1 Sources of cost information

© University College of Estate Management 2016 P10456 V3-0

Contents
1 Aim 3

2 Learning outcomes 4

3 Introduction 5

4 Sources of cost information 6

4.1 Information library 6
4.2 Classification of reference material 7

5 Uses of cost information 9

6 A closer look at cost analysis 11

6.1 Definitions 11
6.2 Purpose of a cost analysis 12
6.3 How a cost analysis is prepared 12
6.4 Project information to be provided 16

7 Factors to consider when selecting a cost analysis for use 18

7.1 All of the above! 18
7.2 Wall to floor ratio 18
7.3 Procurement route 18
7.4 Specification − the quality factor 19
7.5 Contract period 20

8 Comparison of analyses 21

9 Summary 25

Appendix A: Sample of cost/m² GIFA 26

Appendix B: Sample of elemental costs 27

Appendix C: BCIS Elemental Standard Form of Cost

Analysis: Principles, Instructions, Elements and
Definitions (4th (NRM) edn) (BCIS ESFCA) 28

Appendix D: Sample of approximate estimating rates 29

Appendix E: Sample of a completed cost analysis 30

Appendix F: Sample of pages from a priced bills of quantities 31

Appendix G: Sample of measured work rates 35

1
2
 Aim

1 Aim
• To consider the many sources of cost information available for use
in pre-contract cost control.

3
2 Learning outcomes
After studying this paper you should be able to:

• identify the different sources of cost information available and

understand their appropriateness for use at different stages of
pre-contract cost control;

• understand how a cost analysis is prepared;

• understand the use of a cost analysis during the pre-contract cost

control stages of a proposed project.

4
 Introduction

3 Introduction
The basis of any cost control system is a suitable library of cost
information, all classified to allow easy access. There are many sources
of cost information available for use in pre-contract cost control.

When preparing cost estimates and cost plans it is important to

understand both how the cost information they are based on has been
collected and the importance of selecting the most suitable source for a
particular use.

5
4 Sources of cost information
Important note: While there are many different sources of cost
information, currently little is available in the format required for some
aspects of NRM1 (RICS 2012). This means that costs may have to be
built up from cost information currently available, and then converted to
comply with NRM1 criteria.

Figure 1

The rules associated with the preparation of formal cost plans are contained in RICS
New Rules of Measurement: Order of Cost Estimating and Cost Planning for Capital
Building Works (NRM1) (RICS 2012)

4.1 Information library

Many cost consultants’ offices have access to a library of cost
information that includes:

• priced bills of quantities (see examples contained in this document

at Appendix F.)

• final accounts.

• any special cost information collected in the office for a particular

project which required original research in order to obtain the data.

• cost analyses:

◦ prepared in the cost consultant’s own office, based on tendering

documents or final accounts. (This source is generally more
reliable than published analyses from other sources because the
cost consultant has full knowledge of the project, including site
conditions, economic climate, difficulties encountered during the
project, etc.);

◦ published by the Building Cost Information Service (BCIS)

(available online to subscribers), e.g.:

6
 Sources of cost information

 a concise cost analysis with brief details;

 an amplified analysis giving sufficient details to make precise

adjustments to individual elements for differences. (A link
to an example of an amplified analysis can be found in
Appendix E.)

◦ analyses published in professional and trade periodicals.

• price books:

◦ cost/m² GIFA (see Appendix A);

◦ elemental costs − typical benchmark proportions for different

types of building (see Appendix B);

◦ approximate estimating rates (see Appendix D);

◦ measured work section of price books: cost plans, cost checks,

final cost checks (see Appendix G).

• trade literature and price lists. Cost indices from various sources.

• special information on cost trends published in periodicals, together

with details of any facts likely to affect future costs.

• special details on planning and social factors published in

periodicals (e.g. Architects’ Journal, Building magazine), which are
likely to affect the cost of buildings.

4.2 Classification of reference material

Because of the complexity of the building industry and the amount of
literature that is produced and stored, it is vital that all library material
is organised and filed in categories in such a way that it can be easily
found. It is useful to split cost information into categories relating to the
function or type of building.

CI/SfB was the classification system adopted in the UK and in many

countries around the world for the construction industry in 1959.

In the UK in 1997, UNICLASS: Unified Classification for the

Construction Industry was published (Crawford 1997). While the
Uniclass system of classification supersedes CI/SfB, it is based
on CI/SfB and other relevant documents, as can be seen from the
comparison in Table 1 below of the classifications of buildings:

7
 Table 1

Uniclass: Table D − Facilities CI/SfB: Table O − Built environment

D1. Utilities, civil engineering facilities 1. Civil engineering works

D2. Industrial facilities 2. Transport, industrial buildings
D3. Administrative, commercial, 3. Administrative, commercial buildings
protective service facilities
D4. Medical, health, welfare facilities 4. Health and welfare buildings
D5. Recreational facilities 5. Refreshment, entertainment,
recreational buildings
D6. Religious facilities 6. Religious buildings
D7. Educational, scientific, information 7. Educational, cultural, scientific
facilities buildings
D8. Residential facilities 8. Residential buildings
D9. Other facilities

Only the main headings are given. Each heading is further divided into
building types, with fuller reference numbers. For further details, refer to
the relevant document.

8
 Uses of cost information

5 Uses of cost information

The various types of cost information are used in different ways and at
different times during the pre-contract period. Table 2 illustrates this
point.

Table 2.

Source Application
Priced bills of quantities of previous Cost plans, cost checks, final cost checks. The total figures
projects. may be used for calculating cost estimates but some
adjustment for differences in size or standard of building is
usually necessary.
Composite rates may be built up from the bill rates which may
also be used for cost estimates.
Rates worked out during the settlement of These can be used in a similar way to the priced bill of
final accounts and rates calculated from a quantities for building up composite rates and for preparing
knowledge of builders’ material costs and cost plans and carrying out cost checks. A record of agreed
labour rates. costs for unusual items may be of use for future projects.
Cost analyses prepared in the cost Orders of cost estimate and elemental cost plans but often only
consultant’s own office. up to Level 2: Element costs. Some elements may be further
broken down into sub- element quantities or costs within the
specification section of the cost analysis, e.g. different finishes
or sanitary appliances within the relevant element.
To establish costs beyond Level 2: Element costs will require
other more detailed cost information about the project, which
will be available in the cost consultant’s own office.
This source is generally more reliable than other sources as
the cost consultant can use his/her own knowledge of site
conditions, economic climate, etc. of the project detailed in
the analysis.
Cost analyses available from BCIS. Orders of cost estimate and elemental cost plans but often only
up to Level 2: Element costs. Some elements may be further
broken down into sub- element quantities or costs within
the specification section of the cost analysis, e.g. finishes or
sanitary appliances within the relevant element.
Cost analyses published in trade journals. Cost estimates, establishing cost limit, initial cost plan (in many
cases, however, there is insufficient information provided to
allow use for cost plans).

9
 Table 2. (cont.)

Cost information published in price books
Details of measured rates published in
professional and trade journals.*
• cost/m² GIFA or cost limits and facility benchmark
costs for different building types: early cost estimates
and establishing cost limit when little or no drawn or design
information is available;
• elemental benchmark proportions: early elemental cost
estimates;
• approximate estimating section: cost plans;
• measured work section of price books*: cost plans, cost
checks, final cost checks.
Cost plans, cost checks, final cost checks.

* Prices vary considerably between publications and you should use the figures only after careful study and
comparison with prices in bills of quantities for work in your area.

10
 A closer look at cost analysis

6 A closer look at cost analysis

Cost analyses are an important source of cost information used in
pre-contract cost control. It is important therefore to understand how
the cost analysis providing the cost information for your project has
been prepared.

The rules which explain how to prepare a cost analysis from a bill of
quantities are contained in:

Figure 2

BCIS (2012) Elemental Standard Form of Cost Analysis: Principles, Instructions, Elements
and Definitions (4th (NRM) edn) (BCIS ESFCA).

Examples of completed cost analyses can be found at BCIS Online via

the e-Library on the VLE (see Appendix E for access instructions).

Section 6.1 gives detailed guidance about how to prepare an analysis.

You will not be assessed on the preparation procedure. It is included
purely to demonstrate how the figures are established. You will,
however, be assessed on the use of cost analyses so an understanding
of this section is important.

6.1 Definitions
Standard definitions are provided in the BCIS Elemental Standard Form
of Cost Analysis (ESFCA). You should ensure you are familiar with the
following terms − all of which are defined in the NRM1:

• gross internal floor area (GIFA)

• group element

• element

• cost of element per m² GIFA

11
 • element unit quantity (EUQ)
• element unit rate (EUR)
• sub-element.

6.2 Purpose of a cost analysis

A cost analysis provides a breakdown of the costs of a building into
different elements, allowing element unit rates to be calculated. It will
also provide details of the cost per m² gross internal floor area.
A cost analysis shows the relationship between the costs of the
different elements and allows one building to be compared with
another. The cost analysis will, for example, highlight features in
different buildings which had a more significant impact on the overall
cost of the project and required special design. The cost analysis
represents a series of facts but does not state whether one building is
better or worse than another.
Cost analyses are normally used to help in the preparation of an order
of cost estimate or a cost plan for proposed buildings, but might also
be used to compare different design solutions.

6.3 How a cost analysis is prepared

The BCIS established a standard approach to preparing cost analyses,
by analysing bills of quantities, thus ensuring that all analyses are
prepared in the same way. Its list of elements and allocation of costs
has been widely adopted so that a reasonable size of database has
been established, based on the second edition of the Standard Form
of Cost Analysis. (In due course these will be adapted in accordance
with the current BCIS ESFCA (4th (NRM) edn).)
Having this standard approach to the analysis means you can have
confidence in the figures contained in the analysis when preparing a
cost plan using a cost analysis.
Analyses are generally based on the tender figures contained in
priced bills of quantities. The time lag between receipt of tenders and
preparation of an analysis should be short so that the information
obtained is as up-to-date as possible.
The following items are generally required for the manual preparation of
an analysis:
• the priced bill of quantities submitted by the accepted tenderer, with
any errors corrected;
• a priced list of any adjustments agreed before the contract is
signed;

12
 A closer look at cost analysis

• details, where possible, of the build-up of provisional and PC sums;

• copies of the plans and elevations;

• the dimension sheets;

• contract documents if the details of the contract are not included in

the bills of quantities.

Bills of quantities can be produced using three alternative structures:

• elemental breakdown structure;

• work sectional breakdown structure;

• work package breakdown structure.

If either the work sectional or work package breakdown is used, then

the items will require re-sorting into an elemental order to produce a
cost analysis. However, the use of item coding required by NRM2 will
assist in this process.

How to prepare an analysis manually:

• Place each sub-element heading at the top of a column. Generally,

abstract paper is suitable for this. By systematically going through
the bill of quantities and any reduction bill, items may be allocated
to one or other of the sub-elements. Where groups of items are
all in the same sub-element (e.g. excavation and earthworks in
standard foundations) only the total cost of the group of items need
be entered on the analysis sheet.

• Transfer the figures obtained to the amplified cost analysis sheet

(see Table 3 for a typical layout, and Section 7 of BCIS Elemental
Standard form of Cost Analysis: Principles, Instructions, Elements
and Definitions). The figures should be entered in Column C.

• The total costs of the elements can be calculated by adding

together the costs of the relevant sub-elements. The total cost of
the elements is entered in Column D. The gross internal floor area of
the building is obtained from the drawing (or from the description in
the bill of quantities). The total cost and the totals of each element
are divided by the gross internal floor area in square metres. The
costs per m² gross internal floor area thus obtained are also
entered on the sheet in Column E. The element unit quantities
are totalled and written on the summary sheet in Column F. The
element unit rate can then be calculated and inserted in Column
G.

13
 Table 3 Summary of amplified analysis

Element/Sub-element Element
Quantity Unit Total cost Total cost Cost per m² Element unit Element
quantity unit rate
(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G)
Number and Cost Total cost of Cost per m² Measurement Column
name of calculated each element GIFA. Divide of element D figure
sub-element from = addition Column unit quantity divided by
or element analysis of all costs D figure in accordance Column
is detailed in of bill of of relevant by GIFA of with BCIS F figure
this column quantities sub-elements building ESFCA rules
items in Column C

In some cases an additional column is included between Columns

E and F, showing the percentage of the total cost that each element
represents.

A brief specification covering the design criteria for each element and
sub-element should be provided on separate sheets.

The analysis should be accompanied by any other details that have not
been stated elsewhere, including a copy of the contract drawings and
any informative photographs of the completed building.

The gross internal floor area is used as a yardstick because:

• it represents something useful to the client − a near approximation

to the amount of accommodation provided in the building;

• it provides a convenient comparative measure between similar

projects;

• it is relatively easy to measure on all jobs irrespective of their size,

shape or construction.

In every cost analysis, list all the elements so that the element numbers
remain the same for reference and comparison purposes. Where no
cost is attributable to the element, write ‘nil’ against the element in the
cost column.

In general, items should be included in the same element every time,

but because of the large variations in building types and construction
this is not always possible. Where items are included in elements which
are different from the normal, state this fact in a note against both the

14
 A closer look at cost analysis

element in which they are included and the element in which they are
normally included.

It is important to check the rules carefully to find out how unusual or

difficult items should be included. For example:

• canopies are not included in the ‘roof’ element. If they are over
external doors, then they should be included in the ‘external door’
element. If the canopies are to external areas, they should be
included in ancillary buildings and structures. Where they are of
significant cost importance, give details;

• windows in curtain walling are included in the ‘external wall’

element, not the element for external windows;

• detached or mainly detached chimney stacks should be included

in the ‘heat source’ element. Stacks attached to the structure
should be included with the most appropriate element (e.g. external
walls, internal walls or partitions).

• the cost of tank rooms will normally be divided between the various
elements (external walls, roof, etc.) and tank casings will be added
into the ‘builder’s work in connection’ element.

• decoration should be allocated to the appropriate element to which

it is applied. So, for example, the painting of internal doors would be
allocated to the element for internal doors. The exception, however,
is decoration on fair-faced work where the cost should be included
in the appropriate finishes element (i.e. wall, floor or ceiling finishes).

Modification notes may be added to an in-house analysis when the final

account has been prepared. These may include details of large cost
variations caused by remeasurement or adjustments to prime cost and
provisional sums.

15
6.4 Project information to be provided
Each analysis should have a front sheet containing the following details:

Table 4. Cost analysis − Project information to be provided

Project details • project title

• building function: use Uniclass − Table D referencing
• location
• tender information: date of tender, date of acceptance of tender, date of site
possession.
Project description • general description of the project. This should be similar to that included in the
bill of quantities and should include the number of storeys and details of items of
construction likely to have a major effect on cost. The main items included in the
external works should be stated.
• state also whether any normal items are omitted (e.g. foundations included in a
separate contract) and whether the access, topography or geology of the site is
abnormal.
Site conditions • this is important because site conditions are so variable that costs can be greatly
affected by them.
Accommodation • this should describe features such as the shape of building, and any particular
and design factors affecting the relationship between design and cost.
Credits • name of client, architect, engineers and contractor together with the name of
the cost consultant if the analysis is for other than personal use within the cost
consultant’s office.
Details of the • details of the floor areas, splitting these between basement, ground and upper
building floors, then the total gross internal floor area;
• details of the areas in categories of usable, circulation, ancillary and internal
divisions. The ratio of usable space to other sundry spaces gives an indication
of planning efficiency;
• area of spaces not enclosed, internal cube of the building and area of the site.
• percentages of the gross internal floor area which are below ground and in
various numbers of storeys, together with average heights of each storey. Plant,
tank and similar rooms above the main roof should be ignored for this purpose.
The different storey heights should be stated separately with details of where
each occurs. The storey height of single-storey buildings and top floors of
multi-storey buildings is measured from floor finish to underside of ceiling finish;
in other cases it is floor finish to floor finish;
• area of external vertical envelope. This allows wall to floor ratios to be calculated;
• total number of units in the project.
Functional units Number of functional units, e.g. net usable floor area for offices and factories; units
of accommodation for schools (places), hostels (bedrooms), dwellings (persons), etc.
The total cost of the project less external works should be divided by the number of
functional units and stated as the functional unit cost.
Building Details should be provided of any quality, energy, sustainability, etc. ratings or
accreditation score scores. There are various accreditation schemes (e.g. BREEAM) and the one being
used should be identified.

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 A closer look at cost analysis

Table 4. (cont.) Cost analysis − Project information to be provided

Procurement • type of tender documents priced;

details • contractor selection process (e.g. open/selective, two stage, negotiated, etc.);
• name of type of contract used;
• cost fluctuation provision if applicable;
• contract period.
Market conditions Conditions in the area at the time of tendering.
Tenders • number of tenders issued and received;
• amounts of tenders received;
• adjustment on accepted tender if applicable.
Breakdown of cost The cost is broken down under the headings of measured work, prime cost sums,
provisional sums, preliminaries, and contingencies.

17
7 Factors to consider when selecting a cost
analysis for use
The following provides explanation of some of the items that must
be considered when selecting a cost analysis for use when preparing
pre-contract cost advice.

7.1 All of the above!

Table 4 outlines information that will be in a cost analysis. It is very
important that this information is available to anyone who is selecting
a cost analysis for use in pre-contract cost control activities. This is
because it is important to choose an analysis for a completed project
that is as similar to the proposed project as possible in terms of design,
site and economic factors, as all of these factors impact on the cost of
elements.

Therefore, study the information provided in the cost analyses being

considered carefully and identify differences between them and the
proposed project. Determine which of the differences can be adjusted
for in relation to the proposed project, e.g. date and location differences
can be adjusted for using indices. Other differences, however, would
make it inappropriate to use a cost analysis − e.g. a cost analysis for
a 20-storey office block is unlikely to be appropriate for a single-storey
office.

7.2 Wall to floor ratio

The wall to floor ratio is obtained by dividing the external wall area
measured over windows and doors by the total floor area. This gives
a ratio that is useful for a quick comparison of buildings, particularly in
the early stages of a job when alternative planning solutions to obtain
the same floor area are being considered. However, while the wall
: floor ratio does give a reasonable indication of the efficiency of a
building’s shape for a given floor area, it is not a measure of planning
efficiency between buildings of substantially different floor areas,
because the bigger any given shape, the lower the perimeter : area ratio
becomes.

