Pre-Contract Cost Control Building Cost Information Service Analyses are compiled from tendered works across the UK Database – The largest single source of data presented in elemental format Elemental breakdown of submitted information Includes EUR – Element Unit Rate and EUQ – Element Unit Quantity figures May include design and drawing information

Factors to consider in selecting a historic cost data Pre-Contract Cost Control Factors to consider in selecting a historic cost data Building function (e.g. residential, factory, hospital, etc) Type of work (e.g. new build, extension, refurbishment) Number of storeys (1, 2, …10 storeys?) Location Date Type of analysis (group or detailed elemental analysis)

Adjusting the historic cost data for time, location, etc: Pre-Contract Cost Control Adjusting the historic cost data for time, location, etc:

Adjusting the historic cost data for time, location, etc: Pre-Contract Cost Control Adjusting the historic cost data for time, location, etc:

Pre-Contract Cost Control Detailed Elemental Cost Plan It aims at setting cost targets for the respective elements to guide decision making during the detail design stage It provides the client with an awareness of the cost implications of all design decisions Where a cost check reveals differences in the elemental cost targets, either of the following actions may have to be undertaken: Redesign the element to meet the target cost Approve the change but redistribute costs of other elements by re-examining other cost saving methods Approve the change and accept that the total cost of the project will increase It helps in highlighting any discrepancies in the tenders for the project

The elemental costs may be expressed in 3 ways The total cost Pre-Contract Cost Control Detailed Elemental Cost Plan The elemental costs may be expressed in 3 ways The total cost Cost per sq meter of GIFA The element unit rate Ref attached sample from Ashworth A. (1999) pg 292 It is imperative to adjust the detailed elemental cost plan to reflect Design and specification variables in terms of: Quantity Quality

Detailed Elements Substructure Superstructure Pre-Contract Cost Control Detailed Elements Substructure Works up to the underside of lowest floor finish including damp proof course (dpc) Superstructure Frame Upper floors Roof Stairs External walls Windows and external doors

Internal finishes Detailed Elements Superstructure Pre-Contract Cost Control Detailed Elements Superstructure Internal walls and partitions Internal doors Internal finishes Wall finishes Floor finishes Ceiling finishes Fittings and furnishings Fittings, fixtures and furniture Soft furniture Works of art equipment

Detailed Elements Services Sanitary appliances Services equipment Pre-Contract Cost Control Detailed Elements Services Sanitary appliances Services equipment Disposal installations Water installations Heat source Space heating and air treatment Ventilating systems Electrical installations Gas installations Lift and conveyor installations Protective installations Communication installations

Detailed Elements External works Pre-Contract Cost Control Site works Drainage External services Minor building works

Where TPI is the tender price index Pre-Contract Cost Control Adjusting the historic data: E.g. Adjusting for Time (Inflation) Current TPI Base cost/m2 Current cost/m2 TPI at Base Date = x Where TPI is the tender price index

Where TPI is the tender price index Pre-Contract Cost Control Adjusting the historic data: E.g. Adjusting for Time (Inflation) Alternatively Current TPI TPI at Base Date Base cost/m2 Current cost/m2 - = x Where TPI is the tender price index Base cost/m2 +

Pre-Contract Cost Control Recommended reading Ferry D J, Brandon P S & Ferry J D (1999) Cost Planning of Buildings, Blackwell Publishing – chapter 16 Aqua Group (2003) Pre-contract practice and Contract Administration – chapter 4 Jagger et al (2002) Building Design Cost Management, Blackwell Science - chapters 6 – 10 Seeley I H (1996) Building Economics – chapters 6- 10