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Published on behalf of

The Royal Institution of Chartered Surveyors by Surveyors Publications

12, Great George Street, London SW1P 3AD

Prepared by the Quantity Surveyors Division

Printed by Harris Print Ltd, London SW17 OBQ

e RICS June 1982. Copyright in all or part of this publication rests with the RICS, and. save by prior consent of the RICS, no part or parts of this publication shall be reproduced in any form or by any means electronic, mechanical, photocopying, recording or other· wise, now known or to be devised.

[SBN 0- 85406- 169- X

ISSN 0262- 9682

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Quantity Surveyors Practice Pamphlet No.2

~ The Quantity Surveyors Division of

~ The Royal Institution of Chartered Surveyors

Pre -contract Cost Control & Cost Planning

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TABLE OF CONTENTS
FOREWORD 5
INTRODUCTION
1.1 Objectives 6
1.2 Format 6
1.3 Preliminary Cost and Feasibility Studies 6
SECTION 1 COST CONTROL AND COST PLANNING
1.1 Definition 6
1.2 Objectives 6
1.3 Generally 6
1.4 Design Stages 6
SECTION 2 BUDGET
2.1 Definition 7
2.2 Objectives 7
2.3 Information Requirements 7
2.4 Methods of Preparation 7
2.5 Statement of Quantity and Quality Parameters 7
2.6 Inflation 8
2.7 Cost Control 8
SECTION 3 THE COST PLAN AT OUlLINE PROPOSALS STAGE t
3.1 Definition 8
3.2 Objectives 8
3.3 Information Requirements 8
3.4 Methods of Preparation 8
3.5 Statement of Quantity and Quality Parameters 9
3.6 Design and Construction Period 9
3.7 Controlling Changes to the Cost Plan 9
3.8 Inflation 9
SECTION 4 THE COST PLAN AT SCHEME DESIGN STAGE
4.1 Definition 9
42 Objectives 9
4.3 Information Requirements 9
4.4 Methods of Preparation 10
4.5 Statement of Quantity and Quality Parameters 10
4.6 Controlling Changes to the Cost Plan 10
4.7 Inflation 10
SECTIONS COST CHECKING
5.1 Definition 10 ~
5.2 Objectives 10
5.3 Principles 10
SECTION 6 ACTION AFTER RECEIPt OF TENDERS
6.1 Objectives 11
6.2 Information Requirements 11
SECfION7 SOURCES OF COST INFORMATION
7.1 Objectives 11
7.2 Sources 11
7.3 Dangers 12
SECTION 8 FORMAT OF BUDGET AND COST PLANS
8.1 Objective 12
8.2 Format 12
APPENDIX
Square Index 24
Density of Vertical Division 24
Example of quantity generation 25
BIBLIOGRAPHY 26
ACKNO~EDGEMENTS 27 4

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. FOREWORD

by Roy Glbaud, FRICS, President of the Quantity Surveyors Division 1981182

This is the second Practice Pamphlet to be published in the series planned by the QS Members and Public Affairs Committee of the Council. A number of branches have undertaken the task of writing pamphlets for the guidance of the profession and for this one I congratulate and thank most sincerely the groups of members of the Essex County Branch for their zeal and hard work. I would also wish to thank Mr James Nisbet FRICS for his assistance with the technical editing and Messrs R E Jones FRICS and J A McAdam FRICS who, as members of the Practice Pamphlet Working Party, are making a major contribution to the whole series.

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INTRODUCTION

1.1 Objectives

The objectives of this pamphlet are to set out the pro· cedures which are necessary to enable a chartered quantity surveyor to carry out comprehensive pre· contract cost control for a proposed building project from the formulation of the client's brief, through the various design stages until a contractor's tender is finally accepted. The procedures are not designed for use with civil engineering projects, but may help to provide a framework which can usefully be adapted to civil engineering needs.

1.2 Format

The various sections of this pamphlet describe the steps to be taken and the checks to be made during the design process to ensure that the client's budget is not

exceeded: .

SECTION 1 - COST CONTROL AND COST PLANNING

SECTION 2 - BUDGET

SECTION 3- THE COST PLAN AT OUTLINE PROPOSALS STAGE

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SECTION 4·- THE COST PLAN AT SCHEME DES{GN STAGE

SECTION 5 - COST CHECKING

SECTION 6 - ACTION AFfER RECEIPT OF TEN· DER

SECTION 7 - SOURCES OF COST INFORMATION SECTION 8 - FORMAT OF BUDGET AND COST PLANS

APPENDIX BIBLIOGRAPHY

1.3 Preliminary Cost Studies and Feasibility Studies

It is recommended, as a matter of importance, that before and during the formulation of the client's brief, the quantity surveyor in consultation with other mem· bers of the design team and the client, will undertake such feasibility studies (as defined in the RIBA Plan of Work) as may be necessary to ensure that the client's requirements can be reasonably accommodated within

the finance that is available for the project. _

SECTION 1 - COST CONTROL AND COST PLANNING

1.1 Definition

Pre ·contract cost control is the total process which ensures -that the contract sum is within the clients approved budget or cost limit.

Cost planning is the technique by which the budget is allocated to the various elements of an intended build· ing project to provide the design team with a balanced cost framework within which to produce a successful design.

1.2 Objectives

The objectives which should be achieved, in conjunc· tion with other members of the design team are:·

1.2.1 To ensure that the client receives an economi· cal and efficient project in accordance with the agreed brief and budget.

