a range of sources. Engagement with theoretical and conceptual analysis.	Wide range of appropriately supporting evidence provided, going beyond the recommended texts. Correctly referenced.	An outstanding, well-structured and appropriately referenced answer, demonstrating a high degree of understanding and critical analytic skills.
Upper Second 60-69	A very good attempt to address the objectives of the assessment task with an emphasis on those elements requiring critical review.	A generally clear line of critical and evaluative argument is presented. Relationships between statements and sections are easy to follow, and there is a sound, coherent structure.	A very good range of relevant sources is used in a largely consistent way as supporting evidence. There is use of some sources beyond recommended texts. Correctly referenced in the main.	The answer demonstrates a very good understanding of theories, concepts and issues, with evidence of reading beyond the recommended minimum. Well organised and clearly written.
Lower Second 50-59	Competently addresses objectives, but may contain errors or omissions and critical discussion of issues may be superficial or limited in places.	Some critical discussion, but the argument is not always convincing, and the work is descriptive in places, with over-reliance on the work of others.	A range of relevant sources is used, but the critical evaluation aspect is not fully presented. There is limited use of sources beyond the standard recommended materials. Referencing is not always correctly presented.	The answer demonstrates a good understanding of some relevant theories, concepts and issues, but there are some errors and irrelevant material included. The structure lacks clarity.
Third 40-49	Addresses most objectives of the assessment task, with some notable omissions. The structure is unclear in parts, and there is limited analysis.	The work is descriptive with minimal critical discussion and limited theoretical engagement.	A limited range of relevant sources used without appropriate presentation as supporting or conflicting evidence coupled with very limited critical analysis. Referencing has some errors.	Some understanding is demonstrated but is incomplete, and there is evidence of limited research on the topic. Poor structure and presentation, with few and/or poorly presented references.
Fail <40	Some deviation from the objectives of the assessment task. May not consistently address the assignment brief. At the lower end fails to answer the question set or address the learning outcomes. There is minimal evidence of analysis or evaluation.	Descriptive with no evidence of theoretical engagement, critical discussion or theoretical engagement. At the lower end displays a minimal level of understanding.	Very limited use and application of relevant sources as supporting evidence. At the lower end demonstrates a lack of real understanding. Poor presentation of references.	Whilst some relevant material is present, the level of understanding is poor with limited evidence of wider reading. Poor structure and poor presentation, including referencing. At the lower end there is evidence of a lack of comprehension, resulting in an assignment that is well below the required standard.
Late submission				0

BCISIndices

mean = 100

16:55

221

228

85

228

66

65

66

216

64

63

49

219 45

223

220 33

223

42

30

223 33

36

31

232 32

239

247 37

39

32

259 31

125

125

122

331 70

61

335

50

334 Provisional

Provisional

Nov-2020 327

327 Forecast

328 Forecast

331 Forecast

335 Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

																																																													Series:	BCIS All-in TPI
Series number:	101	quarterly
Base:	19	85
Last updated:	23-Oct-2020
Notes:
Downloaded:	02-	Nov-2020
Date	Index	Status	Equivalent sample
Feb-2005		221	67
May-2005			228			66
Aug-2005		65
Nov-2005	226		63
Feb-2006	76
May-2006	2		31
Aug-2006	75
Nov-2006		2		32		61
Feb-2007		2	39	73
May-2007	241
Aug-2007	248	69
Nov-2007	251
Feb-2008	2	49
May-2008		247	68
Aug-2008	246	54
Nov-2008	240		50
Feb-2009				223		64
May-2009		216	53
Aug-2009	62
Nov-2009	212
Feb-2010	209
May-2010	218		45
Aug-2010		219		42
Nov-2010		220
Feb-2011
May-2011			33
Aug-2011
Nov-2011	38
Feb-2012	215
May-2012	2	30
Aug-2012
Nov-2012	224		36
Feb-2013	234
May-2013	236
Aug-2013
Nov-2013		37
Feb-2014
May-2014		259
Aug-2014	257
Nov-2014
Feb-2015	266	134
May-2015	272			125
Aug-2015	271
Nov-2015	2	70	120
Feb-2016	275	121
May-2016	282		122
Aug-2016	281
Nov-2016	291	123
Feb-2017	301
May-2017	307	117
Aug-2017	306	112
Nov-2017	317	105
Feb-2018	326	98
May-2018			327	94
Aug-2018		328	89
Nov-2018			331	83
Feb-2019
May-2019			335
Aug-2019	56
Nov-2019	333
Feb-2020		334			Provisional
May-2020
Aug-2020	329
												Forecast
Feb-2021
May-2021
Aug-2021
Nov-2021
Feb-2022	338
May-2022	339
Aug-2022	342
Nov-2022	347
Feb-2023	351
May-2023	353
Aug-2023	356
Nov-2023	361

