Section 2: principles of analysis
Principles of analysis
2.1 Analyses shall be for a single building.
2.2 Analyse each building within a project separately. However, groups of buildings with the same function and similar form of construction on the same project can be combined and analysed together (e.g. housing estates). A terraced building should normally be analysed as a block. Where individual terraced units are analysed separately, state this.
2.3 Analyse refurbishment and new (extension) works within the same contract separately.
2.4 Where a project is procured in separate contracts let at different dates (e.g. facilitating works, building, shell and core, and fit out) each contract should be analysed separately.
2.5 The costs analysed shall be the agreed price for the works described. Normally, costs analysed will be the agreed price at ‘commit to construct’ (end of stage H in the RIBA plan of work), e.g. accepted tender contract sum, agreed target, etc. However, the rules for analysis can be applied at any stage during the project, but where this is not ‘commit to construct’, it should be clearly identified.
2.6 Where a building fulfils more than 1 user function (e.g. departments in a hospital), and you want to analyse the functions separately, the rules used for allocating the common elements shall be stated.
2.7 Where items of work that would normally be provided under a building contract have been excluded or supplied separately, this should be stated.
2.8 Where costs that would not normally form part of a building contract have been included, they should be omitted from the analysis and listed in the project details or market conditions as appropriate.
2.9 The levels of analysis are:
- total building;
- building;
- external works;
- group elements (concise);
- substructure;
- superstructure;
- internal finishes;
- fittings and furnishings;
- services;
- prefabricated buildings and building units;
- work to existing building;
- external works;
- facilitating works;
- detailed elements (detailed);
- elements as defined in section 5;
- subelements (amplified);
- elements and subelements as defined in section 5.
2.10 Analysis at each level of detail should equal the sum of the costs of the relevant group in the more detailed level. At any level of analysis, any significant cost items that are important to a proper and more useful understanding of the analysis shall be identified.
2.11 Cost categories that are not elements included in the contract, such as
- preliminaries;
- main contractor’s overheads and profit;
- contractor’s design fees forming part of a Design and Build Contract;
- client’s risk (contingency) sums to cover unforeseen expenditure; and
- dayworks sums
2.12 Percentage and lump sum adjustments (e.g. allowance for contractor’s commercial risk (contingencies)), shall be spread as shown in the contract documents or, where they apply to the whole of the works, spread pro- rata among all elements of the building(s) and external works based on all work excluding prime cost and provisional sums contained within the elements.
2.13 Where a client’s costs for project/design fees, other development/project costs, and the client’s risk are available they should be shown separately.
2.14 In the UK, the principal cost unit for all elements of the building shall be expressed as pounds Sterling (GBP) per square metre of gross internal floor area expressed to 2 decimal places. Where other currencies are used it shall be clearly stated.
2.15 A functional unit, or functional units, relating to the use of the building shall be given and clearly defined. See Recommended functional units.
2.16 Analyses shall be accompanied by details of the project, building, procurement and specification appropriate to the level of analysis.
2.17 Where tank rooms, housing and the like are included in the gross internal floor area, their component parts shall be analysed in detail under the appropriate elements. Where this is not the case, their costs should be included as ‘Builder’s work in connection’.
2.18 Glazing and ironmongery should be included in the elements containing the items to which they are fixed.
2.19 Decoration, except to fair-faced work, should be included with the surface to which it is applied; allocated to the appropriate element, and the costs shown separately. Painting and decorating to fair-faced work is to be treated as a finishing.
2.20 Chimneys and flues that are an integral part of the structure shall be included with the appropriate structural element.
2.21 Off-site manufactured buildings, room units and pods should be shown separately.
2.22 Other off-site manufactured components should be allocated to the appropriate elements.
2.23 The element costs should include all subcontractors’ costs, e.g. preliminaries, design fees, overheads and profit, testing, commissioning, provision of operation and maintenance manuals, etc.
2.24 Main contractors’ profit and attendance on services or other specialists should be included in the appropriate element and noted in the specification or market conditions text.
2.25 The definitions of terms for cost analysis are given in Section 4 Definitions.
2.26 Definitions of the elements for cost analysis are given in Section 5 Element definitions.