1.2.2 To make the design process more efficient thus reducing the time needed to produce a successful design.

1.2.3 To ensure that all work arising from the client's brief to the design team is included in the cost planning process. (e.g. the engineering services should normally

Design Stages

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RIBA Stage B Feasibility

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Stage C Outline Proposals

Stage D Scheme Design

Stage E Detail Design

Stage F Production Information

Stage H Tender Action

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be subject to the cost planning process).

1.2.4 To acquaint the client, if appropriate, with the "costs in use" or "life cycle costs" of the project.

1.3 Generally

A general principle applies throughout the cost planning process that any agreed budget or cost limit is seen as the maximum cost, and the quantity surveyor should at all times work with the other design team members to satisfy the client at a lower cost if possible.

If at any time sums have been included in the approved budget for site abnormal costs, for example, which subsequentlyare found to have been wholly or partially unnecessary, the consequential saving should always be notified to the client.

1.4 Design Stages

References (e.g. RIBA Stage q given in this pamphlet are taken from the "RIBA Handbook of Architectural Practice and Management" (which includes the Plan of Work). The main stages through which a project design typically passes, and the links to the cost planning and control procedures, are summarised below.

Quantity Surveyor

Prepare feasibility studies and determine budget

Consider with client and design team alternative strategies and prepare cost plan

Carry out cost checks and update cost plan if necessary

Carry out cost checks

Prepare re·conciliation statement.

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SECTION 2 - BUDGET

2.1 Definition

The total expenditure authorised by the client which is within the responsibility of the design team.

2.2 Objectives

2.2.1 To establish the limit of expenditure necessary to meet the client's requirements set out in the brief.

2.2.2 To provide the client with a statement of the likely area and quality of building, which can be achieved within the limit of expenditure, and of the recommended methods of construction and contrac· tual procedures necessary to achieve the required occupation date.

2.2.3 To provide the client with alternative budgets for different completion dates and quality of building, if appropriate.

2.3 Information Requirements

The basic requirements from the client and members of the design team to the quantity surveyor are as follows:

2.3.1 From the client:

(i) location of the site; the availability of the site for commencement of construction work

~ (ii) In conjunction with the architect, a schedule of accommodation.

(iii) Names of other similar buildings of broadly suitable quality if appropriate.

(iv) The required occupation daters).

(v) Any specific requirements relating to life cycle costs.

(vi) Any specific requirements as to specification and/

or procedures.

(vii) Requirements in respect of inflation. 2.3.2 From the architect:

(i) Approximate location of the building on the site. (ii) Advice on necessary minimum storey heights for

specialist areas on schedule of accommodation.

(iii) Advice on likely planning conditions.

(iv) Advice on likely Fire Regulations.

(v) Advice on routes of public sewers etc. (vi) Architects concept of building.

(vii) Names of previous similar projects designed by the practice.

2.3.3 From the services engineer:

(i) Advice on areas of building which will require

specialist engineering services.

(ii) Advice on availability of public utility services. 2.3.4 From the structural engineer:

(i) Advice on probable ground conditions. (ii) Advice on probable floor loadings.

The information from the quantity surveyor to the design team is as follows:

2.3.5 To the client, a report containing:

(i) The budget, with alternatives if appropriate.

[ii] A statement of the basis of the budget calculation including any important assumptions made.

(iii) A statement setting out the time for design and construction which the budget cost will meet.

(iv) Cash flow forecasl

(v) A statement of items not included. (See Section 8

for format)

2.3.6 To the architect:

(i) A copy of documents sent to the client.

(ii) A more detailed statement of quantity & quality parameters included in the calculation. (See Section 8 for format.)

2.3.7 To other consultants:

(i) Such quality & quantity parameters as relate to . their area of design.

2.4 Methods of Preparation

The method of preparation will depend on the type of project involved. Unusual projects, projects of great complexity and projects containing a large element of alterations, cannot normally be accurately budgetted at an early stage. For many other types of project, it is possible to build up a budget using the parameters set out under 2.5 below.

The main elemental quantities of hypothetical buildings can easily be generated using agreed parameters, to which rates applicable to agreed quality and performance standards can be applied. An example of a method of calculating is described in the appendix. Once the budget has been calculated in this way it provides the first cost plan for the project, and therefore the framework for the actual design to develop.

2.5 Statement of Quantity & Quality Parameters

The main parameters which should normally be included in the calculation are as follows:

2.5.1 Quantity

(i) In addition to the briefed areas, a statement of the allowances for circulation etc. used to calculate a gross floor area.

(ii) The number of storeys of a possible solution. (iii) The storey height(s).

(iv) The square index (see appendix) orwalllfloor ratio (v) The density of vertical division (see appendix) or

partition/floor ratio.

(vi) Proportion of window area. (vii) Floor loadings.

(viii) 'U' Values of fabric. (ix) Air change rates.

(x) Heating and hot water loads. (xi) Lighting levels.

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(xii) Total electrical load.

(xiii) Areas of the brief with special functions of signific-

ant cost.

(xiv)Road area & number of car parking spaces. (xv) Paved pedestrian areas.

(xvi) Length of boundary walls or fencing. 2.5.2 Quality

General statement of quality and specification which relates to the rates used for the budget calculation. This should cover specifically the following; foundations, roof, external walls, upper floors and vertical circulation' internal vertical division, internal finishes, fumi· ture, furnishing and equipment, heating services, lighting and other services. External works should include roads, paths, landscape, boundary walls and fences, and service mains etc.

