Design Economics and Cost Planning Quiz - 1

What is a feasibility estimate?

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

• A forecast of the possible cost of a building based on historical data

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

• Presents the estimated cost into a structural elemental or functional format.

What is a cost estimate?

• Presents the estimated cost into a structural elemental or functional format.

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

• A forecast of the possible cost of a building based on historical data

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

What is the % error on a feasibility estimate?

• 20%

• 10%

• 15%

• 5%

What is the % error on a cost plan?

• 10%

• 5%

• 15%

• 20%

What is contingency?

• Presents the estimated cost into a structural elemental or functional format.

• A forecast of the possible cost of a building based on historical data

• They define the scope of works

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

What are preliminaries?

• Presents the estimated cost into a structural elemental or functional format.

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

• They define the scope of works

• A forecast of the possible cost of a building based on historical data

How do you take account of inflation when benchmarking / cost estimating?

• Through the use of TPIs

• By the application of location indices

• By finding the guidelines to prepare preliminaries

• By using BCIS

What does TPI stand for?

• Presents the estimated cost into a structural elemental or functional format.

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

• Building Cost Information Service

• Tender Price Index

How do you take account of location, and why do you need to take account of location?

• By finding the guidelines to prepare preliminaries

• Through the use of TPIs

• By the application of location indices

• By using BCIS

What is a cost plan?

• Presents the estimated cost into a structural elemental or functional format.

• Shows how the design team proposes to distribute the funds available on the elements of the proposed building.

• A forecast of the possible cost of a building based on historical data

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme