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Blackrock - Schematic Estimate Report - Rev 00
Blackrock - Schematic Estimate Report - Rev 00
Blackrock - Schematic Estimate Report - Rev 00
Schematic Stage
Cost Estimate Report
BlackRock
Contents
© Turner & Townsend Arabia Limited. This document is expressly provided to and solely for the use of BlackRock and takes into account their particular
instructions and requirements. It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to
any other party without our express written permission and we accept no liability of whatsoever nature for any use by any other party.
BlackRock has appointed Turner & Townsend to provide cost consultancy services for their office Fit-out, to be located in Laysen Valley, Riyadh,
Kingdom of Saudi Arabia, (KSA).
The purpose of this report is to provide BlackRock with a Schematic Cost Estimate to inform the budget based on the extent of information outlined
within this report.
The Cost Estimate will provide a commercial platform for the project and will ensure a value driven approach to the effective commercial
management for the design and construction of the project itself.
Section 3 of this report provides a financial summary and commentary which covers commercial factors and considerations aligned to current
market conditions. To assist the design process moving forward, an indicative elemental cost split has been included within Appendix A and is
intended to help inform the design to cost approach and enable a basis for comparison as the design continues to develop.
The Cost Estimate should be read in conjunction with the scope of work, pricing notes, basis and assumptions, together with exclusions as detailed
within Sections 6 & 7 of this report. These sections provide clarification on the basis to which the costs have been derived and should also
enable/support key business decisions to be made as the design develops.
Section 9 of this report discusses the risks and opportunities associated with the project which may need to be financially accounted for at this
early stage, or until such time as decisions or mitigation measures are agreed with the wider project team.
All costs included within the report have been expressed in Saudi Arabian Riyal (SAR) and are based upon present day market construction costs
within the Saudi Arabian market.
A Schematic Design has been received from TP Bennett and Bluehaus, providing general arrangement layout and indicative finishes to form the
basis of the Project Requirements. The design currently considers the following:
In order to develop a comparable budget, our commercial assessment aligns with the direction informed by the Schematic design and considers
construction of a medium to high end office fit out, using benchmark rates for buildings of a similar composition, size and quality standards where
design is not developed.
The Cost Estimate totals SAR 11,810,694 or USD 3,143,190 (exclusive of VAT) for BlackRock Riyadh Office Fit-out (as detailed within
Appendix A of this report).
The Cost Estimate comprises of works associated with the fit-out of an 776 m2 of office space comprising a selection of high-quality commercial
space within an existing shell and core office in Laysen Valley. The Cost Estimate corresponds to the Schematic Design received from TP Bennett
and Bluehaus. A summary level breakdown of costs shown on the following page provides a commercial split of the figure above.
The Cost Estimate is based on present day fixed prices derived from 4th Quarter 2022 pricing levels and includes for Main Contractor Preliminaries
of 6% for the proposed works. Inflation beyond 4th Quarter 2022 has been excluded. Costs associated with the provision for pre-development
costs, marketing, corporate finance, and overhead provisions are deemed excluded. Section 7 of this report identifies a complete list of all
exclusions considered for the purposes of this Cost Estimate.
It should be noted that this Cost Estimate has been based on indicative design information only and should therefore be subject to continual review
as the design is developed.
2. Turner & Townsend to present revisions of the cost estimate to BlackRock and consultant team as may be required.
3. Review all assumptions and exclusions in conjunction with the TP Bennett and Bluehaus design team to ensure alignment (amend if
necessary).
8. Final costs for Loose Furniture, Technology and Professional Fees provided by BlackRock.
The Gross Internal Area (GIA) of the office fit out amounts to 776m2. A further detailed cost summary is included within Appendix A of this
report.
The Cost Estimate is based on a conventional competitive procurement approach for the project based on a single package lump sum award. No
allowances have therefore been included for costs associated with alternative procurement methods, the likes of negotiated two-stage multi-
package procurement or other non-traditional routes (such as Design & Build). The percentage allowance(s) included for Main Contractor
Preliminaries have been benchmarked against recent Kingdom office fit-out projects of a similar scale and composition.
The BlackRock budget is based on the previous KAFD building and the schematic estimate is based on Laysen Valley building. Technology costs and
professional fees included in the Schematic budget is as advised by BlackRock.