2.6 Inflation

The prediction of future inflation may not be necessary for some clients, and a statement of cost at current

prices may be adequate. Where an assessment of inflation is required for more than a few months ahead, a range of probable inflation is best provided. This can be calculated USing predictions published by the BeIS, the Architects Journal, or the PSA projections. The assumptions upon which the prediction is made may need to be stated.

Some clients, particularly in the public sector, have their own inflation controls. Sometimes these are unrealistically low, and where this is likely to be a significant factor, professional judgement needs to beexercised insetting the level of estimate to which the controls will apply,

2.7 Cost Control

If at any time during the design process it becomes apparent that the agreed budget is likely to be exceeded, without a change to the brief, the client should be informed and instructions requested. likewise, if it becomes apparent that the whole of the agreed budget will not be required, the client should also be informed.

SECTION 3 - THE COST PLAN AT OUTLINE PROPOSALS STAGE

3.1 Definition

A statement of the cost of an intended design at the outline proposal stage (RIBA Stage C) which details the cost targets for the main elements of a building, together with approximate quantity and quality para' meters which meet those targets.

3.2 Objectives

3.2.1 To describe, together with the outline proposal drawings, the chosen distribution of the resources made available by the budget to provide a balanced design to meet the clients needs.

3.2.2 To set cost targets for the main elements so that, as the design develops.. the targets are checked and adjustments made in order that the overall cost of the project is controlled within the budget.

3.2.3 To provide the whole design team with a control document which communicates the costs, quantity and quality parameters which are to be followed.

3.2.4 To provide the opportunity for a preliminary consideration of life cycle costs.

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3.3 Information Requirements

The basic requirements from the members of the design team to the quantity surveyor are as follows:

3.3.1 From the client:

(i) Confirmation of the budget: Where alternative budgets were quoted in the budget report the client must state his preferred alternative.

(ii) Confirmation of the design and construction times stated in the budget report.

(iii) Confirmation of the brief.

(iv) Acceptance of any other matters within the budget report, and authority to proceed.

3.3.2 From the architect:

(i) Outline drawings of the building and site works indicating alternative solutions.

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(il) Indication of preferred specification for main elements.

3.3.3 From the services engineer:

(i) Outline proposals of installations indicating alternative systems.

(il) Indication of preferred specification, after acceptance by the architect of the visual implications.

3.3.4 From the structural engineer:

(i) Outline proposals of alternative structural solutions.

3.3.5 From the specialist consultants: (i) Outline proposals.

The information from the quantity surveyor to the

design team is as follows. ~

3.3.6 To the client, a report containing:

(i) A statement of cost.

[ii] A broad indication of the specification.

(iii) A statement of floor areas. (See Section 8 for format.)

(Iv) A request for decisions on any alternative propos·

a1s.

3.3.7 To the architect:

(i) A copy of documents sent to the client. (ii) The cost plan. (See Section 8 for format). 3.3.8 To other consultants:

(i) Such quality and quantity parameters as relate to their area of design and target costs.

3.4 Methods of Preparation

The method of preparation will either be by the meas· urement of approximate quantities and the application ofrates to the quantities generated, or from comparison of the requirements with analyses of previous projects

of a similar character. Evaluation should be made of the alternative forms of construction, or systems, of the 'key' elements, e.g. structural requirements, service Installations, etc. The 'key' elements on each project will vary. However, it is anticipated that they will be those with the major financial conseq uences, and will almost always include the structural and service elements,

3.5

Statement of Quantity and Quality Parameters 3.5.1 Quantity:

(i) The areas of the accommodation divided into use classification, (e.g. office/classroom space, sanitary accommodation space, plant room space, circulation space, etc.), totalled to give gross floor area.

(il) The storey height(s}. {iii} Roar loadings.

(iv) 'U' values of fabrics. (v) Air change rates.

(vi) Heating and hot water loads. (vii) Lighting levels.

(viii)TotaJ connected electrical load.

(ix) Road area, number and area of car parking spaces.

(x) Paved pedestrian area.

(xi) A schedule of those items for which lump sum allowances have been incorporated

3.5.2 Quality:

) A statement of quality and specification, in similar format to that provided at budget stage, expanded to incorporated additional information. The parameters should follow those included in the budget stage, where possible based upon the outline drawings and preferred specifications.

3.6 Design and Construction Period

In establishing the outline cost plan, the quantity surveyor must take into account the consequences of the proposals made by the other members of the design

team upon the design programme and the construction programme.

Where completion dates are critical, the selection of components or systems should be made with a view to there being acceptable alternatives available if there should be a supply difficulty.

3.7 Controlling Changes to the Cost Plan

When a change is proposed to the outline cost plan the following procedures should be followed:

3.7.1 All relevant members of the design team should be informed.

3.7.2 The architect should confirm his agreement, in principle, to the proposal.

3.7.3 No proposal should be incorporated into the cost plan without the agreement of the quantity surveyor, and he should indicate his confirmation that the proposal can be met within the agreed elemental target.

Where the proposal incurs additional cost over the elemental target, or would cause the total budget to be exceeded, the quantity surveyor should positively indicate to the design team alternative savings that are available to maintain the overall budget.

3.7.4 Upon the conclusion of a proposed change, the quantity surveyor should communicate to the client, and all members of the design team, the consequential effects of the change and provide an up-dated cost plan.

