Appendix 1 Cost and Guidance
Transcript of Appendix 1 Cost and Guidance
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Cost and Process Guidance -Appendix 1
CAPITAL TASK GROUP
Release: Final
Date:16thSeptember 2009
Author: Kevin Moir, Capital Project Director, Oaklands College
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Contents
1 Disclaimer.................................................................................................................................. 5
2 Executive Summary ................................................................................................................. 5
3 Glossary of Terms .................................................................................................................... 9
3.1 What is a Programme or a Project ...................................................................................... 9
4 Employment ............................................................................................................................ 10
4.1 Core Team ........................................................................................................................... 10
4.2 Supplementary Appointments ........................................................................................... 12
4.3 Main Contractor................................................................................................................... 12
4.3.1 Forms of Procurement ............................................................................................. 12
4.3.2 Procurement Options available for construction .................................................. 13
5 Whole Life................................................................................................................................ 19
5.1 RIBA Stages ........................................................................................................................ 19
6 Cost Impact and Assessment ............................................................................................... 21
6.1 Professional Fees ............................................................................................................... 21
6.1.1 Professional Fees Expenditure Table in Percentage Terms and By RIBA
Stage ................................................................................................................................... 23
6.2 Development Costs............................................................................................................. 24
6.2.1 Projects at RIBA Stage D/E .................................................................................. 24
6.2.2 Projects Pre-RIBA Stage C, Starting Out, or Refurbishment........................... 34
6.3 Property the Wider Issues .......................................................................................... 38
6.4 Whole Life Costs................................................................................................................. 40
7 Governance ............................................................................................................................. 43
7.1 What is a Programme or a Project .................................................................................... 44
7.2 Levels of Governance ......................................................................................................... 44
7.3 Documentation to Support Governance ........................................................................... 44
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7.3.1 Project Execution Plan (PEP) ................................................................................. 45
7.3.2 Room Data Sheets (RDS)....................................................................................... 45
Annex A Acknowledgements and References ................................................................... 46
Annex B Glossary of Terminology ........................................................................................ 47
Appendix 1 - Abbreviations................................................................................................... 47
Appendix 2 Roles and Responsibilities ........................................................................... 48
Annex C - RIBA Stages ............................................................................................................ 50
Annex D Professional Fees Through RIBA Stages against a Construction Cost.......... 53
Annex E - Elemental Analysis of Costs .................................................................................. 54
Annex F Project Execution Plan (Example Headings) ...................................................... 55
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Authors Comments
This document has been reviewed by the Task Group with very positive feedback on the
content and a number of ideas have been proposed which will be incorporated within the
future document. Along with the feedback further reference sites have materialised one
of which is the LSCs websitehttp://designguidance.lsc.gov.uk/,
this site provides a basicguide to design and process.
On consideration of the feedback and the LSC website it is felt that this document falls
between a simple guide and technical guidance for estates programmes/projects. The
content of the document provides the detail which is sufficient to support Colleges in the
principles of an estates programe/project but also contains a more technical level of
information that will assist in what approaches should be undertaken to achieve a cost
effective (nuggets of design control) and delivery focused rigor through effective
governance.
It is therefore, envisaged that this document is divided into two parts when re-written
providing appropriate guidance for the reader at any level of experience.
To assist the reader in reviewing the tangible impact on cost and time through this
document, the use of symbols in the margins has been applied.
This document should be seen as a live document and the content reviewed on a
regular basis to confirm validity against current thinking and rates.
Note:
= reference to savings or expenditure
= reference to time increase or savings
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1 Disclaimer
Although every effort has been made to provide accurate content within this report, the
author and any of the individuals or organisations who provided information, make any
warranty, expressed or implied, or assume any legal liability or responsibility for the
accuracy or completeness of any information contained on in this report.
Additionally the author cannot be held responsible for the contents of any pages
referenced by an external web link. Reference herein to any company does not
necessarily constitute or imply its endorsement or recommendation or any preference to
these organisations.
The author also wishes to make the reader aware that this document is a guidance
document not one that should be seen as the procedural or policy document for the
LSC/DCSF/SFA/YPLA or any other government organisation.
2 Executive Summary
The Capital Task Group (CTG) was initiated as an action group with a short term of
tenure considering the impact on the sector of the withdrawal of grants. This report on
cost and how to achieve savings is one of the areas that the CTG at the initial meeting
held on the 10thJuly 2009 felt was required to compliment the report on financial
matters. Two meetings have been held 10thand 23rdJuly 2009 and reports for those
meetings are available.
This report is the output from all the meetings held with Consultants (framework and
beyond), contractors (Leadbitter, BAM, Millers, Balfour Beatty, Vinci and UK
Constructors Group) and other interested parties (RIBA/Client Forum) who have all
contributed in providing points of view on how costs and cost saving can be achieved in
major building or refurbishment programmes/projects
The content within the report is to provide guidance, as an additional reference for the
tool box when approaching programmes/projects. The report is primarily focused on
construction programmes/projects however this is not exclusively the case, many of the
principles contained within this report can support you in other types of
programmes/projects.
Any building programme new or refurbished must follow the necessary due diligence of
an estates strategy which understands the needs and long term goals of the
organisation and board. The strategy should understand the needs of the client base
(the students) and the ability for the staff to have the tools and environment which will
allow them to deliver a quality educational experience.
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One of the prime considerations when considering a major building or refurbishment
project is the overall impact on the entire educational establishment including impact on
staff, timetabling and overall resource management, through to working practises and
long term educational provision. Knowing what you want to achieve is half the battle of
knowing what you can build and why?
Saving costs in any development is achievable at any stage of the design. The level of
saving is dependent on what you the client are willing to agree to and where in the
design process or delivery process you currently are. Most projects can achieve savings
through Value Engineering (VE), standardisation of products, collaboration with other
developments in the area to maximise buying power (economies of scale) and/or
conservative design from the outset. The level of saving can vary and be as much as
30%. Through this document the LSC cost model has been used as the reference /m2
rate as a guide for costs, but it is the client who agrees to whether this amount of
expenditure is used. Also some developments will have an unusual amount of abnormal
costs above the level included in the LSC cost model. Therefore the context of savings
is dependent on the client and the expectations of the development.
Within this report detail of how the reader can approach maximising cost savings is
discussed however, there is further work required over the life of the programme to
assess cost savings on a project by project basis and with the involvement of key
technical and delivery experts. Any approach undertaken should be an all inclusive
approach to ensure that all concepts of cost saving is both financially and technically
viable.
To achieve cost savings the following should be considered when reviewing your
individual projects;
Simplification of design will maximise potential savings, for example: the space will be
maximised if the design has no intricate wall designs, 900angles in corners, supports
maximum use of space. Areas to consider include; Standard bay sizes in support of the
external elevation design and common column spacing throughout, as far as possible.
Materials for the internal walls, standardised doors, standardised light fittings (note these
areas also effect the long term operational costs post completion), use of glass
internally, type and number of lifts, style and type of stairs.
Significant examples include;
The Mechanical and Electrical (M&E) design, this can be as much as 30% of your
construction costs, if you are able to make a 30% saving in the design and subsequent
material costs and labour costs for the installation, you make a 10% saving on your
overall construction bill.
Also the use of demountable walls (these can cost circa 35k per wall), replacing that
same space with a permanent wall will cost circa 7k, how many times can you knock a
hole in that wall the same size as a demountable wall and then reinstate the wall.
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Potentially you could change this out every 5 years and see 25 years of life for the same
cost of a demountable wall?).
Life costs of materials used - know in broad terms what you will use a space for and
appreciate the types of materials used, it is not worth paying 50% more for a type of
material that has a life expectancy of 10-15 years when you will possibly change that
space out in 5 years time, flooring material is a typical example of this.
