Cost Planning Workshop

JAMES R.
KNOWLES
Cost Planning Workshop
September 2008
JRK Seminars
1 www.jrknowles.com
JAMES R. KNOWLES
Purpose of Workshop
To provide guidance to RICS APC candidates with regards to typical questions on the Design Economics and Cost Planning competency To discuss theory and how it relates to practice for those who want to improve their cost planning skills
JRK Seminars
2 www.jrknowles.com 2
JAMES R. KNOWLES
APC Levels to be covered

Design Economics and Cost Planning
Level 3 for those who work for Professional Practice Level 2 if optional subject for those working for Contractors
JRK Seminars
3 www.jrknowles.com
JAMES R. KNOWLES

Level 1 - Explain
main factors that affect design economics over the whole life of a building. how cost planning assists in the financial control of projects during the design development stage.
JRK Seminars
4 www.jrknowles.com
JAMES R. KNOWLES

Level 2
Knowledge of the cost management of design development on a project from feasibility to design completion. Prepare and submit cost data to in-house and/or external data collection agencies.
JRK Seminars
5 www.jrknowles.com

Level 3
JAMES R. KNOWLES
Give strategic and reasoned advice, including the preparation and presentation of reports with reference to cost, time, quality and buildability. Advise on various market factors and trends in construction costs. Comment on accuracy and risk
JRK Seminars
6 www.jrknowles.com
JAMES R. KNOWLES
Cost Planning
You need to understand the
Why, when, how and issues
JRK Seminars
7 www.jrknowles.com
JAMES R. KNOWLES
Management Cycle
Control cycle Plan Adjust Report Monitor
JRK Seminars
8 www.jrknowles.com
JAMES R. KNOWLES
Cost planning - theory

A MUST! Plan, create Baseline - initial cost plan Review further drawings ( could be at different
design stages /Gateways)
Report (why the costs have changed) Adjust client decision for design changes / VE etc Repeat as design develops
JRK Seminars
JAMES R. KNOWLES
Cost Data
Analyse Bills of Quantities Collect data from your own projects to form a data base Have a standard approach to analysing into elements Know how to adjust historic data to create your cost plan
JRK Seminars
10 www.jrknowles.com
10
JAMES R. KNOWLES
Typical formats
BQ -Trade order
Separate bills for specialists Depends on SMM used
Analysis BCIS elemental

Specific guidelines on what is included in each element.
They dont match!
JRK Seminars
11
JAMES R. KNOWLES
Collecting Cost Data

Establish an appropriate data base Exercise no 1 What useful information ( from an existing project) do you need for planning the cost of future projects Cost per m2 = Overall cost/gross internal floor area? Others?
JRK Seminars
JAMES R. KNOWLES
BCIS elemental format

Building Cost Information Service
Part of RICS, in UK collect data, analyse and present for use in cost planning
Standard approach to allocating costs to elements Some information is available from www.bcis.co.uk but you need to be a subscriber to get full details
JRK Seminars
JAMES R. KNOWLES
Presenting Cost data

3. BCIS SUMMARY ELEMENT ALL ELEMENTS CONSTRUCTION WORKS: COST (AED) COST/ AREA (AED/ m2)
Extensive ground works due to poor Sub-Structure Super-Structure Internal Finishes F,F&E Services External Works and services Preliminaries
187,613,058 546,697,151 221,524,743 87,030,662 671,493,003 51,851,928 240,624,850
358 1,042 422 166 1,280 99 459
TOTAL
2,006,835,396
3,825
JRK Seminars
14
MAIN MALL
JAMES R. KNOWLES
COST/ AREA (AED/ m2) AVERAGE COST (AED)/ LETTABLE UNIT 254,587 899,247 415,049 185,701 1,099,058 0 436,713
Presenting Cost Data

109,726,845 387,575,509 178,885,920 80,037,151 473,693,924 0 188,223,343 407 1,438 664 297 1,758 699
COST (AED)
1,418,142,693
5,263
3,290,354
MAINMALLCOST
AVERAGECOST/LETTABLEUNIT
Preliminaries External 13% Worksand services 0% SubStructure 8%
Preliminaries ExternalWorks 13% andservices 0%
SubStructure 8%
Super Structure 27%
Super Structur 27%
Services 33%
Services 33% Internal Finishes 13% F,F&E 6% Internal Finishes 13%
F,F&E 6%
JRK Seminars
15
JAMES R. KNOWLES
Summarising cost data