3.7.5 The quantity surveyor should take into account, when considering the proposed change, the likely effect on the design and construction programme.

In all considerations of alternative proposals, the use of consultants for additional work should take into account any consequential addition to professional fees. In particular, this applies to consulting engineers, whose fees are calculated only on specific parts of the project.

3.8 Inflation

Where the client has been given a forward projection of inflation, and where this prediction is Significantly changed, it should be reported periodically.

SECTION 4 - THE COST PLAN AT SCHEME DESIGN STAGE

N.B. Where the cost plan has already been produced at an earlier design stage only updating may be required.

4.1 Definition

A statement of the cost of a selected design at the scheme design stage (RIBA Stage D) which details the cost targets for all the elements of a building, together with the quantity and quality parameters described by the scheme drawings and specifications.

4.2 Objectives

4.2.1 To set out for the design team the actual distribution of resources described by the scheme design.

4.2.2 To set cost targets for all the elements so that, as the detail design develops, the targets are checked and adjustments made in order that the overall cost of the project is controlled within the budget.

4.2.3 To provide the whole design team with a control document which describes, in detail, the costs,

quantity and quality parameters which have been adopted.

4.3 Infonnation Requirements To the quantity surveyor: 4.3.1 From the client:

(i) Confirmation that the cost plan prepared at the outline stage is acceptable.

[ii] Confirmation of the brief.

(iii) Indication of any preferred alternatives given in a previous cost plan.

(iv) Acceptance of any other matters within the previous cost plan report, and authority to proceed.

4.3.2 From the architect:

{i} Scheme drawings and scheme specifications.

4.3.3 . From the services engineer:

(i) Scheme drawings and scheme specifications.

(Ii) Detailed design parameters, e.g. heat loads, elec-

tricalloads, etc.

4.3.4 From the structural engineer:

(i) Scheme drawings and scheme specifications. (ii) Confirmation on floor loadings and the like.

(iii) Provisional indication of reinforcement weights,

where appropriate.

4.3.5 From the specialist consultants:

(i) Scheme drawings and scheme specifications.

The information from the quantity surveyor to the design team is as follows:

4.3.6 To the client, a report containing: (i) A statement of the cost.

(Ii) A statement ofthe specification. (ill) A statement of the floor areas.

(iv) A statement of the proposed design and construction programme.

(v) A cash flow forecast, where appropriate.

(vi) A statement of the relevant life cycle costs, where

appropriate.

4.3.7 To the architect:

(i) A copy of documents sent to the client. (ii) The cost plan (See Section 8 for format). 4.3.8 To the other consultants:

(i) Such quality & quantity parameters as relate to their area of design and their target costs.

4.4 Methods of Preparation

The method of preparation should normally be by measurement of approximate quantities from the proposed scheme drawings. The degree of detail to be measured should be related to the cost significance of the elements in the particular design. Likewise, the pricing should be Similarly related. Some elements may still be most suitably priced on an elemental unit rate basis, where the cost significance is low. Major elements will normally need to be priced in greater detail.

The preliminary engineering and specialist services

SECTION 5 - COST CHECKING

5.1 Definition

The process of calculating the costs of specific design proposals and comparing them with the cost plan duro ing the whole design process. (RIBA Stages 0 to Fl.

5.2 Objectives

(i ) To allow flexibility in the design process for change of mind, whilst maintaining overall cost control of the project within the framework of the cost plan.

(ii) To reduce the amount of abortive design work and lost time caused through proceeding too far in the design process before realising that the budget will be exceeded.

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scheme drawings and outline specification notes will be required from the consulting engineers, from which approximate quantities of equipment can be measured and priced using all-in rates. Pipework and cables will normally still need to be priced on an overall basis related to floor area or service points at this stage. This also ensures that the likely builders work implications are understood by the design team and the costs are taken into account.

4.5 Statement of Quantity and Quality Parameters 4.5.1 Quantity:

(i) The areas of the accommodation divided into use classification. (e.g. office/classroom space, sanitary accommodation space, plant room space, circulation space, etc.), totalled to give a gross floor area.

(ii)The storey height(s). (ill) Floor loadings

(iv) "U' values of fabric (v) Air change rates.

(vi) Heating and hot water loads. {vii} Lighting levels.

(viii) Total connected electrical load.

(ix) Road area and number of car parking spaces. (x) Paved pedestrian areas.

(xi) A schedule of those items for which lump sum

allowances have been incorporated

4.5.2 Quality:

A statement of quality and specification based on scheme drawings in sufficient detail to provide control of the production information drawings by the architect and consultants.

4.5.3 Life cycle information:

A statement of the likely relevant maintenance, cleaning' and running costs which are required or implied by the scheme design proposals.

4.6 Controlling Changes to the Cost Plan

The principles have been described in paragraph 3.7.

4.7 Inflation

(See paragraph 3.8)

5.3 Principles

The methods will vary according to the stage reached in the design process. Normally, however, this takes the form of measurement of approximate quantities from the consultants drawings, to provide a check on the quantity and quality of parameters set down in the appropriate cost plan. The gross floor area should always be the first check at any stage.

The two dominant considerations in deciding the priorities for cost checking elements are as follows.

1) The cost Significance of an element related to the total cost of the project

2} The known variability of cost of an element i.e. where a wide range of cost is possible in an element' it will be necessary to cost check this before checking elements of low variability but of the same overall cost significance.