The inclusion of IT is to be considered carefully. IT provides a number of additions to a
College; meeting the needs of students in the future and their method of learning, but
also the use of the IT infrastructure to manage a building more intelligently as an
example. All of the IT uses come at a tangible cost. There are examples of success in
the use of IT and savings can be made by the inclusion of technology to run a building,
however, there is the loss or burden factor to be considered.
When taking on all the additional IT facilities available question whether you have
internally the skill set to maximise the facility and therefore receive the savings that
potentially is available. You therefore incur an initial and recurrent training overhead for
staff to ensure maximisation of savings potential. Audio Visual Aids are another area
which currently is maximising IT, but again, are staff trained sufficiently to maximise the
potential. Maximising technology should not be a burden to the organisation; a robust IT
infrastructure must provide flexibility for the future without the prospect of higher long
term support costs.
The IT strategy should not be built around what are the latest and sexiest tools available,
but it should be built on requirement/necessity as opposed to wants! The strategy also
needs to acknowledge the requirement to be future proof, which can be easily
accommodated during the design stage by creating the appropriate trunking/ductingsystem in a new build to facilitate this expansion in infrastructure.
The consideration of cost is explored further within the detail of the report and the above
is to provide you with an indication of areas to be considered when looking at your
individual project for a new build.
The area of refurbishment is slightly more complex but again should be tied into a clear
estates strategy. Refurbishments will require a surveyor to assist in the consideration of
your current estate. Refurbishments can cost between 30% and 75% /m2of a new
build depending on what your approach is. The building to be refurbished needs to be
completely appraised as age will provide you with an appreciation of the work that will
need to be undertaken. Another advantage of a refurbishment is the impact/lot less
onerous with regards to planning or not as the case maybe in some instances and will
be dependent on local feeling towards your buildings; are they listed, of significant
interest to the community, how much refurbishment you require to undertake. All of this
determines the level/limitation to planning.
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During the review of refurbishment viability consideration of whether the building
conforms to current building regulations and legislation will provide a clear picture of
what your commitment (costs) might be. Have you an asbestos register for the building
and is it extant, is the electrical wiring up to date or will the building require a new re-
wire. Is the structure of the building sound, will you take it back to the frame and build
out? All of this determines the cost you will incur, along with the logistical requirementsof keeping the campus operational during the refurbishment. i.e. temporary
accommodation etc? In the section on refurbishment this is discussed in further detail.
Refurbishments can become an endless pot of money if the building and subsequent
development is not fully interrogated and understood. As mentioned, major
refurbishments must be based on a clear strategy rather than fire fighting short term
needs of the organisation.
Cost saving is an emotive subject as this will impact on the expectation of the client and
other stakeholders. Your vision of your Colleges buildings for the future will be
impacted upon. There are areas that Government are pressing for standards andregulations, such as the green issue and its expectation of the future. The need to
become carbon neutral for all public sector buildings in the up and coming years. Local
authorities expect all new buildings to be BREEAM excellent rated and that in the future
all building will be retro fitted to ensure carbon neutralisation. This area alone requires
further discussion with DBIS/LSC/SFA/LGA/YPLA/DCSF etc.
With the changing environment for learners and the manner in which they learn the
challenge of whether the current space calculations are correct and as such should this
area be further considered/changed. The use of space and the amount of space
allocated determines the cost of the building. It is noted that the space calculations for
FE learners massively differs from that applied in the HE sector, this is evidencedthrough the manner in which HE learners learn, academically vs. vocationally. However,
the space required in a practical workshop should be managed on health and safety
grounds the area of classroom work can be managed differently. Clearly space and
space norms are an area for further thought.
Other areas to assist are the approach to the governance of a programme/project.
Governance measures provide you the client with the mechanism to understand the
challenges before, during and after. The types and frequency of reports, risk and
change management, how this is applied and the change in approach as the design is
developed through to delivery and into operation. Governance is your area of influence
and control and therefore your ability to reduce costs through effective communicationand management.
It is acknowledged that the level of understanding of programmes and projects for
developments varies from reader to reader and as such the information held within the
report is to provide guidance assuming a reader with limited or no knowledge.
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There is a benefit to you the reader and the sector to be a more intelligent client in the
area of development and whilst not being a professional practitioner in development
programmes or projects this intelligence will enable you to maximise on cost reduction
and be in a position to challenge your professional team throughout the process.
The ability of the client to understand the process and to be able to challenge the
professional team around you, ensures that you take over a new or refurbished building
that meets expectations, is completed on time and within agreed budgetary parameters
and with a quality that all stakeholders (Students/Staff/Corporation Members/Local
Community as examples) can be proud of.
This report provides general assistance in reviewing the cost and procurement of FE
schemes but ultimately it is likely that the following will be required:
The capital handbook is re-written to provide the appropriate guidance to support
the reader to become the more intelligent client for future new builds or
refurbishments, and
Estates Strategies be reviewed and where required re-written to meet the
changing financial climate and re-focused expectations on capital investment.
3 Glossary of Terms
This section is to assist the reader in providing a list of abbreviations and a brief
overview of the roles within a programme or project, but in the main, within the setting of
a development/refurbishment.
Annexe B, Appendix 1; will provide a list of abbreviations, Appendix 2, contains the
succinct details of the following roles/team members; Strategic Property Advisor,
Programme/Project Director, Programme Manager, Project Manager, Architect,
Structural/Civil Engineer, Mechanical and Electrical Engineer, Cost Consultant/Quantity,
Surveyor, Planning consultant, Employers Agent, Supplementary members
archaeological, ecological, transport consultants etc. Appendix 3 contains key roles
within the structure of the Programme/Project.
3.1 What is a Programme or a Project
Throughout the report there will be references made to Programmes and Projects. It is
prudent therefore to provide a definition of a Programme and Project at this point in the
document;
A Programme is defined in Managing Successful Programmes as A temporary and
flexible organisation created to coordinate, direct and oversee the implementation of a
set of related projects and activities in order to deliver outcomes and benefits related to
the organisations strategic objectives.
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A project is defined as a Temporary organisation, usually existing for a much shorter
period which will deliver one or more outputs in accordance with a specific business
case
4 EmploymentThis section examines the typical design team appointments that will be required; their
respective roles and responsibilities; interfaces with other members of the professional
team, client groups and stakeholders and the timing of the appointments. It will also
discuss the supplementary design and professional services that are sometimes
required depending on the nature and or complexity of the given project.
4.1 Core Team
The most universally adopted breakdown of outputs and deliverables in the design,
development and delivery of projects in the built environment is the Royal Institute of
British Architects (RIBA) plan of work. This, together with its various stages and outputs
is discussed in more detail under section 6.3.
The following core team appointments are now discussed in more detail. These are
normally considered as the essential ingredients in developing a design:
Programme/Project Director/Manager
Architect
Structural & Civil Engineer
Mechanical & Electrical Engineer
Cost Consultant
CDM-Coordinator
Property Advisor
The creation of an Estates Strategy which will consider all options from do nothing,
refurbishment and a new development will possibly require external input. It is advisable
to appointment a specialist(s) to support this delivery and a Programme/Project Director
can provide key support at the earliest of stages on the development of the Estates
Strategy and the use of a property advisor will assist in the completeness of the Strategy
in detail.
The Programme/Project Director will provide you the client with the professional advice
and guidance not only through the period of Estates Strategy creation but also on the
selection of your remaining elements of the core team. The experience of this individual
will ensure that the team members are procured and appointed correctly and all
schedule of services agreed at an early stage to prevent cost increases due to items not
agreed at the outset. This can be as example; door scheduling for the architect, Rebar
scheduling for the structural engineer and thermal modelling by the M&E engineer. This
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individual should be come the person who creates a relationship in such a manner that
openness, trust and respect allows good and bad news to be communicated and as
such allows effective expectation management from the outset.