BCIS All­in TPI #101

Base date: 1985 mean = 100 | Updated: 23­Oct­2020 | #101

Percentage change

Date Index Equivalent sample On year On quarter On month

1Q 2005 221     67 10.5% ­1.8%

2Q 2005 228     66 6.0% 3.2%

3Q 2005 221     65 3.8% ­3.1%

4Q 2005 226     63 0.4% 2.3%

1Q 2006 228     76 3.2% 0.9%

2Q 2006 231     85 1.3% 1.3%

3Q 2006 228     75 3.2% ­1.3%

4Q 2006 232     61 2.7% 1.8%

1Q 2007 239     73 4.8% 3.0%

2Q 2007 241     66 4.3% 0.8%

3Q 2007 248     69 8.8% 2.9%

4Q 2007 251     65 8.2% 1.2%

1Q 2008 249     66 4.2% ­0.8%

2Q 2008 247     68 2.5% ­0.8%

3Q 2008 246     54 ­0.8% ­0.4%

4Q 2008 240     50 ­4.4% ­2.4%

1Q 2009 223     64 ­10.4% ­7.1%

2Q 2009 216     53 ­12.6% ­3.1%

3Q 2009 216     62 ­12.2% 0.0%

4Q 2009 212     64 ­11.7% ­1.9%

1Q 2010 209     63 ­6.3% ­1.4%

2Q 2010 218     45 0.9% 4.3%

3Q 2010 219     42 1.4% 0.5%

4Q 2010 220     49 3.8% 0.5%

1Q 2011 219     45 4.8% ­0.5%

2Q 2011 223     33 2.3% 1.8%

3Q 2011 220     33 0.5% ­1.3%

4Q 2011 223     38 1.4% 1.4%

1Q 2012 215     42 ­1.8% ­3.6%

2Q 2012 230     30 3.1% 7.0%

3Q 2012 223     33 1.4% ­3.0%

4Q 2012 224     36 0.4% 0.4%

1Q 2013 234     36 8.8% 4.5%

2Q 2013 236     31 2.6% 0.9%

3Q 2013 232     32 4.0% ­1.7%

4Q 2013 239     37 6.7% 3.0%

1Q 2014 247     37 5.6% 3.3%

 