Judgement must be applied before notifying the architect of possible excess expenditure in a par· ticular element. If an excess revealed during cost checking is of such significance that it is highly improbable that compensating savings will occur elsewhere, then this must be notifed immediately and the design team must be asked to consider modification to the cost plan. If, however, the excess (or saving) revealed in an element is rela-

tively small and there are still a number of elements to be checked, it is usually more appropriate to advise the architect of the difference and to suggest that no further action is taken until further cost checks have been carried out, since these may produce compensating amounts,

It is important for the quantity surveyor to maintain proper records of the cost checking process, setting down on a summary the value of the elements cost checked compared with the cost plan targets, and to be especiaUy clear as to the drawings or information upon which the cost check has been based.

SECTION 6 - ACTION AFTER RECEIPT OF TENDER

')lECTION 7 - SOURCES OF COST INFORMATION

6.1 Objectives

6.1.1 To provide a contract sum within the approved budget.

6.1.2 To provide suitable analyses for future projects.

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6.2 Information Requirements To the quantity surveyor:

6.2.1 From the architect and other design consultants:

(i) Provisional list of potential areas of saving (to be considered during tendering period).

(ii) Detailed list, drawings etc., to determine actual

savings, if required,

6.2.2 From the client:

(i) Acceptance of potential savings, if required.

(ii) Details in respect of any analyses required. (Where the client body is a Public Authority or the like where standard analyses are always required, consideration of this matter should be given in the construction ofthe Bills of Quantities.)

6.2.3 From other sources:-'

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7.1 Objectives

To ensure that all costs used are up to date and accurate.

7.2 Sources

7.2.1 Cost analysis:

(i) Building Cost Information Service (BCIS).

(ii) Chartered Quantity Surveyor, Architects Journal,

Building.

(iii) In-house cost analyses of previous projects. 7.2.2 Price information handbooks:

(i) Spon's - Building/Mechanical and Electrical!

Landscaping Price Books.

(ii) Laxton's Price Book.

(iii) Griffith's Price Book.

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(i) Indexing of the tender by BCIS to establish con-

finnation of tender levels, if appropriate.

The information from the quantity surveyor to the design team is as follows:

6.2.4 To the client, a report containing:

(i) A statement of the cost reconciled to the latest budget.

(ii) Any further Information in respect of the construction programme.

(iii) An updating of the preliminary cash flow forecast,

where appropriate.

To the architect:

(i) A copy of documents sent to the client.

(ii) A detailed reconciliation between the tender and the latest cost plan.

To the other consultants:

(i) Such information as relates to their area of design

and associated costs.

Note: See the Practice Pamphlets entitled "Tender Action" (Section 5 and 6) and "Cost Analysis", for a fuller description of the procedures applicable at this stage.

(iv) Blue and buff books (Building Materials Market Research).

(v) Building.

(vi) Cost Data File for the Building Industry. (BWS

Ltd.)

(vii) In-house priced Bills of Quantities. {viii} Specialist suppliers quotations

7.2.3 Published indices

(i) BCIS Tender Indices and Cost Studies on Reg·

ional Variations.

(ii) DoE (Housing and Construction Statistics). (iii) NEDD.

(iv) Architects Journal. (v) Building.

(vi) cms Journal.

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(vii) Building Services Research and Information Association (BSRIA) Statistics Bulletin.

7.3 Dangers

The following items should be taken into account when using any of the above information.

(a) Differential rates of inflation on various aspects!

elements of the building.

(b) Acute shortages in specific trades at different times. (c) Regional variations.

(d) Market conditions of analyses.

(e) Careful consideration of external published infor· mation.

(f) Consideration of tender period and its relationship to the tender period of the analysis.

(g) High levels of inflation demand constant checking of rates and prices.

(h) Assumption that cost information in cost analysis is tendered price information, when a significant amount could be in prime cost or provisional sums.

0) Initial quotations from specialist suppliers etc. are likely to be low.

(k) Building regulations can be statutorily amended, e.g. energy conservation measures have increased the 'U' value requirements for roofs and walls. Care must therefore be taken to ensure that the analysis used is consistent with current building standards.

0) Arm priced or fluctuating contracts.

(m) Special planning conditions applying either to the analysed or to the current project.

SECTION 8 - FORMAT OF BUDGET AND COST PLANS

L1 Objective

8.1.1 To communicate clearly to the client, architect and consultants the basis of the budget and cost plans.

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8.2 Format

The presentation of information to the client and design team should be of a high standard. The budget and cost plans are the result of the application of a high level of professional skill, and the format of documents should reflect the importance that the profession attaches to this service .

The example of format included in this pamphlet is intended as a guide to good practice showing the main areas of information that may require coverage. The first 4 pages of the example are intended as a guide as to what can be provided to a client to ensure that there is dear statement of the budget or cost limit, its lnclu-

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sions and exclusions, together with the total programme to which the budget relates and the standards which have been used in its calculation. They are client orientated. Provision is made for the chartered quantity surveyor to suggest alternatives which the client may wish to consider. If life cycle costs are to be prepared, the client should be given this information and page 11 is a simple guide to this. A copy of information sent to the client should normally be sent to the architect. In addition the architect should receive the information contained on pages 5 to 10 when the cost plan is pre· pared. These are architect orientated. They should clearly set out the main parameters affecting the cost targets.

The precise level of detail to be included in these documents should relate to the size and complexity of projects. Simple projects may require less information than shown in the example, complex projects significantly more.

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CONSTRUCTION BUDGET AND PROGRAMME

CLIENT PROJECT

Budget serial number: .