Once the requirement for design input has been established and the purpose or intent of
producing that design is agreed it is usual to engage the services of an Architect who
acts as the Lead Designer. The purpose of the distinction Lead Designer is to reinforce
the hierarchy of design team members and thus ensuring that as part of the scope of
service, the Architect takes responsibility for co-ordinating the various inputs of other
design team members at the times/ stages of the project that they are required.
Amongst the Architects key duties is to liaise with the college regarding the development
of its brief - work that may have already commenced using either in house personnel or
external consultants. The architect will develop the requirements or brief into a design
response that can be used to obtain planning permission and to invite constructors to
submit a price against (this will be covered in more detail later)
Depending on the stage at which design input is required it may be necessary to engage
the services of a Structural & Civil Engineer. This designer will work closely with the
architect interpreting the emerging outline design information and testing it in terms of
structural options to support the vision. The Structural & Civil Engineer will also be able
to provide (either in house or via external support) advice on suitability of ground
conditions on the site of the proposed development either as a desk top based analysis
or intrusive survey works depending on the stage of the design.
The appointment of a Mechanical & Electrical Engineer is encouraged early in the
process to supplement the architectural appointment. In addition to providing valuable
design input in terms of the building environmental and infrastructure systems/installations this consultant can add value at an early stage by offering advice on passive
strategies such as building orientation in relation to sunlight analysis and potential heat
gain. The availability of services and infrastructure to support the development will also
be examined by the Mechanical & Electrical Engineer a process which can identify
potential programme and cost risks at an early stage. The Mechanical & Electrical
installations typically make up around 30% of construction costs therefore early input in
terms of understanding the client requirements is essential in terms of aligning
expectations with project costs and budget.
Engaging a Cost Consultant is essential as part of the core team, as designers are often
subject to criticism for not considering the impact of design on budget. It is the role of thecost consultant to ensure that the team is aware of the effect of design changes on the
budget, and that this information is advised to the client prior to incorporation within the
design. In addition a Cost Consultant/Quantity Surveyor can complement the design
team in providing advice on alternative materials, installations, design options and
procurement methodologies, and ensure that any VE opportunities are taken at an early
stage.
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Engaging a CDM-Coordinator at the earliest stages of the project provides the
College/client with meeting their obligations under Health and Safety
requirements/legislation. You will ensure that the development of the design and the
assessment of team competencies are fully compliant.
4.2 Supplementary Appoin tments
Clearly each project is unique and will be faced with its own individual challenges and
obstacles. To this end the list of services below is by no means prescriptive or
exhaustive, but at some point in the evolution of the development of a project it may be
necessary to engage some or all of the following:
Landscape architect
Town Planning
Agency (on disposal or acquisition of real estate)
CDM Coordinator (Health & Safety) Legal Advice
Building Control
Site Surveys and Studies (including topographical, arboriculture, geo-technical,
traffic and transport, environmental surveys)
BREEAM consultant
Specialist Design (Kitchen/ Catering, ICT, Digital Media)
Acoustic Consultant (What is the designs sound level rating
Facilities Management (If the expertise is not in house then the FM planning is
not fully considered and the operational cost implication is not fully appraised.
Also are you going to outsource the ongoing maintenance of your estates
infrastructure)
4.3 Main Contractor
4.3.1 Forms o f Procurement
This section details the type of procurement routes available for securing consultants
and contractors. All readers should confirm current legislation with their procurement
officer or person(s) responsible for appropriate procurement management.
Before starting out please be aware of legislation/law on procurement; the levels ofexpenditure, how to notify the market place of intentions, selection process and
minimum time period to secure a contract.
The process of selecting a Main Contractor is perhaps one of the most important tasks
on a project and one that can determine the success or failure of a project. The Main
Contractor is the organisation tasked with the overall responsibility of building the project
as designed by the team. There are many alternative forms of procuring a Main
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Contractor that will determine the timing of the appointment (these will be discussed in
more detail later) and the amount of work required from the design team prior to the
Main Contractor providing a price.
The Main Contractor will normally engage or manage a number of sub-contractors or
sub-contract packages who will physically undertake the construction activities on site.
The Main Contractor will be responsible for the overall programming of construction
outputs and the coordination of activities on site an ensuring that the development is
constructed in accordance with the Employers Requirements (ERs).
The procurement route itself is an important piece of work that should be agreed early in
the project and a detailed strategy paper identifying the options available that
complement the aspirations of the client should be commissioned through the Cost
Consultant or Project Director/Manager. Depending on the procurement route selected
there are a number of standard forms of contract available to suit each form (for the
purpose of this paper it is not intended to review all of them in detail). Bespoke forms of
contract are also used but can be timely to agree as clauses often differ from standardforms.
Standard forms include:
Joint Contracts Tribunal Suite (JCT),
NEC3 2009 Suite (New Engineering Contract),
GC Works Suite ('General Conditions of Government Contracts for Building and
Civil Engineering Works'),
Association of Consultant Architects (ACA),
o ACA Project Partnering Contract (PPC),
o ACA Term Partnering Contract (TPC), Institute of Civil Engineers (ICE),
Association of Consultants and Engineers (ACE),
FIDIC (Fdration Internationale Des Ingnieurs-Conseils)French for the
International Federation of Consulting Engineers,
And others.
4.3.2 Procurement Options available for construc tion
Your next phase of development is now being considered. One of the key aspects to the
delivery of the next building or refurbishment is the procurement route for the
main/principle contractor.
In addition to the procurement route other intangible benefits should be considered at an
early stage, but, recognise that this comes with a cost of both time and finances. These
could include the environmental assessment such as BRE Environmental Assessment
Method (BREEAM), the design of the building through competition rigour with the Royal
Institute of British Architects (RIBA) involvement.
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The OJEU process typically involves issuing a Prior Information Notice (PIN) of the
impending development and seeking consultants and main contractors. Pre
Qualifications Questionnaires (PQQ) are released which enables an initial sift of
applicants and thus allow a smaller group of tenderers to progress forward to the
Information To Tender (ITT) stage. The ITT process varies in length depending on
which route you undertake and the commitment of the evaluation team and tenderers.Confirm the desired route and timelines with the Colleges procurement manager/team.
The following Diagram considers pictorially the procurement options available and the
level of cost risk exposure when considering the capital and operational aspects of a
development.
Once you are aware of the Risk exposure, consider the design and time constraints for
delivery against the procurement route considered and the cost that you are willing to
pay for the delivery. Below gives broad indication of the procurement route available
and the cost for the specific route. But also note the subsequent diagrams showing the
flexibility and complexity with each route considered. The procurement route is a
balance against time, cost and quality.
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Design & Cost Time & Cost
Along with the above diagrams the following table is a breakdown in broad terms of a
few options available to the College in its procurement route. The detail provides an
overview and the associated benefits and risks with each. Notwithstanding that there is
a need to follow the EU procurement directives, the selected options available are;
Design and Build Single stage;
Design and Build Two stage; and
Traditional two stage.
There are other options but due to the risks involved I have omitted them from this
document, however each College will have available a Cost Consultant and /or a legal
team who could comment further on other procurement options.
The following table presents an overview of the four procurement options;
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Options Design and Build Single stage Design and Build two stage Traditional two stage
Overview All design and construction responsibility withcontractor, this could include planning
submission.
Works subject to single tender action against
employers requirements.
Further option is to engage the design team to
provide the detailed work to a further stage in theRIBA process prior to inviting tenders.
The concentration of risk appeals to employers
but this needs to be measured against the
quality of information required for employers
briefing and the need to place quality measures
in place to ensure contractor complies with their
quality obligations.
These are the reasons why this is normally
associated with simpler types of builds.
As with single stage but with greater overlap of
design and construction activities.
Contractor selected at an early stage based on
qualitative assessment and tender prelims and profit
against an outline design and target cost p lan.
Contractor is appointed to work with t he employersteam to develop the detailed design in line with the
target cost plan.
Theory states that the contractor will add value t o the
detailed design process by advising on methods to
improve construction efficiency or achieving buying
gains. The contractor derives a fee for this service
which is part of the first stage tender return.
Detailed design is tendered to sub contractors with
joint adjudication of the tender by the contractor and
employers team. The contractor is not allowed to
negotiate with sub contractors to improve his
previously declared profit margin.
A lump sum contract is entered into once the
subcontractor packages have been received.
Programme pressure can dictate on what cost
certainty percentage is acceptable to the employer.
Contractor selected at early stage,
qualitative assessment based on tendering
prelims and profit against outline design and
target cost plan.
Contractor is appointed to work w ith the
employers team to develop the detailed
design in line with the target cost plan.
Theory states that the contractor will add
value to the detailed design process by
advising on methods to improve construction
efficiency or achieving buying gains. The
contractor derives a fee for t his service
which is part of the first stage tender return.
Detailed design is tendered to sub
contractors with joint adjudication of the
tender by the contractor and employers
team. The contractor is not allowed to
negotiate with sub contractors to improve his
previously declared profit margin.
A lump sum contract is entered into once the
subcontractor packages have been received.
Programme pressure can dictate on what
cost certainty percentage is acceptable to
the employer.
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Options Design and Build Single stage Design and Build two stage Traditional two stage
Benefit Permits overlapping design and construction.
Risk accepted by the employer in terms of cost
certainty is minimised by a lump sum price and
by key design and construction risks being
placed firmly on the contractor.
Responsibility for errors or omissions in detailed
design rests with contractor.
Detailed design and drawing production can
overlap with contractors mobilisation.
As with single stage with greater flexibility for fast
tracking work.
The contractor is part of t he employers team.
Initial subcontract packages can be tendered whilst
the last of the detailed design is being completed.
Tender results will flow through allowing early
reconciliation with the budget. Corrective action can
be taken if tenders exceed the target cost plan.
Lead in times are generally reduced.
There is generally a more open approach to post
contract costs by the contractor.
The contractor is part of t he employers
team.
The employer retains control of all design
and specification decisions.
Issues that would otherwise become
apparent post contract should be resolved
during the detailed design. This should
reduce post contract variations, delays andclaims.
Initial subcontract packages can be tendered
whilst the last of the detailed design is being
completed. Tender results will flow through
allowing early reconciliation with the budget.
Corrective action can be taken if tenders
exceed the target cost plan.
Lead in times are generally reduced.
There is generally a more open approach to
post contract costs by the contractor.
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Options Design and Build Single stage Design and Build two stage Traditional two stage
Risk Once contract let detailed working of the designin the hands of the contractor. Detailed design
decisions may be made for economy reasons
rather than quality. This can be mitigated by
good quality tender documentation and the
establishment and enforcement of a rigorous
quality plan.
Requires close site supervision by emp loyer.
Post contract variations due to changes in the
employers requirements are generally more
difficult to incorporate and can prove costly.
The level of professional fees tends to be higher
particularly to provide the level of site
supervision required to provide quality control.
As with single stage but cost certainty is
compromised until resolution of stage two tender
actions.
Ambiguity can exist in what contractors prelim cost
does and does not cover.
The employer is responsible for the
adequacy of the work of the design team
and therefore carries the risk of errors or
omissions in the design - which potentially
will increase dependent upon the
programme constraints imposed.
Ambiguity can exist in what the contracts
prelim cost does and does not include.
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5 Whole L ife
Whole life is referred to in different ways by different disciplines. For practical reference
whole life is from cradle to grave. This is from the conception of the programme/project,through design development, delivery of design, operational use and then
decommissioning/deconstruction/demolition; however this could be seen as one of the key
starting points of the next programme/project.
It is very unlikely that many individuals will see the whole life of a building so each discipline
considers whole life as the project (termed Programme/project life cycle) and not necessarily
the operational aspects of the received product.
The life of a development is considered in different terms depending on the discipline that
you talk to. Royal Institute of British Architects (RIBA) use a stage A L approach where as
the Structural and Civil Engineers will use the terminology of stages 1 5. The following willprovide you with an overview of the terminology and the expectations within this stage
5.1 RIBA Stages
RIBA Plan of Work Stages
The RIBA Plan of Work describes the activities from appraising the clients requirements
through to post construction. The stages are also used in the appointment of architects and
help to identify consultant services and indicate the resource and fee total by Work Stage.
Annex C Provides more detail on the RIBA stages however, the following table is a briefoverview of the RIBA stages:
P
reparation
A: Appraisal Identification of client's requirements and possible constraints on
development. Preparation of studies to enable the client to decide whether to
proceed and to select probable procurement method.
B: Strategic Briefing Preparation of Strategic Brief by, or on behalf of, the client
confirming key requirements and constraints. Identification of procedures,organisational structure and range of consultants and others to be engaged for the
project. [Identifies the strategic brief (as CIB Guide) which becomes the clear
responsibility of the client].
Design
C: Outline proposals. Commence development of strategic brief into full project brief.
Preparation of outline proposals and estimate of cost. Review of procurement route.
D: Detailed proposals. Complete development of the project brief. Preparation of
detailed proposals. Application for full development control approval.
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E: Final proposals. Preparation of final proposals for the Project sufficient for co-
ordination of all components and elements of the Project.
Pre-C
onstruction
F: Production information F1: Preparation of production information in sufficient detailto enable a tender or tenders to be obtained. Application for statutory approvals.
F2: Preparation of further production information required under the building
contract. [Now in two parts, F1 - the production information sufficient to obtain
tenders and F2 - the balance required under the building contract to complete the
information for construction].
G: Tender documentation. Preparation and collation of tender documentation in
sufficient detail to enable a tender or tenders to be obtained for the construction of
the Project. [Solely concerned with the documentation required for tenders.Particularly useful with D+B or management contracts].
H: Tender action. Identification and evaluation of potential contractors and/or
specialists for the construction of the project. Obtaining and appraising tenders and
submission of recommendations to the client.
Construction J:
Mobilisation. Letting the building contract, appointing the contractor. Issuing ofproduction information to the contractor. Arranging site handover to the contractor.
K: Construction to Practical Completion. Administration of the building contract up to
and including practical completion. Provision to the contractor of further information
as and when reasonably required.
Use
L: After Practical completion. Administration of the building contract after practical
completion. Making final inspections and settling the final account. [Clearly
separated from the construction phase]. Assist building users during initial stages of
occupancy. Review of building performance in use.
In addition to the RIBA stages the following provides an overview of the 5 Stage life of a
project as considered by the Structural and Civil Engineering discipline:
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Stage 1 Concept and Feasibility
Stage 2 Design and Planning
Stage 3 Tender Selection
Stage 4 Construction Stage
Stage 5 Commissioning and Handover
6 Cost Impact and Assessment
What is the correct approach to cost? Should a College use the space calculations and
apply a /m2 rate and then inform the professional team that is all you have now build it. Or
should there be an expectation of bigger and better and maximise (economies of scale) the
buying power available to you as an individual College or as a collaboration with other
Colleges within the area or another project.
Cost is an area that can spiral out of control from the first concepts considered through
development and into operational use. As the client or budget holder the areas for
consideration in cost control stems from professional fees, the development itself and the
operational costs post development.
6.1 Professional Fees
Professional Fees are as the say your professional team working for you and providing the
practitioner aspects of design and delivery. The approach to employing this professional
team and the management of the team will affect the overall cost of the project. A
professional team are there either on a percentage of the construction cost or on a
negotiated fixed fee arrangement. Failing to employ early enough will cost you additionally
on the overall project construction cost but employing to early could see them earning fees
but not delivering an output which can affect the professional fee budget. Achieving the
correct balance requires experience and appreciation of the external influences being
applied on the project and as such this requires a good relationship with your appointed lead
consultant whether a Strategic Planning Advisor or Programme/Project Director.
The 3 As, ensure the schedule of service is Accurate, Adequate and Agreed, this will help
prevent spiralling costs but it should be noted that a change in design by one of the
consultants which may initially seem small could have the multiplier effect on the other
consultants, and this comes at a cost, not just in their fees but the construction cost itself.
The expenditure of professional fees over the life of the project are shown in two tables, thetable below provides an overview in percentage terms of the fee expenditure at a specific
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RIBA stage and at Annex D which provides a financial reference against an 85m
construction figure. Note; the assumptions made are; 10% professional fee budget against a
construction value of 85m (LSC cost model considers 12%, industry norms show up to
15%, IT programmes/projects could reach as high as 20%). Some professional fees will be
a percentage of the construction cost; Architect, Structural/Civil Engineer, M&E (this could
be against the construction cost as a whole or against the M&E element of work), CostConsultant, others will be a negotiated fixed fee these include; Fire consultant, Security
consultant, Acuostion, BREEAM, Building Control, CDM Co-ordinator, Planning consultant,
Specialist consultants such as AV/Theatre/digital media/science laboratories etc.
From the tables it is worth noting that you may have spent in excess of 60% of your
professional fee budget before you have started on site. Note the risk associated with this
upfront work but also be secure in the type of contract you have entered into so to maximise
the resources available to you.
Novation of the design team must also be considered at an early stage and whether you feel
the merits of novation should be entered into. Be aware that the agreed fee outstanding at
novation will need to be transferred to the main contractor and this will be identified in their
contract sum. If you novate the design team consider who will provide the technical advice
to ensure the College is not agreeing to contractor changes (exclusions and inclusions to the
design) without fully appreciating the consequences. It maybe prudent to invest in a
technical advisor to ensure your interests are technically fully covered.
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6.1.1 Professional Fees Expenditure Table in Percentage Terms and By RIBA Stage
Cumulative Percentage Total of Fee RIBA Design Stage
Pre-Contrac t Post Contract
Stage A&B Stage C Stage D Stage E Stage F Stage G-L
Inception & Feasibility Outline Proposals Detailed Proposals Final Proposals
Production
Information
Tender &
Construction
Project Manager 10% 30% 50% 70% 90% 100%
Arc hitec t 10% 25% 40% 60% 80% 100%
Landscape Architect 10% 25% 40% 60% 80% 100%
Structural & Civil Engineer 10% 25% 40% 60% 80% 100%
Mec hanical & Elec trica l Services 10% 25% 40% 60% 80% 100%
Quantity Surveyor 10% 25% 40% 60% 80% 100%
Transport Consultant 25% 50% 70% 90% 100%
Building Control 35% 70% 85% 100%
BREEAM Consultant 25% 50% 75% 100%
Ac oustic ian 50% 60% 75% 100%
Fire Cosultant 50% 60% 75% 100%
Theatre/AV 50% 60% 75% 100%
Security 50% 60% 75% 100%
Employer's Agent 10% 30% 100%
CDM Co-O rdinator 20% 40% 60% 80% 100%
Average Percentage of Fee Expenditure Per Stage 4.00% 13.33% 40.00% 58.00% 76.67% 100.00%
Notes
The above is indicative only
The above assumes Two-Stage Design and Build Procurement (with Employer's Requirements being issued at Completion of Stage E)
No allowa nce ha s been ma de for Post Contract Variations and Associated Fees. Disbursements and Expense have not been Included
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6.2 Development Costs
In developments approaching the design it is critical to ensure that costs are controlled and
meet the quality and expectations of all stakeholders. As a major stakeholder/client yourapproach to design development will ensure that your building(s) meet the expectations of all
stakeholders (students, corporation, staff and the local community to name a few) in
managing costs.
To ensure that this is achievable, concepts should be reviewed at early stages not just to
consider how aesthetically pleasing the building is but also what buildability, functionality and
operational issues are being stored up and as such what is the additional costs associated
with the pleasing to the eye building.
Functionality and Operational issues of the building is an area for the client to consider at the
earliest stage and a full brief provided within the client brief as presented to the design team,the detailed design of this can be worked up as the design progresses over the early RIBA
Stages.
This section has been designed to assist the reader in their approach to understanding costs
and the impact of Value Engineering (VE) at any stage within the design. Although to the
informed reader considering a design which is at Stage D/E which is the first sub-section,
seem wrong, The detail in this sub-section will assist in the ease of comparison of any
design prior to this RIBA stage. This section also provides some broad advice when
considering refurbishments and the wider property issues you may face.
In addition to the contents of this section Annex E has been designed to provide the readerand elemental breakdown of a development of a 20,000m2building. This breakdown
provides an overview of costs if construction was for a College, school, HE institute and an
Office building.
6.2.1 Projects at RIBA Stage D/E
The purpose of this Section is to provide a Framework/Set of Guidance Notes to give
Colleges, a menu through a schedule of rates and key considerations for use in interrogating
and attempting to reduce the overall cost of their proposed development(s).
The Document is prepared on the basis of the Information contained within the LSC CostModel, as a sample scheme i.e. is based on a Generic New Build 4 Storey Development of
Circa 20,000m2 Gross Internal Area (GIA) Procured on a Two-Stage Design and Build
Methodology. It is acknowledged that the LSC cost model may not be the rule of assessment
moving forward; however a baseline is required to provide tangible examples.
The elements for consideration are as detailed within the LSC Cost Model.
Sub-Structures
Demolition
An area which can be extremely costly in a demolition is asbestos. Early surveys for
asbestos will enable the demolition package of the contract sum be more accurately
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determined if appropriate surveys have been undertaken. These surveys can be as simple
as a visual one through to a more intrusive. If these surveys have not been carried out then
the contractor will add a provisional sum to the contract sum.
In this area be aware of the health and safety requirements, the impact of removing debris
from site, how this will be achieved and the impact on your environmental approach to thedevelopment. Consideration of; The ICE (Institute of Civil Engineering) Demolition Protocol
2008, Waste Management Plans, Demolition/Deconstruction resource Recovery
specification and CDM requirements. These are just some of the knowledge pools and
requirements available.
Sub-Structures
The approach to this area should have been finalised at this stage. It should however be
noted, that it may be worth challenging the Design Team, as to whether there may be a
more economic alternative to the proposed scheme. As a general rule piled foundations offer
the most expensive option, however, economies may be achieved by using the buildingsfoundations to install a vertical Ground Source Heat Pump system; In the case of a
raft/ground bearing slab foundation alternative, any costs associated with installation of
GSHP Installation will need to be borne from the cost of the building services.
Superstructure
This area of a development can have between 25%-30%of the gross development cost.
And from the elemental breakdown defined by the LSC covers;
Frame Not Considered (Subject to review on a Project by Project basis).
The approach to this area should have been finalised at this stage, whether the frame is
concrete, part concrete and steel or all steel as example.
Upper Floor Not Considered (Subject to review on a Project by Project basis)
Roof
This report seeks to review the Roof Coverings Only, as the Roof Structure should be
considered as part of the Overall Structure of the Building and is therefore not subject to a
generic cost review.
The LSC Cost Model expectation is for a Single Ply Roof Membrane, Screed, Insulation and
Associated Drainage, with a Glazed Atrium occupying 25% of the Roof Area.
It is worth considering a reduction in the overall atrium size to a figure of between 15 and
20% of the Roof Area, or alternatively the omission of the atrium in it entirety; The cost
reduction which could generally be expected through a reduction in the size of the atrium
are shown below and could potentially result in a cost saving to the project of between
41,250.00 and 82,500.00.
