| List of figures |
|
xvi | |
| List of tables |
|
xix | |
| List of examples |
|
xx | |
| Foreword |
|
xxv | |
|
|
| Foreword |
|
xxvii | |
|
|
| Foreword |
|
xxix | |
|
|
| Preface |
|
xxxi | |
| Acknowledgements |
|
xxxvii | |
| About the author |
|
xxxix | |
| Abbreviations |
|
xli | |
| Part 1 Introduction |
|
|
|
|
3 | (14) |
|
|
|
3 | (1) |
|
1.1 What is cost management? |
|
|
3 | (1) |
|
1.2 Basic principles of cost management |
|
|
4 | (1) |
|
1.3 Why is cost management important? |
|
|
4 | (1) |
|
1.4 Objectives of cost management |
|
|
5 | (1) |
|
1.5 Responsibility for cost management |
|
|
5 | (1) |
|
1.6 The role of the cost manager |
|
|
5 | (1) |
|
1.7 The cost management cycle (the Benge Cycle) |
|
|
6 | (1) |
|
1.8 Relationship of the documents that comprise the RICS suite of new measurement rules |
|
|
6 | (4) |
|
1.9 NRM 1 and building information modelling (BIM) |
|
|
10 | (1) |
|
1.10 Benefits of the rules |
|
|
11 | (6) |
|
2 Cost estimating and cost planning |
|
|
17 | (14) |
|
|
|
17 | (1) |
|
2.1 Cost estimates and cost plans |
|
|
17 | (1) |
|
2.2 Process models for managing and designing building projects |
|
|
18 | (1) |
|
2.3 An overview of the cost-estimating and cost-planning stages |
|
|
19 | (2) |
|
2.4 Impact of procurement and contract strategies on cost planning |
|
|
21 | (7) |
|
2.5 Review and approval process |
|
|
28 | (3) |
| Part 2 Order of cost estimates |
|
|
3 Order of cost estimates - an overview |
|
|
31 | (4) |
|
|
|
31 | (1) |
|
3.1 Purpose of an order of cost estimate |
|
|
31 | (1) |
|
3.2 Types of order of cost estimate |
|
|
32 | (1) |
|
3.3 When is an order of cost estimate prepared? |
|
|
33 | (2) |
|
4 Commencing an order of cost estimate |
|
|
35 | (18) |
|
|
|
35 | (1) |
|
4.1 Planning an order of cost estimate |
|
|
35 | (2) |
|
4.2 Order of cost estimate framework |
|
|
37 | (3) |
|
4.3 Methods of measurement |
|
|
40 | (5) |
|
4.4 Elemental method (or elemental estimate) |
|
|
45 | (4) |
|
4.5 Information requirements at order of cost estimating stage |
|
|
49 | (4) |
|
5 Preparing an order of cost estimate |
|
|
53 | (10) |
|
|
|
53 | (1) |
|
5.1 Steps to preparing an order of cost estimate |
|
|
53 | (6) |
|
5.2 Composition of an order of cost estimate |
|
|
59 | (1) |
|
5.3 Checklist for order of cost estimates |
|
|
59 | (4) |
|
6 Computing the works cost estimate |
|
|
63 | (14) |
|
|
|
63 | (1) |
|
6.1 Computing the works cost estimate |
|
|
63 | (1) |
|
6.2 Estimating the cost of building works (estimate 1A) |
|
|
63 | (12) |
|
6.3 Estimating the cost of main contractor's preliminaries (estimate 1B) |
|
|
75 | (1) |
|
6.4 Estimating the cost of main contractor's overheads and profit (estimate 1C) |
|
|
76 | (1) |
|
6.5 Compilation of the works cost estimate (estimate 1) |
|
|
76 | (1) |
|
7 Order of cost estimate - a worked example |
|
|
77 | (22) |
|
|
|
77 | (1) |
|
7.1 Information gathering |
|
|
77 | (8) |
|
7.2 Development of a work breakdown structure |
|
|
85 | (3) |
|
7.3 Cost manager's assumptions and data gathered |
|
|
88 | (2) |
|
7.4 Generation of quantities for order of cost estimate |
|
|
90 | (1) |
|
7.5 Computing the order of cost estimate |
|
|
91 | (5) |
|
