spon's architects' and builders' price book 2015

SponsArchitects

and BuildersPrice Book

2015

This page intentionally left blankThis page intentionally left blank

SponsArchitects

and BuildersPrice Book

Edited by

2015

One hundred and fortieth edition

CRC PressTaylor & Francis Group6000 Broken Sound Parkway NW, Suite 300Boca Raton, FL 33487-2742

2015 by Taylor & Francis Group, LLCCRC Press is an imprint of Taylor & Francis Group, an Informa business

No claim to original U.S. Government worksVersion Date: 20140908

International Standard Book Number-13: 978-1-4822-5526-3 (eBook - PDF)

This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint.

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Contents

Preface to the One Hundred and Fortieth Edition ixSpecial Acknowledgements xiiiAcknowledgements xvHow to use this Book xxix

PART 1: GENERAL

Capital Allowances 3Value Added Tax 9The Aggregates Levy 17Land Remediation 23The Landll Tax 33Property Insurance 35Building Cost Indices, Tender Price and Location Factors 39

PART 2: RATES OF WAGES AND LABOR

CIJC Basic Rates of Pay 45Building and Allied Trades JIC Rates of Pay 46Plumbing and Mechanical Engineering Services Rates of Pay 46Labour Rate Calculations 49CIJC Labour Categories 53

PART 3: APPROXIMATE ESTIMATING

Building Prices per Functional Unit 61Building Prices per Square Metre 65Building Cost Models 75

Distribution Centre 76Small Industrial Unit 81Central London Ofces 83Business Park 90Data Centre 93Ofce Fit-out 98Sustainable Ofce Refurbishment 103Out of Town Retail 107Car Showroom 110Health Centre 113Care Home 118Primary School Extension 121Secondary School Block Extension 125School Refurbishment 128Affordable Housing 132Apartments 135Hotel 144Ofce to Residential Conversion 149Community Centre 154Museum Fit-Out 157

Preliminaries Build-up Example 159Approximate Estimating Rates 163

1 Substructure 1651.1 Substructure 1652 Superstructure 1692.1 Frame 1692.2 Upper Floors 1722.3 Roof 1722.4 Stairs and Ramps 1772.5 External Walls 1782.6 Windows and External Doors 1832.7 Internal Walls and Partitions 1852.8 Internal Doors 1873 Internal Finishes 1883.1 Wall Finishes 1883.2 Floor Finishes 1893.3 Ceiling Finishes 1914 Fittings, Furnishings and Equipment 1934.1 Fittings, Furnishings and Equipment 1935 Services 1945.1 Sanitary Installations 1945.4 Water Installations 1955.6 Space Heating and Air Conditioning 195

5.7 Ventilating Systems 1955.8 Electrical Installations 1965.9 Fuel Installations 1965.10 Lift and Conveyor Installations 1965.11 Fire and Lightning Protection 1975.12 Communication and Security Installations 1985.13 Special Installations 1985.14 Builders work in connection with services 1988 External Works 199

8.2 Roads, Paths, Pavings and Surfaces 1998.3 Soft Landscaping, Planting and Irrigation

Systems 2008.4 Fencing, Railings and Walls 2018.5 External Fixtures 2028.6 External Drainage 2038.7 External Services 2068.8 Ancillary Buildings and Structures 207

PART 4: PRICES FOR MEASURED WORKS

Introduction 2103 Demolitions 2144 Alterations, Repairs and Conservation 2195 Excavating and Filling 2287 Piling 2388 Underpinning 2429 Diaphragm Walls and Embedded Retaining

Walls 24710 Crib Walls, Gabions and Reinforced Earth 24811 In situ Concrete Works 24912 Precast/Composite Concrete 27213 Precast Concrete 27514 Masonry 27715 Structural Metalwork 31716 Carpentry 32517 Sheet Roof Coverings 34518 Tile and Slate Roof and Wall Coverings 37119 Waterproong 38720 Proprietary Linings and Partitions 392

21 Cladding and Covering 41522 General Joinery 42423 Windows, Screens and Lights 43324 Doors, Shutters and Hatches 44725 Stairs, Walkways and Balustrades 48227 Glazing 48828 Floor, Wall, Ceiling and Roof Finishings 49229 Decoration 51830 Suspended Ceilings 53231 Insulation, Fire Stopping and Fire Protection 53732 Furniture, Fittings and Equipment 54233 Drainage Above Ground 55534 Drainage Below Ground 56735 Site Works 59336 Fencing 60337 Soft Landscaping 60739 Electrical Services 60941 Builders Work in Connection with Services 610

PART 5: FEES FOR PROFESSIONAL SERVICES

Quantity Surveyors' Fees 617Architects' Fees 618Consulting Engineers' Fees 621The Town and County Planning Fees 623The Building (Local Authority Charges) Fees 623

PART 6: DAYWORK AND PRIME COST

Standard industry daywork allowances 625

PART 7: USEFUL ADDRESSES FOR FURTHER INFORMATION

Useful Addresses for Further Information 649

PART 8: TABLES AND MEMORANDA

Conversion Tables 671Geometry 675Formulae 679Thermal conductivity of building materials 680

Earthwork 681Concrete Work 687Reinforcement 692Formwork 694

vi Contents

Masonry 695Timber 698Roong 703Glazing 707Metal 708Kerbs, Paving, etc. 726Seeding/Turng and Planting 733

Fencing and Gates 736Drainage 741Electrical Supply/Power/Lighting Systems 748Rail Tracks 749Fractions, Decimals and Millimetre Equivalents 752Imperial Standard Wire Gauge (SWG) 753Pipes, Water, Storage, Insulation 754

INDEX 763

Contents vii

To order: Tel: 01235 400524 Fax: 01235 400525Post: Taylor & Francis Customer Services, Bookpoint Ltd, 200 Milton Park, Abingdon, Oxon, OX14 4SB, UKEmail: [email protected] complete listing of all our books is on www.crcpress.com

Spons Architects and Builders Price Book 2015Editor:AECOM

The most detailed, professionally relevant source of UK construction price information currently available anywhere. Now to NRM1 and NRM2.

Spons A&B Price Book continues to add more and more new items now with cost models for Business Parks and Data Centres; an expanded range of Kingspan roof and wall claddings; ASSA ABBLOY sectional overhead doors, includ-ing rapid opening and fabric; ASSA ABBLOY industrial dock levellers and shelters; an increased range of Altro safety RRULQJDQGUHVLQRRULQJV\VWHPVDQG$OWUR:KLWHURFNhygiene doorsets.

Hbk & electronic package 824pp approx. 978-1-4822-5525-6 155ebook & electronic package978-1-4822-6438-8 155 (inc. sales tax where appropriate)

6SRQV([WHUQDO:RUNVDQG Landscape Price Book 2015Editor:AECOM Now to NRM1 and NRM2, and with a number of landscape FRVWPRGHOVWKH(:/3ULFH%RRNKDVDVWURQJDS-proximate estimates section, with most measured works items being also presented as composite items. It provides more data on NRM format composites; suspended paving systems; precast walkways; new Marshalls paving ranges; and reconstituted stone bottle balustrades.

Hbk & electronic package 608pp approx.978-1-4822-5522-5 140ebook & electronic package978-1-4822-6443-2 140 (inc. sales tax where appropriate)

Spons Civil Engineering and +LJKZD\:RUNV3ULFH%RRN2015Editor:AECOM

Now to CESMM4 and MMHW:LWKRXWSXWLQFLYLOVVWDUW-ing to rise, and hopes for the launch of new road network VFKHPHVDERRNLQJUDLOVHFWRUDQGDVLJQLFDQWDPRXQWRIZDWHUZRUN:HRIIHUDGHWDLOHGXSGDWHRISULFHVDQGDQexpanded range of rail elements.

Hbk & electronic package 688pp approx. 978-1-4822-5528-7 165ebook & electronic package978-1-4822-6440-1 165(inc. sales tax where appropriate)

Spons Mechanical and Electrical Services Price Book 2015Editor:AECOM

Now to NRM1 and NRM2. Our M&E price book continues to be the most comprehensive and best annual services engi-neering price book currently available. This year we provide a new detailed engineering feature on RICS Ska ratings, and add cost sections for LED lighting, PV panels and tiles, and solar thermal equipment. The book also gives the usual market update of labour rates and daywork rates, material costs and prices for measured works, and all-in-rates and elemental rates in the Approximate Estimating section.

Hbk & electronic package 896pp approx.978-1-4822-5519-5 155ebook & electronic package978-1-4822-6445-6 155(inc. sales tax where appropriate)

SPONS PRICEBOOKS 2015

Receive our online data viewing package free when you order any hard copy or ebook Spon 2015 Price Book

Visit www.pricebooks.co.uk

Preface to the One Hundred andFortieth Edition

Recent construction activity trends

Construction output continues to rise and comparing 2014 Q1 with 2013 Q1 construction output increased by 5.4%,approximately 1.5 billion, around one third of which is attributable to new work. Expectations for the year aheadreect a high level of condence from construction rms.

Tender prices show signs of rising with annual forecasts for 2014 anticipating a 46% increase in tender prices.

MaterialsThe new year brought about the usual urry of price increase announcements with double gure percentageincreases in bricks and blocks fuelled by the very high level of demand for new housing.

Price adjustment formulae for construction contracts

Price Adjustment Formulae indices, compiled by the Building Cost Information Service (previously by the Depart-ment for Business, Innovation & Skills), are designed for the calculation of increased costs on uctuating or Varia-tion of Price contracts. They provide useful guidance on cost changes in various trades and industry sectors and onthe differential movement of work sections in Spons Price Books. Over the last 12 months between April 2013 andApril 2014, the 60 Building Work categories recorded a very slight fall of only 0.02%.

Those works categories showing the highest increases over the last 12 months have been:Pipes and Accessories: Clay and Concrete 4.7%Sanitary Appliances 3.2%Pavings: Coated Macadam and Asphalt 2.9%Cladding and Covering: Slate and Tile 2.6%Pavings: Slab and Block 2.5%Windows and Doors: Softwood 2.5%Pipes and Accessories: Plastics 2.4%Finishes: Flexible Tiles and Sheet Coverings 2.3%Softwood Carcassing and Structural Members 2.2%Concrete: In Situ 2.2%Brickwork and Blockwork 2.0%

Those categories showing decreases are:Cladding and Covering: Coated Steel -2.3%Piling: Steel -2.4%Linings and Partitions: Plasterboard -3.3%Cladding and Covering: Lead -4.2%Cladding and Covering: Aluminium -4.3%Pipes and Accessories: Copper -5.5%Insulation -5.6%Cladding and Covering: Copper -5.7%Finishes: Bitumen, Resin and Rubber Latex Flooring -8.4%

Labour wage agreements

All wage agreement have been settled and show a typical rise of 3% to last years rates, with similar increases fornext year.

Book price level

The price level of Spons A&B 2015 has been indexed at 481. Readers of Spons A&B are reminded that Spons isthe only known price book in which key rates are checked against current tender prices.

Measurement changes new rules of measurement (NRM)

The NRM is a suite of documents to provide a standard set of measurement rules that are understandable by allthose involved in a construction project.

This years edition contains more renement as part of the move towards complying with NRM1 and NRM2. Therewill be further renement over the next two or three editions as NRM becomes more embedded in general practiceand workows.

There are three parts to the NRM suite:

NRM1:

Order of cost estimating and cost planning for capital building works provides fundamental guidance on the quan-tication of building works for the purpose of preparing cost estimates and cost plans. Direction on how to quantifyother items forming part of the cost of a construction project, but which are not reected in the measurable buildingwork items, is also provided, i.e. preliminaries, overheads and prot, project team and design team fees, riskallowances, ination, and other development and project costs.

NRM2:

Detailed measurement for building works provides detailed rules for the measurement and description of buildingworks for the purpose of obtaining tender prices. The rules address all aspects of bill of quantities production,including setting out the information required from the project team to enable a bill of quantities to be prepared, aswell as dealing with the quantication of non-measurable work items, contractor designed works and risks. Gui-dance is also provided on the content, structure and format of bill of quantities, as well as the benets and uses ofbill of quantities.

NRM3:

Order of cost estimating and cost planning for building maintenance works. NB NOT covered in this book.

Prots and overheadsThe 2015 edition includes main contractors overheads and prot.

Preliminaries

There are continuing signs that preliminaries costs are beginning to soften, but they still typically range from 10% to13%, and sometimes, even lower. We have set our example provision for preliminaries this year at 12%, which is1% higher than the 2014 edition.

Prices included within this edition do not include for VAT, professional fees etc. which must be added ifappropriate.

PARTS OF THIS BOOK

Part 1: GeneralThis section contains advice on various construction specialisms: capital allowances; legislation; taxes; insurances;building cost and tender price indices and regional price variations.

x Preface

Part 2: Rates of Wages and Labour

Shows current industry level wage agreement rates and how we have built up the gang labour rates being used inthe book.

Part 3: Approximate Estimating

This section contains distinct areas:

Building Prices per Functional Unit; Building Prices per Square Metre and Building Cost Models. It should benoted that these sections all include site preliminaries. The only occasion this happens within the book.

Approximate Estimating Rates shows typical composite built-up rates organized by building elements.Please note these rates do not include for any site preliminaries.

There is also a section where we show typical preliminaries build-up for a project valued at approximately3,500,000. This is intended for guidance only and should not be used as part of any tender submission.

Part 4: Prices for Measured Works

These sections contain Prices for Measured Works organized using the NRM2 Work Sections for building works.NOTE: All prices in Part 4 exclude the main contractors preliminaries costs.

Part 5: Fees for Professional Services

This section contains guidance on fee levels for professional services: Quantity Surveyors; Architects and Con-sulting Engineers. Readers should always obtain fee proposals for their project prior to commencement as thereare many factors that inuence fee submissions.

Part 6: Daywork and Prime Cost

This section contains Daywork and Prime Cost allowances issued by the Royal Institute of Chartered Surveyors.

Part 7: Useful Addresses for Further Information

A list of useful trade associations, professional bodies contact details.

Part 8: Tables and Memoranda

This section contains general formulae, weights and quantities of materials, other design criteria and useful mem-oranda associated with each trade.

While every effort is made to ensure the accuracy of the information given in this publication, neither the Editors norPublishers in any way accept liability for loss of any kind resulting from the use of such information.

AECOM LtdMidCity Place71 High HolbornLondon WC1V 6QS

Preface xi

ESSENTIAL READING FROM TAYLOR AND FRANCIS

To Order: Tel: +44 (0) 1235 400524 Fax: +44 (0) 1235 400525 or Post: Taylor and Francis Customer Services, Bookpoint Ltd, Unit T1, 200 Milton Park, Abingdon, Oxon, OX14 4TA UK Email: [email protected]

For a complete listing of all our titles visit:www.tandf.co.uk

Estimators Pocket BookDuncan Cartlidge

The Estimators Pocket Book is a concise and practical reference covering the main pricing approaches, as well as useful information such as how to process sub-contractor quotations, tender settlement and adjudication. It is fully up-to-date with NRM2 throughout, features a look ahead to NRM3 and describes the implications of BIM for estimators.

It includes instructions on how to handle:

t UIF/3.PSEFSPGDPTUFTUJNBUF t VOJUSBUFQSJDJOHGPSEJFSFOUUSBEFT t QSPSBUBQSJDJOHBOEEBZXPSLT t CVJMEFSTRVBOUJUJFT t BQQSPYJNBUFRVBOUJUJFT

Worked examples show how each of these techniques should be carried out in clear, easy-to-follow steps. This is the indispensible estimating reference for all quantity surveyors, cost managers, project managers and anybody else with estimating responsibilities. Particular attention is given to NRM2, but the overall focus is on the core estimating skills needed in practice.

May 2013 186x123: 310ppPb: 978-0-415-52711-8: 19.99

Special Acknowledgements

AcodrainACO Business ParkHitchin RoadSheffordBedfordshireSG17 5TETel: 01462 [email protected] channels

Altro FloorsWorks RoadLetchworthHertfordshireSG6 1NWTel: 0870 6065432 / 01462 707600Fax: 0870 5113388 / 01462 [email protected] coverings

Andrews Marble Tiles324-330, Meanwood RoadLeedsYorkshireLS7 2JETel: 0113 262 4751Fax: 0113 239 [email protected] and wall tiles

Assa Abloy LtdThe MeadowsCannock RoadWolverhamptonWest MidlandsWV10 0RRTel: 01902 364 648Fax: 01902 364 [email protected] and furniture

Building InnovationUnit 30Berrington RoadSydenham Industrial EstateLeamington SpaWarwickshireCV31 1NBTel: 01926 888808info@building-innovation.co.ukwww.building-innovation.co.ukTapered insulation

Halfen LtdUnit 2Humphreys RoadWoodside EstateDunstableBedfordshireLU5 4TPTel: 01582 470 [email protected] accessories channels and special products

Hare Structural EngineersBrandlesholme HouseBrandlesholme RoadBuryLancashireBL8 1JJTel: 0161 609 [email protected] steelwork

Kingspan EnvironmentalCollege Road NorthAston ClintonAylesburyBucksHP22 5EWTel: 01296 [email protected] and septic tanks

Monier LtdSussex Manor Business ParkGatwick RoadCrawleyWest SussexRH10 9NZTel: 01293 [email protected] roof tiles

NDM Metal Roong & Cladding LtdMettalum HouseUnit 389 Manor Farm RoadAlpertonWembleyHA0 1BATel: 0208 991 [email protected] cladding and roong

Parker & Highland Joinery Ltd14A Chartwell RoadLancing Business ParkLancingWest SussexBN15 8TUTel: 01903 756 [email protected] joinery

Prole 22Stafford Park 6TelfordShropshireTF3 3ATTel: 01952 [email protected] windows

xiv Special Acknowledgements

Acknowledgements

AcodrainACO Business ParkHitchin RoadSheffordBedfordshireSG17 5TETel: 01462 [email protected] channels

Allgood PLC297 Euston RoadLondonNW1 3AQTel: 0207 387 [email protected]

Altro FloorsWorks RoadLetchworthHertfordshireSG6 1NWTel: 0870 6065432 / 01462 [email protected] coverings

Alumasc Exterior Building Products LtdWhite House WorksBold RoadSuttonSt HelensWA9 4JGTel: 01744 648400info@alumasc-exteriors.co.ukwww.alumasc-exteriors.co.ukAluminium rainwater goods