The above calculation assumes the following:
Overall Roof Area; 5,000m2
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Glazed Atrium @ 25%of Roof Area: 1,250m2 @ Circa 400.00/m2 = 500,000.00
Overall Roof Area; 5,000m2
Glazed Atrium @ 20%of Roof Area: 1,000m2 @ Circa 400.00/m2 = 400,000.00
Plus Additional Roof Structure 250m2 @ Circa 140.00/m2 = 35,000.00
Plus Additional Single-Ply Membrane 250m2 @ Circa 95.00/m2 = 23,750.00
458,750.00
Overall Roof Area; 5,000m2
Glazed Atrium @ 15%of Roof Area: 750m2 @ Circa 400.00/m2 = 300,000.00
Plus Additional Roof Structure 500m2 @ Circa 140.00/m2 = 70,000.00
Plus Additional Single-Ply Membrane 500m2 @ Circa 95.00/m2 = 47,500.00
417,500.00
Further to the above it should also be considered that increases in the overall area of Atria
as a percentage of the roof will have the inverse effect on the budget.
In addition it is worth noting at this stage that the above does not consider the effect on the
Mechanical & Electrical loads on the building that any adjustment to the area of the roof atria
may have.
We would also highlight that whilst the Cost Model Expectation is that the Roof might becovered with a Single Ply membrane, our experience has shown that a number of different
materials have been specified within the Sector to be used as Roof coverings, a number of
examples are scheduled below, with an indication of Cost/m2 Rates. These should be
compared with the Standard Single Ply Membrane cost of 95.00/m2;
Kalzip Metal Standing Seam Roof System 150.00/m2
Hydrotech Roof Covering with Zinco Bio-Diverse Green Roof 200.00/m2
Hydrotech Roof Covering with Zinco Bio-Diverse Brown Roof 170.00/m2
Sedum Green Roof 130.00/m2
Hydrotech Roof Covering with Timber Roof Decking 230.00/m2
Hydrotech Roof Covering with Paved Roof Areas 120.00/m2
It should be noted that any change to the Specification of Roof Coverings may be subject to
approval by the local Planning Authority.
Stairs
The allowances within the LSC Cost Model are based on the following:
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Feature Steel Stair within Atrium with Glass Balustrades and Stainless Steel
handrails.
Core staircases in precast reinforced concrete with half landings, polyester coated
steel balustrades and painted walls, vinyl covered floors and painted ceiling finishes.
When reviewing the budgetary allowances within the project cost plan, consideration must
be given to the specification of the Balustrades, as well as the extent of protection
(balustrading) around floor voids, therefore the positioning of Floor Voids within the centre of
the Floor Space is more expensive than positioning a floor void at the perimeter of the floor;
The shape of any protected floor penetration should also be considered, as generally
irregular shapes are considered more expensive to protect than regular ones; consideration
should also be given to the configuration of the Staircase i.e. Balustrading to both sides,
Balustrading to one side only, or the use of handrails only.
In terms of the specification of the balustrade there are a number of alternative solutions,
and an indicative range of prices is shown below:
Toughened/Structural Glass Balustrades Stainless Steel Handrail - 1,750/m
Steel Balustrade with Glass Infill Panel Stainless Steel Handrail - 1,150/m
Steel Balustrade with Steel Mesh Infill Panel Stainless Steel Handrail - 1,000/m
Post and Wire Balustrade Stainless Steel Handrail - 700/m
Painted Metal Powder Coated Handrails - 350/m
External Walls
The LSC Cost Model assumes a combination of Finishes, made up of Composite
Rainscreen Cladding Panels to 50% of the elevational area, with an element of Glazed
Curtain Walling, with Brise Soleil for Solar Shading and Brickwork or rendered Blockwork to
20% of the elevational area. (The remaining elevational area is made up of Windows, which
is considered in further detail below.)
In terms of reducing cost consideration should be given to adjusting the percentage of
elevational area applied to each element.
An example of this is shown below:
Based on a Square Building of 71m x 71m of 4 Storeys with a Floor to Floor Height of
4.50m, the Total Elevation Area of External Walls = 5,112m2. Say 5,100m2.
LSC Cost Model Allowance:
Composite Rainscreen Cladding @ 50% of Elevational Area
= 2,550m2 @ Circa 350.00/m2 = 892,500.00
Brickwork/Rendered Blockwork @ 20% of Elevational Area
= 1,020m2 @ Circa 150.00/m2 = 153,000.00
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Example Budget: 1,045,500.00 (LSC Cost Model Al lowance)
Option 1: Rainscreen Cladding @ 45% of Elevational Area, and Brickwork/Rendered
Blockwork @ 25% of Elevational Area.
Composite Rainscreen Cladding @ 45% of Elevational Area
= 2,995m2 @ Circa 350.00/m2 = 803,250.00
Brickwork/Rendered Blockwork @ 25% of Elevational Area
= 1,275m2 @ Circa 150.00/m2 = 191,500.00
Example Budget: 994,750.00 (Option 1)
Option 2: Rainscreen Cladding @ 40% of Elevational Area, and Brickwork/Rendered
Blockwork @ 30% of Elevational Area.
Composite Rainscreen Cladding @ 40% of Elevational Area
= 2,040m2 @ Circa 350.00/m2 = 714,000.00
Brickwork/Rendered Blockwork @ 30% of Elevational Area
= 1,530m2 @ Circa 150.00/m2 = 229,500.00
Example Budget: 943,500.00 (Option 2)
A further alternative would be the omission of the rainscreen cladding in its entirety and its
replacement with fair faced Blockwork.
Further consideration should be given to the overall size and shape of the Building, and the
determination of the Area of External Walls to Floor (the Wall: Floor Ratio) in general terms
the most efficient building shape for reducing the overall wall to floor ratio is a circle,
however due to the difficulties in constructing round buildings, in construction terms the most
efficient shapes are considered to be either Squares or Rectangles.
A Floor : Wall Ratio of a Square building of 4 Storeys and a GIA of 20,000m2 might be in
the region of 4: 1.
However examples of the floor : wall ratios of more complex building shapes can be seen
below;
Project A Floor Area 27,000m2: External Wall Area 12,500 m2; Circa 2.160: 1
Project B Floor Area 17,000m2: External Wall Area 8,000 m2; Circa 2.125: 1
Both of the schemes above have either been submitted and approved by the LSC.
In the examples above the Floor: Wall Ratios are nearly twice, those which would be
anticipated for a square/rectangular building, the effect of the above Floor: Wall Ratios on
the outturn costs of a project can be seen in the worked examples below:
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Based on a Generic Floor Area: 20,000m2, and LSC Cost Model allowances for External
Wall in Rainscreen Cladding and Rendered Blockwork.
Floor: Wall Ratio 4: 1 Wall Area = Circa 5,000m2
Allow Composite Rainscreen Cladding @ 50% of Elevational Area
= 2,500 m2 @ Circa 350.00/m2 = 875,000.00
Brickwork/Rendered Blockwork @ 20% of Elevational Area
= 1,000 m2 @ Circa 150.00/m2 = 150,000.00
Anticipated External Wall Costs = 1,025,000.
Floor: Wall Ratio 2.160: 1 Wall Area = Circa 9,250m2
Allow Composite Rainscreen Cladding @ 50% of Elevational Area
= 4,625 m2 @ Circa 350.00/m2 = 1,618,750.00
Brickwork/Rendered Blockwork @ 20% of Elevational Area
= 1,850 m2 @ Circa 150.00/m2 = 277,500.00
Anticipated External Wall Costs = 1,896,250.
Floor: Wall Ratio 2.125: 1 Wall Area = Circa 9,400m2
Allow Composite Rainscreen Cladding @ 50% of Elevational Area
= 4,700 m2 @ Circa 350.00/m2 = 1,645,000.00
Brickwork/Rendered Blockwork @ 20% of Elevational Area
= 1,880 m2 @ Circa 150.00/m2 = 282,000.00
Anticipated External Wall Costs = 1,927,000.00.
Windows and External Doors
The expectation of the Cost Model is that 30% of the Elevational area of the building will be
Windows and External Doors, and it is also the LSCs expectation that these will be Double
Glazed.