7.3 Procurement route

The tender amount of a project may be affected by the tendering
procedure used and the type of contract. It is, therefore, important to
establish this information when using cost information for a proposed
project.

18
 Factors to consider when selecting a cost analysis for use

The form of contract used may affect the cost. The type that places
most responsibility on the contractor is likely to be the most expensive.

Competitive tendering using open competition generally results

in the lowest possible tender figure being obtained. However, the
standard of work achieved using this method may be lower than with
selective tendering, resulting in delays, expense owing to loss of
production in the case of factories, or increased user costs resulting
from bad workmanship.

Selective tendering should produce the desired standard of workmanship,

as the architect will consider this when making his choice of firms.
Owing to the limited competition, the tender figure may be slightly
higher than with open tendering, but this may reflect the cost of
improved supervision and craftsmanship.

Negotiated tendering may be used to gain the advantages of

appointing the contractor at an early stage in the project. The
contractor can help the architect in design, and obtain economies
by allowing for the use of available plant and using methods of
construction familiar to the firm and work people. Unfortunately,
because of lack of competition, most negotiated contracts seem to
work out more expensive than similar contracts using competitive
tendering.

Negotiated contracts are sometimes used (e.g. for a further development

on the same site as a project already in progress or on an adjacent
site). They may result in savings, as the contractor’s site organisation
for the first contract may be used for the new one.

7.4 Specification − the quality factor

The quality factor is included in the analysis in the form of specification
notes, which include a brief description of materials used, design
considerations, etc. These provide vital information to anyone using
the cost analysis to prepare pre-contract cost advice.

It is helpful if the cost analysis contains information about quantities of

each sub-element or different specification, and even more helpful if
relative costs are also included. The following is an example from BCIS
Analysis #23504, La Salle Boys’ School, Edenmore Drive (available via
the VLE at BCIS Online [accessed 13 March 2014]), which contains the
following as an example:

2E External 4,605m² facing brick, 1,941m² rendered block; 1,103m²

walls aluminium curtain walling, 1,653m² Kingspan cladding,
40m² natural stone, 26m² aluminium louvres.

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7.5 Contract period
The contact period for a project may affect the tender figure. Some
overhead costs (e.g. erecting site huts and other site establishment
costs) may remain constant no matter how long the contract. However:

• if a large amount of overtime is necessary to complete the project

on time, this will result in a higher tender figure;

• the total cost of items such as foreman will increase with the length
of contract;

• with a short contract period, there may be difficulty in obtaining

completed drawings when required, unless the project has been
very well planned;

• short contracts carried out in the winter months may involve extra
costs due to the weather conditions.

20
 Comparison of analyses

8 Comparison of analyses
Analyses vary considerably even for similar types and sizes of building,
and a careful study is necessary before using one for cost planning
purposes. Indiscriminate use of figures taken from a cost analysis
can result in an incorrect cost plan.

Activity: Comparison of two analyses

Refer to the following ‘Comparison of two analyses’

Elemental costs are identified for two separate cost analyses −

one each for Building A and Building B. Both buildings are in the
same locality.

Look for similarities. In this case the following are the same:

• type of building

• GIFA

• date of tender

Look for differences in the

• cost per m² GIFA for the elements

Note the reasons for the differences in cost as explained in the

‘Comments’ column.

Question: Explain the implications of your findings

Answers can be found in Section 9 of this paper.

21
 Table 5. Comparison of two analyses

Type of building: Gross internal floor Date of tender: June 2007

Office block area: 1,200m²
Element Element Cost of element COMMENTS
number per m² of gross
internal floor area in £
Building A Building B
1 Substructure 85.37 130.19 Building A is on reasonably good soil and has reinforced
concrete column bases and ground beams.
2.1 Frame 110.97 179.28 Building A has a reinforced concrete frame and is
partly single- and partly three-storey. Building B is steel
framed, concrete cased and is mainly four-storey.
2.2 Upper floors 78.96 93.89 Just under half of Building A floor area is on the ground
floor while only about 30% of Building B floor area is on
the ground floor.
2.3 Roof 106.71 64.02 Building A has greater roof area owing to the greater
percentage of ground floor space. The roof construction
for Building A has a covering of felt and Building B is
covered with asphalt.
2.4 Stairs and ramps 19.21 36.27 Wider staircases, more elaborate balustrades and two
extra storey flights of stairs for Building B (one flight
each end between third and fourth storey).
2.5 External walls 98.18 151.54 Building A is constructed with cavity walls of brick and
blocks and medium priced facings.
Building B is of a more irregular shape; the increased
height also increases the area of external walling. The
walls have expensive bricks and stone ashlar work. This
element also includes some aluminium curtain walling.
2.6 Windows and 57.62 120.59 The windows in Building A are mainly standard
external doors galvanised steel.
Building B has aluminium windows some of which are
double glazed.
Building A has cheap doors and frames while Building B
has hardwood frames and screens with some hardwood
and some toughened glass doors.
2.7 Internal walls and 34.14 88.58 In both cases most of the internal divisions are
partitions non-load-bearing.
Only the main divisions are provided in Building A and
the clients provide their own partitions within the main
office areas.
is for owner occupation and all the partitions are
provided, some of which are patent moveable type.
2.8 Internal doors 17.08 48.02 Only a few cheap doors in Building A as most of the
partitions provided by the tenant.

