Order of Cost Estimating

ORDER OF COST ESTIMATING

Order of cost estimating used for projects when a viability or preliminary cost estimate is required.

Typically the estimating stages to which these procedures apply include:

a. A rough order of cost;

b. An option study;

c. A procurement option study.

OCE’s should be applied to ALL works estimated to exceed £250,000 (2004 prices) (excluding VAT and Fees) – BUT never are!

The minimum level of information necessary to produce an OCE is as follows:

A. Brief description of project E.g. Office, warehouse etc.;

B. The size of the project, the gross floor area;

C. A functional occupation factor. I.e. The number and types of people, vehicles, beds, plant etc that will occupy the space;

D. A description of the quality threshold of the project. For example:

(1) Basic Quality – a low tech industrial function, steel framed warehouse with insulating cladding;

(2) Standard Quality- those required to meet typical specification requirements;

(3) High Quality- those projects with a prestigious role or functions that require high quality finishes, e.g. hospitals etc.

(4) Exceptional Quality- those projects that require high technology finishes, e.g. clean rooms etc.

E. Anticipated life span range: 10, 25, 60 or target life span.

F. An indication of the proposed storey height – [raised floors and large ceiling voids affect the estimate.]

G. Particular M&E requirements.

H. Refurbishment of an existing building or demolition of existing or new build should be specified.

I. Any particular constraints imposed by the project by, for example, the client, local authority, planning or statutory authorities. [Historic listing, planning gain, site limits, site security requirements etc.]

J. Any particular site conditions, (sloping site, bad ground, demolition of existing buildings), and the position, adequacy and condition of all mains services.

K. The site location.

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