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ASSESSMENT BRIEF AND CRITERIA
BSSC0022: Professional Practice 5: Project Financial Controls and Reporting
1. Introduction:
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During the term, you will have two assessments: formative and summative. This brief is for the (summative’ assessment. Summative assessment contributes to your overaII grade on the moduIe. This assessment is a portfolio of work that is submitted at the end of the module. The assessment aims to test your ability to undertake cost planning, cost monitoring and cost control for a project in line with the expectations of professional bodies such as the RICS and CIOB. Please carefully read this document in full and refer to it while preparing your assignment. The portfolio has a weighting of 100%, marked on a scale of 100. You will need to upload your files to Moodle by 15:00 on Wednesday 7th May 2025. Please note that this is an individual coursework. |
2. Assessment Brief:
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Students are required to produce a portfolio which documents their understanding of cost planning, cost monitoring and cost control procedures, and their ability to prepare cost reports in line with the expectations of professional bodies such as the RICS. The portfolio is based on the construction of a simple low-rise semi-detached residential building, using the structure below (a brief that includes all relevant information and drawings needed is provided below). The guidance for length is 20 pages maximum. A full list of references consulted and cited should be provided. |
Whilst BSSC Developers are yet to go to tender and award the contract to a contractor, they have proposed the following timelines for the project so as to serve as guide for its planning:
Project Details
• Estimate base date: February 2025
• Design & Tender preparation: 32weeks
• Tender issue: 29th September 2025 (1 day)
• Tender period: 9 weeks
• Tender return date: 4 December 2025 (1 day)
• Tender evaluation, reporting, post tender negotiations: 6 weeks
• Contract award date: 29th January 2026 (1day)
• Mobilisation period: say 4 weeks
• Construction phase commencement: 02nd Marc, 2026
• Construction period: Say 52 weeks (1 year)
Task 1 Introduction
Write an introduction to the report stating the aim of the report, the scope of the report and topics covered in the report. Additional guidance on writing the introduction can be found here:
https://www.ucl.ac.uk/ioe-writing-centre/organise-and-structure-your-writing/introduction
Task 2: Digital Strategies
Cost management is a major issue in the management of construction projects. Consistently, projects encounter issues such as cost overruns, budget inaccuracies, poor cost forecasting and a lagging cost monitoring approach. Emerging Digital strategies tools are argued to have the potential to enhance cost management (cost planning, monitoring, and control), yet their integration is not without challenges.
BSSC Developers wants to explore the use of digital strategies and tools for managing cost on their projects.
Provide a critical review of digital strategies and tools for cost management in construction projects and make a recommendation to BSSC Developers its adoption. The review should:
• analyse existing challenges to cost management that necessitates the use of digital strategies.
• identify and evaluate digital strategies and tools that are currently being used or emerging and their benefits to cost management
• examine the challenges and barriers to implementing and integrating these digital strategies and tools in cost management
• make recommendations on how digital strategies and tools can be effectively integrated into the cost management process of BSSC Developers.
Task 3: Cost Estimate & Life Cycle Cost
A. Prepare a cost budget for the 3-bedroom semi-detached unit using the superficial method of estimating. The estimate should be produced in line with the requirements of the NRM
Guidance document:NRM1: Order of Cost Estimating and Cost Planning for Capital Building Works; see section 2.4. You can either make use of a manual method or the use of software (e.g. Bluebeam or Costx) to obtain the quantities from the drawings provided. An appropriate data source such as the BCIS database, SPONs Price Book, or any suitable one can be used in obtaining the cost data.
The estimate should make consideration for cost related items such as main contractor’s preliminaries, design/consultancy team fees, external works, risk allowance, and inflation. Any assumption(s) made in arriving at the budget should be stated and referenced.
Appropriate references should be provided for the data that has been used in arriving at the estimate.
B. As part of the costing, BSSC developers is interested in undertaking Life Cycle Costing (LCC) for central heating components. Two options (A and B) are being considered for heating.