22
 Comparison of analyses

Table 5. (cont.) Comparison of two analyses

3.1 Wall finishes 12.80 71.49 The walls in Building A are mostly plastered.
Building B has some plaster but panelling is provided
in the executive suite and marble and mosaic in the
entrance hall and on the walls of the main staircase. The
toilets are partly tiled. Some wallpaper allowed for.
3.2 Floor finishes 51.23 74.70 Mainly thermoplastic tiles in Building A.
Building B includes a variety of different finishes
including woodblock, mosaic, quarry tiles and some
vinyl tiles. The element also includes extra thickness
screed and insulating material for underfloor heating.
3.3 Ceiling finishes 44.82 89.63 Building A has mainly plaster direct on to the concrete
structure.
Building B has patent suspended ceilings mostly
finished with acoustic tiles.
4 Fittings, 21.34 114.18 Only essential fittings are provided in Building A, but in
furnishings and Building B, which will be owner occupied, most of the
equipment main fittings are included in the contract together with
some furnishings.
5.1 Sanitary 6.41 8.54 Building B has more and better fittings as it is for the
installations owner-occupier.
5.2 Services Nil Nil
equipment
5.3 Disposal 10.67 11.75
installations
5.4 Water installations 21.34 23.47
5.5 Heat source 23.47 Nil Building A has solid fuel hot water heating and Building
B has underfloor electric heating. (Note: the additional
cost of screed and insulation is included in floor
finishes.)
5.6 Space heating and 66.16 39.48
air conditioning
5.7 Ventilation Nil Nil
systems
5.8 Electrical 61.90 115.26 Essential fittings only are provided in Building A
installations whereas Building B has many elaborate decorative
fittings.
5.9 Fuel installations Nil 2.13
5.10 Lift and conveyor 61.90 72.57 There is one extra storey in Building B and the lifts
installations provided are faster and better equipped.
5.11 Fire and lightning 3.21 3.21
protection

23
 Table 5. (cont.) Comparison of two analyses

5.12 Communication, Nil 3.21 Special telephones are included for Building B.
security
and control
installations
5.13 Specialist Nil Nil
installations
5.14 Builder’s work in 18.14 32.01
connection with
services
Note: Subtotal 1,011.63 1,574.01
excluding external
works preliminaries and
contingencies.
8.1−8.3Site works 42.69 106.71 Only the essential works were included in Building A
while landscaping was provided for the other building.
8.6 External drainage 14.93 23.47 Increased sanitary fittings more dispersed in B and a
site which results in deeper drains.
8.7 External services 3.21 5.34 Building B is situated further from the road than A.
8.8 Minor building Nil 11.75 Building B has a bicycle shed, substation and some
works garages.
9 Preliminaries 106.71 136.60
Total (less risk) 1,179.17 1,857.88
13 Risk 32.01 45.89
TOTAL 1,211.18 1,903.77

24
 Summary

9 Summary
There are many different sources and types of cost information which
can be used in the preparation of estimates and cost plans. The
different types of cost information are suitable for use at different
stages of the pre-contract cost control process.

There are limitations to cost data, and costs cannot simply be copied
from one project to another. Consideration must be given to many
factors including the:

• base date of any costs used in relation to the proposed project;

• location to which the costs relate;

• quality of materials included in the costs;

• quantity of materials included in the costs;

• procurement route;

• contract conditions.

Adjustments to the cost data will be required in order to take account

of these factors so that the costs applied to the proposed project are
relevant to the design as it develops.

Indiscriminate use of cost data from any source can result in incorrect
cost advice being provided to the client and design team.

Self-assessment question

What is the most reliable source of cost information, and why?

Answer to activity in Comparison of analyses section

Care must be taken when selecting a cost analysis to ensure that the
specification of the building in the cost analysis is as similar as possible
to the design and specification of the proposed project. This requires
careful examination of the information contained in the cost analysis.
Indiscriminate use of figures taken from a cost analysis can result
in an incorrect order of cost estimate or cost plan.

Answer to self-assessment question

A cost consultant’s own records are the most reliable source of cost
information, as he/she knows how the information was collected, along
with factors such as local market conditions, contract particulars and
site problems that may have influenced the costing.