02­Nov­2020 16:55 © RICS 2020 Page 1 of 3

Percentage change
Date Index Equivalent sample On year On quarter On month

2Q 2014 259     39 9.7% 4.9%

3Q 2014 257     32 10.8% ­0.8%

4Q 2014 259     31 8.4% 0.8%

1Q 2015 266     134 7.7% 2.7%

2Q 2015 272     125 5.0% 2.3%

3Q 2015 271     125 5.4% ­0.4%

4Q 2015 270     120 4.2% ­0.4%

1Q 2016 275     121 3.4% 1.9%

2Q 2016 282     122 3.7% 2.5%

3Q 2016 281     125 3.7% ­0.4%

4Q 2016 291     123 7.8% 3.6%

1Q 2017 301     122 9.5% 3.4%

2Q 2017 307     117 8.9% 2.0%

3Q 2017 306     112 8.9% ­0.3%

4Q 2017 317     105 8.9% 3.6%

1Q 2018 326     98 8.3% 2.8%

2Q 2018 327     94 6.5% 0.3%

3Q 2018 328     89 7.2% 0.3%

4Q 2018 331     83 4.4% 0.9%

1Q 2019 331     70 1.5% 0.0%

2Q 2019 335     61 2.4% 1.2%

3Q 2019 335     56 2.1% 0.0%

4Q 2019 333     50 0.6% ­0.6%

1Q 2020 334   Provisional 0.9% 0.3%

2Q 2020 334   Provisional ­0.3% 0.0%

3Q 2020 329   Provisional ­1.8% ­1.5%

4Q 2020 327   Forecast ­1.8% ­0.6%

1Q 2021 327   Forecast ­2.1% 0.0%

2Q 2021 328   Forecast ­1.8% 0.3%

3Q 2021 331   Forecast 0.6% 0.9%

4Q 2021 335   Forecast 2.4% 1.2%

1Q 2022 338   Forecast 3.4% 0.9%

2Q 2022 339   Forecast 3.4% 0.3%

3Q 2022 342   Forecast 3.3% 0.9%

4Q 2022 347   Forecast 3.6% 1.5%

1Q 2023 351   Forecast 3.8% 1.2%

2Q 2023 353   Forecast 4.1% 0.6%

3Q 2023 356   Forecast 4.1% 0.8%

4Q 2023 361   Forecast 4.0% 1.4%

02­Nov­2020 16:55 © RICS 2020 Page 2 of 3

Percentage change: Year on year

Index value over time

Percentage change over time

02­Nov­2020 16:55 © RICS 2020 Page 3 of 3

7111EXQ – Construction Cost Management
Estimating processes

Dave Roberts

Dave Roberts

Session Aims

To explore the processes involved in different types of estimation
Incl
Functional Unit
Superficial Unit
Elemental cost planning
Pre tender estimating
What are they? Why are they used? When are they used? etc

Reading lists
Suggested Reading
RICS (2012), New Rules of Measurement (NRM2). 1st Ed., RICS.
RICS (1998), SMM7 Standard Method of Measurement, 7th Ed., RICS.
Ostrowski, S (2013) Measurement using the new rules of measurement. Wiley Blackwell.
Keily, P and McNamara, P. (2003) SMM7 Explained and Illustrated, RICS.
Seeley, I and Winfield, R. (1998) Building Quantities Explained, 5th Ed., Palgrave Macmillan.
Lee, S and Trench, W. (2014) Willis’s Elements of Quantity Surveying,
12th Ed., Wiley-Blackwell.
CIOB (2009), Code of Practice for Project Management for Construction and Development, 4th Ed., Ascot: Chartered Institute of Building.

Reading lists
Suggested reading
Danny, M (2016), Construction Economics: a New Approach, 4th Ed.,
Taylor & Francis.
RICS (2012), the New Rules of Measurement (NRM1). Order of Cost Estimating and cost planning for capital building works. 2nd Ed., RICS.
Brook, M (2000), Estimating and Tendering for Construction Work, 4th
Ed., Oxford: Butterworth-Heinemann.
Fleming, F. W. and Grant, F. E. K. (2003) Estimating for Builders and Surveyors. 2nd Ed., Oxford: Butterworth-Heinemann.

Useful Websites
RICS: The Royal Institution of Chartered Surveyors

http://www.rics.org/
isurv: Building Value for Knowledge
http://www.isurv.com
BCIS : Building Cost Information Service http://www.bcis.co.uk
CIOB: The Chartered Institute of Building
http://www.ciob.org.uk

* ‘the New Rules of Measurement (NRM)’ and ‘SMM7 Standard Method of Measurement’ are available for downloading at www.isurv.com

Estimating

Irrespective of the size or nature of a construction project, an accurate estimate is required to;
Give a correct picture of costs involved to the client
For cost planning purposes
For a contractor to make a realistic offer
At the initial stages, this may be an approximation. The ability to
develop an accurate estimate increases as the design information is completed

The process of pricing work based on the information/specification and/or drawings