We should now look at a typical example of the development of a cost data base, collecting cost plans as the design develops. Used to assist in cost planning other projects Level of detail will vary
JRK Seminars
16
JAMES R. KNOWLES
Cost Planning the need

Various design stages, typically
Feasibility Outline Cost plan Detail design Construction
JRK Seminars
17
JAMES R. KNOWLES
Cost Planning- What Should You Do?

Take off (Depends on design stage, GIA, or elemental units or approximate quants ) Schedule out in Elemental or BCIS Headings Give as much detail and description as possible Interrogate Architect /Engineers / Client to fill gaps in information
JRK Seminars
18
Cost Planning -What Should You Do?

Insert costs using current data from relevant similar projects or own data base
Understand the market at the base date of any historical costs and the contract used as these will influence the costs/m2 and adjust to suit your project ( most important part)
JAMES R. KNOWLES
Benchmark and market test Detail assumptions Detail exclusions inflation?

JRK Seminars
19
JAMES R. KNOWLES
Cost Planning Feasibility stage

This is part of the project appraisal process; Client could provide budget cost/m2 and want to know what could be built for this; Client could ask for guidance on an appropriate cost for a scheme
JRK Seminars
20
JAMES R. KNOWLES
Establishing Cost /m2

Simplistically Cost = Value(sales or rental) less [Fees+contingencies+profit] Establishes target to be designed to Benchmark with other projects to see what is possible
JRK Seminars
21
JAMES R. KNOWLES
Providing the Cost /m2

Check design and specification against similar projects currently being built Adjust rate to cater for this projects particular features /current market situation /design factors
JRK Seminars
22
What affects the accuracy?

JAMES R. KNOWLES
Source of data How it was collected How it was analysed Stability of market place Experience of person using the data
JRK Seminars
23
JAMES R. KNOWLES
Accuracy of cost plans

Feasibility typically + or 30% or more Outline Cost plan typically + or 15-20% Detail design typically + or 10-15% Construction typically + or 5% As design develops and more accurate /detailed measure is made the accuracy improves.
JRK Seminars
24
JAMES R. KNOWLES
Design Economics
Understand how a change in design affects the cost What affects the cost of the construction element by element Also appreciate what changes in the following can do,
plan shape storey height
JRK Seminars
JAMES R. KNOWLES
Plan Shape
Plan 1 2
7m x 28m
3
14m x 14m
4
7m x 28 m
5
22m x 22m
6
11m x 44m
7
22m x 22m
8
11m x 44m
14m x 14m
Storey 3m Height Floor Area
3m
5m
2
5m
3m
3m
5m
2
5m
196m
484m
JRK Seminars
26
JAMES R. KNOWLES
Cost Comparison
Wall Length Wall Area Roof area m m2 m2 56 168 196 7840 15120 35280 19600 77840 cpm2 40.00 77.14 180.00 100.00 397.14 70 210 196 9800 18900 35280 19600 83580 cpm2 50.00 96.40 180.00 100.00 426.40 56 280 196 7840 25200 35280 19600 87920 cpm2 40.00 128.60 180.00 100.00 448.6 70 350 196 9800 31500 35280 19600 96180 cpm2 50.00 80.35 180.00 100.00 490.70 88 264 484 12320 23760 87120 48400 171600 cpm2 25.40 49.10 180.00 100.00 354.50 110 330 484 15400 29700 87120 48400 180620 cpm2 31.80 61.30 180.00 100.00 373.10 88 440 484 12320 39600 87120 48400 187440 cpm2 25.40 81.80 180.00 100.00 387.20 110 550 484 15400 49500 87120 48400 200420 cpm2 31.80 102.30 180.00 100.00 414.10
Wall Fndn Costs Wall costs Roof costs Floor costs TOTAL Foundation Walls Roof Floor
140/m 90/m2 180/m 2 100/m 2
TOTAL Cost /m2 gross area
JRK Seminars
27
JAMES R. KNOWLES
Cost drivers - Wall/Floor Ratio