Alumasc Interior Building Products LtdHaleseld 19TelfordShropshireTF7 4QTTel: 01952 [email protected] trunking and casings

Amwell Systems LtdBuntingford Business ParkBaldock RoadBuntingfordHertfordshireSG9 9ERTel: 01763 [email protected] cubicles

Andrews Marble Tiles324-330 Meanwood RoadLeedsYorkshireLS7 2JETel: 0113 262 [email protected] and wall tiles

Armitage Shanks GroupArmitageRugeleyStaffordshireWS15 4BTTel: 01543 490253arm-idealinfo@idealstandard.comwww.armitage-shanks.co.ukSanitary ttings

Armstrong Floor Products UK LtdCustomer Service CentreFleck WayTeeside Industrial EstateThornaby on TeesClevelandTS17 9JTTel: 01642 768660commercial_uk@armstrong.comwww.armstrong-ooring.co.ukFlooring products

Assa Abloy LtdThe MeadowsCannock RoadWolverhamptonWest MidlandsWV10 0RRTel: 01902 364 648Fax: 01902 364 [email protected]

Bison Concrete Products LtdMillenium CourtFirst Avenue Centrum 100Burton-upon-TrentDE14 2WRTel: 01283 [email protected] concrete oors

Bolton Gate CoWaterloo StreetBoltonLancashireBL1 2SPTel: 01204 [email protected] shutter doors

Bradstone Structural SalesNorth End Farm WorksAshton KeynesWiltshireSN6 6QXTel: 01285 646 884bradstone-structural@aggregate.comwww.bradstone-structural.comWalling, dressings and other products

British Gypsum LtdPandy LaneBarrow-upon-SoarLoughboroughLeicestershireLE12 8GBTel: 01509 817 200bgtechnical.enquiries@bpb.comwww.british-gypsum.comPlasterboard and plaster products

Building InnovationUnit 30Berrington RoadSydenham Industrial EstateLeamington SpaWarwickshireCV31 1NBTel: 01926 888808info@building-innovation.co.ukwww.building-innovation.co.ukTapered insulation

Burlington Slate LtdCavendish HouseKirby-in-FurnessCumbriaLA17 7UNTel: 01229 889 681sales@burlingtonstone.co.ukwww.burlingtonstone.co.ukWestmoreland slating

ButtlesSoothouse SpringValley Road Industrial EstateSt AlbansHertfordshireAL3 6NXTel: 01727 834 [email protected] products

Catnic LtdPontypandy Industrial EstateCaerphillyMid GlamorganCF83 3GLTel: 02920 337900www.catnic.comSteel lintels

xvi Acknowledgements

Cavity Trays LtdAdministration CentreLufton Trading EstateYeovilSomersetBA22 8HUTel: 01935 [email protected] trays, closers and associated products

Cementation Foundations Skansa LtdMaple Cross HouseDenham WayMaple CrossRickmansworthHertfordshireWD3 2SWTel: 01923 423100cementation.foundations@skanska.co.ukwww.skanska.co.ukPiling systems

Colour Centre29a Offord RoadLondonN1 1AETel: 0207 609 1164www.colourcentre.comPaints, varnishes and stains

Concrete Canvas Ltd (UK)Unit 3Block A22Treforest Industrial EstateCF37 5SPTel: 0845 680 [email protected] canvas

Cox Building ProductsUnit 1Shaw RoadBushburyWolverhamptonWV10 9LATel: 01902 [email protected]

CPM-GroupMells RoadMellsFromeBA11 3PDTel: 0117 981 [email protected] pipes etc.

Custom Metal FabricationsCentral WayFelthamMiddlesexTW14 0XJTel: 020 8844 [email protected] and balustrading

Decra Roof Systems (UK) LtdUnit 3Faraday CentreFaraday RoadCrawleyWest SussexRH10 9PXTel: 01293 545 [email protected] system and accessories

Dow Construction Products2 Heathrow Boulevard284 Bath RoadWest DraytonMiddlesexUB7 0DQTel: 0208 917 [email protected] products

Dreadnought Clay Roof TilesDreadnought WorksPensnettBrierley HillStaffordshireDY5 4THTel: 01384 77405sales@dreadnought-tiles.co.ukwww.dreadnought-tiles.co.ukClay roof tiling

Acknowledgements xvii

Dufaylite Developments LtdCromwell RoadSt. NeotsCambridgeshirePE19 1QWTel: 01480 [email protected] void former

Envirodoor LtdViking CloseGreat Gutter Lane EastWillerbyHullEast YorkshireHU10 6BSTel: 01482 [email protected] and folding doors

Expamet Building ProductsGreatham StreetLonghill Industrial Estate (North)HartlepoolTS25 1PRTel: 01429 [email protected]'s metalwork products

Forbo Flooring UK LtdHigh Holborn RoadRipleyDerbyshireDE5 3NTTel: 01773 744 121www.forbo-ooring.co.ukMats and matwells

Forticrete LtdBoss Avenueoff Grovebury RoadLeighton BuzzardBedsLU7 4SDTel: 01525 244 [email protected]@forticrete.comnwblocksales@forticrete.comwww.forticrete.co.ukBlocks and roof tiles

Garador LtdBunford LaneYeovilSomersetBA20 2YATel: 01935 443700www.garador.co.ukGarage doors

Grace Construction ProductsExpansion Jointing and Waterproong DivisionAjax AvenueSloughBerkshireSL1 4BHTel: 01753 [email protected] joint llers and waterbars

Gradus Wall ProtectionPark GreenMaccleseldCheshireSK11 7LZTel: 01625 428 [email protected] nosings

GRP Tanks33 Rye RoadHoddesdonHertfordshireEN11 0JETel: 0871 200 2082www.grptanks.netGRP water tanks

H+H Celcon UK LtdCelcon HouseIghthamSevenoaksKentTN15 9HZTel: 01732 [email protected] blocks

xviii Acknowledgements

Halfen LtdUnit 2Humphreys RoadWoodside EstateDunstableBedfordshireLU5 4TPTel: 01582 470 [email protected] accessories channels and special products

Hanson Building ProductsStewartbyBedfordBedfordshireMK43 9LZTel: 0870 [email protected]; [email protected] bricks

Hanson Heidelberg Cement GroupStewartbyBedfordBedfordshireMK43 9LZTel: 08705 [email protected] and Conbloc concrete blocks

Hare Structural EngineersBrandlesholme HouseBrandlesholme RoadBuryLancashireBL8 1JJTel: 0161 609 [email protected] steelwork

Hathaway Roong LtdTindal CrescentBishop AucklandCounty DunhamDL14 9TLTel: 01388 605 636steven.price@hathaway-roong.co.ukwww.hathaway-roong.co.ukSheet wall and roof claddings

Hillaldam Coburn LtdUnit 16Merton Industrial ParkLee RoadLondonSW19 3HXTel: 0208 545 [email protected] and folding door gear

HSS Hire ShopsGroup Ofce25 Willow LaneMitchamSurreyCR4 4TSTel: 0208 260 3100www.hss.co.ukTool hire

HudevadUnit 5Cyan WayPhoenix Way (A444)CoventryCV2 4QPTel: 02476 [email protected]

Hunter Plastics LtdNathan WayLondonSE28 0AETel: 0208 855 [email protected] rainwater goods

Ibstock Building ProductsLeicester RoadIbstockLeicestershireLE67 6HSTel: 01530 [email protected] bricks; Tilebricks

Acknowledgements xix

Icopal LtdBarton Dock RoadStretfordManchesterM32 0YLTel: 0843 224 [email protected] products

James LathamBadminton RoadYateBristolAvonBS37 5JXTel: 01454 315 [email protected] and panel products

Jeld-Wen UK LtdWatch House LaneDoncasterSouth YorkshireDN5 9LRTel: 0870 126 [email protected] and windows

John Brash and Co LtdThe Old ShipyardGainsboroughLincolnshireDN21 1NGTel: 01427 [email protected] shingles

John Guest Speedt LtdHorton RoadWest DraytonMiddlesexUB7 8JLTel: 01895 449 233www.speedt.co.ukSpeedt product range

Junkers LtdUnit 1a1 Wheaton RoadWithamEssexCM8 3UJTel: 01376 534 [email protected] ooring

Kalzip LtdHaydock LaneHaydockSt HelensMerseysideWA11 9TYTel: 01942 [email protected] roong

KB Rebar LtdUnit 5Dobson Park Industrial EstateDobson Park WayInceWiganWN2 2DYTel: 0161 790 8635www.kbrebar.co.ukReinforcement bar and mesh

Kingspan Access FloorsBurma DriveMareetHullHU9 5SGTel: 01482 781 710enquiries@kingspanaccessoors.co.ukwww.kingspanaccessoors.co.ukRaised access oors

xx Acknowledgements

Kingspan EnvironmentalCollege Road NorthAston ClintonAylesburyBucksHP22 5EWTel: 01296 [email protected] and septic tanks

Kingspan Insulated PanelsGreeneld Business Park No 2HolywellFlintshireCH8 7GJTel: 01358 [email protected] wall and roof panels

Kingspan Insulation LtdPembridgeLeominsterHerefordshireHR6 9LATel: 0870 850 8555info.uk@insulation.kingspan.comwww.insulation.kingspan.comInsulation products