7.6 Presenting the order of cost estimate |
|
|
96 | (3) |
|
8 Preparation of an initial elemental cost model - using the elemental method of estimating |
|
|
99 | (28) |
|
|
|
99 | (1) |
|
8.1 The elemental method of estimating |
|
|
99 | (2) |
|
8.2 Steps to preparing an initial elemental cost model |
|
|
101 | (2) |
|
8.3 Elemental breakdown for building works |
|
|
103 | (1) |
|
8.4 Measurement of building elements |
|
|
104 | (1) |
|
8.5 Production of the building works estimate (estimate 1A) |
|
|
105 | (1) |
|
8.6 Calculation of element unit quantities |
|
|
105 | (19) |
|
8.7 Calculating elemental cost targets and the building works estimate |
|
|
124 | (1) |
|
8.8 Computing the works cost estimate |
|
|
125 | (2) |
|
9 Initial elemental cost model - a worked example |
|
|
127 | (10) |
|
|
|
127 | (1) |
|
9.1 Basis of elemental cost model |
|
|
127 | (1) |
|
9.2 Assumptions and data gathered |
|
|
128 | (1) |
|
9.3 Generation of element unit quantities |
|
|
128 | (1) |
|
9.4 Compiling an initial elemental cost model |
|
|
128 | (4) |
|
9.5 Presenting the initial elemental cost model |
|
|
132 | (5) |
| Part 3 Cost planning |
|
|
10 Cost planning - an overview |
|
|
137 | (16) |
|
|
|
137 | (1) |
|
10.1 What is the purpose of cost planning? |
|
|
137 | (1) |
|
|
|
138 | (2) |
|
10.3 Information requirements |
|
|
140 | (13) |
|
11 Format, structure and codification of cost plans |
|
|
153 | (10) |
|
|
|
153 | (1) |
|
11.1 Hierarchy of elements and components |
|
|
153 | (1) |
|
|
|
154 | (3) |
|
11.3 Codification of cost plans |
|
|
157 | (6) |
|
|
|
163 | (10) |
|
|
|
163 | (1) |
|
12.1 Steps to preparing a cost plan |
|
|
163 | (3) |
|
12.2 Composition of a cost plan |
|
|
166 | (1) |
|
12.3 Checklist for cost plan |
|
|
167 | (6) |
|
13 Quantification and the use of the tabulated rules of measurement for cost planning |
|
|
173 | (14) |
|
|
|
173 | (1) |
|
13.1 General approach to measuring building works |
|
|
173 | (2) |
|
13.2 Use of the tabulated rules for building works |
|
|
175 | (1) |
|
13.3 Use of the tabulated rules for other group elements |
|
|
176 | (1) |
|
13.4 Use of the tabulated rules for risks |
|
|
176 | (1) |
|
13.5 Degree of measurement |
|
|
176 | (2) |
|
13.6 Measurement notation |
|
|
178 | (4) |
|
13.7 Quantifying and describing components for cost plans |
|
|
182 | (2) |
|
|
|
184 | (1) |
|
13.9 Work to and within existing buildings |
|
|
184 | (1) |
|
13.10 Work not covered by the rules |
|
|
185 | (1) |
|
13.11 Inadequate design information |
|
|
185 | (1) |
|
13.12 Information required by the cost manager |
|
|
185 | (2) |
|
14 Facilitating works (group element 0) |
|
|
187 | (14) |
|
|
|
187 | (1) |
|
14.1 Method of measurement |
|
|
187 | (1) |
|
14.2 Toxic/hazardous material removal (element 0.1) |
|
|
187 | (5) |
|
14.3 Major demolition works (element 0.2) |
|
|
192 | (1) |
|
14.4 Temporary support to adjacent structures (element 0.3) |
|
|
193 | (2) |
|
14.5 Specialist groundworks (element 0.4) |
|
|
195 | (2) |
|
14.6 Temporary diversion works (element 0.5) |
|
|
197 | (1) |
|
14.7 Extraordinary site investigation works (element 0.6) |
|
|
198 | (3) |
|
15 Substructure (group element 1) |
|
|
201 | (30) |
|
|
|
201 | (1) |