Standard methods of measurement

The Standard Method of Measurement of Building Works (SMM7)
Issued by RICS and the Building Employers Confederation
The 1st Edition was issued in 1922
7th Edition in 1988, revised in 1988
The New Rules of Measurement (NRM)
Issued by RICS and NRM 1 (1st Ed.) was issued in 2009.
NRM 1 (2nd Ed) and NRM 2 (1st Ed) were published in April 2012.
NRM3 (1st Ed) published in 2014.
The Civil Engineering Standards Method of Measurement (CESMM)
Issued by Institution of Civil Engineers
The 1st Edition was issued in 1976, the 3rd Edition in 1991 and the 4th Edition in 2012.
Industrial Engineering SMM
1st Published in 1984 by IQS, Association of Cost Engineers and RICS
Principal of Measurement International (POMI)
Issued by RICS

New Rules of Measurement

NRM1: Order of cost estimating and cost planning for capital
building works
Provides guidance on measuring building works for the purpose of cost estimating and cost planning
NRM2: Detailed measurement for building works (successor to SMM7)
Guidance on detailed measurement and description of building works for
the purpose of obtaining a tender price (e.g. to prepare detailed BoQ)
NRM3: Order of cost estimating and cost planning for building maintenance works
Provides guidance on measuring building works for the purpose of cost
estimating and cost planning of maintenance works

New Rules of Measurement (NRM) 1

NRM1 provides guidance on
Order of cost estimates, including ‘rough’ order of cost estimates Elemental cost models
Cost plans
Cost analyses Benchmark analyses
Order of Cost Estimates
Identifying possible cost of a building early in design stage in relation to the employer’s fundamental requirements
3 methods recommended for estimating building works towards this Floor area method
Functional unit method Elemental method

Stages of Initial Estimating
The stages available include
Unit Estimating
Elemental Cost Planning
Pre-tender estimating
And the RIBA stages are
Stage 0 and 1
Stage 2, 3 and 3+
Stage 4

Initial estimating
Functional unit method
Identify suitable functional units for following projects such as
Car park
Hospital
A new hospital project is proposed for Coventry with 200 beds. Estimated building
cost per bed is £4,500. What will be the building cost of the new project?
A new football stadium is proposed for Aston Villa with 10,000 capacity. A 17,500 capacity stadium built in Watford has costed £10million. What will be the cost of the new Villa stadium?
Functional unit rate = Cost of the completed project
Nr of functional units

walkthrough
New job – new secondary school building for 750 students in Great Yarmouth to be completed in Q4 2022.
Old Job 1 – 850 students in Greater London in 2018 Q3 cost £8,500,000.00
Old Job 2 – 650 students in Cumbria in 2014 Q1 cost £4,750,000.00
Old job 3 – 750 Students in Coventry in 2019 Q3 cost £7,000,000.00
Great – look at BCIS and find out all of the adjustment rates you need

TPi
Q4 – 2022 – 385
Q3 – 2018 – 320
Q1 – 2014 – 247
Q3 – 2019 – 333

LF
Great Yarmouth – 98
Greater London – 131
Cumbria – 97
Coventry – 93

Process is
Old Job 1 – 8,500,000 divided by 850 students = £10,000 per student
Adjust for Tpi = divide by old (320) and multiply by new (385) = 12,031 per student
Adjust for LF = Divide by old (131) and multiply by new (98) = 9,000 per student
Old Job 2 = 475000 / 650 = 7308 / 247 x 385 = 11391 / 97 x 98 = 11508
Old job 3 = 7000000/750 = 9333/333 x 385 = 10791/93 x 98 = 11371
Average now equals 9000 + 11508 + 11371 = 31879 / 3 = 10626 per student.
10626 x 750 = 7969500 ( given as a range of 7.5m to 9m (roughly 10%)

Range
Range
As we have no idea what the basics of the build are, what departments etc, we have to give a range
Typically for Unit estimating we will give a 5-10% range which evidences the lack of knowledge.
So
We tell the client approx. £7,500,000 to 9,000,000.
This type of estimating is at inception stage and so is only used as an indication of whether to proceed with the project or not.

notes
The more examples you use the more accurate it will be
Remove any outliers
Go as accurate in your adjustments as you can discover (ie use Camden not inner London, use Barrow in Furness rather than Cumbria etc)
Also consider the standard of finish on the build if you know (High or Low quality etc)
The BCIS do have this detail for you to use.