The LCC analysis is being undertaken for a 60-year period as the building is expected to last for 60 years. The associated cost for each of the buildings and provided below:
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Option A |
Option B |
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Cost of Boiler & associated labour |
£ 12,950.00 |
£ 13,709.00 |
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Cost of associated material to install boiler |
£ 2,350.00 |
£ 2,850.00 |
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Remove existing & replace with new |
£ 14,772.00 every 20 years |
£ 15,750.00 every 30 years |
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Reactive maintenance |
£ 420.00 every 5 years |
£ 425.00 every 6 years |
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Maintenance |
£ 150.00 per annum |
£ 120.00 per annum |
Analyse these two options from a LCC perspective and make recommendations on which option you will propose to the client. Assume an average discount rate of 4.5% over the period. Make relevant assumptions where any data has not been provided and state the basis of the assumption.
Task 4: Contract Type (Pricing Mechanism) and Form of contract
It is the case that the scope of work has been defined and conceptual drawings produced but detailed designs are yet to be undertaken. However, BSSC Developers intend to start marketing and sell the 3 bedroom units off plan and as such the need to adhere to completion timelines, and prevent any cost overruns. Completing the project on time is thus essential to ensuring that the cost limit is not exceed. Whilst conceptual designs are completed, the detailed design is to incorporate sustainability considerations such as energy performance, low embodied carbon and social value. BSSC Developers intends to also allow buyers of the units to make some modifications where possible. These elements are yet to be fully integrated in the design. Based on the client objectives and the nature of the project, recommended an appropriate procurement and pricing mechanism (contract type) for the project. Additionally, make a recommendation for a form of contract that aligns with the pricing mechanism proposed. Provide an explanation that justifies your recommended strategy.
Task 5: Cost Estimate
The Architect has specified the use of concrete mix 1:3:6 for the concrete foundation in trenches. Following measurements to the drawing, the QS has estimated that the volume of concrete required for the foundation is 22m3. Estimate the cost of mixing and placing this volume of concrete in the trench?
Assume the following information about the materials, plant and labour; and make reasonable assumptions where required:
Material Prices
• Ordinary Portland cement - £167.55/tonne
• Fine aggregate (sand) - £35.5 /tonne
• 20mm all in aggregate - £36.88/tonne
Plant
• Cost of hiring a mechanical fed concrete mixer - £33 per day (8 hours in a working day)
• Output of concrete mixer - 4m3 of concrete per hour
• Cost of transporting concrete mixer to and away from the site: £25 per trip
All in Rate
• General Operatives - £15.45 per hour
• Foreman - £20.12 per hour
• Concrete gang: 1 Foreman and 4 skilled labourers = 4.0 hours/m3
Average labour constants for concrete
Task 6: Interim valuation
Assume that all design drawings have been completed, and the works have gone on to tender, following which BSSC Developers have awarded the works to UCL Contracts Ltd. to undertake the construction of the 3-bedroom semi-detached unit together with associated external works. The contract has been signed based on the JCT 2024 Standard Building Contract with Quantities (SBC/Q). The key details of the contract are as follows:
Contract Particulars
Client: BSSC Developers
Contractors: UCL Contracts Limited
Form of Contract: JCT 2024 SBC/Q
Cost of the construction works: £169,471.92
Total cost of preliminaries**: £25,770.00 (inclusive of time related and fixed cost of preliminaries and the directly priced)
Contract Sum: £195,241.92
Date of possession of the site: 02nd March 2026
Date for Completion of the Works: 1st March 2027
Retention percentage: 5%
Interim Valuation Dates: The first Interim Valuation Date is 27th March 2026
Other Interim Valuation Dates will be the same day in each month or the nearest Business Day in the month
Liquidated & Ascertained Damages: £400 per week
Fluctuation Option: Option C (Formula Adjustment)
Rectification Period: 6 Months