COSTS (for basis see sheet )

Price base date: _ _ _ . __ __ . . .. 19 .

New building work:

Site works:

Alterations:

AT TENDER

costs payable to construction period

COSTS AT COMPLETION

VALUE ADDED TAX - On construction %

On fees _ %

TOTAL BUDGET OF CONSTRUCTION WORK AND FEES

Exclusions from budget

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TIME

Preliminary !Final Programme (weeks)

Alternative 1

Alternative 2

as Budget Cost o

Client decision to accept budget and proceed

Final brief and scheme design approved .

o

o

Receipt of first tenders Formation of contract

Alternative 1

Construction commencement .

Clientoccupation:phase .

: phase .

; phase .

: phase .

Total Cost Variation (including fees)

£

Contractor and/or Construction implications of programme

The alternative time scales shown make the

Alternative 2

CASH FLOW-

Quarterly from acceptance

and authority to proceed (including fees)

1Q 2Q 3Q 4Q 5Q 6Q 7Q 8Q 9Q lOQ llQ 12Q Balance Total
lAs Budget Cost I
Alternative 1
Alternative 2 NOTE: All figures in thousands

Construction commencement quarter indicated by 'C' Occupation quarter indicated by '0'

Balance shown normally payable during first year of occupation

14

()

,. 1- II

-J

BASIS OF BUDGET

Areas

Comment

Area m2 (sq. ft.)

bfin. floor to ~ax. floor

ceiling ht- m(ft) loadings- kN/m2

Schedule of Accommodation

Internal finishes:

TOTAL FLOOR AREA

Quality Standards External elevations:

Heating & ventilation:

Lighting:

Site works:

Other (specify):

Exclusions from budget:

. ",- :,.~.,.. . .."."._ J , •. ~ • ~,'""'- ",- "'-'J

15

Alternative Standards

£

Comment

Cost Extra/Saving

Alternatives

Budget prepared by:

Signature:

FIrm:

Date:

16

(

TECHNICAL QUANTITY AND QUALITY PARAMETERS

(Budget serial no. . )

BUnDING

Block:

...... 4 ~ • ~ •••• ~ ~ - ...

Quantity

Gross floor area: m2

Maximum square index: (Perimeter on plan

No. of storeys: Floor to ceiling heights: lowest

...................... m)

m

............. m

.............. m

Floor/roof zone:

Calculated external wall/floor ratio: .

Proportion of glazed external wall area: %

Density of vertical division: .

measured over €;loor openings: .

Calculated partition/fioor ratio: .

lifts: No. Type: .

Stairs: number of flights: No.

of partitions and internal walls

Structural

Ground bearing pressure: .

Ground water level: .

Floor loadings - Ground: .

Intermediate: .

Highest: .

. kN/m2 (maximum live)

. kN/m2 (maximum live)

. kN/m2 (maximum live)

2 (maximum live)

Roof loading:

Environmental

Fabric 'U' values: Roof:

................. W/m20C .............. W/m20C

.................. ·.W/m20C

Air change rates

Heating load: klW ( W /m2)

Hot water load: klW

Contd ...

17

· )

TECHNICAL QUANTITY AND QUALITY PARAMETERS (Contd.)

Ughting levels

(Specify spaces, lux level and load in W/ml)

Other:

Total lighting load: ". k/W ( W/m2)

"Total powerload: k/W ( W/ml)

Special areas with higher than average service or other costs (specify)

ExtemaJWorks

Site area: hectares

Road area: m"

Number of spaces: No.

Area: m2

Pedestrian paved areas: .

'" .undary walls or fencing:

Other:

(If quantities calculated from

state drawing number(s) etc:

18

c

SPECIFICATION

Block:

. . . . . ~ .. ~ , . . . . . . . .. ~ . - .

E1ements

Substructure

External walls and windows

Roofs

Upper floors/ stairs/lifts

Internal vertical division

Internal finishes

Fittings etc.

Cost + or£

Contd ...

Specification included in budget/cost plan

Alternatives

19

SPECIFICATION (contd.)

Elements

Specification included in budget/cost plan

Alternatives

Cost + or£

1

.J

Hot and cold water services/ sanitary fittings/ internal drainage

. Heating and ventilation

Ughting and power

j

;i ,

Other services

Road and vehicle parks

Paved areas and landscape

Drainage

(

(

20

,

i li, : ZQQUM4M4iig

g

.. aug: £ 2 WW i\l!!9i§g;g

COST TARGETS

Price base: 19 .

Rate

Target cost Cost per

£ m2£

Block: .

Elements

Parameter

21

COST TARGETS

Price base: 19 .

Block: .

Rate

Target cost Cost per

£ m2£

Elements

Parameter

22

(

((

fJi ._,

ra
:::l.fl
c::: <I)
.&8CH
~
C/')
0 ..x <I)
U u (I)
..Q ~ <I) ~ u
UJ III ...!2 c:::
d ta 0 ,,~ .8 ~
.... s 0 ~.~ .s a
f:) 0 ~ " «l G-
OJ ta ta a ~a! OJ o B -s
c::: E 0 E c::: <I) <Il
~ ~ ~ c::: +:::: .... ~ ~ <I) c:::
UJ " ...!2 -o ,.J
0 Il) c::: Q) 0 ~ :@ «l2 ..c: <I) c::: :::l «
u.. 0 X ~ x r:e Il) «l OJ .t: .s 0 l-<
- .::J ::l
...I ro 0::: U.l UJ U :r:~ ro 0
t- ......

