The client, Travelwell Motels Ltd, is an administration supplying low-priced, budget hotel adjustment adjacent to the state ‘s expressway web. They have late acquired a site for a 100 bed development. The client hopes to be “open for business” by April 2009, in clip for the start of following twelvemonth ‘s tourer season. I have been employed as a Cost Consultant for a private pattern in the metropolis and have been asked to supply professional services for this client.
Question 1 Client ‘s demands in footings of Time Cost and Quality
The fiscal considerations of a undertaking forms portion of a scope of factors to be evaluated and balanced by the undertaking director on behalf of the client group. Ferry et Al ( 2007 ) suggests the primary factors should include ; functional, proficient, aesthetic, fiscal and environmental. These factors are the features of the undertaking and are frequently considered and analysed under the simplified rubrics of Time/Cost and Quality.
In following the Clients determination to construct and name the necessary building professionals to help in order for this to go on they must province clearly their aims and demands of what they expect from the undertaking. The three chief aims include ; how long it will take ( clip ) , how much it will be ( cost ) , and what the quality will be like ( quality ) . Smith et Al ( 2007 ) illustrates these three chief factors below in the ‘objectives triangle ‘
The most obvious factor for clip is the clip it takes for building of the undertaking Ashworth ( 2008 ) . This entails the clip taken from the beginning of the undertaking to completion with an consciousness being made for the life rhythm of the edifice through its on the job life.
Time based client ‘s demands for this undertaking are ; Shortest Overall Time from Inception to Completion, Firm Completion Date Stated by Client and Early Completion day of the month welcomed.
The Client has stated a house gap day of the month for their hotel of April 2009. This completion day of the month is of import to the whole undertaking with no room for dialogue in completing subsequently. The Client requires the hotel to be up and running to run into this day of the month hence would most decidedly impose tight clip restraints on the design every bit good as the building. It is critical this day of the month is achieved as the client does non desire to lose engagements hence guaranting the wrath of bad promotion when the hotel has merely opened. As the client is new to the country they can non afford their rivals to derive advantage from any unneeded bad promotion caused by late completion of the undertaking.
The undertaking is net income led hence the hotel merely starts doing money when reserves and engagements are made. Early Completion would be welcome as this would give the client the chance to develop a big figure of hotel staff up and besides let any extra adjustment out to go on prior to the finalised day of the month of April 2009
Speed of building can be pursued irrespective of cost and quality go forthing a entire neglect of the concluding effects on the cost of a undertaking. Therefore it is of import that all parties in this undertaking recognise that it is unrealistic to put the aim of acquiring the most edifice for the least cost. Morton et Al ( 1995 ) acknowledges that effectual cost control throughout the undertaking is closely related to the attention, thoroughness and quality of the planning and decision-making procedure during the design phases. Cost based demands for this undertaking include ; Low Cost in Relation to Units of Accommodation, Good Budgetary Control of Whole Project and Best Combination of Capital and Maintenance Costs.
As the undertaking is a Hotel the Client is responsible for the edifice after completion of building work, it is likely that the client will desire to understate their capital outgo in order to maximize their likely net income borders. As the Client will be viing in a competitory market with similar hotel ironss and the undertaking is net income led it is of import that the degrees of capital outgo are comparative to the undertaking. The Client requires to be informed on a regular footing what is being spent and whether it is within the set budget bounds. If there are any alterations to the initial design this will in bend consequence in an unplanned cost or clip hold, therefore it is of import to concentrate the design squad ‘s attempt on doing those determinations during the design stages prior to building work commencing.
As stated before the Client will be retaining the edifice once building is complete therefore the will be apt for any costs associated with the running and care of the edifice. It is in the Clients best involvements that grasp is given to the life rhythm cost of the edifice at design phases as this could hold a profound impact on the clients net income in the old ages following the gap of the hotel i.e. if the edifice suffers any service mistakes i.e. warming, H2O and power this could take to cloture ensuing in loss of income.