|
15.1 Method of measurement |
|
|
201 | (1) |
|
15.2 Risks associated with substructure works |
|
|
202 | (1) |
|
15.3 Substructures (element 1.1) |
|
|
203 | (1) |
|
15.4 Standard foundations (sub-element 1.1.1) |
|
|
204 | (2) |
|
15.5 Specialist foundations (sub-element 1.1.2) |
|
|
206 | (10) |
|
15.6 Lowest floor construction (sub-element 1.1.3) |
|
|
216 | (2) |
|
15.7 Basement excavation (sub-element 1.1.4) |
|
|
218 | (6) |
|
15.8 Basement retaining walls (sub-element 1.1.5) |
|
|
224 | (7) |
|
16 Superstructure (group element 2) |
|
|
231 | (42) |
|
|
|
231 | (1) |
|
16.1 Method of measurement |
|
|
231 | (1) |
|
|
|
231 | (10) |
|
16.3 Upper floors (element 2.2) |
|
|
241 | (6) |
|
|
|
247 | (7) |
|
16.5 Stairs and ramps (element 2.4) |
|
|
254 | (3) |
|
16.6 External walls (element 2.5) |
|
|
257 | (7) |
|
16.7 Windows and external doors (element 2.6) |
|
|
264 | (3) |
|
16.8 Internal walls and partitions (element 2.7) |
|
|
267 | (3) |
|
16.9 Internal doors (element 2.8) |
|
|
270 | (3) |
|
17 Internal finishes (group element 3) |
|
|
273 | (10) |
|
|
|
273 | (1) |
|
17.1 Method of measurement |
|
|
273 | (1) |
|
17.2 Wall finishes (element 3.1) |
|
|
274 | (1) |
|
17.3 Floor finishes (element 3.2) |
|
|
274 | (4) |
|
17.4 Ceiling finishes (element 3.3) |
|
|
278 | (5) |
|
18 Fittings, furniture and equipment (group element 4) |
|
|
283 | (8) |
|
|
|
283 | (1) |
|
18.1 Method of measurement |
|
|
283 | (1) |
|
18.2 Fittings, furnishings and equipment (element 4.1) |
|
|
283 | (8) |
|
19 Services (group element 5) |
|
|
291 | (44) |
|
|
|
291 | (1) |
|
19.1 Method of measurement |
|
|
291 | (2) |
|
19.2 Sanitary installations (element 5.1) |
|
|
293 | (2) |
|
19.3 Services equipment (element 5.2) |
|
|
295 | (1) |
|
19.4 Disposal installations (element 5.3) |
|
|
295 | (6) |
|
19.5 Water installations (element 5.4) |
|
|
301 | (3) |
|
19.6 Heat source (element 5.5) |
|
|
304 | (1) |
|
19.7 Space heating and air conditioning (element 5.6) |
|
|
305 | (3) |
|
19.8 Ventilation (element 5.7) |
|
|
308 | (2) |
|
19.9 Electrical installations (element 5.8) |
|
|
310 | (7) |
|
19.10 Fuel installations (element 5.9) |
|
|
317 | (1) |
|
19.11 Lift and conveyor installations (element 5.10) |
|
|
318 | (6) |
|
19.12 Fire and lightning protection (element 5.11) |
|
|
324 | (2) |
|
19.13 Communication, security and control systems (element 5.12) |
|
|
326 | (3) |
|
19.14 Specialist installations (element 5.13) |
|
|
329 | (3) |
|
19.15 Builder's work in connection with services (element 5.14) |
|
|
332 | (3) |
|
20 Prefabricated buildings and building units (group element 6) |
|
|
335 | (6) |
|
|
|
335 | (1) |
|
20.1 Method of measurement |
|
|
335 | (1) |
|
20.2 Complete buildings (sub-element 6.1.1) |
|
|
336 | (1) |
|
20.3 Building units (sub-element 6.1.2) |
|
|
337 | (1) |
|
20.4 Pods (sub-element 6.1.3) |
|
|
338 | (3) |
|
21 Work to existing buildings (group element 7) |
|
|
341 | (14) |
|
|
|
341 | (1) |
|
21.1 Method of measurement |
|
|
341 | (1) |
|
21.2 Minor demolition works and alteration works (element 7.1) |
|
|
342 | (3) |
|
21.3 Repairs to existing services (element 7.2) |
|
|
345 | (2) |
|
21.4 Damp-proof courses/fungus and beetle eradication (element 7.3) |
