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Design and cost analysis to build a 3 storey new offices with construction

1.0 INTRODUCTION

This report is presenting two vacant sites which are located at Aberdeen City, Grampian (the edge of the city) and the other one at Edinburgh City, Scotland (city centre). This report content is the design and cost analysis to build a 3 storey new offices with construction to start as soon as possible.

This new office will be approximately 1,500m² which included offices, reception area, all ancillary spaces to accommodate staff, a board room to sit 50 and five meeting rooms to sit 10 - 15 people. The facilities required is air- conditioning offices and CCTV protection, and the proposed construction is steel frame with pitched roof.

1.1 Aim

This report is to:

Ø Decide whether city centre or outskirts which more suitable for cost saving.

Ø Provide an outline cost plan for the project site mentioned.

Ø Advice on sustainability aspects of the proposed project.

Ø Provide breakdown by comparing few location before any decision taken.

Ø Achieve a firm price by looking into the design of the offices.

Ø Recommend the strategic location to the client.

2.0 BACKGROUND OF PROPOSED OFFICE BUILDING

Proposed 3 storeys high quality offices block together with external works including reception area, a board room to sit 50, five meeting rooms to sit 10 - 15 people, services, security and CCTV protection and site lighting. Besides, solar heating panels are proposed for this project. Slimdek steel system is selected for frame work with steel pitch roof with aluminium standing seam cladding is proposed.

3.0 BCIS DATA - DISTRICT PROFILES

Based on BCIS historical data, analysis and the details of selected six (6) similar project of (new office building) are as below:

i) Elemental analysis number 24828, A-3-1,253, this is 3 storey office block together with external works including precast concrete and macadam paving, steel mesh fencing, brick walls, landscaping, services, drainage, site lighting, cycle racks and bollards at Wilmslow, Cheshire, Massclesfield.

ii) Elemental analysis number 23877, 3-7,600, this is 3 storey office block together with external works including paving, enclosures, landscaping, services, drainage and minor buildings at Merthyr Tydfil, Mid Glamorgan, Merthyr Tydfil.

3.0 BCIS DATA - DISTRICT PROFILES (Cont'd)

iii) Elemental analysis number 25344, A-3-2,045, this is 3 storey office block together with external works including block paving, fencing, walls, landscaping, services drainage, site lighting, cycle store and bat roost at Banbury, Oxfordshire, Cherwell.

iv) Elemental analysis number 25163, A-3 (2) -718, this is 2 and 3 storey office block together with external works including landscaping, services and drainage at Aylesbury, Buckinghamshire, Aylesbury Vale.

v) Elemental analysis number 22434, A-3 (4) -3,887, this is 3 storey office block together with external works including access roads and car parking, landscaping, services, drainage, bin and cycle stores at Oxford, Oxfordshire, Oxford.

vi) Elemental analysis number 22437, B-3-6,652, this is 3 storey office block together with external works including macadam and block paving to provide 167 parking spaces, extensive landscaping, services and drainage at Uxbridge, Greater London, London Borough of Hillingdon.

Item

Location

Analysis Index/yr quarter

Original Cost per m² (£)

Preliminary (%)

Contingency (%)

GFA (m²) /Storey

Location Factor

1

Wilmslow, Cheshire, Macclesfield

247 / 2Q2008

1,125.98

21.68

2.93

1,253 / 3 Storey

0.97

2

Mid Glamorgan, Merthyr Tydfil

221 / 1Q2005

1,607.93

14.52

3.04

7,600 / 3 Storey

0.98

3

Banbury, Oxfordshire, Cherwell

246 / 3Q2008

1,482.95

19.24

1.06

2,045 / 3 Storey

0.99

4

Aylesbury, Buckinghamshire, Aylesbury Vale

241 / 2Q2007

1,726.46

16.93

6.88

718 / 3 Storey

1.06

5

Oxford, Oxfordshire, Oxford

195 / 4Q2003

1,211.53

12.53

-

3,887 / 3 Storey

1.07

6

Uxbridge, Greater London, London Borough of Hillingdon

200 / 1Q2004

1,290.13

15.79

0.37

6,652 / 3 Storey

1.15

3.0 BCIS DATA - DISTRICT PROFILES (Cont'd)

Note:

i) Cost per m² excluding contingencies.

ii) The cost plan of the above 6 projects are enclosed in Appendix (I) and (II) (Analysis 1 and 2).

iii) The detail specifications are enclosed in Appendix IV.