~ u

23

APPENDIX

-s

Square index

This index is simply a way of describing the degree to which the perimeter length of an actual building exceeds that of a building of the same area which is a perfect square. Any single storey building can be described, as also can multi storey buildings, with a constant shape at each floor.

Formula s = *

where P = Perimeter length on plan

a = Area on plan

(not the gross floor area in multi storey buildings)

s = Square index.

Density of vertical division

Thisdensity provides a coarse measure of the amount of partitioning, loadbearing walls etc. that a building contains. As the formula includes the perimeter of the building, it

. takes into account the contribution to the enclosure of spaces that this makes.

Formula d = (Vz Ip) + L A

where p = sum of the perimeter lengths of a building measured

at each floor.

(.

L = total length of partitions etc. measured over doors.

A = gross floor area.

d = density of vertical division.

Example of quantity generation for a hypothetical building Assumptions

From brief, gross floor area (A): = 1350m2 (including circulation) Site area dictates a two storey solution (n) = 2 storeys

Average floor to ceiling height: 2.7m

Assumed floor/roof zone: 600mm

Square index (s): 1.4

Density of vertical division (d): .3 Area of ground floor (a) =675m2

Calculation of Quantities

R

Element Formulae Calculation Parameter
Substructure A 1350 = 675m2
n 2
Upper floors n -1 r ) - area?f stair [2-1) (~)] - 40 ~ 635m2
n opemngs
oof ..A + .3(4sVa) 1350 + .3(4 x 1.4 V675) = 718m2
n (.3 is assumed wall width) 2
xtemal walls n(4sva) 2(4 x 1.4V675) (2;7 +.6) = 960m2
(incl. windows & X (Floor ceiling ht +
xtemal doors) zone)
(see note.)
temal dA - n(4svaf (.3 x 1350) - 2(4 x 1.4V675)
ertical 2 2
'vision x Floor to ceiling x·2.7 = 700m2
height
ross floor 1350m2
ea E

.. .1

e

In

v

di

G ar

The quantities calculated in this, or similar ways, can then be used with selected Element Unit Rates to calculate budgets and cost plans for projects in the earliest stages of design, or for checking the approximate cost difference of alternative design solutions.

N.B. A percentage can be used to split 'wall' from 'window'.

i .~

1

i

,

i

25

BmLIOGRAPHY

1

Books

Estimating and cost control Nisbet, Batsford 1961.

Pre-contract practice for architects and quantity surveyors. 5th ed. (metric)

Aqua Group. Crosby Lockwood Staples 1974 £2.50

BUilding cost control techniques and economics.

Bathurst, P. E. and Butler, D. A. Heinemann 1973 £5.75

National standard control procedures for house construction costs.

Eire: An Foras Forbartha, 1979, £2.00

Estimating in building and civil engineering. Proceeding of conferences held on 20 September 1973 and 22 and 23 March 1974 at Loughborough University.

Department of Civil Engineering ed. by R. McCaffer. Northwood Publications 1975 £2.50

. Estimating for building and civil engineering works 6th ed.

Geddes, S. Newnes-Butterworths 1976 £13.00

Cost control in building design: a programmed text ~Teat Britain Minishy of Public Building and Works: .. ie Directorate of Building Management HMS01968£1.50

Cost control manual

National Public Works Conference 1977.

An introduction to cost planning

rucs 1976 £4.00

Building economics and cost planning. Browning, Batsford 1961.

Cost Planning of buildings

Ferry, D. J. and Brandon, P. Granada 1981 £6.95

Aspects of the economics of construction

TUrin, D. A Godwin, 1975 £6.50

Estimating for residential construction.

Van Orman, H. Van Nostrand Reinhold, 1978 £8.90

Engineering services cost planning and control policy statement.

1; 1963

RICS Nottingham Conference No.3 Project cost control. A. C. Southwell, FRiCS. Running costs of buildings - the significance of running costs in the cost planning and design of buildings. 1967 (out of print).

Building and public works administration estimating and costing. Geddes, S.

Newnes, Butterworths. 1967. 6th edition. £3.50

Purchasing in the construction industry.

Dand, R. and Farmer, D. Gower P_ 1970. £4.25

Estimating building construction: quantity swveying. Hornung, W. J. Prentice Hall, 1970. £5.50

Building cost forecasting: selected papers on a systematic approach to forecasting building costs.

Southwell, J. rues. 1971 £3.00

Cost study, pre-tender stages of the building process. BUilding Bulletin 4. HMSO, 1972

Cost-m-use: a guide to data and techniques.

HMSO, 1972. £0.90

i· 26

I

biazg--"-ZE

Building economics: appraisal and control of building design cost and efficiency. Seeley, I. H. Macmillan, 1972. £5.00

Cost planning and building economics. Cartlidge, D. P. Hutchinson, 1973. £2.50

RIBA Handbook of architectural practice and management.

Articles/Papers

Cost estimating service combines two broad data bases. Brager, E. Architectural Record (4) April 1979, 73-75 (2) (Abstract 24971)

A framework for cost exploration and strategic cost planning in design.

Brandon, P. Chartered Surveyor Building and Quantity Surveying Quarterly 5 (4) Summer 1978,60-63.

Costs and standards for new public sector building.

Budd, R. Housing Review 25 (2) March/April1976, 33·37 (5) (Abstract 20362) .

