University of Salford - Construction Economics: Cost Plan and Analysis

This assignment presents a detailed elemental cost plan for the construction of a ten-story building, including material costs, foundation details, and assumptions based on building codes and regulations in Halifax, UK. The cost plan covers various aspects, such as concrete, steel rebar, windows, and balconies, with calculations for each component. Furthermore, the assignment includes a life cycle costing exercise, considering factors like initial investment, operating costs, maintenance, and depreciation over a 50-year period. It provides a comprehensive analysis of the building's financial aspects from construction through its operational lifespan, using formulas to determine the net present value of the investment. The document also includes references to support the calculations and methodologies used.

BUILDING ECONOMICS

Task 1
Elemental Cost Plan
Introduction and Background
An elemental cost plan refers to detailed cost plans that are broken down into a series of
elements. The elemental cost becomes ‘measured’ as the design becomes more complex based
on the actual materials and work quantities to be undertaken. In this report, an elemental cost
plan is developed for a building. The following is a detailed elemental costing plan for the
construction of a ten story building on Plot A5 of the PRS; the elemental costing plan is based on
the provided pre-tender documents. The costs are calculated based on building codes and
regulations for Halifax as well as standard building codes and standards. The assumption is that
the building is constructed using building stones and has sufficient reinforcement as well as a
strong foundation to support the structure. The costs are based on average quoted prices for the
various components of the building for every floor. The values are computed as shown in Excel
Sheet 983232lcc.xlx
Assumptions
The apartment block is to be constructed using solid walls to provide support for the ten floors
plus the roof.
The walls will be made using concrete as the main material.
Supporting columns are put using reinforced concrete.
The building blocks to be used have strength of 7.3N/mm2 and are single skin with a fire
resistance of three hours.
The floors have a height of 2.4 meters (8 feet) height for every floor.
The thickness of each floor (they will be suspended floors) is 0.356 meters.
Windows to be used are the standard UPVC windows which will be single hung windows and
measuring 1050 mm in height and 1200 mm for the bedrooms and 1050 mm height and 1770
mm for the lounges. Others will be 1050 mm height and 915 mm width.

The blocks to be used measure 4.4 x1.4 x 2.15 cm.
Cost per block = £ 1.51
Total cost of blocks = (Required blocks x Unit Cost) = 53,942,974
Glass Balconies
The balconies will be bought as complete sets with toughened clear glass; the proposed glass is
Structural balustrade toughened glass system having 10 mm of clear toughened glass. These
costs £ 400 per linear meter and with stainless steel; the proposed balconies are 3000 mm in
width and 1000 mm in length.
Concrete for floors
The concrete required as per UK standards is in the ratio 1:2:4
Steel rebar will be bought as pre-designed mesh (measuring 2.42 x 1.22) meters; at a cost of £
19.15, the total cost for the rebar is 106657.71.
Foundation
The building will have a foundation of 2.8 meters considering the sold at Halifax that are sandy
loam, and which have reasonable stability and strength to support the building. The building will
be constructed as a framed structure where a network of columns as well as connecting beams is
used to form the skeletal structure of the building. This will carry loads to the foundation while
reinforced concrete will provide additional stiffness as well as flexibility to carry shear and wind
forces. The foundation will be made to a poured concrete thickness of 400 mm with support and
insulation incorporated into it. There will be a compacted hardcore followed by sand layer on top
of which there will be a sand binding. On top of the sand binding will be damp proof membrane
and then insulation. The insulation will be followed by a concrete slab on top of which a floor
screed is placed and the walls will be plastered. The calculations shown above (cement and
sand) are for the walls; the building stones will need to use cement which has been computed at a
rate of 25% of the total wall volume. This will add an additional £179, 065 to the total cost of
material. The roof will be placed as a concrete slab in order to minimize costs and give
provisions for placing other utilities and service features, including solar panels. The above

computations have been done based on present prices in the UK and the calculated quantities that
need to be used for the construction. The above calculation is for costs of the main structure and
does not include other costs such as fixtures. In this aspect, the fixtures include such items as
wiring (electrical), plumbing and piping, among other internal finishes. In construction, there is
wastages and other emergency costs of material that should be factored in. in this calculation, the
costs are assumed to be 10% of the total costs of the construction.
The total estimated cost for the construction of the building is therefore £ 62,228,143.36
As stated, the costs are estimates at current market prices and have been arrived at by seeking
quotations and are as accurate as provided by the various suppliers.

Task 2
Life Cycle Costing Exercise
This refers to the cost of an asset or any of its past, throughout the life cycle of the asset; the
asset must fulfill its performance requirements. The Life Cycle Costing is a method for
evaluation of the life costs of assets over a given time period, done systematically using
analytical methods. In the UK, the average life cycle of a building made of concrete and masonry
is on average 50 years. To compute the Life Cycle Costing., the initial and operating costs are
determined and then discounted based on expected cash flows in order to arrive at the net present
value. The cost period is based in the lifespan and does not include the first year of operation and
inflation costs are factored in as well. The Life Cycle Cost is then computed using the formula.
The average operations, maintenance, and repair costs are taken as 4.5% of cost of building per
year. The energy costs are set at £ 66 per month and water costs is £ 33.75 per month for a one to
two bedroom house. Annual depreciation is 2.5% while average monthly rents for a two
bedroom house in Halifax is £ 1808 as of 2018, according to ‘Rent Jungle’ (2019).
Life Cycle Cost = I + Repl — Res + E + W + OM&R + O
Where I is the present value of the investment costs
Repl is the present value of capital replacement costs
Res is the present value of of the building residual value
E is the present value of energy costs
W is the present value of water costs
OM& R is the PV of the non-fuel operating, repair, and maintenance costs
O is the PV of other costs such as contract costs (Fuller, 2016)
These were computed and found to be £ 22,530,420.16

References
Fuller, S. (2016). Life-Cycle Cost Analysis (LCCA) | WBDG - Whole Building Design Guide.
[online] Wbdg.org. Available at: https://www.wbdg.org/resources/life-cycle-cost-analysis-lcca
[Accessed 10 May 2019].