Construction Economics

QUESTION 1A - From the following information and any other appropriate assumptions, prepare a cost limit for the proposed building.

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Grand Designs Ltd

Mr. K McCloud

123 Speculative Street

London

E4 3NP

NRM Surveying Services Ltd

456 Kings Street

London

E2 5TS

enquiries@nrmss.co.uk

Reference – Four-Storey Office Building Cost limit

Mr. McCloud,

Further to your request, please find the cost limit for the proposed four-storey office building, GIFA 6,000m2 planned to commence work by summer 2014. Calculations made within the cost limit include key considerations and assumptions that are detailed within the briefing paper.

Regards,

Nikolaus Moore

Quantity Surveyor

NRM Surveying Services Ltd

Tel – (+44) 7899 123456

Fax – (+44) 208 732 1222

Mail – nikolaus.moore@nrmss.co.uk

Four-Storey Office Building in a city centre location

Introduction

The client, Grand Designs Ltd has requested a cost limit for a four-storey office building in a city centre location where works are planned to commence by summer 2014. The proposed office building has a gross internal floor area (GIFA) of 6,000m2 and the calculation of the cost limit has been based upon using the superficial method; GIFA multiplied by an m2 rate. The m2 rate has been calculated by using historical cost data provided and updating using BCIS indices and by incorporating key constituents addressed in the key considerations and assumptions.

Key Considerations and Assumptions

* I have assumed that the historical cost data cost/m2 GIFA excludes preliminaries, contingencies, main contractors overhead and profit, inflation and VAT. This has been calculated and applied to the proposed building’s cost/m2 GIFA.

* I have assumed that the historical cost data building has the same number of storeys (4) as the proposed office building.

* I have assumed that the proposed office building does not have a basement and that the...