Kingspan Structural ProductsSheburnMaltonYO17 8PQTel: 01944 712 [email protected] purlins

Knauf Insulation LtdPO Box 10Stafford RoadSt HelensWA10 3NSTel: 01744 766 [email protected] products

Landpro Ltd14 Upper Bourne LaneFarnhamSurreyGU10 4RQTel: 01252 [email protected] consultants

LignaciteMeadgate WorksNazeingEssexEN92PDTel: 01992 464 [email protected] blocks

Maccaferri7400 The QuorumOxford Business Park NorthGarsington RoadOxfordOX4 2JTZTel: 01865 770 [email protected]

Magrini LtdUnit 5Maybrook Industrial EstateBrownhillsWalsallWest MidlandsWS8 7DGTel: 01543 [email protected] equipment

Acknowledgements xxi

Manhole Covers LtdAireld Industrial EstateCheddington LaneLong MarstonBucksHP23 4QRTel: 01296 [email protected] covers

Marshalls Mono Ltd (drainage)Landscape HousePremier WayLowelds Business ParkEllandHX5 9HTTel: 01422 [email protected] channels

Marshalls Mono Ltd (pavings)Landscape HousePremier WayLowelds Business ParkEllandHX5 9HTTel: 01422 [email protected]

Metsec Lattice Beams LtdRolls Royce EstateSpring RoadEttingshallWolverhamptonWV4 6JXtechnical@metseclatticebeams.comwww.metseclatticebeams.comLattice beams

Monier LtdSussex Manor Business ParkGatwick RoadCrawleyWest SussexRH10 9NZTel: 01293 [email protected] roof tiles

NDM Metal Roong & Cladding LtdMettalum HouseUnit 389 Manor Farm RoadAlpertonWembleyHA0 1BATel: 0208 991 [email protected] cladding and roong

Parker & Highland Joinery Ltd14A Chartwell RoadLancing Business ParkLancingWest SussexBN15 8TUTel: 01903 756 [email protected] joinery

Pegler YorkshireSt Catherine's AvenueDoncasterSouth YorkshireDN4 8DFTel: 0844 243 [email protected] and Kuterlite ttings

xxii Acknowledgements

Plumb CentreThe Wolseley CentreHarrison WayLeamington SpaWarwickshireCV31 3HHTel: 0870 1622 557www.plumbcentre.co.ukCylinders and general plumbing

Polyor LtdPO Box 3Radcliffe New RoadWhiteeldManchesterM45 7NRTel: 0161 767 1111www.polyor.comPolyoor contract ooring

Polypipe TerrainNew Hythe Business ParkNew Hythe LaneAylesfordKentME20 7PJTel: 01622 717811commercialenquiries@polypipe.comwww.terraindrainage.comDrainage goods

Premdor LtdGemini HouseHargreaves RoadGroundwell Industrial EstateSwindonWiltshrieSN25 5AJTel: 01793 [email protected] and windows

Premier Loft Ladders2 Dawson DriveTrimleySt MaryFelixstoweSuffolkIP11 0YWTel: 0845 9000 [email protected] ladders

Pressalit Care plc100 Longwater AvenueGreen ParkReadingBerkshireRG2 6GPTel: 0844 880 6950www.pressalitcare.comBathroom equipment

Prole 22Stafford Park 6TelfordShropshireTF3 3ATTel: 01952 [email protected] windows

Promat UKThe Stirling CentreEaston RoadBracknellBerkshireRG12 2STTel: 01344 381 [email protected] materials

Acknowledgements xxiii

Protim Solignum LtdFieldhouse LaneMarlowBuckinghamshireSC7 1LSTel: 01628 [email protected] and timber treatment

Radius Systems LtdPO Box 1Hillcote PlantBlackwellAlfretonDerbyshireDE55 5JDTel: 01773 811 112www.radius-systems.co.ukMDPE pipes and ttings

Rawlplug LtdSkibo DriveThronliebank Industrial EstateGlascowScotlandG46 8JRTel: 0141 638 [email protected] and xing systems

Richard Potter Timber MerchantsMillstone LaneNantwichCheshireCW5 5PNTel: 01270 625791richardpotter@fortimber.demon.co.ukwww.fortimber.demon.co.ukCarcasssing softwood

Rockwool LtdPencoedBridgendGlamorganshireCF35 6NYTel: 01656 862 [email protected] and other insulation products

Ryton's Building ProductsDesign HouseOrion WayKettering Business ParkKetteringNorthamptonshireNN15 6NLTel: 01536 [email protected] ventilation products

Safeguard Europe LtdRedkin CloseHorshamWest SussexRH13 5QLTel: 01403 212004www.safeguardeurope.comDamp-proong and waterproong

Saint Gobain PAM UKLows LaneStanton-by-DaleIllkestonDerbyshireDE7 4QUTel: 0115 930 [email protected]/Cast iron soil, water and rainwater pipes andttings

Sandtoft Roof Tiles LtdSandtoftDoncasterSouth YorkshireDN8 5SYTel: 01427 [email protected] roof tiling

Schiedel Rite-VentCrowther RoadWashingtonNE38 0AQTel: 0191 416 [email protected] pipes and gas blocks

xxiv Acknowledgements

Screeduct LtdUnit 29AlderminsterStratford-Upon-AvonWarwickshireCV37 8NYTel: 01789 459 [email protected] systems and conduits

Severeld-Rowen Structures LimitedDalton Aireld Industrial EstateDaltonThirskNorth YorkshireYO7 3JNTel: 01845 577896www.sfrplc.comStructural steel

Sheet Piling UK LtdOakeld HouseRough Hey RoadGrimsarghPrestonPR2 5ARTel: 01772 794 [email protected] piling

Shefeld InsulationUnit 1New England EstateGascoigne RoadBarkingEssexIG11 7NZTel: 020 8477 [email protected] products

Siderise Insulation LtdWales OfceForge Industrial EstateMaestagBridgendCF34 0AZTel: 01656 [email protected] barriers

Slate UK David Wallace International LtdUnit 6Aireld Approach Business ParkFlookburghGrange-over-SandsLake DistrictCumbriaTel: 015395 59289www.slate.uk.comSpanish roof slates

Stainless UK LtdNewhall Road WorksShefeldS9 2QLTel: 0114 244 [email protected] steel rebar

Sterling Hydraulics (Huntley & Sparks) LtdBuilding Products DivisionSterling HouseBlacknell LaneCrewkerneSomersetTA18 8LLTel: 01460 722 22Rigix column guards

Stirling Lloyd Polychem LtdUnion BankKing StreetKnutsfordCheshireWA16 6EFTel: 01565 633 111www.stirlinglloyd.comIntegritank products

Acknowledgements xxv

Stressline LtdFoxbank Industrial EstateStoney StantonLeicesterLE9 4LXTel: 0870 [email protected] lintels

Swish Building ProductsPioneer HouseLicheld Road Industrial EstateTamworthStaffsB29 7TFTel: 01827 [email protected] Celuka

Szerelmey Ltd369 Kennington LaneVauxhallLondonSE11 5QYTel: 0207 735 [email protected]

Tarkett-Marley Floors LtdDickley LaneLenhamMaidstoneKentME17 2QXTel: 01622 [email protected] and tile ooring

Tarmac LtdPudding Mill LaneBowLondonE15 2PJTel: 0208 555 [email protected] concrete

Tarmac Mortar and ScreedsTunstead HouseBuxtonDerbyshireSK17 8TGTel: 08701 116 [email protected] screeds and mortar

Tarmac Topblock LtdWergs HallWergs Hall RoadWolverhamptonWest MidlandsWV8 2HZTel: 01902 754 [email protected] blocks

TATA Steel LtdPO Box 1Brigg RoadScunthorpeNorth LincolnshireDN16 1BPTel: 01724 405 060www.tatasteeleurope.comSteel

TimbmetKemp HouseChawley ParkCumnor HillOxfordOX2 9PHTel: 01865 [email protected]

xxvi Acknowledgements

Travis Perkins Trading CompanyLodge Way HouseLodge WayHarlestone RoadNorthamptonNorthamptonshireNN5 7UGTel: 01604 752484www.travisperkins.co.ukBuilders merchant

UK Glass Force3234 Eldon Way Industrial EstateSpa RoadHockleySS5 4ADTel: 0800 393 [email protected] and glazing

V.A. Hutchison Flooring LtdUnits 13, Building NABeeding CloseSouthern Cross Trading EstateBognor RegisWest SussexPO22 9TSTel: 01243 841 [email protected] ooring

VandexSafeguard Europe LtdRedkiln CloseHorshamSussexRH13 5QLTel: 01403 [email protected] Super and Premix products

Velfac LtdThe Old LiveryHildershamCambridgeCB21 6DRTel: 01223 897 [email protected] windows

Velux Company LtdWellington RoadKettering ParkwayKetteringNorthantsNN15 6XRTel: 0870 166 [email protected] roof windows and ashings

Visqueen Building ProductsMaerdy Industrial EstateRhymneyTredegarNP22 5PYTel: 01685 840 672enquiries@visqueenbuilding.co.ukwww.visqueenbuilding.co.ukVisqueen products