|
|
347 | (2) |
|
21.5 Facade retention (element 7.4) |
|
|
349 | (1) |
|
21.6 Cleaning existing surfaces (element 7.5) |
|
|
350 | (1) |
|
21.7 Renovation works (element 7.6) |
|
|
350 | (5) |
|
22 External works (group element 8) |
|
|
355 | (44) |
|
|
|
355 | (1) |
|
22.1 Method of measurement |
|
|
355 | (1) |
|
22.2 Site preparation works (element 8.1) |
|
|
356 | (4) |
|
22.3 Roads, paths, pavings and surfacings (element 8.2) |
|
|
360 | (3) |
|
22.4 Soft landscaping, planting and irrigation systems (element 8.3) |
|
|
363 | (5) |
|
22.5 Fencing, railings and walls (element 8.4) |
|
|
368 | (4) |
|
22.6 External fixtures (element 8.5) |
|
|
372 | (1) |
|
22.7 External drainage (element 8.6) |
|
|
373 | (6) |
|
22.8 External services (element 8.7) |
|
|
379 | (14) |
|
22.9 Minor building works and ancillary buildings (element 8.8) |
|
|
393 | (6) |
|
23 Deriving unit rates for building components, sub-elements and elements |
|
|
399 | (24) |
|
|
|
399 | (1) |
|
23.1 Hierarchical structure of cost data |
|
|
399 | (1) |
|
23.2 Sources of building cost data |
|
|
400 | (1) |
|
23.3 Factors affecting cost data |
|
|
401 | (1) |
|
23.4 Pitfalls of using cost analysis and benchmark analysis |
|
|
402 | (1) |
|
23.5 Determining the cost per m2 of gross internal floor area for building works |
|
|
403 | (9) |
|
|
|
412 | (1) |
|
23.7 Determining functional unit rates for building works |
|
|
412 | (1) |
|
23.8 Estimating element unit rates (EURs) |
|
|
412 | (6) |
|
23.9 Estimating unit rates for components |
|
|
418 | (5) |
|
24 Calculating the building works estimate |
|
|
423 | (4) |
|
|
|
423 | (1) |
|
24.1 Composition of the building works estimate |
|
|
423 | (1) |
|
24.2 Determining the building works estimate |
|
|
424 | (3) |
|
25 Main contractor's preliminaries (group element 9) |
|
|
427 | (14) |
|
|
|
427 | (1) |
|
25.1 What are preliminaries? |
|
|
427 | (1) |
|
25.2 Estimation of preliminaries costs |
|
|
428 | (1) |
|
25.3 Main contractor's preliminaries costs |
|
|
429 | (3) |
|
25.4 Subcontractors' preliminaries costs |
|
|
432 | (1) |
|
25.5 Estimation of main contractor's preliminaries costs |
|
|
432 | (9) |
|
26 Main contractor's overheads and profit (group element 10) |
|
|
441 | (4) |
|
|
|
441 | (1) |
|
26.1 Main contractor's overheads and profit |
|
|
441 | (1) |
|
26.2 Subcontractors' overheads and profit |
|
|
441 | (1) |
|
26.3 Estimation of main contractor's overheads and profit |
|
|
442 | (3) |
|
27 Calculating the works cost estimate |
|
|
445 | (6) |
|
|
|
445 | (1) |
|
27.1 Composition of the works cost estimate |
|
|
445 | (1) |
|
27.2 Determining the works cost estimate |
|
|
445 | (6) |
| Part 4 Estimating cost targets for non-building works items and risk allowances |
|
|
28 Project and design team fees (group element 11) |
|
|
451 | (16) |
|
|
|
451 | (1) |
|
28.1 Project and design team fees |
|
|
452 | (1) |
|
28.2 Estimation of consultants' fees (element 11.1) |
|
|
452 | (6) |
|
28.3 Estimation of main contractor's pre-construction fee (element 11.2) |
|
|
458 | (3) |
|
28.4 Estimation of main contractor's design fees (element 11.3) |
|
|
461 | (3) |
|
28.5 Subcontractors' design fees |
|
|
