1. Pre-Contract Cost Control
Building Cost Information Service
Analyses are compiled from tendered works across the UK
Database –
The largest single source of data presented in elemental format
Elemental breakdown of submitted information
Includes EUR – Element Unit Rate and EUQ – Element Unit Quantity figures
May include design and drawing information

2. Factors to consider in selecting a historic cost data
Pre-Contract Cost Control
Factors to consider in selecting a historic cost data
Building function (e.g. residential, factory, hospital, etc)
Type of work (e.g. new build, extension, refurbishment)
Number of storeys (1, 2, …10 storeys?)
Location
Date
Type of analysis (group or detailed elemental analysis)

3. Adjusting the historic cost data for time, location, etc:
Pre-Contract Cost Control
Adjusting the historic cost data for time, location, etc:

4. Adjusting the historic cost data for time, location, etc:
Pre-Contract Cost Control
Adjusting the historic cost data for time, location, etc:

5. Pre-Contract Cost Control
Detailed Elemental Cost Plan
It aims at setting cost targets for the respective elements to guide decision making during the detail design stage
It provides the client with an awareness of the cost implications of all design decisions
Where a cost check reveals differences in the elemental cost targets, either of the following actions may have to be undertaken:
Redesign the element to meet the target cost
Approve the change but redistribute costs of other elements by re-examining other cost saving methods
Approve the change and accept that the total cost of the project will increase
It helps in highlighting any discrepancies in the tenders for the project

6. The elemental costs may be expressed in 3 ways The total cost
Pre-Contract Cost Control
Detailed Elemental Cost Plan
The elemental costs may be expressed in 3 ways
The total cost
Cost per sq meter of GIFA
The element unit rate
Ref attached sample from Ashworth A. (1999) pg 292
It is imperative to adjust the detailed elemental cost plan to reflect
Design and specification variables in terms of:
Quantity
Quality

7. Detailed Elements Substructure Superstructure
Pre-Contract Cost Control
Detailed Elements
Substructure
Works up to the underside of lowest floor finish including damp proof course (dpc)
Superstructure
Frame
Upper floors
Roof
Stairs
External walls
Windows and external doors

8. Internal finishes Detailed Elements Superstructure
Pre-Contract Cost Control
Detailed Elements
Superstructure
Internal walls and partitions
Internal doors
Internal finishes
Wall finishes
Floor finishes
Ceiling finishes
Fittings and furnishings
Fittings, fixtures and furniture
Soft furniture
Works of art
equipment

9. Detailed Elements Services Sanitary appliances Services equipment
Pre-Contract Cost Control
Detailed Elements
Services
Sanitary appliances
Services equipment
Disposal installations
Water installations
Heat source
Space heating and air treatment
Ventilating systems
Electrical installations
Gas installations
Lift and conveyor installations
Protective installations
Communication installations

10. Detailed Elements External works Pre-Contract Cost Control Site works
Drainage
External services
Minor building works

11. Where TPI is the tender price index
Pre-Contract Cost Control
Adjusting the historic data:
E.g. Adjusting for Time (Inflation)
Current TPI
Base cost/m2
Current cost/m2
TPI at Base Date = x
Where TPI is the tender price index

12. Where TPI is the tender price index
Pre-Contract Cost Control
Adjusting the historic data:
E.g. Adjusting for Time (Inflation)
Alternatively
Current TPI
TPI at Base Date
Base cost/m2
Current cost/m2 - = x
Where TPI is the tender price index
Base cost/m2 +

13. Pre-Contract Cost Control
Recommended reading
Ferry D J, Brandon P S & Ferry J D (1999) Cost Planning of Buildings, Blackwell Publishing – chapter 16
Aqua Group (2003) Pre-contract practice and Contract Administration – chapter 4
Jagger et al (2002) Building Design Cost Management, Blackwell Science - chapters 6 – 10
Seeley I H (1996) Building Economics – chapters 6- 10