4.0 COST PLAN ANALYSIS AND PROPOSAL

Based on this report, location factor below 1.00 is considered as outskirt of city and above 1.00 is considered as city centre.

One of the BCIS data - Merthyr Tydfil Mid Glamorgan, Merthyr Tydfil is banned in this report for analysis and comparison due to the following reason:

i. The cost per m² is too high comparing to others project and the location factor is only 0.98.

ii. Many element cost is undefined in details, example floor finishes, wall finishes, ceiling finishes, internal and external doors, roof, etc.

iii. The preliminary is only 14.52% of the contract sum (excluding contingencies) compare to others 5 projects. Therefore, this elemental cost is not analytical.

Price & Design Risk is assumed as 7.0% and contingencies assumed as 2.5% for the two proposed project.

4.1 Element cost adjustment

The rational adjustment for element cost as below:

i. 2A Frame - Proposed steel column and beam frame for this building. This element is cost 5.36% of the project and 2.30% lower if compare with Merthyr Tydfil project.

ii. 2C Roof - Proposed steel pitched roof with single ply waterproofing membrane for this building. This element is cost 4.43% of the project and 1.44% lower if compare with Merthyr Tydfil project.

iii. 2G Internal Wall / Partitions - Proposed metal stud and cubicle partitions is because a board room and two meeting room are required by client.

iv. 2H Electrical Installation - The percentage distribute to this element is 12.43% and is the highest compare to other five projects. Therefore, we proposed to cut down the uses of electricity to this building by 5.97%.

4.2 Cost analysis plan for city centre - Edinburgh City, Scotland

Refer to the above BCIS data, location factor above 1.00 is Aylesbury, Buckinghamshire, Aylesbury Vale, Oxford Oxfordshire, Oxford and Uxbridge, Greater London, London Borough of Hillingdon.

According to the current cost index of 212 (1Q2010) for the Proposed 3 Storey New Office Block at Edinburgh City and location factor is 1.09. The updated cost per m² for Aylesbury, Buckinghamshire, Aylesbury Vale is £ 1,561.69, Oxford Oxfordshire, Oxford and Uxbridge is £ 1,341.77, Greater London, London Borough of Hillingdon is £ 1,296.19.

Oxford Oxfordshire, Oxford and Uxbridge and Greater London, London Borough of Hillingdon is not selected because the updated cost per m² is lower than Aylesbury, Buckinghamshire, Aylesbury Vale. The low price for these two areas may be due to the location that nearby the edge of the city and it is unable to achieve a high class office building.

However, the updated cost per m² of £ 1,561.69 for Aylesbury, Buckinghamshire, Aylesbury Vale is selected for budgeting purpose only and this is current cost and not includes construction inflation and interest rates.

The current cost limit is £ 2,322,729 and the projected tender amount is £ 2,300,817 as apply £ 1,401.38 as current cost per m² in analysis 3.

4.3 Cost analysis plan for outskirts of city - Aberdeen City, Grampian

Refer to the above BCIS data, location factor below 1.00 is Wilmslow Cheshire, Macclesfield, Merthyr Tydfil Mid Glamorgan, Merthyr Tydfil and Banbury Oxfordshire, Cherwell.

According to the current cost index of 212 (1Q2010) for the Proposed 3 Storey New Office Block at Aberdeen City and location factor is 0.96. The updated cost per m² for Wilmslow Cheshire, Macclesfield is £ 956.47, Merthyr Tydfil Mid Glamorgan, Merthyr Tydfil is £ 1,510.97 and Banbury Oxfordshire, Cherwell is £ 1,239.27.

Wilmslow Cheshire, Macclesfield and Banbury Oxfordshire, Cherwell is not selected because the updated cost per m² is lower than Merthyr Tydfil Mid Glamorgan, Merthyr Tydfil. The low price for these two areas may be due to the market condition and the competitive between them make the tender price on lower side for this two projects.

Nevertheless, the updated cost per m² is adjust to £ 1,510.97 for Merthyr Tydfil Mid Glamorgan, Merthyr Tydfil is selected for budgeting purpose due to the market condition is buoyant and not competitive that mean the tender price will on high side.

The current cost limit is £ 2,045,718 and the projected tender amount is £ 2,026,419 as apply £ 1,234.25 as current cost per m² in analysis 3.