The current Cost Estimate based on the Schematic design information. We have however identified below a number of areas whereby the overall
construction costs could be rationalised during the design stages as follows:
1. Review and clarification of internal finish type(s) throughout and rationalisation of material selection.
3. Review the design intent/fit-out requirements of the specialist areas such as the Meeting Room, Break out area etc.
4. Target costs to be implemented for the light fixtures (locally sourced manufacturers).
6. Review of the extent of ceilings and acoustic requirements as the design further progresses.
7. Locally source materials and products that are readily available in KSA to reduce cost and minimise lead times.
For the purposes of this initial exercise, we have used TP Bennett and Bluehaus Schematic Design dated 04 th November 2022;
This Cost Estimate has been based on the following design information:
Assumptions
The following assumptions have been made in the production of this Cost Estimate:
General
Project NIA 739 m2 measured in a RICS code of measuring practice, 6th edition.
Ceiling height of existing space Basement & GF – 3.96m, FF – 3.4m (Slab to slab).
Architectural
Internal Finishes
Blend of medium to high quality finishes throughout; taking note where specified.
Carpet, vinyl, Porcelain, Ceramic, and special floor finishes aligned with the Schematic Design Report functional zones.
Wall finish to standard office space generally paint with isolated features.
Acoustic and wall covering wall finishes to meeting room, private office.
All fixed joinery elements have been included within the construction element.
Joinery details have been assumed and based on sizing of proposed units.
Allowed White goods aligned with the Schematic Design Report functional zones.
Services
Allowed for structured cabling, wiring, conduits, data devices & tie in connections for IT/AV.
The following are a list of exclusions and clarifications associated with the Cost Estimate. Some items listed will have a cost impact and may
therefore need to be accounted for elsewhere.
General
Legal fees; local statutory fees; site surveys; monitoring costs; environmental audits; wind studies; other third-party fees/costs.
Project insurances (third party and works insurance will be provided by the appointed Main Contractor).
Value Added Tax (VAT) or other taxes not related to direct construction works.
Site/unit acquisition fees/costs along with any third-party compensation settlements, sale or letting fees/costs.
Cost escalation/deflation.
Independent commissioning management fees (assumed to be included in the separate budget for professional fees).
Cost of renting adjacent unit/land to act as storage, lay-down or site establishment areas.
Diversion of utilities infrastructure inside or outside the site boundary including any necessary off-site reinforcement of utilities infrastructure.
Project Specific
Provision of sustainability measures to achieve WELL/LEED or other sustainable certification over and above KSA Green Building Code and
regulations.
Internal planting.
Any idle time and/or costs associated with downtime due to access or logistical issues.
No modifications to the existing or repurposing of lifts. Protection and use of lifts during construction has been considered.
Any gas installations. It is assumed that all equipment will be electrically operated.
Any modifications, upgrade or replacement of base build MEP plant and equipment.
8.0 Benchmarking
The table provided below details a comparison against office fit out benchmark data on various projects, all of similar typology, yet each in its own
right slightly different with specific attributes that distinguish one from the other, hence the notable fluctuation in overall cost/m².
The below benchmark data is based on construction costs only (CAT A & B fit out) and excludes consultancy fees and technology costs.
Cost per m2
Project Description Location Specification Area (m2)
(SAR)
Benchmarking Data
25,000
20,000 19,455
Cost per m2 (SAR)
15,000
12,954
11,933
9,986 10,184
9,620
10,000
8,213 8,433
7,863
5,000 4,000
In addition to the project risk register the following risks have been identified by Turner & Townsend which could have a commercial impact to the
overall project budget:
Ability to value engineer the project within the constraints of BlackRock requirements and the programme.
Supply chain management, early identification of long lead items and origin of specified materials (locally sourced where feasible).
Early coordination with the design team means design can be aligned to the budget (and managed).
Opportunity to align project to budget through value engineering identified in Section 5 of this report.
Target costs/ Prime Cost (PC) Rates to be implemented for Sanitary, Light Fittings and Finishes.
The Cost Estimate totals SAR 11,810,694 or USD 3,143,190 (exclusive of VAT) for the BlackRock Office Fit-Out (as detailed within Appendix
A of this report).
To ensure continuity and a robust value driven approach to the project is maintained we would recommend the following steps are taken:
2. Turner & Townsend to present revisions of the cost estimate to BlackRock and consultant team as may be required.
3. Review all assumptions and exclusions in conjunction with the TP Bennett and Bluehaus design team to ensure alignment (amend if
necessary).
8. Final costs for Loose Furniture, Technology and Professional Fees provided by BlackRock.