Initial estimating

Functional unit method Summary
Advantages?
Easy and simple Quick to produce
Disadvantages?
Crude method
Does not take a lot of cost significant factors into account for e.g. plan shape, number of floors, ground conditions (thus foundation types), quality of works etc
Risky to use except at the early project stages

Measurement of Building Works for order of cost estimating
Floor area method (Superficial method)
The total gross internal floor area (GIFA) of the building or buildings is measured and multiplied by an appropriate cost/m² of GIFA. The equation for calculating the total estimated cost of building works is therefore:
c = a x b
where:
a = GIFA
b = cost/m² of GIFA for building works
c = building works estimate (i.e. total estimated cost of building works)
Initial estimating

Initial estimating

Floor area method
Example 1
GIFA of a proposed university building is 4,200m2. Cost/m² is estimated at
£1,650. What would be the estimate cost of the building works?
Example 2
Your client wants to build a 2,000m2 large concert hall. You have worked on a similar project before, which has a floor area of 3,200m2. The cost of the previous project was £5.2m. What will be the building cost of the new concert hall?
Don’t forget adjustment for historic and location data can still apply.

Summarised as …
Cost/m²(updated)
Cost/functional unit (updated)

Cost/m² GIFA(updated) = Cost/m² GIFA X TPI(proposed) X LF(proposed)
TPI(existing) LF(existing)

Unit rate (updated) = Unit rate X TPI(proposed) X LF(proposed)
TPI(existing) LF(existing)

Cost Data other than own historical data
It is possible to use other sources of cost information such as price books, websites etc
Its always best to use your own data as this gives a purer indication and you know more about the job.
For example BCIS will give you a rate to use for hospitals, but it is not possible to see a lot of information about where it has come from.

Where to find cost information…

In-house cost data/information or models
BCIS – Building Cost Information Services
w
w
w.b
c
is.c
o
.uk Quotations
Trade Publications
Published Cost Data – e.g. www.building.co.uk Published Building Price Books
Spons , Wessex, Laxtons, Griffiths

Adjusting for time and location
Any job that is built in the past is unlikely to cost the same today or at some specified point in the future
Also any job that is built in the middle of Coventry is unlikely to cost the same as a job that is built in the middle of London, or on the Shetland isles.
Adjustments come in the form of the Tender price index (Tpi) which is published by the RICS through their BCIS service (that you have to pay for)

BCIS

BCIS
Analysis section provides some historic jobs
Indices provides a link to the Tpi
Tender price studies gives you the Location Factor (LF)
Remember each cost you use must be adjusted for Tpi and LF

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7111exq – Lecture week 6 Dave Roberts ad2272@coventry.ac.uk

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Estimating example walkthrough Lets use this as an example of Functional Unit estimating. We have been asked by Cambria University to price a new student accommodation in Chester. The project must be completed by Q4 2023 and will house 180 students. Lets get the evidence for the new job Adjustments from BCIS

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Q4 2023

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Therefore Q4 2023 has a TPI of 365 Next we do the LF 

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Click home – then ‘Tender Price Studies’

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Adjustments Therefore our New student accommodation has a Tpi of 365 and an LF of 97 Now then – lets go searching in our Archive for historic jobs?? Job 1 – was a student accommodation in Coventry in Q4 2019 and was for 240 students and cost £9,250,000.00 Job 2 – was in Edinburgh completed in Q1 2018 and was for 160 students and cost £8,800,000.00 Job 3 – was in Kensington, in Q2 2016 and was for 300 students and cost £18,500,000.00

