Appendix 1 Cost and Guidance

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KME Consultancy Ltd | 1

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
http://designguidance.lsc.gov.uk/http://designguidance.lsc.gov.uk/http://designguidance.lsc.gov.uk/http://designguidance.lsc.gov.uk/


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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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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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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


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


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.


= 2,995m2 @ Circa 350.00/m2 = 803,250.00


= 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.


= 2,040m2 @ Circa 350.00/m2 = 714,000.00


= 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


= 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


= 4,625 m2 @ Circa 350.00/m2 = 1,618,750.00


= 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


= 4,700 m2 @ Circa 350.00/m2 = 1,645,000.00


= 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

Appendix 1 Cost and Guidance

Documents

Transcript of Appendix 1 Cost and Guidance