Assessment 2 - Brief
This assessment requires the student to prepare a preliminary estimate for the owner of a proposed residential building to be constructed in Sydney’s CBD. There are two schemes being considered (Scheme A and Scheme B, drawings can be found from our Assessment 2 Folder). You have been given the responsibility to make sure that the design team and the client are aware of the cost of the two alternatives. Upon completion of this assignment, students are expected to be able to:
1. Provide an Indicative Cost Plan (Elemental Cost Plan) for the two design options (Scheme A and Scheme B); As only conceptual design information is available, certain assumptions will need to be made within the cost plan in regards to structure, finishes and fittings, services, etc.. The indicative cost plan should include the following:
- Construction costs (at stated base date, May 2022)
- Estimated inflation to probable tender date of October 2022
- Estimated increased costs payable to contractors during the construction period
- Professional fees
- Any omissions or exclusions from the estimate.
2. Compare the two options to make a recommendation base on cost merits. Reasons and rationale for the best scheme need to be detailed.
Students are encouraged to apply their own practical knowledge and experience, combining with ‘Public Cost Data Reference’ documents (e.g. Rawlinsons Australian Construction Handbook, Cordell’s Building Price Book, AIQS Building Economist, sources from practice, or similar) to complete the task. Students should also apply their commercial and economical knowledge combining with the current market situation and the future market prediction to make the recommendation.
Instructions for report submission
1. The report should include necessary calculation steps and tables showing the calculations of the preliminary costs.
2. The final report (MS Word format) shall be submitted online via Turnitin (vUWS Assessment Zone Assessment 2 (30%) Assessment 2 Submission).
Online Turnitin Submission, 23:59, Sunday 22nd May 2022.
FAQs (frequently asked questions)
1. Where can students find the relevant cost reference for carrying out the estimate?
-- Students are encouraged to find the relevant elemental rates from cost guides, such as Rawlinsons, Cordell or Building Cost Index (AIQS). However, please do follow the categorised elements in Rawlinsons Australian Construction Handbook 2021 https://westsydney-primo.hosted.exlibrisgroup.com/permalink/f/1vt0uuc/UWS-
2. Students are required to make your assumption list regarding the project following your calculation in your submission. In the industry, professionals do make a lot of assumptions at this stage. There is no right or wrong answers. As long as you can justify the assumptions.
1) Please use the elemental estimate format to present the estimates of Scheme A and Scheme B. It is not possible to apply the trade format for the estimate. Because the trade format can only be prepared if there are detailed drawings.
2) Preliminaries %
Please take % of the total construction cost. You could use the Rawlinson's guideline, however, it is a bit too low considering your project. You could make an educated guess for that.
3) Contingency %
Similar to Preliminaries. Please take a % of the construction cost for this item. It is also depended on the depth of drawings. Again, make an educated guess.
4) Please use a comparison approach. Please list out Pros and Cons and provide the recommendation to the developer which the most cost effective option is. Which option could make more money for the client from either selling perspective or leasing perspective. It would be more effective if you could consider the current market condition while presenting your recommendation.
4. What kind of structure I should follow to prepare the report?
There is no particular structure required to follow. However, you will need to cover the points listed below for your report. Please also attach your calculation steps in the report as well.
* Assumptions for Scheme A and Scheme B
* Cost Plans
- Scheme A Cost Plan
- Scheme B Cost Plan
* Comparison and Recommendation
- Props and Cons of each option
- Scheme A Calculation Steps
- Scheme A Calculation Steps