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Paper 10456 v3-0 - Sources of Cost Information
Paper 10456 v3-0 - Sources of Cost Information
Paper 10456 v3-0 - Sources of Cost Information
Contents
1 Aim 3
2 Learning outcomes 4
3 Introduction 5
8 Comparison of analyses 21
9 Summary 25
1
2
Aim
1 Aim
• To consider the many sources of cost information available for use
in pre-contract cost control.
3
2 Learning outcomes
After studying this paper you should be able to:
4
Introduction
3 Introduction
The basis of any cost control system is a suitable library of cost
information, all classified to allow easy access. There are many sources
of cost information available for use in pre-contract cost control.
5
4 Sources of cost information
Important note: While there are many different sources of cost
information, currently little is available in the format required for some
aspects of NRM1 (RICS 2012). This means that costs may have to be
built up from cost information currently available, and then converted to
comply with NRM1 criteria.
Figure 1
The rules associated with the preparation of formal cost plans are contained in RICS
New Rules of Measurement: Order of Cost Estimating and Cost Planning for Capital
Building Works (NRM1) (RICS 2012)
• final accounts.
• cost analyses:
6
Sources of cost information
• price books:
• trade literature and price lists. Cost indices from various sources.
7
Table 1
Only the main headings are given. Each heading is further divided into
building types, with fuller reference numbers. For further details, refer to
the relevant document.
8
Uses of cost information
Table 2.
Source Application
Priced bills of quantities of previous Cost plans, cost checks, final cost checks. The total figures
projects. may be used for calculating cost estimates but some
adjustment for differences in size or standard of building is
usually necessary.
Composite rates may be built up from the bill rates which may
also be used for cost estimates.
Rates worked out during the settlement of These can be used in a similar way to the priced bill of
final accounts and rates calculated from a quantities for building up composite rates and for preparing
knowledge of builders’ material costs and cost plans and carrying out cost checks. A record of agreed
labour rates. costs for unusual items may be of use for future projects.
Cost analyses prepared in the cost Orders of cost estimate and elemental cost plans but often only
consultant’s own office. up to Level 2: Element costs. Some elements may be further
broken down into sub- element quantities or costs within the
specification section of the cost analysis, e.g. different finishes
or sanitary appliances within the relevant element.
To establish costs beyond Level 2: Element costs will require
other more detailed cost information about the project, which
will be available in the cost consultant’s own office.
This source is generally more reliable than other sources as
the cost consultant can use his/her own knowledge of site
conditions, economic climate, etc. of the project detailed in
the analysis.
Cost analyses available from BCIS. Orders of cost estimate and elemental cost plans but often only
up to Level 2: Element costs. Some elements may be further
broken down into sub- element quantities or costs within
the specification section of the cost analysis, e.g. finishes or
sanitary appliances within the relevant element.
Cost analyses published in trade journals. Cost estimates, establishing cost limit, initial cost plan (in many
cases, however, there is insufficient information provided to
allow use for cost plans).
9
Table 2. (cont.)
Cost information published in price books • cost/m² GIFA or cost limits and facility benchmark
costs for different building types: early cost estimates
and establishing cost limit when little or no drawn or design
information is available;
• elemental benchmark proportions: early elemental cost
estimates;
• approximate estimating section: cost plans;
• measured work section of price books*: cost plans, cost
checks, final cost checks.
Details of measured rates published in Cost plans, cost checks, final cost checks.
professional and trade journals.*
* Prices vary considerably between publications and you should use the figures only after careful study and
comparison with prices in bills of quantities for work in your area.
10
A closer look at cost analysis
The rules which explain how to prepare a cost analysis from a bill of
quantities are contained in:
Figure 2
BCIS (2012) Elemental Standard Form of Cost Analysis: Principles, Instructions, Elements
and Definitions (4th (NRM) edn) (BCIS ESFCA).
6.1 Definitions
Standard definitions are provided in the BCIS Elemental Standard Form
of Cost Analysis (ESFCA). You should ensure you are familiar with the
following terms − all of which are defined in the NRM1:
• group element
• element
11
• element unit quantity (EUQ)
• element unit rate (EUR)
• sub-element.
12
A closer look at cost analysis
13
Table 3 Summary of amplified analysis
Element/Sub-element Element
Quantity Unit Total cost Total cost Cost per m² Element unit Element
quantity unit rate
(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G)
Number and Cost Total cost of Cost per m² Measurement Column
name of calculated each element GIFA. Divide of element D figure
sub-element from = addition Column unit quantity divided by
or element analysis of all costs D figure in accordance Column
is detailed in of bill of of relevant by GIFA of with BCIS F figure
this column quantities sub-elements building ESFCA rules
items in Column C
A brief specification covering the design criteria for each element and
sub-element should be provided on separate sheets.
The analysis should be accompanied by any other details that have not
been stated elsewhere, including a copy of the contract drawings and
any informative photographs of the completed building.
In every cost analysis, list all the elements so that the element numbers
remain the same for reference and comparison purposes. Where no
cost is attributable to the element, write ‘nil’ against the element in the
cost column.
