Benchmarking building costs

Citation

(2001), "Benchmarking building costs", Facilities, Vol. 19 No. 5/6. https://doi.org/10.1108/f.2001.06919eab.005

Benchmarking building costs

Benchmarking building costsKeywords: Building costs

The latest BCIS Study of Average Group Element Prices presents £/m² group elemental prices for a variety of building types. It provides a very useful tool for benchmarking estimates or actual costs of new buildings.

The tables in the study allow not only the total building cost to be benchmarked but also the five group elements of substructure, superstructure, internal finishes, fittings and services.

Table IV and Figure 1, show the average cost per m² for offices for each of the group elements and the total building cost. It also shows that the elements representing the highest proportion of costs are superstructure and services, with 47 per cent and 32 per cent respectively.

The study covers over 100 building types in the following sectors:

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  industrial;

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  commercial;

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  health;

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  recreation;

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  education;

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  residential.

Economies of scale

Larger building projects offer considerable economies of scale, according to the BCIS Study of Pricing Adjustment Factors published in the BCIS Surveys of Tender Prices.

The study shows that pricing levels fall quite sharply between a £100,000 contract and a £l million contract, with the latter being some 12 per cent lower than the former (see Figure 2). Economies of scale become less pronounced as the size of contract increases further, with a £5 million project likely to have pricing levels some 9 per cent below that of a £l million project.

The BCIS Study of Pricing Adjustment Factors shows the pricing levels of a range of factors including: location; procurement; route; number of storeys; size of contract; type of work; and building type.

The BCIS Study of Pricing Adjustment Factors is part of the BCIS Surveys of Tender Prices which also includes The BCIS Average Group Element Prices Study, an update of the BCIS Tender Price Index, the Contract Percentages Study, the Study of Average £/m² Prices and Functional Prices for a whole range of building types. Available individually at £80.00, on subscription at £250.00 p.a. for four issues, or as part of the BCIS Bulletin Service.

For more information contact the Building Cost Information Service, 12 Great George Street, Parliament Square, London SWIP 3AD, UK.