A
30m 30m
B
90m 10m
900m
900m
Wall area = 120m x 4m = 480m W/F = 480 900 = 0.53
Wall area = 200m x 4m = 800m W/F = 800 900 = 0.89
JRK Seminars
28
JAMES R. KNOWLES
Benchmarking and market testing

Talk to other members of your commercial team Investigate your company data bases Create your own data base Talk to specialist sub-contractors regarding packages obtain quotations
JRK Seminars
29
JAMES R. KNOWLES
M&E Cost Planning

Speak to the Specialists
JRK Seminars
30
JAMES R. KNOWLES
M & E Cost Planning M&E and the APC David Lee
JRK Seminars
31
JAMES R. KNOWLES
Introduction
What is M&E? What Should You Do? What is likely to be included in the APC?
JRK Seminars
32
JAMES R. KNOWLES
What is M&E?
Services within buildings Mechanical (Heating, Air Conditioning, Ventilation, Plumbing etc) Electrical (Power, Lighting, Security etc) Lifts BCIS Cost Elements 5A to 6C
JRK Seminars
33
JAMES R. KNOWLES
What is M&E?
Different types of buildings have different services requirements. Data Centre 80% of total cost Hospitals 45-50% Cat A Office 25-30% High Quality Residential 25-35%
JRK Seminars
34
JAMES R. KNOWLES
What is M & E
All you have to be is part; Designer Salesman Lawyer Project manager Contractor Accountant
JRK Seminars
35
What Should You Do? M&E Cost Planning
JAMES R. KNOWLES
Same Skills but applied to technology Cost Modelling, Take off, Billing, Benchmarking, Procurement as for building Options are huge. You need to appreciate all the systems or get specialist advice where you do not. Design may not be very advanced or detailed
JRK Seminars
JAMES R. KNOWLES
HVAC/Comfort Cooling to a CAT A Office Do you install; VAV VRV 2 Pipe Fan Coils Chilled Beams
JRK Seminars
37
JAMES R. KNOWLES
VAV ISSUES
JRK Seminars
38
JAMES R. KNOWLES
VAV ISSUES
All air system particularly favoured in large scale developments High running costs More plant / riser space required Higher Capital Cost Increased Ceiling Void depth required 500-700mm Highly flexible for end user requirements Greatest level of user definable control True Air Conditioning System particularly favoured by North American Clients
JRK Seminars
39
JAMES R. KNOWLES
2 PIPE FAN COIL ISSUES
JRK Seminars
40
JAMES R. KNOWLES
2 PIPE FAN COIL ISSUES

Water based system which is still the most popular design solution in the market Ease/familiarity of installation High running costs Average plant and riser space requirements Average Capital Cost Average ceiling void requirements 500-600mm Good end user flexibility
JRK Seminars
41
What Should You Do? M&E Cost Planning Ask Questions What are the Cost Drivers? Capital Cost Nett Lettable Void restrictions Running Costs LEED
JRK Seminars
JAMES R. KNOWLES
42
JAMES R. KNOWLES
Air Conditioning to Offices Capital Costs