4.4 Cost comparison for city centre and outskirts of city

Based on the cost plan for this 3 storey new office building at Edinburgh City and Aberdeen City, the projected tender amount for 2Q2010 is £ 2,300,817 and £ 2,026,419 respectively. The cost between this two distinct is £ 274,398 or 13.54%.

5.0 SUSTAINABILITY OF BUILDING

Building owners, designers and builders face a unique challenge to meet demands for new and renovated facilities that are accessible, secure, healthy, and productive while minimizing their impact on the environment. The main objectives of sustainable design are to avoid resource depletion of energy, water, and raw materials; prevent environmental degradation caused by facilities and infrastructure throughout their life cycle; and create built environments that are livable, comfortable, safe, and productive.

In UK, Green Building, also known as green construction or sustainable building, is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle: from sitting to design, construction, operation, maintenance, renovation, and deconstruction.

5.1 Reduce Carbon Dioxide Emission

In UK, annual CO2 emission is 568,520 in thousands of metric tons. Buildings are responsible for more than 70 percent of electricity use; therefore, reducing electricity use in buildings directly affects carbon emissions in electricity production.

Therefore, solar panels and heat exchange system are proposed in this project for space heating and air-conditioning.

5.2 Whole life cost of the building

Solar energy is renewable and essentially free. There are two factors that influence the amount of money solar panels will save you on your electricity bills: 1) the amount of money you spend on your current electric bill, and 2) the amount of electricity your solar panels will be providing.

The demands of solar energy get well known because of the high prices for electricity bill using conventional source. The worldwide of demand for solar energy is greater than its supply. This is due to it will cut energy consumption and pollution sources like they have lower heat loss, less air leakages, warmed window surface that improve comfort and minimize condensation.

Automatic lighting and air conditioning control system is proposed, example it will automatic off and / or change to some low voltage lighting after working hour.

6.0 COST SAVINGS PROPOSAL

The cost plan is for estimation budgeting only but not final contract sum for this project, so to control the final cost within budget and / or gain additional profit from the saving, the following cost savings for this project are proposed:

i. Proposed Slimdek extends the range of cost-effective steel options for modern buildings. Ease of planning and servicing, combined with a reduction in building height, gives significant cost and speed of construction benefits. Slimdek is especially economical for highly serviced buildings. Flexibility of routing services without constraint and the ability to accommodate services between the ribs can lead to substantial savings in the cost of services.

ii. Proposed to commence work at month April 10' because the frame work and roof covering able to finish when winter season, this help to save additional cost when construct in winter season, examples heating for curing concrete, protection of new work (concrete and brickwork), etc. This assist contractor to save additional cost and will reflect to overall development cost for client.

iii. Solar heating panels is a the usage of solar energy to provide process that depends on the solar radiation, surface area, surface reflectance, surface emissivity, ambient temperature, and thermal convection from wind.

7.0 ADDITIONAL INFORMATION TO ACHIEVE A FIRM PRICE

We required additional information which will have impact on costs in order to prepare a firmer estimation cost as below:

i. Ground condition

ii. Site topography

iii. Site existing structure, accessibility and protection

iv Market condition

v. Type of contract for the project

8.0 CONCLUSION / RECOMMENDATIONS

The quality of the building is more important for offices than for other development like retail. It should provide necessary services and enable flexible sub-division of floor space. While location (address) is important, congestion is reducing efficiency and encouraging out of town office parks.

Therefore, Proposed 3 storey office block at Aberdeen City, Grampian instead of Edinburgh City due to the following reasons:

i. Based on the comparison, the cost is too high build at city centre, i.e. £ 274,398 or 13.54% higher rather use the money for upgrade the building quality.

ii. Office building is encouraging to build at outskirts of city due to the congestion is reducing efficiency and the quality of office building is more important than location.

iii. The land value at Edinburgh City is more expensive compare with Aberdeen City, Grampian. This 3 storey small office can't fully utilize the land value at Edinburgh City.

iv. according to CB Richard Ellis, Market View Scottish Office H1 2008, completion of office at Edinburgh City are set peak in 2009 when 611,400 sq ft (56,799 sq m) is anticipated to be delivered mean the market of office development at Edinburgh City is competitive.

9.0 COST PLAN SUMMARY

Appendix I - Aberdeen City, Grampian (Proposed to develop)

Appendix II - Edinburgh City, Scotland

Note: Each Appendix including Analysis 1, 2 & 3.

Cost comparison for Aberdeen City, Grampian and Edinburgh City, Scotland

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