construction cost management

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951649f7c817f6e845a0fb4132052a037111exq___construciton_cost_management___lecture_week_61.pptx

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7111exq – Lecture week 6 Dave Roberts [email protected]

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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

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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

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Where to start 1 – review the drawings 2 – develop order of Cost estimate (OCE)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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Group 14 - Inflation Tender inflation (%age) Construction inflation (%age) style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

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Example of a cost plan – Building works estimate work through example

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And summary page (OCE) these two pages are what you will develop for your assessment

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Any questions??

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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 =

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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

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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