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Step 1 Job 1 – was a student accommodation in Coventry ( 95 ) in Q4 2019 ( 333 ) and was for 240 students and cost £9,250,000.00 Job 2 – was in Edinburgh ( 96 ) completed in Q1 2018 ( 326 ) and was for 160 students and cost £8,800,000.00 Job 3 – was in Kensington ( 132 ), in Q2 2016 ( 282 ) and was for 300 students and cost £18,500,000.00

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Job 1 Job 1 – was a student accommodation in Coventry ( 95 ) in Q4 2019 ( 333 ) and was for 240 students and cost £9,250,000.00 9250000 / 240 = 38542 per student 38542 / 95 x 97 = 39353 39353 / 333 x 365 = 43134 per student Job 2 – was in Edinburgh ( 96 ) completed in Q1 2018 ( 326 ) and was for 160 students and cost £8,800,000.00 8800000/160 = 55,000 per student 55000/96 x 97 = 55573 55573 / 326 x 365 = 62221 style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

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At last! Job 3 – was in Kensington ( 132 ), in Q2 2016 ( 282 ) and was for 300 students and cost £18,500,000.00 18500000 / 300 = 61667 61667 / 132 x 97 = 45316 45316 / 282 x 365 = 58653 43134 + 62221 + 58653 = 164008 164008/3 = 54669 This is the average of the cost per student for the new school at the new time and location. 54669 x 180 (number of students in the new school) = 9,840,420 But we give the range of between 9 and 11m style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide18.xml
Cost Planning? Cost planning is the process used to advise the client and design team on costs associated with the development of a building. The outcome of the CP process will decide and advise on changes to the design as it develops. As the design detail increases so does the complexity (and cost) of the CP process. (Stage0,1,2,3 and 3+) style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide19.xml
Where to start 1 – review the drawings 2 – develop order of Cost estimate (OCE)

ppt/slides/slide20.xml
OCE OCE is required to establish affordability of building Uses functional or superficial unit estimate – but makes allowances for other influences. style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide21.xml
OCE Info requirements Location Use of building Floor area (or functional unit) Refurbishment or land development costs Project brief Programme Budgetary constraints (Quality requirements) Life Span requirements Site conditions. M&E Requirements Project team and expected fees Other costs/risks Inflation and VAT requirements Majority of this info comes from the Architect or PM

ppt/slides/slide22.xml
Constituents of OCE Constituents of OCE (refer item 2.4.1, page 22) Facilitating works estimate (1) Building works estimate (2) Main contractor’s preliminaries (3) Sub total (4) = (1)+(2)+(3) Main contractor’s overheads and profit (5) Works cost estimate: 6=4+5 Project/design team fees (7) Sub total (8) = (6)+(7) Other development/project costs (if required) (9) Base cost estimate: 10=8+9 Risk allowances : (11) Design development Construction Employer change Employer – other risks Cost limit (excluding inflation): 12=10+11 Tender inflation (13) Cost limit (excluding construction inflation) 14 = 12+13 Construction inflation (15) Cost limit (including inflation): 16=14+15 Vat assessment: excluded

ppt/slides/slide23.xml
Cost Plan stage 2 (Formal cost plan 2) At stage 2 there is very little detail on the drawings, but the elements are known. For example we may not know how many doors we have but we know that the external wall is going to be a brick clad timber frame cavity wall construction. Etc style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide24.xml
Constituent parts These are exactly the same for Stage 2 and 3 and 3+ as they were for Stage 0 and 1 (OCE) above. The difference is the level of detail that goes into the building works estimate and perhaps the facilitating works estimate, and perhaps the preliminaries (1 and 2) style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide25.xml
Constituents of Stage 2, 3, and 3+ (and PTE) Facilitating works estimate (1) Building works estimate (2) Main contractor’s preliminaries (3) Sub total (4) = (1)+(2)+(3) Main contractor’s overheads and profit (5) Works cost estimate: 6=4+5 Project/design team fees (7) consultants fees, MC pre contract fees, MC design fees etc. Sub total (8) = (6)+(7) Other development/project costs (if required) (9) Base cost estimate: 10=8+9 Risk allowances : (11) Design development Construction Employer change Employer – other risks Cost limit (excluding inflation): 12=10+11 Tender inflation (13) Cost limit (excluding construction inflation) 14 = 12+13 Construction inflation (15) Cost limit (including inflation): 16=14+15 Vat assessment: excluded

