QSP7BEC Building Economics Assignment 1 Question | UCEM

Scenario

Your private sector client has purchased a site and has plans to build an industrial park consisting of eight single-storey steel-framed light industrial units with a total gross internal floor area (GIFA) of 2,200m2 and with associated provision for loading and parking. The existing brownfield site has been cleared, ready for development, and is located on the outskirts of a town centre in a location of your choice. The units will be for let.

You have been employed as a cost consultant on this proposed development and are aware that the client’s team had previously prepared a rough budget for the project as part of the business case at Stage 0 Strategic Definition. However, the project was postponed at that time due to the reallocation of funding within the client’s organisation.

The client is keen to start work on site as early as possible, and they expect that they can now proceed with the design and tendering of the building based on the original budget cost prepared in March 2021. It is also clear from informal discussions that the scope of the work may have changed since then, and the client has also expressed a desire to incorporate designs that will minimise their long-term costs and provide a reliable return on investment. On reviewing the initial cost advice, it is your professional opinion that costs will now exceed the initial budget.

Task

Your manager has asked you to prepare the following information, which will form the basis of a report to the client. In an email to your manager, critically discuss the following:

a. Updating Cost Advice from 2021

The need to update the cost advice from 2021, identifying reasons with examples, and supported by market data, of how costs may have changed due to global events since the original cost advice was issued.

b. Design Factors and Cost Impact

The need to consider design factors and their impact on the cost of construction. Using examples of two different design factors affecting the development, illustrate how efficient design could help to reduce any potential increase in cost. Include sketches and calculations related to the project scenario to aid explanation and provide a visual understanding of the cost effect that the design options would have on the construction cost of the units.

c. Early Cost Advice Methods

Early cost advice methods used to update the project cost estimate and establish the cost limit for the project, including recommendation of a suitable approach. Your discussion should include factors that might influence the accuracy of the estimate. Refer to the RIBA 2020 Plan of Work stages within your answer.

Please note that each part of the task carries equal weighting.

Additional Guidance

• Supporting information on how to prepare an email is available in the Study Skills area of the VLE.
• Please state any assumptions clearly within your answer.