The factor of quality is the most hard to specify as it includes so many facets of the completed undertaking, for illustration ; map ( intent of infinite ) , public presentation ( physical belongingss, weather exclusion ) , aesthetics ( visual aspect and entreaty ) , proficient ( materials/construction methods used ) and environmental ( sustainability considerations ) . The Clients demands with respects to quality hold less importance than the other facets of clip and cost in mention to this undertaking. This is due to the house completion day of the month required by the client. The indispensable factors of this undertaking are that it must be completed within the right timescale at the coveted cost. As it is a low-priced budget hotel the quality aspects does n’t hold the topmost importance of the clip and cost of the undertaking. However as stated before in order to avoid increased costs of care and running disbursals the quality of the undertaking must be of a certain criterion in order to avoid these extra costs in the hereafter.
The combination of factors as noted above in regard to both Time and Cost for this peculiar undertaking with respects to the Clients Requirements must be followed and implemented by the design squad when sing likely design/cost solutions in order for this undertaking to to the full achieve the Clients desired Requirements.
Main Conditions Affecting Design
As the undertaking is situated on a redeveloped Greenfield site there is improbable to be any physical restraints due to the huge sum of available land at this location. However prior to the design phase a full site probe should be carried out in order to obtain critical information with respects to ground/soil conditions, location of any surrounding services, tallness of local H2O grade.
It is besides deserving observing that due to the location of this site, entree to and from site can be achieved with easiness due to the propinquity of the surrounding expresswaies.
As the site is a renovation of a Greenfield country there should be no planning limitations from local governments. The site probe should pick up any natural landmarks i.e. protected forestry and this should be addressed prior to come ining the site. We recommend that due to the sum of infinite available an external car-park should be designed instead than basement car-parking as this will hold an impact on the design but more significantly the cost of the undertaking
As a general usher the lesser the figure of floors the more economical the undertaking costs are ( in unit cost per square meter ) . This is chiefly because of the greater circulation and service demands required for larger, multi-storey undertakings. It is our recommendation to avoid a high multi-storey design due to a figure of factors which include ; extra demands for intermediate service zones, perpendicular circulation nucleuss ( stairwells and liftshafts ) will organize an progressively higher per centum of the floor program and eventually building costs will increase and production degrees decrease due to the loss of working clip caused by both labors and stuffs traveling up and down the edifice.
It is our recommendation that the most cost effectual tallness for the proposed hotel should be a two floor edifice. This is chiefly due to the location of the site and the design factors associated with a 2 floor edifice. In order to obtain the optimal cost effectual edifice it is critical to maximize the infinite available. As this is a Greenfield site situated in the outskirts of the metropolis there should be equal infinite available for a 2 floor development every bit good as a car-park. Besides with a 2 floor designed constructing one set of foundations and one roof can suit two times the floor country, with both the external walls and frame of the edifice being able to back up extra burden with minimal/no accommodation.
The form of a edifice has an of import consequence on its costs. The more a edifice form detracts from a square the more expensive the external envelope ( external walls, Windowss and doors ) will go in relation to the staying edifice costs Smith et Al ( 2007 ) . As a edifice becomes longer and narrower, or its lineation more complicated and irregular, so the margin floor country ratio will increase and be accompanied by a higher cost due to the addition in perimeter length.
We would rede against an irregularly molded edifice as it would increase the costs for the undermentioned grounds ; scaffolding countries and associated costs would be greater, the puting out of the undertaking is more complicated and the most of import factor with this being a hotel is the cleansing and care would be more extended, expensive and perchance more hard.
We would rede the most cost efficient form for the design of the edifice is would be a rectangle. As the hotel will hold a high denseness of suites and merely 20 % circulation infinite available it would be more economic to stretch the edifice with the suites situated in long corridors and the circulation infinites situated at either terminals.