ppt/slides/slide26.xml
Elements At stage 2 Substructure – Standard foundation Or Substructure – specialised foundation Ground floor construction Basement excavation Basement retaining walls At Stage 3 and 3+ Substructure – Standard Foundation Strip foundation Pad foundation Disposal of material Substructure – specialised foundation Piles Caisons Vibro compacted columns Pile caps Ground floor Gfbs – details M2 Retaining walls Below ground drainiage Etc

ppt/slides/slide27.xml
Elements At stage 2 Superstructure Frame Upper Floors Roof Stairs and Ramps External Walls Windows and external doors Internal walls and partitions Internal doors At stage 3 and 3+ Frame Steel frame Fire protection Floors Concrete suspended slabs Surface treatments Roof Pitched roof details Flat roof Roof covering Etc

ppt/slides/slide28.xml
Elements At stage 2 Fittings, furniture and equipment – may just be an allowance. At stage 3 and 3+ General furniture – number of descripted item Kitchen fittings – number of described units, number of appliances Signs notices Works of art etc

ppt/slides/slide29.xml
elements At stage 2 Sanitary installations Services and equipment Disposal installations Water installations Heat source Space heating and air con Ventilation Electrical installations Fuel installations Lift and conveyor installations Fire and lighting protection Comms and secutrity BWIC All of the above is often given as a rate per GIFA at stage 2 At stage 3 and 3+ At stage 3 and 3+ More detailed costing can be given to some items, Although some still remain as a GIFA Unless you have a specialist consultant engaged and they may offer a cost as part of their design package.

ppt/slides/slide30.xml
others Group 6 = prefab and building units Group 7 = work to existing buildings Group 8 = external works style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide31.xml
Employers requirements These are things like Site accommodation Site records Main contractor cost items – Management and staf Site set up Security H&S Plant and equipment Cleaning Fees, Insurances and Bonds

ppt/slides/slide32.xml
Some more Group 10 – profit and overheads (%age) Group 11 – design team fees (%age unless individual items know (Survey costs) Group 12 – other project costs Land acquisition Employer finance costs Fees (planning, building control, etc ) Charges Planning contributions (section 106 etc ) Etc

ppt/slides/slide33.xml
Group 13 – Risks Design risks (%age) Construction Risk (%age) Employer change risks (%age) Employer other risks (loss of funding, etc ) (%age) style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide34.xml
Group 14 – Inflation Tender inflation (%age) Construction inflation (%age) style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

ppt/slides/slide35.xml
Example of a cost plan – Building works estimate work through example

ppt/slides/slide36.xml
And summary page (OCE) these two pages are what you will develop for your assessment

ppt/slides/slide37.xml
Any questions??

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Click to edit Master title style Click to edit Master subtitle style 10/16/2020 ‹#›

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Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Click to edit Master text styles 10/16/2020 ‹#›

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Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level 10/16/2020 ‹#›