Wavin Plastics LtdParsonage WayChippenhamWiltshireSN15 5PNTel: 01249 [email protected] drainage goods

Web Dynamics LtdMoss LaneStation RoadBlackrodLancs BL6 5JBTel: +44(0)1204695666www.webdynamics.co.ukBreather membranes

WelcoWoodgate Business ParkKettles Wood DriveBirminghamB32 3GHTel: 0121 [email protected] and shelving systems

Acknowledgements xxvii

Welsh Slate LtdPenrhyn QuarryBethesdaBangorGwyneddLL57 4YGTel: 01248 600 [email protected] Welsh slates

Wilde Contracts LtdChareau House1 Miles StreetOldhamOL1 3NWTel: 0161 624 6824www.rogerwilde.comGlass blocks

Yeoman Aggregates LtdStone TerminalHorn LaneActonLondonW3 9EHTel: 0208 896 6800debra.ward@yeoman-aggregates.co.ukwww.yeoman-aggregates.co.ukHardcore, gravels, sand

Yorkshire Copper Tube LtdEast Lancashire RoadKirkbyLiverpoolMerseysideL33 7TUTel: 0151 546 [email protected] tube

xxviii Acknowledgements

How to use this Book

First time users of Spon's Architects' and Builders' Price Book and others who may not be familiar with the way inwhich prices are compiled may nd it helpful to read this section before starting to calculate the costs of buildingwork. The level of information on a scheme and availability of detailed specications will determine which section ofthe book and which level of prices users should refer to.

Rates in the book include contractors overhead and recovery margins but do not include main contractors pre-liminaries except for two sections Building Prices per Functional Units and Building Prices per Square Metre which are both within Part 3: Approximating Estimating.

Prices in the book do not necessarily and are not intended to represent the lowest possible prices achievable, butare intended as a guide to expected price levels for the items described. AECOM cost a series of building modelsusing current Spons rates to calculate a book tender index. For this edition of the book this has been set at 481.

New Rules of Measurement (NRM)

The NRM suite covers the life cycle of cost management and means that, at any point in a buildings life, quantitysurveyors will have a set of rules for measuring and capturing cost data. In addition, the BCIS Standard Form ofCost Analysis (SFCA) 4th edition has been updated so that it is aligned with the NRM suite.

The three volumes of the NRM are as follows.

NRM1 Order of cost estimating and cost planning for capital building works. NRM2 Detailed measurement for building works. NRM3 Order of cost estimating and cost planning for building maintenance works.

NRM1

In May 2009 the New Rules of Measurement (NRM1) Order of cost estimating and elemental cost planning wereintroduced by the RICS. The NRM have been written to provide a standard set of measurement rules that areunderstandable by all those involved in a construction project, including the employer; thereby aiding communica-tion between the project/design team and the employer. In addition, the NRM should assist the quantity surveyor/cost manager in providing effective and accurate cost advice to the employer and the rest of the project team.

NRM2

Developed to provide a detailed set of measurement rules to support the procurement of construction works. Theserules will ultimately be a direct replacement for the Standard Method of Measurement for Building Works (SMM7).

This edition of Spons is a hybrid of the NRM2 and SMM7 in order to help the user transfer between the two for-mats. Headings are in line with NRM2 but subheadings and content reect SMM7 more closely. This will continueto be developed over several editions of the book.

The NRM suite is published by the RICS and readers are strongly advised to read the documents.

APPROXIMATE ESTIMATING

For preliminary estimates/indicative costs before drawings are prepared or very little information is available, usersare advised to refer to the average overall Building Prices per Functional Units and multiply this by the proposednumber of units to be contained within the building (i.e. number of bedrooms etc.) or Building Prices per SquareMetre rates and multiply this by the gross internal oor area of the building (the sum of all oor areas measuredwithin external walls) to arrive at an overall initial Order of Cost Estimate. These rates include preliminaries, butmake no allowance for the cost of external works, VAT, or fees for provisional services.

Where preliminary drawings are available, one should be able to measure approximate quantities for all the majorcomponents of a building and multiply these by individual rates contained in the Building Cost Models or Approx-imate Estimating Rates sections to produce an Elemental Cost Plan. This should produce a more accurate esti-mate of cost than simply using overall prices per square metre. Labour and other incidental associated items,although normally measured separately within Bills of Quantities, are deemed included within approximate esti-mating rates. These rates do not include preliminaries or fees for professional services.

MEASURED WORKS

For more detailed estimates or documents such as Bills of Quantities (Quantities of supplied and xed componentsin a building, measured from drawings), use rates from Prices for Measured Work. Depending upon the overallvalue of the contract adjust the value as shown later. Items within the Measured Works sections are made up ofmany components: the cost of the material or product; any additional materials needed to carry out the work; thelabour involved in unloading and xing, etc.

Measured Works rates

These components are usually broken down into:

Prime Cost

Commonly known as the PC; Prime Cost is the actual price of the material such as bricks, blocks, tiles or paint, assold by suppliers. Prime Cost may be given as per square metre, per 100 bags or each according to the way thesupplier sells the product. Unless otherwise stated, prices in Spons Architects' and Builders' Price Book (hereafterreferred to as Spon's A&B), are deemed to be delivered to site, (in which case transport costs will be included) andalso take account of trade and quantity discounts. Part loads generally cost more than whole loads but, unlessotherwise stated, Prime Cost gures are based on average prices for full loads delivered to a hypothetical site inActon, West London. Actual prices for live projects will vary depending on the contractor, supplier, the distance fromthe supplier to the site, the accessibility of the site, whether the whole quantity ordered is to be supplied in onedelivery or at specied dates and market conditions prevailing at the time. Prime Cost gures for commonly usedalternative materials are supplied in listed form at the beginning of some work sections.

Where a PC rate is entered alongside an item rate then the cost allowed for that item is in the overall material cost.For instance, bricks need mortar; paving needs sand bedding, so the PC cost is simply for the cost of bricks orpaving, thus allowing the user to simply substitute an alternative product cost if desired.

Labour

This gure covers the cost of the operation and is calculated on the gang wage rate (skilled or unskilled) and thetime needed for the job. A full explanation and build-up is provided. Large regular or continuous areas of work aremore economical to install than smaller complex areas.

Materials

Material prices include the cost of any ancillary materials, nails, screws, waste, etc., which may be needed inassociation with the main material product/s. If the material being priced varies from a standard measured rate,then identify the difference between the original PC price and the material price and add this to your alternativematerial price before adding to the labour cost to produce a new overall total rate. Alternative material prices, wheregiven, are largely based upon list prices, before the deduction of quantity discounts etc., and therefore requirediscount adjustment before they can be substituted in place of PC gures given for Measured Work items.

xxx How to use this Book

Example:

Item PC Labourhours

Labour

Material

Unit Totalrate

100 mm Thermalite Turbo blocks 6.43 0.41 9.02 7.48 m2 16.50

100 mm Hanson Conbloc standard blocks 6.70

Calculation: (PC) 6.70 6.43 = 0.27 +2.5%(OHP) = 0.28 (add to materials rate of 7.48 =7.76)

Therefore, 100 mm Toplite block price = 6.70 0.41 9.02 7.76 m2 16.78

Plant

Plant covers the use of machinery ranging from excavators and dumpers to static plant and includes running costssuch as fuel, water supply, electricity and waste disposal. Items of plant are included within the Measured Workssections, but included in the Material rates.

Unit

The Unit is generally based upon measurement guidelines laid out in the New Rules of Measurement Detailedmeasurement for building works (NRM2).

Total Rate

Prices in the Total Rate column generally include for the supply and x of items, unless otherwise described.

Overheads and prot

The general overheads of the Main Contractor's business the head ofce overheads and any prot sought oncapital and turnover employed, is usually covered under a general item of overheads and prot which is appliedeither to all measured rates as a percentage, or alternatively added to the tender summary or included within Pre-liminaries for site-specic overhead costs.

Within this edition we are including an allowance of 2.5% for overheads and prot on built-up labour rates andmaterial prices.

Preliminaries

Site-specic Main Contractor's overheads on a contract, such as insurances, site accommodation, security, tem-porary roads and the statutory health and welfare of the labour force, are not directly assignable to individual itemsso they are generally added as a percentage or calculated allowances after all building component items havebeen costed and totalled. Preliminaries will vary from project to project according to the type of construction, dif-culties of the site, labour shortage, or involvement with other contractors, etc. The overall addition for a schemeshould be adjusted to allow for these factors. For this edition we have shown a calculated typical Preliminaries costexample of 12%.

Sub/specialist-contractors costs

For the purpose of this book, these are deemed to include all the above costs, and assume a 2.5% main con-tractors discount.

With the exclusion of main contractors preliminaries, the above items combine to form item rates in the Prices forMeasured Works sections. It should be appreciated that a variation in any one item in any group will affect the nalmeasured work price. Any cost variation must be weighed against the total cost of the contract, and a small

How to use this Book xxxi

variation in Prime Cost where the items are ordered in thousands may have more effect on the total cost than alarge variation on a few items, while a change in design which introduces the need to use, for example, earthmoving equipment, which must be brought to the site for that one task, will cause a dramatic rise in the contractcost. Similarly, a small saving on multiple items could provide a useful reserve to cover unforeseen extras.