Circulation countries account for a high cost of the entire building costs. These countries can account for between 10 % and 50 % of the gross floor countries of the edifice depending upon efficiency of layout and map. Travelwell have stated they require 20 % of the gross floor country to be circulation countries. We would urge this per centum as this would let a suited sum of floor country to be utilised for perpendicular circulation i.e. stairwells and lifts and a suited sum for horizontal circulation i.e. , long corridors to entree sleeping rooms. As this is a budget hotel at that place will non be a big accent on leisure and dining installations although this 20 % will let for a response countries and little bar/restaurant.
As the site will be based on the outskirts of Glasgow metropolis Centre at a Greenfield country there should be no limitations on working hours. However anterior to building, all environing neighbors should be given presentment of the connotations of the contractor in relation to this issue. It is besides deserving observing that as the site will be situated next to the major expressway webs functioning the metropolis there should be no jobs in relation to access/egress to and from the site.
As noted in our old points environing neighbors should be consulted and informed of the building undertaking and any inauspicious consequence it will hold on their concern i.e. route closings for drainage/existing service connexions, noise pollution. It should besides be taken into history that due to the location there will be a low degree of hazard ensuing in minimal menace of security/vandalism.
Due to the location of the site in West Central Scotland all stuffs should be available locally therefore cut downing the demand of securing stuffs from providers situated a far distance from site. If stuffs are procured locally a significant economy could be realised with guaranting this happens. Waste disposal should besides be carried out locally for similar grounds.
Similar to the points raised before as there should be a high handiness of skilled labor, resources and specialised components/plant within close propinquity to the site. We recommend that when possible all labour/materials/plant should be selected from the local parts in order to maintain the entire cost of the undertaking to a lower limit.
Question 3 Appropriate Cost Forecasting Techniques
The two types of cost prediction techniques which might be utilised at this phase are the cost per functional unit method and the cost per gross floor country method. At this phase in the undertaking where there is little/no design information available these two methods would be the most appropriate in order to calculate the costs of the undertaking. The first method I will discourse is the cost per functional unit.
Cost per functional unit
This method entails of choosing an appropriate standard functional unit of usage for the undertaking, and multiplying the jutting figure of units by a suited cost per functional country. This peculiar method can merely be utilised where a edifice ‘s usage can be examined systematically in footings of its functional units. Some illustrations may be a school would be measured in cost per student, an office may be measured in cost per workstation and in this instance a hotel may be measured in cost per sleeping room.
This method requires really small design information as it relies on informations form old undertakings. This method besides relies on the Building Cost Information Service ( BCIS ) and other published beginnings of edifice cost informations based on the undermentioned factors as described by Ashworth ( 2004 ) ;
Number of functional units A- This should be obtained from the client direct who will show their coveted demands in this instance they want to accomplish a 100 bed development.
Cost per functional country A- As this development is portion of a big organizational concatenation of countrywide developments records and analysis of past undertakings ‘ functional unit costs should be made available.
Ashworth ( 2004 ) continues to state that the chief advantage of utilizing this method is that it ‘s a really simple computation to transport out utilizing cost information from old undertakings which should be readily available. This gives the client the chance at an early phase to compare the cost effectivity of different strategies and to finalize a design they are happy with in respects to both map and cost. This method requires really small design information so this can be carried out in the really early phases of the planning of the undertaking.
The disadvantages of this method are that this method can merely be used where a edifice can be measured systematically in footings of functional units. This may turn out hard in covering with renovations/extensions and recreational installations ‘ , where it ‘s highly hard to find a relevant and consistent functional unit. Another disadvantage is that this signifier of cost prediction should non be used beyond the briefing phase of a undertaking as more precise methods are available.
This method can merely be used during the really early phases of a undertaking as there is unequal undertaking item to use more accurate and elaborate costing methods. As the method is carried out at this phase estimations will be really approximative and will change a great trade depending on the type of building and criterion of coating. This would do it highly hard in set uping a realistic cost per unit without the sufficient information.