25
 Appendix A: Sample of cost/m² GIFA
Costs/m² GIFA are available from various sources, e.g. BCIS, price
books, a cost consultant’s own analysis of past projects, etc. Look up
page 321 of Griffiths Complete Building Price Book 2013.

26
 Appendix B: Sample of elemental costs

Appendix B: Sample of elemental costs

Information providing elemental analysis is available from various
sources, e.g. BCIS, price books, cost consultant’s own analysis of past
projects, etc. Look up page 323 of Griffiths Complete Building Price
Book 2013.

The percentages detailed in the extract can be applied to the cost/m²

GIFA relating to a particular building type to provide an elemental
breakdown of the total cost/m² GIFA for each building.

Please note: The format of this cost analysis is based on the second
edition of the BCIS Standard Form of Cost Analysis (1969 − reprinted
2003). There are therefore some differences between this analysis and
that which would be prepared were it based on the 4th (NRM) edition,
which is now to be used. Full numeric referencing of the elements is
now used. Element 2A has therefore become 2.1, element 2B is now
2.2, etc. There are also some changes to the order and titles of the
elements but none of these issues affects the percentages detailed in
the extract.

27
 Appendix C: BCIS Elemental Standard Form
of Cost Analysis: Principles, Instructions,
Elements and Definitions (4th (NRM) edn)
(BCIS ESFCA)

Figure 3

The BCIS ESFCA ‘describes the rules for preparing an elemental cost
analysis in standard BCIS format’ (BCIS 2012).

A very useful aspect of the document is that it also provides a

description of which components of a building are included in each
element.

This document replaces the second edition, which was in use in

the construction industry for nearly 40 years. (The third edition
published in 2009 was similar to the fourth edition but contained some
inconsistences when compared to NRM1 (RICS 2012a). The fourth
edition has resolved these differences.)

The ESFCA is available online at www.rics.org/uk/knowledge/bcis

[accessed 25 July 2014]:

• In the search box input Forms and documents.

• Select BCIS Elemental Standard Form of Cost Analysis.

• Under Download, select the document title. The document will

download.

28
 Appendix D: Sample of approximate estimating rates

Appendix D: Sample of approximate estimating

rates
Approximate estimating rates are available from various published
sources. However, the best source of such information will be rates
which are based on past projects known to the cost consultant as
he/she will know the background to the project, which may have an
effect on the rates. Where such information is not available, price books
are a useful source. Look up page 310 of Griffiths Complete Building
Price Book 2013.

29
 Appendix E: Sample of a completed cost
analysis
Please note: The format of this cost analysis is based on the second
edition of the BCIS Standard Form of Cost Analysis (1969 − reprinted
2003). There are therefore some differences between this analysis and
that which would be prepared were based on the 4th (NRM) edition,
which is now to be used. Full numeric referencing of the elements is
now used. Element 2A has therefore become 2.1, element 2B is now
2.2, etc. There are also some changes to the order and titles of the
elements.

Log in to BCIS Online via the e-Library on the VLE.

Select the ‘Analyses’ option on the lefthand side of the screen.

This allows you to search for various building types.

However, a good example can be found by entering ‘23504’ in

the search box. This will take you to the cost analysis for La Salle
Boys’ School, Edenmore Drive; and this can be opened by
clicking on the project name.

30
 Appendix F: Sample of pages from a priced bills of quantities

Appendix F: Sample of pages from a priced

bills of quantities

Description Quantity Unit Rate £

BILL NO. 3 − IN SITU CONCRETE WORKS
Plain in situ concrete; 20N/mm² − 20mm aggregate
(1:3:6) horizontal work less than 300mm thick in
structures poured against face of earth
in blinding 2 m³ 239.00 478.00
in foundations 2 m³ 185.00 370.00
Plain in situ concrete; (1:6−20mm aggregate) vertical
work less than 300mm thick in structures
Filling to hollow walls n.e. 150mm thick 1 m³ 20.00 20.00
Worked finishes
Power floating to top surface 15 m² 4.90 73.50
Amount to Summary 941.50

31
 Description Quantity Unit Rate £
BILL NO. 4 − MASONRY
Substructure
Walls, half brick thick in common brickwork in cement mortar 7 m² 65.00 455.00
(1:4) in skins of hollow walls
Walls, 100mm thick dense concrete blocks in cement mortar 11 m² 50.00 550.00
(1:4) in skins of hollow walls
Walls, half brick thick in facings (PC £300/1,000), in stretcher 5 m² 80.00 400.00
bond in gauged mortar (1:1:6) in skins of hollow walls,
pointing with weathered struck joint on side as the work
proceeds
Forming cavities in hollow walls, 75mm wide, including 11 m² 6.10 67.10
stainless steel twisted wall-ties, 5 per m²
Damp-proof course n.e. 300mm wide, horizontal, pitch 33 m 2.00 66.00
polymer, lapped 150mm at joints, bedded in gauged mortar
(1:1:6)
Superstructure
Walls, 100mm thick lightweight concrete blocks (3.5KN) in 36 m² 47.00 1,692.00
gauged mortar (1:1:6)
Walls, half brick thick in facings (PC £300/1,000), in stretcher 37 m² 80.00 2,960.00
bond in gauged mortar (1:1:6) in skins of hollow walls,
pointing with weathered struck joint on side as the work
proceeds