COST PLANNING

Order of cost estimate

The purpose of an Order of Cost Estimate is to establish if the proposed building project is affordable and, if affordable,to establish a realistic cost limit for the project. The cost limit is the maximum expenditure that the employer isprepared to make in relation to the completed building project, which will be managed by the project team.

An Order of Cost Estimate is produced as an intrinsic part of RIBA Work Stages A: Appraisal and B: Design Brief orOGC Gateways 1 (Business Justication) and 2 (Delivery Strategy).

There are comprehensive guidelines within the NRM documentation and readers are recommended to read therelevant sections of the NRM where more detailed explanations and examples can be found.

At this early stage, in order for the estimate to be representative of the proposed design solution, the key variablesthat a designer needs to have developed to an appropriate degree of certainty are:

The oor areas upon which the estimate is based Proposed elevations The implied level of specication

Rates will need to be updated to current estimate base date by the amount of ination occurring from the base dateof the cost data to the current estimate base date. The percentage addition can be calculated using publishedindices (i.e. tender price indices [TPI]).

Example 1:

New secondary school

Floor area = 15,000 m2

Cost plan prepared with current TPI = 460Start on site January 2016, TPI = 500Location: North West (adjustment = -10%)From Building Prices per Square Metre

Assume rate of say 1,600 per m2

Cost ()

School rate, say 1,600/m2 x 15,000 m2 = 24,000,000

Adjust for ination to start date (500/460) say +8% 1,920,000

subtotal 25,920,000

Adjust for location -10%, say -2,500,000

subtotal 23,420,000

Allow for contingencies say 10% 2,300,000

Total Order of Cost Estimate 25,720,000

Main contractors preliminaries, overheads and prot need not be added to the cost of building works as they areincluded within the Spons building prices per square metre rates, but you will need to add on professional fees andother facilitating type costs such as demolition, external works, car parking, bringing services to site etc.

xxxii How to use this Book

Elemental cost planning

Elemental cost plans are produced as an intrinsic part of RIBA Work Stages C: Concept, D: DesignDevelopment, E: Technical Design and F: Production Information; or when the OGC Gateway Processis used, Gateways 3A (Design Brief and Concept Approval) and 3B (Detailed Design Approval).Cost Models can be used to quickly extract /m2 of GIFA:

Example 2:

Health centre

Gross Internal Floor Area = 1,000 m2

Cost plan prepared with TPI = 460Start on site April 2016, TPI = 500Location: South West (adjustment = +2%)

Element Rate (/m2) Cost ()

Substructures 106.53 106,530

Frame and Upper Floors 160.00 160,000

Roof 24.00 24,000

And so on for each element to give a total of 1,300.56 1,300,560

Contractors preliminaries, overheads and prot say 15% 195,000

subtotal 1,495,560

Adjust for ination to start date (500/460) say +8% 120,000

subtotal 1,615,560

Adjust for location say +2% 30,000

subtotal 1,645,560

Allow for contingencies say 5% 80,000

Total Elemental Cost Plan 1,725,560

Other allowances such as consultants fees, design fee, VAT, risk allowance, client costs, xed price adjustmentmay need to be added to each of the examples above.

Formal cost planning stages

The NRM schedules a number of formal cost planning stages, which are comparable with the RIBA Design andPre-Construction Work Stages and OGC Gateways 3A (Design Brief and Concept Approval) and 3B (DetailedDesign Approval) for a building project. The employer is required to approve the cost plan on completion of eachRIBA Work Stage before authorizing commencement of the next RIBA Work Stage.

Formal Cost Plan RIBA Work Stage

1 C: Concept

2 D: Design Development

3

E: Technical DesignF: Production Information

Formal Cost Plan 1 is prepared at a point where the scope of work is fully dened and key criteria are specied butno detailed design has begun. Formal Cost Plan 1 will provide the frame of reference for Formal Cost Plan 2.Likewise, Formal Cost Plan 2 will provide the frame of reference for Formal Cost Plan 3. Neither Formal Cost Plans

How to use this Book xxxiii

2 nor 3 involve the preparation of a completely new Elemental Cost Plan; they are progressions of the previouscost plans, which are developed through the cost checking of price signicant components and cost targets asmore design information and further information about the site becomes available.

Cost plans can be developed using from Elemental Cost Plans using both Approximate Estimating Rates and / orPrices for Measured Works depending upon the level of information available.

The cost targets within each formal cost plan approved by the employer will be used as the baseline for future costcomparisons. Each subsequent cost plan will require reconciliation with the preceding cost plan and explanationsrelating to changes made. In view of this, it is essential that records of any transfers made to or from the riskallowances and any adjustments made to cost targets are maintained, so that explanations concerning changescan be provided to both the employer and the project team.

Adjustment according to contract sum cost

The construction costs for a project will depend on the size, type of building, standard of nish required, location,the economic climate of the construction industry, i.e. if there is a shortage of construction work available rms willreduce their tender in order to try and attract work. If the opposite is the case and there is a lot of work available,rms will increase their tenders, as they will not be too keen to obtain the contract which will stretch their resourcesunless it is worth their while nancially. In a recession, construction rms can literally buy work in order to keep theirworkforce and to ensure some cash ow.

Building Costs can vary between builders/developers. This can be due to the size or purchasing abilities of acompany or the discount that it receives from suppliers.

Adjustments can be made to reect the value of a project by using the following table.

Contract Sum % adjustment

5,000,000 -1%

3,500,000 0%

2,750,000 1%

2,000,000 2%

1,250,000 3%

1,000,000 4%

850,000 6%

700,000 8%

600,000 9%

500,000 10%

400,000 11%

300,000 12%

250,000 13%

Spons Architects and Builders Price Book is targeted at projects with a value range of approximately 2,500,000 5,000,000.

In example 2 above, the Health Centre contract sum is 1,725,560, so you would add between 2% and 3% to thecosts to reect how the project value affects the build rates.

Users should not simply apply percentage adjustments to any project regardless of size. We recommend projectvalues between 250,000 and 5,000,000 for rates found in Spons Architects and Builders Price Book could beadjusted according to the above table. This is given only as an indication and users should always remember thatthere are many factors that affect the overall project costs.

These numbers are only intended as a guide and are not explicit and should be applied to the total project valueonly, not individual rates.

xxxiv How to use this Book

To order: Tel: 01235 400524 Fax: 01235 400525Post: Taylor & Francis Customer Services, Bookpoint Ltd, 200 Milton Park, Abingdon, Oxon, OX14 4SB, UKEmail: [email protected] complete listing of all our books is on www.crcpress.com

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NRM1 Cost Management HandbookDavid P Benge

The definitive guide to measurement and estimating using NRM1, written by the author of NRM1

The RICS New rules of measurement: Order of cost estimating and cost planning of capital building works (referred to as NRM1) is the cornerstone of good cost management of capital building works projects - enabling more effective and accurate cost advice to be given to clients and other project team members, while facilitating better cost control.

The NRM1 Cost Management Handbook is the essential guide to how to successfully interpret and apply these rules, including explanations of how to:

t RVBOUJGZCVJMEJOHXPSLTBOEQSFQBSFPSEFSPGDPTUFTUJNBUFTBOEDPTUQMBOT t VTFUIFSVMFTBTBUPPMLJUGPSSJTLNBOBHFNFOUBOEQSPDVSFNFOU t BOBMZTFBDUVBMDPTUTGPSUIFQVSQPTFPGDPMMFDUJOHCFODINBSLEBUBBOEQSFQBSJOH cost analyses t DBQUVSFIJTUPSJDBMDPTUEBUBGPSGVUVSFPSEFSPGDPTUFTUJNBUFTBOEFMFNFOUBMDPTUQMBOT t FNQMPZUIFSVMFTUPBJEDPNNVOJDBUJPO t NBOBHFUIFDPNQMFUFADPTUNBOBHFNFOUDZDMF t VTFUIFFMFNFOUBMCSFBLEPXOBOEDPTUTUSVDUVSFTUPHFUIFSXJUIUIFDPEJOHTZTUFN developed for NRM1, to effectively integrate cost management with Building Information Modelling (BIM).

March 2014: 276 x 174: 598 ppPb: 978-0-415-72077-9: 39.99

PART 1

General

This part contains the following sections:

Page

Capital Allowances 3Value Added Tax 9

The Aggregates Levy 17Land Remediation 23The Landll Tax 33

Property Insurance 35Building Costs Indices, Tender Price Indices and Location Factors 39




Understanding JCT Standard Building ContractsNinth EditionDavid Chappell

This ninth edition of David Chappells bestselling guide has been revised to take into account changes made in 2011 to payment provisions, and elsewhere. This remains the most concise guide available to the most commonly used JCT building contracts: Standard Building Contract with quantities, 2011 (SBC11), Intermediate Building Contract 2011 (IC11), Intermediate Building Contract with contractors design 2011 (ICD11), Minor Works Building Contract 2011 (MW11), Minor Works Building Contract with contractors design 2011 (MWD11) and Design and Build Contract 2011 (DB11).

Chappell avoids legal jargon but writes with authority and precision. Architects, quantity surveyors, contractors and students of these professions will find this a practical and affordable reference tool arranged by topic.