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ppt/media/image19.emf
Project: Proposed Homeless Hostel – Birmingham West Midlands
2500m2
No. Elemment Historic
Cost/m2
Updated
Cost/m2
Elemental Cost
Breakdown
1SUBSTRUCTURE179£ 161.10£ 502,750.00£
2AFrame45£ 40.50£ 101,250.00£
2BUpper floors37£ 33.30£ 83,250.00£
2CRoof58£ 52.20£ 130,500.00£
2DStairs 26£ 23.40£ 58,500.00£
2EExternal walls98£ 88.20£ 220,500.00£
2FWindows & external doors54£ 48.60£ 121,500.00£
2GInternal Walls66£ 59.40£ 148,500.00£
2HInternal doors57£ 51.30£ 128,250.00£
2SUPERSTRUCTURE-£ 992,250.00£
3AWall finishes50£ 45.00£ 112,500.00£
3BFloor finishes67£ 60.30£ 150,750.00£
3CCeiling finishes34£ 30.60£ 76,500.00£
3INTERNAL FINISHEs131£ 117.90£ 294,750.00£
4FITTINGS41£ 36.90£ 92,250.00£
5ASanitary appliances4£ 3.60£ 9,000.00£
5BServcices equipment58£ 52.20£ 130,500.00£
5CDisposal Installationincluded in element 5F
5DWater installationincluded in element 5F
5EHeat sourceincluded in element 5F
5FSpace heating & air treatment205£ 184.50£ 461,250.00£
5GVentilating system
5HElectrical installation166£ 149.40£ 373,500.00£
5IGas installation
5JLift installation11£ 9.90£ 24,750.00£
5KProtective installation
5LCommunication installation
5MSpecial installation
5NBuilder’s work 6£ 5.40£ 13,500.00£
5OBuilder’s profit & attendance
5SERVICES450£ 405£ 1,012,500£
BUILDING SUB-TOTAL1,224£ 1,101.60£ 2,754,000.00£
6ASite works92£ 82.80£ 207,000.00£
6BDrainage11£ 9.90£ 24,750.00£
6CExternal Services41£ 36.90£ 92,250.00£
6DMinor building works
6EDemolition work – outside the site-£ -£ -£
6EXTERNAL WOKS146£ 131.40£ 328,500.00£
7PRELIMINARIES 105.00£ 94.50£ 236,250.00£
TOTAL (less contigencies)
8CONTIGENCIES 18.00£ 16.20£ 40,500.00£
TOTAL (including contigencies)3,359,250.00£

Gross Internal Area =

ppt/drawings/vmlDrawing1.vml

ppt/media/image20.emf
Item Description%Amount
ABuilding works estimate2,754,000.00£
BMain contractor’s preliminaries estimate (say 10%)10%275,400.00£
CSub-total3,029,400.00£
DMain contrcator’s overhead & profit estimate15%454,410.00£
EWorks cost estimate3,483,810.00£
FProject/design team fees estimate (say 5%)5%174,190.50£
GSub-total3,658,000.50£
HOther development/project cost estimate (say £200K)200,000.00£
JBase cost estimate3,858,000.50£
KRisk allowances estimate (total risks 3.5%)3.50%135,030.02£
LDesign risks (say 1%)
MConstruction risks (say 1.5%)
NEmployer change risks (say 0.5%)
OEmployer other risks (0.5%)
PCost Limit (excluding inflation)3,993,030.52£
QTender inflation estimate (say 0.3%)0.30%11,979.09£
RCost Limit (construction excluding inflation)4,005,009.61£
SConstruction inflation estimate (say 0.5%)0.50%20,025.05£
TCost Limit (including inflation)4,025,034.66£
UVAT assesment (recommeneded to leave this out)
Hence Cost/m21,610.01£
Order of Cost Estimate

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7111exq – Week 5 Tutorial David Roberts David Roberts 8 2020-10-12T07:27:03Z 2020-10-16T14:14:08Z

docProps/app.xml
Facet 748 1559 Microsoft Office PowerPoint Widescreen 246 37 0 0 39 false Fonts Used 6 Theme 1 Embedded OLE Servers 1 Slide Titles 37 Arial Calibri Times New Roman Trebuchet MS Verdana Wingdings 3 Facet Worksheet 7111exq – Lecture week 6 Estimating example walkthrough PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation Q4 2023 PowerPoint Presentation Click home – then ‘Tender Price Studies’ PowerPoint Presentation Adjustments Step 1 Job 1 At last! Cost Planning? Where to start OCE OCE Info requirements Constituents of OCE Cost Plan stage 2 (Formal cost plan 2) Constituent parts Constituents of Stage 2, 3, and 3+ (and PTE) Elements Elements Elements elements others Employers requirements Some more Group 13 – Risks Group 14 – Inflation Example of a cost plan – Building works estimate work through example And summary page (OCE) these two pages are what you will develop for your assessment Any questions?? false false false 16.0000

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