14
A closer look at cost analysis
element in which they are included and the element in which they are
normally included.
• canopies are not included in the ‘roof’ element. If they are over
external doors, then they should be included in the ‘external door’
element. If the canopies are to external areas, they should be
included in ancillary buildings and structures. Where they are of
significant cost importance, give details;
• the cost of tank rooms will normally be divided between the various
elements (external walls, roof, etc.) and tank casings will be added
into the ‘builder’s work in connection’ element.
15
6.4 Project information to be provided
Each analysis should have a front sheet containing the following details:
16
A closer look at cost analysis
17
7 Factors to consider when selecting a cost
analysis for use
The following provides explanation of some of the items that must
be considered when selecting a cost analysis for use when preparing
pre-contract cost advice.
18
Factors to consider when selecting a cost analysis for use
The form of contract used may affect the cost. The type that places
most responsibility on the contractor is likely to be the most expensive.
19
7.5 Contract period
The contact period for a project may affect the tender figure. Some
overhead costs (e.g. erecting site huts and other site establishment
costs) may remain constant no matter how long the contract. However:
• the total cost of items such as foreman will increase with the length
of contract;
• short contracts carried out in the winter months may involve extra
costs due to the weather conditions.
20
Comparison of analyses
8 Comparison of analyses
Analyses vary considerably even for similar types and sizes of building,
and a careful study is necessary before using one for cost planning
purposes. Indiscriminate use of figures taken from a cost analysis
can result in an incorrect cost plan.
Look for similarities. In this case the following are the same:
• type of building
• GIFA
• date of tender
21
Table 5. Comparison of two analyses
22
Comparison of analyses
3.1 Wall finishes 12.80 71.49 The walls in Building A are mostly plastered.
Building B has some plaster but panelling is provided
in the executive suite and marble and mosaic in the
entrance hall and on the walls of the main staircase. The
toilets are partly tiled. Some wallpaper allowed for.
3.2 Floor finishes 51.23 74.70 Mainly thermoplastic tiles in Building A.
Building B includes a variety of different finishes
including woodblock, mosaic, quarry tiles and some
vinyl tiles. The element also includes extra thickness
screed and insulating material for underfloor heating.
3.3 Ceiling finishes 44.82 89.63 Building A has mainly plaster direct on to the concrete
structure.
Building B has patent suspended ceilings mostly
finished with acoustic tiles.
4 Fittings, 21.34 114.18 Only essential fittings are provided in Building A, but in
furnishings and Building B, which will be owner occupied, most of the
equipment main fittings are included in the contract together with
some furnishings.
5.1 Sanitary 6.41 8.54 Building B has more and better fittings as it is for the
installations owner-occupier.
5.2 Services Nil Nil
equipment
5.3 Disposal 10.67 11.75
installations
5.4 Water installations 21.34 23.47
5.5 Heat source 23.47 Nil Building A has solid fuel hot water heating and Building
B has underfloor electric heating. (Note: the additional
cost of screed and insulation is included in floor
finishes.)
5.6 Space heating and 66.16 39.48
air conditioning
5.7 Ventilation Nil Nil
systems
5.8 Electrical 61.90 115.26 Essential fittings only are provided in Building A
installations whereas Building B has many elaborate decorative
fittings.
5.9 Fuel installations Nil 2.13
5.10 Lift and conveyor 61.90 72.57 There is one extra storey in Building B and the lifts
installations provided are faster and better equipped.
5.11 Fire and lightning 3.21 3.21
protection
23
Table 5. (cont.) Comparison of two analyses
5.12 Communication, Nil 3.21 Special telephones are included for Building B.
security
and control
installations
5.13 Specialist Nil Nil
installations
5.14 Builder’s work in 18.14 32.01
connection with
services
Note: Subtotal 1,011.63 1,574.01
excluding external
works preliminaries and
contingencies.
8.1−8.3Site works 42.69 106.71 Only the essential works were included in Building A
while landscaping was provided for the other building.
8.6 External drainage 14.93 23.47 Increased sanitary fittings more dispersed in B and a
site which results in deeper drains.
8.7 External services 3.21 5.34 Building B is situated further from the road than A.
8.8 Minor building Nil 11.75 Building B has a bicycle shed, substation and some
works garages.
9 Preliminaries 106.71 136.60
Total (less risk) 1,179.17 1,857.88
13 Risk 32.01 45.89
TOTAL 1,211.18 1,903.77
24
Summary
9 Summary
There are many different sources and types of cost information which
can be used in the preparation of estimates and cost plans. The
different types of cost information are suitable for use at different
stages of the pre-contract cost control process.
There are limitations to cost data, and costs cannot simply be copied
from one project to another. Consideration must be given to many
factors including the:
• procurement route;
• contract conditions.
Indiscriminate use of cost data from any source can result in incorrect
cost advice being provided to the client and design team.
Self-assessment question
Care must be taken when selecting a cost analysis to ensure that the
specification of the building in the cost analysis is as similar as possible
to the design and specification of the proposed project. This requires
careful examination of the information contained in the cost analysis.