April 2012: 234 x 156: 160 ppPb: 978-0-415-50890-2: 25.99

Capital Allowances

Introduction

Capital Allowances provide tax relief by prescribing a statutory rate of depreciation for tax purposes in place of thatused for accounting purposes. They are utilized by government to provide an incentive to invest in capital equip-ment, including assets within commercial property, by allowing the majority of taxpayers a deduction from taxableprots for certain types of capital expenditure, thereby reducing or deferring tax liabilities.

The capital allowances most commonly applicable to real estate are those given for capital expenditure on existingcommercial buildings in disadvantaged areas, and plant and machinery in all buildings other than residentialdwellings. Relief for certain expenditure on industrial buildings and hotels was withdrawn from April 2011, althoughthe ability to claim plant and machinery remains.

Enterprise Zone Allowances are also available for capital expenditure within designated areas only where there is afocus on high value manufacturing. Enhanced rates of allowances are available on certain types of energy andwater saving plant and machinery assets, whilst reduced rates apply to integral features and items with anexpected economic life of more than 25 years.

The Act

The primary legislation is contained in the Capital Allowances Act 2001. Major changes to the system wereannounced by the Government in 2007 and there have been further changes in subsequent Finance Acts.

The Act is arranged in 12 Parts and was published with an accompanying set of Explanatory Notes.

Plant and Machinery

The Finance Act 1994 introduced major changes to the availability of Capital Allowances on real estate. A deni-tion was introduced which precludes expenditure on the provision of a building from qualifying for plant andmachinery, with prescribed exceptions.

List A in Section 21 of the 2001 Act sets out those assets treated as parts of buildings:

Walls, oors, ceilings, doors, gates, shutters, windows and stairs. Mains services, and systems, for water, electricity and gas. Waste disposal systems. Sewerage and drainage systems. Shafts or other structures in which lifts, hoists, escalators and moving walkways are installed. Fire safety systems.

Similarly, List B in Section 22 identies excluded structures and other assets.

Both sections are, however, subject to Section 23. This section sets out expenditure, which although being part ofa building, may still be expenditure on the provision of Plant and Machinery.

List C in Section 23 is reproduced below:

Sections 21 and 22 do not affect the question whether expenditure on any item in List C is expenditure onthe provision of Plant or Machinery

1. Machinery (including devices for providing motive power) not within any other item in this list.2. Gas and sewerage systems provided mainly

a. to meet the particular requirements of the qualifying activity, orb. to serve particular plant or machinery used for the purposes of the qualifying activity.

3. Omitted4. Manufacturing or processing equipment; storage equipment (including cold rooms); display equipment; and

counters, checkouts and similar equipment.5. Cookers, washing machines, dishwashers, refrigerators and similar equipment; washbasins, sinks, baths,

showers, sanitary ware and similar equipment; and furniture and furnishings.6. Hoists.7. Sound insulation provided mainly to meet the particular requirements of the qualifying activity.8. Computer, telecommunication and surveillance systems (including their wiring or other links).9. Refrigeration or cooling equipment.10. Fire alarm systems; sprinkler and other equipment for extinguishing or containing res.11. Burglar alarm systems.12. Strong rooms in bank or building society premises; safes.13. Partition walls, where moveable and intended to be moved in the course of the qualifying activity.14. Decorative assets provided for the enjoyment of the public in hotel, restaurant or similar trades.15. Advertising hoardings; signs, displays and similar assets.16. Swimming pools (including diving boards, slides & structures on which such boards or slides are mounted).17. Any glasshouse constructed so that the required environment (namely, air, heat, light, irrigation and tem-

perature) for the growing of plants is provided automatically by means of devices forming an integral part ofits structure.

18. Cold stores.19. Caravans provided mainly for holiday lettings.20. Buildings provided for testing aircraft engines run within the buildings.21. Moveable buildings intended to be moved in the course of the qualifying activity.22. The alteration of land for the purpose only of installing Plant or Machinery.23. The provision of dry docks.24. The provision of any jetty or similar structure provided mainly to carry Plant or Machinery.25. The provision of pipelines or underground ducts or tunnels with a primary purpose of carrying utility con-

duits.26. The provision of towers to support oodlights.27. The provision of

a. any reservoir incorporated into a water treatment works, orb. any service reservoir of treated water for supply within any housing estate or other particular locality.

28. The provision of a. silos provided for temporary storage, orb. storage tanks.

29. The provision of slurry pits or silage clamps.30. The provision of sh tanks or sh ponds.31. The provision of rails, sleepers and ballast for a railway or tramway.32. The provision of structures and other assets for providing the setting for any ride at an amusement park or

exhibition.33. The provision of xed zoo cages.

Capital Allowances on plant and machinery are given in the form of writing down allowances at the rate of 18% perannum on a reducing balance basis. For every 100 of qualifying expenditure 18 is claimable in year 1, 14.76 inyear 2 and so on until either all the allowances have been claimed or the asset is sold.

4 Capital Allowances

Integral features

The category of qualifying expenditure on integral features was introduced with effect from April 2008. The fol-lowing items are integral features:

An electrical system (including a lighting system) A cold water system A space or water heating system, a powered system of ventilation, air cooling or air purication, and any

oor or ceiling comprised in such a system A lift, an escalator or a moving walkway External solar shading

A reduced writing down allowance of 8% per annum is available on integral features.

Thermal insulation

For many years the addition of thermal insulation to an existing industrial building has been treated as qualifying forplant and machinery allowances. From April 2008 this has been extended to include all commercial buildings butnot residential buildings.

A reduced writing down allowance of 8% per annum is available on thermal insulation.

Long-life assets

A reduced writing down allowance of 8% per annum is available on long-life assets. Allowances were given at therate of 6% before April 2008.

A long-life asset is dened as plant and machinery that can reasonably be expected to have a useful economic lifeof at least 25 years. The useful economic life is taken as the period from rst use until it is likely to cease to beused as a xed asset of any business. It is important to note that this is likely to be a shorter period than an itemsphysical life.

Plant and machinery provided for use in a building used wholly or mainly as dwelling house, showroom, hotel,ofce or retail shop or similar premises, or for purposes ancillary to such use, cannot be long-life assets.

In contrast, plant and machinery assets in buildings such as factories, cinemas, hospitals and so on are all poten-tially long-life assets.

Case law

The fact that an item appears in List C does not automatically mean that it will qualify for capital allowances. It onlymeans that it may potentially qualify.

Guidance about the meaning of plant has to be found in case law. The cases go back a long way, beginning in1887. The current state of the law on the meaning of plant derives from the decision in the case of Wimpy Inter-national Ltd and Associated Restaurants Ltd v Warland in the late 1980s.

The Judge in that case said that there were three tests to be applied when considering whether or not an item isplant.

1. Is the item stock in trade? If the answer is yes, then the item is not plant.2. Is the item used for carrying on the business? In order to pass the business use test the item must be

employed in carrying on the business; it is not enough for the asset to be simply used in the business. Forexample, product display lighting in a retail store may be plant but general lighting in a warehouse would failthe test.

3. Is the item the business premises or part of the business premises? An item cannot be plant if it fails thepremises test, i.e. if the business use is as the premises (or part of the premises) or place on which thebusiness is conducted. The meaning of part of the premises in this context should not be confused with thelaw of real property. The Inland Revenues internal manuals suggest there are four general factors to beconsidered, each of which is a question of fact and degree:

Capital Allowances 5

Does the item appear visually to retain a separate identity With what degree of permanence has it been attached to the building To what extent is the structure complete without it To what extent is it intended to be permanent or alternatively is it likely to be replaced within a short

period

There is obviously a core list of items that will usually qualify in the majority of cases. However, many others stillneed to be looked at on a case-by-case basis. For example, decorative assets in a hotel restaurant may be plantbut similar assets in an ofce reception area would almost certainly not be.

One of the benets of the integral features rules, apart from simplication, is that items that did not qualify byapplying these rules, such as general lighting in a warehouse or an ofce building, will now qualify albeit at areduced rate.

Refurbishment schemes

Building refurbishment projects will typically be a mixture of capital costs and revenue expenses, unless the worksare so extensive that they are more appropriately classied a redevelopment. A straightforward repair or a like forlike replacement of part of an asset would be a revenue expense, meaning that the entire amount can be deduc-ted from taxable prots in the same year.

Where capital expenditure is incurred that is incidental to the installation of plant or machinery then Section 25 ofthe 2001 Act allows it to be treated as part of the expenditure on the qualifying item. Incidental expenditure willoften include parts of the building that would be otherwise disallowed, as shown in the Lists reproduced above. Forexample, the cost of forming a lift shaft inside an existing building would be deemed to be part of the expenditureon the provision of the lift.

The extent of the application of section 25 was reviewed for the rst time by the Special Commissioners inDecember 2007 and by the First Tier Tribunal (Tax Chamber) in December 2009, in the case of JD Wetherspoon.The key areas of expenditure considered were overheads and preliminaries where it was held that such costscould be allocated on a pro-rata basis; decorative timber panelling which was found to be part of the premises andso ineligible for allowances; toilet lighting which was considered to provide an attractive ambience and qualied forallowances; and incidental building alterations of which enclosing walls to toilets and kitchens and oor nishes didnot qualify but tiled splash backs, toilet cubicles and drainage did qualify along with the related sanitary ttings andkitchen equipment.