Variable Refrigerant Flow Displacement Ventilation (VRF/VRV) Heat Recovery Split System Cassette System Chilled Ceiling Versatemp 2 Pipe Fan Coil System - Perim 2 Pipe Fan Coil System - ceiling Chilled Beam Passive Chilled Beam Active 4 Pipe Fan Coil System - Ceiling Chilled Ceiling with Displ Vent 4 Pipe Fan Coil System - Perim Variable Air Volume
80
130
180 Capital Cost /m2
230
280
JRK Seminars
43
Electrical Capital Costs
JAMES R. KNOWLES
Analysis of Cat A Office Benchmark Costs (Electrical Only)
Comm's Wireways Fire Alarms Standby Generation Lightning Protection Earthing & Bonding E For M Emergency Lighting Lighting Control Lighting Small Power LV HV 0 10 20 30 40 50 60 70 80 90
/m2 GIFA
JRK Seminars
44
JAMES R. KNOWLES
Take off (Points/lengths, numbers of Fan Coils, schedule of main plant) Major cost is in Equipment (Plant) Room Data Sheets if appropriate or available Schedule out in BCIS Headings Give as much detail and description as possible Interrogate Engineers / Clients to fill gaps in information (Plant duties etc)
JRK Seminars
45
JAMES R. KNOWLES
Insert costs using current data from relevant similar projects or data bases Benchmark Detail assumptions Detail exclusions Market Testing Resign before tenders come back
JRK Seminars
46
What are you likely to be asked? M&E Cost Planning
JAMES R. KNOWLES
Likelihood of M&E specialist interviewer How did you deal with the M&E costs on a previous project? How did you procure the M&E services? Beware the trick question e.g. Design Liability
JRK Seminars
47
What are you likely to be asked? Dos & Donts
JAMES R. KNOWLES
Do not pretend to be an M&E expert Do not be afraid to defer an answer Where possible give considered, logical answers
JRK Seminars
48
JAMES R. KNOWLES
M&E and the APC
QUESTIONS
JRK Seminars
49
JAMES R. KNOWLES
Typical APC Questions

Level 1
Please could you explain what is meant by design economics Please could you explain how cost planning assists in the financial control of projects during the design development stage.
JRK Seminars
50
JAMES R. KNOWLES
Typical Questions
Level 2
Please can you tell us from your experience where you have collected cost data and how you have used this knowledge in the cost management of the design development on a project. How would you prepare a comparison between the cost of constructing a building using a concrete frame or a steel frame and what factors would you include.
JRK Seminars
51
JAMES R. KNOWLES
Typical Questions
Level 3
Your client has heard that his brother had an office small development built for AED 4000 /m2 and wants you to explain to him why his office development is costing nearly twice as much. How would you prepare such a report and what information would you need to include.
JRK Seminars
52
JAMES R. KNOWLES
Typical Questions
Level 3 How would you advise a client to make due allowance for inflation and other risks associated with a project in the current economic climate.
JRK Seminars
53

Cost Planning Workshop

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Cost Planning Workshop

Diunggah oleh

Hak Cipta:

Format Tersedia

JAMES R.

Cost Planning Workshop

APC Levels to be covered

Design Economics and Cost Planning

Design Economics and Cost Planning

Design Economics and Cost Planning

Cost planning - theory

Analysis BCIS elemental

They dont match!

Collecting Cost Data

BCIS elemental format

Presenting Cost data

187,613,058 546,697,151 221,524,743 87,030,662 671,493,003 51,851,928 240,624,850

358 1,042 422 166 1,280 99 459

Presenting Cost Data

Preliminaries ExternalWorks 13% andservices 0%

Super Structure 27%

Super Structur 27%

Services 33% Internal Finishes 13% F,F&E 6% Internal Finishes 13%

Summarising cost data

Cost Planning the need

Cost Planning- What Should You Do?

Cost Planning -What Should You Do?

Benchmark and market test Detail assumptions Detail exclusions inflation?

Cost Planning Feasibility stage

Establishing Cost /m2

Providing the Cost /m2

What affects the accuracy?

Accuracy of cost plans

Storey 3m Height Floor Area

140/m 90/m2 180/m 2 100/m 2

TOTAL Cost /m2 gross area

Cost drivers - Wall/Floor Ratio

Wall area = 120m x 4m = 480m W/F = 480 900 = 0.53

Wall area = 200m x 4m = 800m W/F = 800 900 = 0.89

Benchmarking and market testing

M&E Cost Planning

M & E Cost Planning M&E and the APC David Lee

What Should You Do? M&E Cost Planning

What Should You Do? M&E Cost Planning

2 PIPE FAN COIL ISSUES

2 PIPE FAN COIL ISSUES

Air Conditioning to Offices Capital Costs

180 Capital Cost /m2

Electrical Capital Costs

Analysis of Cat A Office Benchmark Costs (Electrical Only)

What Should You Do? M&E Cost Planning

What Should You Do? M&E Cost Planning

What are you likely to be asked? M&E Cost Planning

What are you likely to be asked? Dos & Donts

M&E and the APC

Typical APC Questions

Anda mungkin juga menyukai