Indiscriminate use of figures taken from a cost analysis can result
in an incorrect order of cost estimate or cost plan.
A cost consultant’s own records are the most reliable source of cost
information, as he/she knows how the information was collected, along
with factors such as local market conditions, contract particulars and
site problems that may have influenced the costing.
25
Appendix A: Sample of cost/m² GIFA
Costs/m² GIFA are available from various sources, e.g. BCIS, price
books, a cost consultant’s own analysis of past projects, etc. Look up
page 321 of Griffiths Complete Building Price Book 2013.
26
Appendix B: Sample of elemental costs
Please note: The format of this cost analysis is based on the second
edition of the BCIS Standard Form of Cost Analysis (1969 − reprinted
2003). There are therefore some differences between this analysis and
that which would be prepared were it based on the 4th (NRM) edition,
which is now to be used. Full numeric referencing of the elements is
now used. Element 2A has therefore become 2.1, element 2B is now
2.2, etc. There are also some changes to the order and titles of the
elements but none of these issues affects the percentages detailed in
the extract.
27
Appendix C: BCIS Elemental Standard Form
of Cost Analysis: Principles, Instructions,
Elements and Definitions (4th (NRM) edn)
(BCIS ESFCA)
Figure 3
The BCIS ESFCA ‘describes the rules for preparing an elemental cost
analysis in standard BCIS format’ (BCIS 2012).
28
Appendix D: Sample of approximate estimating rates
29
Appendix E: Sample of a completed cost
analysis
Please note: The format of this cost analysis is based on the second
edition of the BCIS Standard Form of Cost Analysis (1969 − reprinted
2003). There are therefore some differences between this analysis and
that which would be prepared were based on the 4th (NRM) edition,
which is now to be used. Full numeric referencing of the elements is
now used. Element 2A has therefore become 2.1, element 2B is now
2.2, etc. There are also some changes to the order and titles of the
elements.
30
Appendix F: Sample of pages from a priced bills of quantities
31
Description Quantity Unit Rate £
BILL NO. 4 − MASONRY
Substructure
Walls, half brick thick in common brickwork in cement mortar 7 m² 65.00 455.00
(1:4) in skins of hollow walls
Walls, 100mm thick dense concrete blocks in cement mortar 11 m² 50.00 550.00
(1:4) in skins of hollow walls
Walls, half brick thick in facings (PC £300/1,000), in stretcher 5 m² 80.00 400.00
bond in gauged mortar (1:1:6) in skins of hollow walls,
pointing with weathered struck joint on side as the work
proceeds
Forming cavities in hollow walls, 75mm wide, including 11 m² 6.10 67.10
stainless steel twisted wall-ties, 5 per m²
Damp-proof course n.e. 300mm wide, horizontal, pitch 33 m 2.00 66.00
polymer, lapped 150mm at joints, bedded in gauged mortar
(1:1:6)
Superstructure
Walls, 100mm thick lightweight concrete blocks (3.5KN) in 36 m² 47.00 1,692.00
gauged mortar (1:1:6)
Walls, half brick thick in facings (PC £300/1,000), in stretcher 37 m² 80.00 2,960.00
bond in gauged mortar (1:1:6) in skins of hollow walls,
pointing with weathered struck joint on side as the work
proceeds
32
Appendix F: Sample of pages from a priced bills of quantities
33
£
SUMMARY
Bill No.
1 Preliminaries
2 Excavation and filling work
3 In situ concrete 941.50
4 Masonry 6,531.90
5 Carpentry
6 Cladding and covering
7 Waterproofing
8 General joinery
9 Windows, screens and lights
10 Doors, shutters and hatches
11 Floor, wall, ceiling and roof finishings
12 Drainage above ground
13 Drainage below ground
14 Mechanical services 2,385.30
15 Electrical services
AMOUNT TO TENDER 9,858.70
34
Appendix G: Sample of measured work rates
When using rates from price books, it is important to read any guidance
notes. For example, the following is some of the guidance provided in
the Griffiths (2013) price book:
35
References
Ashworth A (2010) Cost Studies of Buildings (5th edn), Harlow: Pearson Education
Limited.
BCIS (2012) Elemental Standard Form of Cost Analysis: Principles, Instructions,
Elements and Definitions (4th (NRM) edn), London: BCIS.
Construction Industry Project Information Committee (1977) UNICLASS: Unified
Classification for the Construction Industry, London: RIBA Publications.
Crawford M (1997) UNICLASS: Unified Classification for the Construction Industry,
London: RIBA Publications.
Griffiths (2012) Griffiths Complete Building Price Book 2013: A Complete Guide
for Estimating, Checking and Forecasting Building and Civil Engineering Costs
[e-Book], Croydon: Franklin & Andrews.
Jagger D and Smith J (2007) Building Cost Planning for the Design Team (2nd edn),
Oxford: Butterworth-Heinemann.
RICS (2012) RICS New Rules of Measurement: Order of Cost Estimating and Cost
Planning for Capital Building Works (NRM1) (2nd edn), Coventry: RICS.
36