Forming cavities in hollow walls, 75mm wide, including 37 m² 6.10 225.70

stainless steel twisted wall ties, 5 per square metre
Damp-proof course n.e. 300mm wide, vertical, pitched 9 m 12.90 116.10
polymer, lapped 150mm at joints, bedded in gauged morter
(1:1:6)
Amount to Summary 6,531.90

32
 Appendix F: Sample of pages from a priced bills of quantities

Description Quantity Unit Rate £

BILL NO. 14 − MECHANICAL SERVICES
CENTRAL COOLING
COLD AND TREATED WATER FEEDS
Pipework and fittings, black mild steel heavy weight 15 m² 12.70 190.00
tube to BS 1387 malleable iron fittings to BS 143/1256,
screwed joints, brackets and hangers as required, fixing
to structure.
50mm pipework 31 m 26.00 806.00
Extra for fittings less than or equal to 65mm diameter:
Two ends 2 nr 46.00 92.00

Two ends, reducer to 22mm 4 nr 41.00 164.00

Two ends, reducer to 40mm 1 nr 39.80 39.80
Pipe ancillaries, as described in the specification
document, screwed joints
50mm isolating valve 1 nr 270.10 270.10
INSULATION AND FIRE PROTECTION
Foil faced laminate on rigid fibre sections, spacers and
isolating blocks, secured with suitable matching tape.
50mm pipe 31 m 17.60 545.60
Extra for working around fittings:
Bends 2 nr 13.75 27.50
Tees 4 nr 12.00 48.00
Reducer 5 nr 10.00 50.00
Valves 1 nr 21.90 21.90
TESTING AND COMMISSIONING
Testing 2.5 % 56.80
Commissioning 2.5 % 56.80
Amount to Summary 2,385.30

33
 £
SUMMARY
Bill No.
1 Preliminaries
2 Excavation and filling work
3 In situ concrete 941.50
4 Masonry 6,531.90
5 Carpentry
6 Cladding and covering
7 Waterproofing

8 General joinery
9 Windows, screens and lights
10 Doors, shutters and hatches
11 Floor, wall, ceiling and roof finishings
12 Drainage above ground
13 Drainage below ground
14 Mechanical services 2,385.30
15 Electrical services
AMOUNT TO TENDER 9,858.70

34
 Appendix G: Sample of measured work rates

Appendix G: Sample of measured work rates

Measured work rates are available from various published sources.
However, the best source of such information will be the rates
contained in bills of quantities which are based on past projects known
to the cost consultant. He/she will know the background to the project,
which may have had an effect on the rates. Where such information
is not available, price books are a useful source. Look up page 51 of
Griffiths Complete Building Price Book.

When using rates from price books, it is important to read any guidance
notes. For example, the following is some of the guidance provided in
the Griffiths (2013) price book:

‘• Figures in this section are intended as a guide to pricing the

typical mid-scale contracts with a reasonable balance of
work in most trades.

• The prices generally are based upon nationally average

prices with a factor of 1.00.

• It is stressed that the factors stated can only provide an

approximate guide to the level of pricing.’

35
 References
Ashworth A (2010) Cost Studies of Buildings (5th edn), Harlow: Pearson Education
Limited.
BCIS (2012) Elemental Standard Form of Cost Analysis: Principles, Instructions,
Elements and Definitions (4th (NRM) edn), London: BCIS.
Construction Industry Project Information Committee (1977) UNICLASS: Unified
Classification for the Construction Industry, London: RIBA Publications.
Crawford M (1997) UNICLASS: Unified Classification for the Construction Industry,
London: RIBA Publications.
Griffiths (2012) Griffiths Complete Building Price Book 2013: A Complete Guide
for Estimating, Checking and Forecasting Building and Civil Engineering Costs
[e-Book], Croydon: Franklin & Andrews.
Jagger D and Smith J (2007) Building Cost Planning for the Design Team (2nd edn),
Oxford: Butterworth-Heinemann.
RICS (2012) RICS New Rules of Measurement: Order of Cost Estimating and Cost
Planning for Capital Building Works (NRM1) (2nd edn), Coventry: RICS.

36