464 | (1) |
|
28.6 Establishing the cost target for project and design team fees |
|
|
464 | (3) |
|
29 Other development and project costs (group element 12) |
|
|
467 | (6) |
|
|
|
467 | (1) |
|
29.1 What are other development and project costs? |
|
|
468 | (2) |
|
|
|
470 | (1) |
|
29.3 Estimation of other development and project costs |
|
|
471 | (2) |
|
30 Setting and managing risk allowances (group element 13) |
|
|
473 | (32) |
|
|
|
473 | (1) |
|
|
|
474 | (1) |
|
30.2 Principles of risk management |
|
|
474 | (1) |
|
30.3 Risk management and NRM 1 |
|
|
475 | (1) |
|
30.4 Risk management of building projects |
|
|
476 | (2) |
|
30.5 Application of risk management to building projects |
|
|
478 | (1) |
|
30.6 What is a risk allowance? |
|
|
478 | (2) |
|
30.7 Formal risk analysis |
|
|
480 | (5) |
|
30.8 Qualitative risk assessment |
|
|
485 | (1) |
|
30.9 Quantitative risk assessment |
|
|
486 | (2) |
|
30.10 Methods of quantifying the risk allowance |
|
|
488 | (8) |
|
30.11 Risk response and risk allocation |
|
|
496 | (3) |
|
30.12 Setting and controlling the risk allowance (estimate 4) |
|
|
499 | (6) |
|
31 Estimating the possible effects of inflation (group element 14) |
|
|
505 | (10) |
|
|
|
505 | (1) |
|
|
|
506 | (1) |
|
31.2 Estimating the effects of inflation on a building project |
|
|
507 | (1) |
|
31.3 Estimating the cost of tender inflation (estimate 5A) |
|
|
508 | (2) |
|
31.4 Estimating the cost of construction inflation (estimate 5B) |
|
|
510 | (1) |
|
31.5 Producing the inflation estimate (estimate 5) |
|
|
511 | (1) |
|
31.6 Estimating inflation for multiple time periods |
|
|
512 | (3) |
|
32 Establishing the cost limit |
|
|
515 | (4) |
|
|
|
515 | (1) |
|
32.1 What is the purpose of the cost limit? |
|
|
515 | (1) |
|
32.2 Determining the cost limit |
|
|
516 | (3) |
|
|
|
519 | (10) |
|
|
|
519 | (1) |
|
|
|
519 | (3) |
|
33.2 Capital and incentive allowances |
|
|
522 | (2) |
|
|
|
524 | (5) |
| Part 5 Writing cost estimate and cost plan reports |
|
|
34 Reporting of cost estimates and cost plans |
|
|
529 | (30) |
|
|
|
529 | (1) |
|
34.1 What is the purpose of a cost estimate or cost plan report? |
|
|
529 | (2) |
|
34.2 Basic rules for writing cost estimate or cost plan reports |
|
|
531 | (1) |
|
34.3 Characteristics of a good cost estimate or cost plan report |
|
|
532 | (1) |
|
34.4 Organising the content of a cost estimate or cost plan report |
|
|
532 | (1) |
|
34.5 Structure and content of cost estimate and cost plan reports |
|
|
533 | (22) |
|
34.6 Communicating the cost estimate or cost plan |
|
|
555 | (4) |
| Part 6 Designing pricing documents using NRM 1 |
|
|
|
|
559 | (20) |
|
|
|
559 | (1) |
|
35.1 Using the NRM 1 cost plan framework as a pricing document |
|
|
559 | (1) |
|
35.2 Contract sum analysis |
|
|
560 | (19) |
| Part 7 Analysing bids and collecting data using NRM 1 |
|
|
36 Analysing bids and collecting cost data |
|
|
579 | (6) |
|
|
|
579 | (1) |
|
36.1 Changing contract strategies |
|
|
579 | (2) |
|
36.2 Framework for collecting cost data |
|
|
581 | (1) |
|
36.3 Analysing bids and collecting cost data |
|
|
582 | (1) |
|
|
|
582 | (3) |
| Bibliography |
|
585 | (2) |
| Index |
|
587 | |