As detailed in the example above in terms of the External Walls any adjustment in the area
of Windows and Doors could result in potential savings, assuming that these elements are
replaced with either brickwork or rendered Blockwork, however, the Windows and External
Doors cannot be considered as a single item, as any changes to this element of the Building
Structure could/will have an effect on the services of the building and particularly the
Mechanical Strategy.
It is further worth noting that in terms of the specification of Windows that UPVC is generally
considered to be circa 20% cheaper that Aluminium, and that fixed windows i.e. Non-
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Openable windows are cheaper than Openable windows, again this will effect the buildings
Mechanical Strategy.
Internal Walls & Partitions
The LSC Cost Model, anticipates a combination of Glazed Screens, Blockwork and SolidPartitions and twin leaf acoustic wall construction and glazed partitions.
When giving consideration to the Internal Walls and Partitions the main items to consider are
as follows, the number and size of Demountable/Sliding Partitions; the area of the Glazed
Screens and Partitions and the specification of the Solid Internal Partitions i.e.
Blockwork/Plasterboard Systems.
It should be noted that in broad terms indicative m2 rates for Internal Partitions are as
follows:
Glazed Screens 500.00/m2
Blockwork Partitions 42.00/m2
Plasterboard Partitions 60.00/m2
Demountable/Sliding/Folding Partitions 365.00/m2
N.B. All rates are indicative and should be reviewed on a project by project basis, as they
will be subject to adjustment due to the following factors; specification of materials; location
factors; inflation/deflation within the Tender Price Indices; market conditions.
If it was assumed that a Generic College building would require in the region of 8,000m2 ofInternal Partitions, with an assumed split of 10% Demountable Partitions, 25% Glazed
Partitions, 25% Blockwork Partitions and 40% Plasterboard Partitions, the total costs of each
element of the Internal Partitions would be as detailed below: (This example is broadly in line
with the expectations of the LSC Cost Model, in terms of the Total outturn cost)
Demountable Partitions - 800m2 @ 365/m2 = 292,000.00
Glazed Screens - 2,000m2 @ 500/m2 = 1,000,000.00
Blockwork Partitions - 2,000m2 @ 42/m2 = 84,000.00
Plasterboard Partitions - 3,200m2 @ 60/m2 = 192,000.00
However, by reducing the areas of Demountable partitions and Glazed Partitions to 5% and
15% respectively and increasing the Plasterboard partitions to 55%, the costs would be as
shown below:
Demountable Partitions - 400m2 @ 365/m2 = 146,000.00
Glazed Screens - 1,200m2 @ 500/m2 = 600,000.00
Blockwork Partitions - 2,000m2 @ 42/m2 = 84,000.00
Plasterboard Partitions - 4,400m2 @ 60/m2 = 264,000.00
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In this example the Total Saving to the Building Cost of the project would be in the region of
475,000.00, with further reductions to the Nett construction cost being achievable if the
Demountable/Glazed Partitions were reduced further, or even omitted in their entirety.
The information above does however, not make any allowance for the Acoustic performance
required by a particular College.
Internal Doors
The Cost Model assumes Solid Core fire rated doors in hardwood frame, with Stainless
Steel Ironmongery, with Lock Suiting and DDA Compliance. There are a number of ways in
which the cost of the Doors within a building might be reduced, and these would include but
not be limited to the use of hollow core doors with softwood frame, the use of Paint Grade
doors, i.e. Doors which are not finished, but prepared to receive paint, and a reduction in the
specification of the ironmongery.
The costs associated with Internal Doors are highly sensitive to specification changes, andas such should be reviewed on a project by project basis, as whilst a hollow core door in a
softwood frame might be an alternative in terms of the aesthetics of the building, it will not be
as hard wearing as a solid core door in a hardwood frame, and is therefore more susceptible
to damage etc. Any lock suiting and Ironmongery decision should be reviewed as part of an
overall project strategy in terms of access control, and student/staff access to Classrooms
when not being used for Structured Learning/Teaching.
Door sizes can also add to the overall cost. Oversized doors (greater than 2m) will create a
greater cost. Not only will the manufacturing of the door be above that of a standard door
but the hanging of the door will be more expensive. Taller/larger doors require more
manpower to hang them thus increasing the labour costs associated with this work.
Finishes
This area of a development can have between 4.25%-8%of the gross development cost.
And from the elemental breakdown defined by the LSC covers;
Wall, Floor & Ceiling Finishes
The scope and specification of finishes within a building represents potentially one of the
largest areas for cost cutting/value engineering within a project, and as with the internal
doors (above) and Sanitary ware (within the Services element) should be considered on aproject by project basis, as the range and variance in costs are too numerous to list within
this document.
In light of the above however, some potential areas which might be considered by each
college are as follows:
The omission of Plaster Skim Coats on internal walls, the alternative being the use of
fairface internal blocks with paint applied directly to the block, or simple taping and jointing of
plasterboard walls, with paint then applied directly to the board.
The omission of Floor Screeds throughout the building, this would however necessitate aslight increase in the cost of the upper floors, as these would require a power floated finish, it
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should also be noted that were screeds to be omitted throughout the building, this would
precluded the use of under floor heating.
The LSC Cost Model allows for a fully raised access floor which is a large cost item, this
could potentially be excluded although services distribution would then require further
consideration.
Allowance is also made for Hardwood Skirtings, however, these are significantly more
expensive than either MDF or Softwood Skirtings, and although softwood is not as
hardwearing as hardwood skirtings are generally not as exposed to damage as other
building elements such as doors etc.
Furniture & Fittings
This is an area that should be considered at the earliest opportunity. The understanding of
your assets and there condition will assist in determining the investment required in this
area. Failure to understand the FF&E requirement could increase your overall cost for theproject significantly. Within a Programme/Project this can equate to between 2% - 7.5%of
the overall gross development cost
Services
This area of a development can have between 20%-30% of the net construction cost or
between 13%-19%of the gross development cost.
The cost model allowance for Services (Cost Model 1 Issue No 4) for services is 587/m2
(Gross Internal Floor Area); When reviewing the costs allowed within a project for services
the Client should consider whether their project out-turn costs are within the budgeted
Allowance, if they are outside of this range, then a clear understanding of the variances
between the proposed project scheme and the out-turn cost should be sought from the
Services Engineer.
The Cost model expectations are briefly summarised below:
Sanitary Installations WCs and Fittings, inclusive of Disabled Fittings/Urinals/Wash
Hand basins and Fittings; Shower Cubicles/Trays etc;
Classroom/Laboratory/Cleaners Sinks Drinking Fountains etc.
Disposal Installations Waste, Soil and Vent Pipe work; Rainwater Installations,
Syphonic Drainage;
Mechanical Installations Kitchen, Servery, and Bar Fit Out
Mains Water service treatment; Hot and Cold Water Storageand Distribution.
Space Heating via Radiators; Under floor Heating to Atrium;Part Natural/Part Mechanical Ventilation/Cooling with 26oCmaximum teaching area criteria
Incoming Gas Supply and Distribution
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Electrical Installations - Mains and Sub-Mains Distribution; Small Power Generally;
Lighting/Emergency/External Lighting
Lightning Protection
Fire Alarm/Smoke Detection; Security System, Intruder Alarm,
CCTV, Public Address; Disabled Refuge Alarms; Disabled WC
Alarm System;
Building Management Systems (BMS) Controls this is an
area where intelligent building management is talked about
and the potential savings that can be achieved through the
technology. This all comes at a cost and a full ROI is
suggested. Areas to consider includes, staff ability to manage
and maintain the system, should you therefore outsource the
whole maintenance of the building to an organisation that has
the capability. What is the impact on the use of the bandwidthof the IT infrastructure?