Cost planning the design process.

Smith, G. Chartered Quantity Surveyor 3(1) August 1980, •.• 13-16. •

The construction control estimate .

Cowley, J. Chartered Quantity Surveyor 2(4) November 1979, 78-82 (5) (Abstract 25666).

Initial cost estimating: cost of warehouses.

Davis Belfield and Everest. Architects' Journal 165(22) 1 June 1977, 1037-1042 (6) (Abstract 21934).

Initial cost estimating: cost of factories.

Davis Belfield and Everest. Architects' Journal 166 (37)14 Sept 1977, 509-516 (8) (Abstract 22413).

Initial cost estimating: the cost of housing.

Davis Belfield and Everest. Architects' Journal 167 (68 February 1978, 265-274 (10' (Abstract 23028).

Initial cost estimating: the cost of flats and maisonettes. Davis Belfield and Everest, Architects' Journal 167 (22) 31 May 1978, 1059-1071 (13) (Abstract 23386).

Initial cost estimating: shops.

Davis Belfield and Everest, Architects' Journal 168 15 ...... November 1978, 945·956 (12) (Abstract 24145). W

Initial cost estimating: offices.

Davis Belfield and Everest, Architects' Journal 170 (28) 11 July 1979, 81·94 (7) (Abstract 25251).

Control of costs allowances for uncertainty.

Duff, A. R. Building Technology and Management 14(7) July/August 1976, 19, 45.

A new look at estimating the cost of repetitive work.

Duff, R. Building 236 (7084 20 April 1979, 56-58 (3) (Abstract 24805).

Initial cost estimating: hotels.

Farrington, N. and De Vaal, D. Architects' Joumal169 (12) 21 March 1979, 601-609 (9) (Abstract 24709).

Cost planning.

George, W_ H. Building Economist (Journal of the Australian Institute of QS) 12 (3) December 1973, 148·158 (11) (Abstract 16927).

Quality and total cost in building and service design - a case study.

Hoskins, B. J. and Read, J. Building Services Engineer 45 (6) September 1977, 93-103 (11) (Abstract 22411).

M &+.

::

Assessing the economics of building: proceedings of sym-

., posiurn Dublin 19-21 June 1974.

Intematio~al Council for Building Research Studies and Documentation. Dublin: An Foras Forbatha, 1974.

Control is on the shop floor.

Jackson, T. Chartered Quantity Surveryor 1 (4) April 1979, 107-111 (5) (Abstract 24802).

Cost planning and the future.

January, M. Building Economist 16 (3) December 1977, 142-145 (4) (Abstract 23143).

A cost model for reinforced concrete frame design: cost comparison and decision making.

Moore, G. Chartered Quantity Surveyor 2 (3) October 1979, 40·44.

Cost control from inception to completion in public officers committee: Value for money - the economics of land and building.

Nott, C. M. rues 1971.

Construction finance and cost escalation.

Perry, J. G. ICE Proceedings 62 (1) November 1977, 623-642 (11) (Abstract 22727).

t"");'roject cost control by sensitivity analysis.

Construction Surveyor 8 (27) January/March 1978, 14-15 QS Weekly 8 September 1977, 3-4 (2) (Abstract 22502).

On the cost model.

Reynolds, G. Building 235 (7059) 20 October1978, 91: (7060) 27 October 1978,67 (2) (Abstract 23918).

Economy in building - the role of the chartered quantity surveyor

P. W. Grafton RICS 1965.

European practice in controlling construction costs. Glendinning, N. J.Gennany; Osborne, J. G. Netherlands; Trouilloud, L France. rues 1973.

Cost planning for control.

Sherran, R Cost Engineer 16 (6) November 1977,4-7

FInancial management in reaction to refurbishment contracts.

Smith, P. A in Managing the nation's land resources. Rles 1976.

lroject cost control

Southgate, A C. in The economic life of buildings. RIes.

Estimates of uncertainty.

Stacey, N. Building 237 (7110) 19 October 1979, 63-64 (2) (Abstract 25667).

Counting the cost.

Watson, B. Building Services 2 (2) February 1980, 42·43 (2) (Abstract 26215).

The influences of tendering methods on engineering costs. Watson, B. Chartered Quantity Surveyor 1 (5) May 1979, 149-151 (3) (Abstract 24970).

Cost planning and cost control

Nisbet J. Architect's Joumal3rd, 10th and 24th November, 1965.

Building decisions and economic appraisal techniques in practices.

Heming, M. C. Building 218 (6622) April 17, 1970 pp 73-78 (5) (Abstract 10847).

Client time and cost control with network analysis. Kennedy, W_ B. Anson, M and Myers, K A

Building Economist 9 (3) November 1970. pp 82· 92(11)(Abstract 12012}.

Categories for information considered, 4 categories and non -contract documents, 1 Cost analyses and cost planning. Building 221 (6685) 2 July 1971 pp 57-61(5).

Controlling the costs of engineering services in buildings. Berryman, A Chartered Surveyor 104 (2) August 1971 pp 81-84 (4).

ACKNOWLEDGEMENTS

The Quantity Surveyors Divisional Council of the Royal Institution of Chartered Surveyors is greatly indebted to the follwing members of the Essex County Branch who were responsible for preparing the text of this Practice Pamphlet.

R H Ashbee FRIes MIOB N Clark FRICS AMBIM

C J E Dove FRIes

F A Shaw FRIes

G AJSmith ARIes Dip(CE)

27