This method should merely be used to supply a unsmooth usher to likely undertaking costs therefore enabling the client to put overall cost bounds and cost marks for the undertaking.
Cost per gross floor country
This method is comparable to the cost per unit method in that it uses a individual rate technique ( cost per square meter ) of gauging to find the cost of a edifice. This is a popular method of cost prediction used widespread throughout the early phases of a undertaking when the floor country of a edifice can be assessed/measured accurately from drawings.
It is a comparatively merely procedure where the GFA of the edifice in square meters is multiplied by a suited rate per square meters. Measurements are carried out for each floor between the internal faces of the margin walls. Split rates can be calculated for countries of the work within the edifice every bit long as suited comparings are made available.
Beginnings of information required for this method are the entire country of the edifice. The GFA should be obtained from drawings and be aftering strategy informations. There should besides be an outline specification made available from the client bespeaking the needed measure that will fulfill their demands. Other beginnings include internal office records of old undertakings where all costs are expressed in cost per square meter.
The BCIS and other cost ushers such a Spons and Laxtons provide comprehensive costs for assorted types and different quality edifices. Flanagan et Al. ( 1997 ) believes these ushers are highly utile where a edifice consists of many different parts which are of different quality/function to the remainder of the edifice. These parts should be measured individually but suited rates applied to each portion.
The advantages of this method are that the unit of measuring used ( GFA ) is highly utile and meaningful to all parties concerned in peculiar the client and designer. The Client is competently to to the full understand the cost per M2 in relation to the adjustment provided. As similar to the functional unit method estimations can be prepared quickly and are straightforward utilizing cost information from old undertakings nevertheless the truth is conditional upon choosing a rate from a past undertaking with similar characteristics.
The major disadvantage of utilizing this method is that it is highly hard to do alterations for differences in program form, site conditions, structural signifier and building techniques and seeking to cipher all these with a individual rate method can non be achieved accurately. In order to cipher any undertaking accurately informations and cost information from a similar edifice is required. Finally a straightforward measuring of the gross floor country does non take into history the floor to ceiling tallness throughout the undertaking.
As similar to the cost per functional country method this cost prediction procedure should merely be utilised at the early phases of a be aftering a undertaking in order to obtain a speedy estimation and bespeak possible undertakings costs therefore aid the Client to put their undertaking budget.
Question 4 ( two ) Key Factors Taken into Account to Ensure Accurate Costss are Calculated
As this is a new undertaking and is at the initial phases of design there is really small design information available to utilize to construct up a cost for the undertaking. However as the undertaking involves building a hotel for a countrywide administration at that place would hold been a figure of similar undertakings completed beforehand. Previous undertakings give us entree to information associating to overall costs of these undertakings hence allowing us organize a footing for the costing of a newer, similar undertaking.
As this cost information is likely to be old there is a figure of cardinal factors which must be taken into consideration when ciphering the cost of the new undertaking. Where the information is taken from is a cardinal factor. Beginnings of cost informations can include ; proficient imperativeness, builder ‘s monetary value books, information services such as BCIS and every bit stated before ain office records of past undertakings. It is up to the single ciphering the cost to choose the most appropriate beginning of information and guarantee any accommodations are made to the undertaking computation to guarantee the day of the month is appropriate.
When the person has collected historical cost informations Smith et Al. ( 2007 ) explains that it is indispensable they have the agencies to set for differences in procedure at different times in order to guarantee an accurate cost is calculated. Building monetary value indices allow us to transport out accommodations to edifice costs and market conditions from a base day of the month closer to the present. Cost informations taken from a stamp of a old undertaking is merely satisfactory for the clip of that undertaking and in that location. The BCIS provides a full scope of edifice cost, stamp and trade monetary value indices. The intent of these regional stamp monetary value indices is so that accommodations can be made for different locations within the UK. For illustration with this undertaking the accommodations were made between the locations of Manchester and Glasgow and between the old ages of 2004 to 2009.