Information Technology - The use of IT in the teaching and learning environment and
inclusion of telephony and BMS arena will have an impact on
any budgetary consideration. An IT strategy is required to
ensure that the delivery meets the expectations of the current
requirements but also considers easy expansion. Bandwidth
(BW) hungry applications/tools/devices will become more and
more apparent as technology advances with time. It is not
advisable to completely populate a new building with the latest
technology unless you are going to maximise its ability. Staff
and students will need time to adjust, get trained on all
devices/applications installed. Some of this will change the
working patterns of staff and likewise the learning ability of
students. Digital media/streaming/HD etc along with
maintenance systems will all take up BW and additionally the
virtual learning environment lessons streamed maybe
required. All of this will then need to be stored and on server
platforms which are energy hungry or requiring specialised
water cooled environments. Building a quality IT infrastructure
(network) in the first instance will offer flexibility and expansion
for future technological advances without re-engineering the
cabling solution at a high cost. Early design considerations in
the IT solutions and how it fits into the overall building will save
considerable cost and difficulty later.
Lift & Conveyor Installations - 3 No 17 Person DDA Compliant Lifts
Builders work in Connection with all of the above items to be considered and reviewed.
External Works
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This area of a development can have between 3.5%-10%of the gross development cost.
And from the elemental breakdown defined by the LSC covers the first three elements, the
addition of landscaping can increase this proportion;
Site Works Not Considered (Subject to review on a Project by Project basis)
Drainage Not Considered (Subject to review on a Project by Project basis)
External Services Not Considered (Subject to review on a Project by Project basis)
Landscape Not Considered (Subject to review on a Project by Project basis).
This is an emotive subject area which can be clearly affected by the
Local Authority. This is an area that is perceived to take the brunt of
financial cutbacks on a project. Local Authorities landscape officers
are being more demanding on how the final development will look.
There is a consideration whilst undergoing VE the types of materials
available for use when landscaping. Discuss with your landscape
architect in detail best approaches to reducing this cost, types of trees,
types of paving, types of block work for car parking etc.
Summary for section - Possibly
6.2.2 Projects Pre-RIBA Stage C, Starting Out, or Refurbishment
At this stage a review of what options are available to deliver the Colleges vision is available
and the College should review:
What is our Vision and what type of building is required to deliver this vision if any? Whereare we now? Where do we want to be? Is Capital Investment affordable? What is wrong
with the existing Campus/Estate?
This will result in a number of outputs which will provide clear reasons for change and this
may or may not include a new development. These outputs will give clear indication of the
options available, from the do nothing to the gold plated version. The following three
examples are designed to assist in any decision process the College may undertake.
To provide a baseline to show tangible evidence of cost, the LSC cost model (Cost Model 1
Issue Nr 4) has been used as the reference point in this section.
Generate Options
Do Nothing Identify and Quantify the Costs
In consideration of the Do Nothing the College should give consideration to the following;
whether this option is viable i.e. If the output of the initial review identify significant difficulties
with the existing estate it may be discounted at an early stage. Also consideration should be
given to the following with regards to cost; has the maintenance investment over the
previous years been sufficient? is there a significant amount of backlog maintenance to be
carried out due to this limited investment? Does the existing estate comply with the
necessary building and statutory regulations?
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Do Minimum
Refurbish Existing Estate Identify and Quantify the Costs
Area to be refurbished multiplied by Cost/m2
Level of Refurbishment
Full 2,317/m2
Medium 1,662/m2
Minimal 906/m2
N.B. Refurbishment standards are defined by the LSC Cost Model as follows:
Full - Strip back building to primary frame, retain structural floors, provide a new
envelope, resurface roof and fully fit out internally including M&E, IT and
Communication Installations. This activity is circa 75% of the cost/m2for a
new build.
Medium - Retain the existing structural fabric and envelope of the building and introduce
extensive new internal finishes and FF&E with part renewal of M&E, IT and
Communication Installations. This activity is circa 54% of the cost/m2for a
new build.
Minimal - Retain the building in its present form, with limited elements only of new
finishes internally including part FF&E. This activity is circa 30% of the
cost/m
2
for a new build.
In preparation of the Options the College should give consideration to the following; with
regards to refurbishment of existing buildings.
What planning conditions are there potentially within the local, are the buildings listed, of
significant interest to the area, within a conservation area etc. Also what is the extent of the
refurbishment as this will have an effect on the sensitivity of planning consent required.
These are some of the planning considerations to be aware of when looking at a
refurbishment.
The condition of the existing estate i.e. Is there a significant amount of backlog maintenance
to be carried out? What is the age of the existing estate? Does an asbestos log exist for the
existing building? Are there as built drawings available/maintenance manuals etc. available?
Does the existing estate comply with current legislation, Building Regulations etc.?
To support the operational delivery of the College during a refurbishment how will this be
programmed/managed? For an example of logistical issues; Is there a need for temporary
accommodation? Will this be portakabins on a car park and the effect this has, is there
foundations available to support this and how will the services be supplied to these
temporary arrangements, will the car parking limitations effect the travel patterns of staff and
students. If this is not the answer will you consider leasing accommodation? If this is office
accommodation you will need to seek change in planning use for the building, is there a
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University in the area that has space that it could rent out or another educational
establishment.
The Commission for Architecture and the Built Environment (CABE) released a document;
New from Old: transforming secondary schools through refurbishment, an advice document
in support of the BSF programme which has approximately 50% of its programme beingrefurbishments. It is recommended that this is read in conjunction with this material whilst
considering your Colleges approach to Refurbishment.
Prior to preparation of robust cost estimating a full and detailed condition survey should be
carried out, by qualified surveyor(s), including any necessary additional surveys i.e.
Geotechnical, structural, services above ground, services below ground, asbestos, noise
and acoustics, fire safety and DDA.
Preparation of Alternative Building Options
New Build Extend Existing Identify and Quantify the Costs
Area of New Build multiplied by Cost/m2
LSC Cost Model 1 - 3,171/m2
Plus Area of Any Refurbishment multiplied by Cost/m2
Level of Refurbishment
Full 2,317/m2
Medium 1,662/m
2
Minimal 906/m2
New Build Complete Identify and Quantify the Costs
Area of New Build multiplied by Cost/m2
LSC Cost Model 1 - 3,171/m2
In consideration of any new build scheme, the college must consider the site to be
developed, with particular regards to location and site constraints etc as well as the cost of
any land purchases, or, if land already held by the college the Costs associated with anyground investigation/land remediation works/demolitions if necessary; whether the existing
infrastructure entering the site is of sufficient capacity to meet the colleges requirements.
These are a few of the areas that require investigation.
Identify the Preferred Option
Having reviewed all of the options and prepared detailed option appraisals including the
indication of the costs associated, the College should then be in a position to consider and
identify its preferred option in terms of both Cost and benefit to the College. It is at this stage
the College can then proceed to develop the Preferred Option and seek to appoint a full
design team to carry out the necessary works to allow a building contractor to be procured.
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Development of Preferred Option
If the preferred option is a new build then the following areas should be considered jointly
with those comments made in Section 8.2.1 previously.
Are you trying for a RIBA awarded building? This activity comes with a cost. Are you
targeting an Excellent BREEAM rating? Is this likely to be achievable? The allowance
within the LSC Cost Model 1 (Issue 3) was 150/m2 It should however be noted that this
cost was deemed included within the overall cost of the Project within LSC Cost Model 1
(Issue 4).
The use of a 4 walls and a roof approach can ensure maximum use of effective space. Any
curved walls creates unusable space and adds to the complexity of buildability, what is the
radial curvature of the building, what is the centre point and where, do all the curves come
from that centre point or is there multiple points. This then reflects into the materials used
for the walls, plaster board, brick work, glass, steel, concrete. Etc.
During the design of the building challenge your design team on why they are
recommending key elements. Yes they are your technical experts but they will take the
safest option possible in their design. Challenge the Architect on their approach to the
design of the