Annual investment allowance

The annual investment allowance is available to all businesses of any size and allows a deduction for the whole ofthe rst 500,000 from 19 March 2014 (250,000 before 19 March 2014) of qualifying expenditure on plant andmachinery, including integral features and long-life assets. The annual investment allowance will return to 25,000from January 2016.

The Enhanced Capital Allowances Scheme

The scheme is one of a series of measures introduced to ensure that the UK meets its target for reducing green-house gases under the Kyoto Protocol. 100% rst year allowances are available on products included on theEnergy Technology List published on the website at www.eca.gov.uk and other technologies supported by thescheme. All businesses will be able to claim the enhanced allowances, but only investments in new and unusedMachinery and Plant can qualify.

There are currently 15 technologies with multiple sub-technologies currently covered by the scheme:

Air-to-air energy recovery Automatic monitoring and targeting (AMT) Boiler equipment Combined heat and power (CHP) Compressed air equipment Heat pumps


Heating ventilation and air conditioning (HVAC) equipment High speed hand air dryers Lighting Motors and drives Pipework insulation Radiant and warm air heaters Refrigeration equipment Solar thermal systems Uninterruptible power supplies

The Finance Act 2003 introduced a new category of environmentally benecial plant and machinery qualifying for100% rst-year allowances. The Water Technology List includes 14 technologies:

Cleaning in place equipment Efcient showers Efcient taps Efcient toilets Efcient washing machines Flow controllers Greywater recovery and reuse equipment Leakage detection equipment Meters and monitoring equipment Rainwater harvesting equipment Small scale slurry and sludge dewatering equipment Vehicle wash water reclaim units Water efcient industrial cleaning equipment Water management equipment for mechanical seals

Buildings and structures and long-life assets as dened above cannot qualify under the scheme. However, fol-lowing the introduction of the integral features rules, lighting in any non-residential building may potentially qualifyfor enhanced capital allowances if it meets the relevant criteria.

A limited payable ECA tax credit equal to 19% of the loss surrendered was also introduced for UK companies inApril 2008.

From April 2012 expenditure on plant and machinery for which tariff payments are received under the renewableenergy schemes introduced by the Department of Energy and Climate Change (Feed-in Tariffs or Renewable HeatIncentives) will not be entitled to enhanced capital allowances.

Enterprise Zones

The creation of 11 new Enterprise Zones was announced in the 2011 Budget. Additional zones have since beenadded bringing the number to 24 in total. Originally introduced in the early 1980s as a stimulus to commercialdevelopment and investment, they had virtually faded from the real estate psyche.

The original zones beneted from a 100% rst year allowance on capital expenditure incurred on the construction(or the purchase within 2 years of rst use) of any commercial building within a designated enterprise zone, within10 years of the site being so designated. Like other allowances given under the industrial buildings code thebuilding has a life of 25 years for tax purposes.

The majority of these enterprise zones had reached the end of their 10-year life by 1993. However, in certain verylimited circumstances it may still be possible to claim these allowances up to 20 years after the site was rstdesignated.

Enterprise zones benet from a number of reliefs, including a 100% rst year allowance for new and unused non-leased plant and machinery assets, where there is a focus on high-value manufacturing.

Capital Allowances 7

Flat conversion allowances

Tax relief is available on capital expenditure incurred on or after 11 May 2001 on the renovation or conversion ofvacant or underused space above shops and other commercial premises to provide ats for rent.

In order to qualify the property must have been built before 1980 and the expenditure incurred on, or in connectionwith:

Converting part of a qualifying building into a qualifying at. Renovating an existing at in a qualifying building if the at is, or will be, a qualifying at. Repairs incidental to conversion or renovation of a qualifying at, and The cost of providing access to the at(s).

The property must not have more than four storeys above the ground oor and it must appear that, when theproperty was constructed, the oors above the ground oor were primarily for residential use. The ground oormust be authorized for business use at the time of the conversion work and for the period during which the at isheld for letting. Each new at must be a self-contained dwelling, with external access separate from the ground-oor premises. It must have no more than four rooms, excluding kitchen and bathroom. None of the ats can behigh value ats, as dened in the legislation. The new ats must be available for letting as a dwelling for a periodof not more than 5 years.

An initial allowance of 100% is available or, alternatively, a lower amount may be claimed, in which case the bal-ance may be claimed at a rate of 25% per annum in subsequent years. The allowances may be recovered if the atis sold or ceases to be let within 7 years.

At Budget 2011 the Government announced that the relief would be abolished from April 2013.

Business Premises Renovation Allowance

The Business Premises Renovation Allowance (BPRA) was rst announced in December 2003. The idea behindthe scheme is to bring long-term vacant properties back into productive use by providing 100% capital allowancesfor the cost of renovating and converting unused premises in disadvantaged areas. The legislation was included inFinance Act 2005 and was nally implemented on 11 April 2007 following EU state aid approval.

The legislation is identical in many respects to that for at conversion allowances. The scheme will apply to prop-erties within the areas specied in the Assisted Areas Order 2007 and Northern Ireland.

BPRA is available to both individuals and companies who own or lease business property that has been unused for12 months or more. Allowances will be available to a person who incurs qualifying capital expenditure on therenovation of business premises.

An announcement to extend the scheme by a further 5 years to 2017 was made within the 2011 Budget, along witha further 11 new designated Enterprise Zones.

Legislation was introduced in the Finance Bill 2014 to clarify the scope of expenditure qualifying for relief to actualcosts of construction and building work, and for certain specied activities such as architectural and surveyingservices. The changes will have effect for qualifying expenditure incurred on or after 1 April 2014 for businesseswithin the charge to corporation tax, and 6 April 2014 for businesses within the charge to income tax.

Other capital allowances

Other types of allowances include those available for capital expenditure on Mineral Extraction, Research andDevelopment, Know-How, Patents, Dredging and Assured Tenancy.


Value Added Tax

Introduction

Value Added Tax (VAT) is a tax on the consumption of goods and services. The UK adopted VAT when it joined theEuropean Community in 1973. The principal source of European law in relation to VAT is Council Directive 2006/112/EC, a recast of Directive 77/388/EEC which is currently restated and consolidated in the UK through the VATAct 1994 and various Statutory Instruments, as amended by subsequent Finance Acts.

VAT Notice 708: Buildings and construction (June 2007) gives an interpretation of the law in connection with con-struction works from the point of view of HM Revenue & Customs. VAT tribunals and court decisions since the dateof this publication will affect the application of the law in certain instances. The Notice is available on HM Revenue& Customs website at www.hmrc.gov.uk.

The scope of VAT

VAT is payable on:

Supplies of goods and services made in the UK By a taxable person In the course or furtherance of business; and Which are not specically exempted or zero-rated.

Rates of VAT

There are three rates of VAT:

A standard rate, currently 20% since January 2011 A reduced rate, currently 5%; and A zero rate.Additionally some supplies are exempt from VAT and others are outside the scope of VAT.

Recovery of VAT

When a taxpayer makes taxable supplies he must account for VAT at the appropriate rate of either 20% or 5%. ThisVAT then has to be passed to HM Revenue & Customs and will normally be charged to the taxpayers customers.

As a VAT registered person, the taxpayer can reclaim from HM Revenue & Customs as much of the VAT incurredon their purchases as relates to the standard-rated, reduced-rated and zero-rated onward supplies they make. Aperson cannot however reclaim VAT that relates to any non-business activities (but see below) or to any exemptsupplies they make.

At predetermined intervals the taxpayer will pay to HM Revenue & Customs the excess of VAT collected over theVAT they can reclaim. However, if the VAT reclaimed is more than the VAT collected, the taxpayer can reclaim thedifference from HM Revenue & Customs.

Example

X Ltd constructs a block of ats. It sells long leases to buyers for a premium. X Ltd has constructed a new buildingdesigned as a dwelling and will have granted a long lease. This sale of a long lease is VAT zero-rated. This meansany VAT incurred in connection with the development which X Ltd will have paid (e.g. payments for consultants andcertain preliminary services) will be reclaimable. For reasons detailed below the contractor employed by X Ltd willnot have charged VAT on his construction services.

Use for business and non-business activities

Where VAT relates partly to business use and partly to non-business use then the basic rule is that it must beapportioned so that only the business element is potentially recoverable. In some cases VATon land, buildings andcertain construction services purchased for both business and non-business use could be recovered in full byapplying what is known as Lennartz accounting to reclaim VAT relating to the non-business use and account forVAT on the non-business use over a maximum period of 10 years. Following an ECJ case restricting the scope ofthis approach, its application to immovable property was removed completely in January 2011 when UK law wasamended to comply with EU Directive 2009/162/EU.

Taxable persons

A taxable person is an individual, rm, company etc. who is required to be registered for VAT. A person who makestaxable supplies above certain value limits is required to be registered. The current registration limit is 81,000 for201415. The threshold is exceeded if at the end of any month the value of taxable supplies in the period of 1 yearthen ending is over the limit, or at any time, if there are reasonable grounds for believing that the value of thetaxable supplies in the period of 30 days then beginning will exceed 81,000.

A person who makes taxable supplies below these limits is entitled to be registered on a voluntary basis if theywish, for example in order to recover VAT incurred in relation to those taxable supplies.

In addition, a person who is not registered for VAT in the UK but acquires goods from another EC member state, ormake distance sales in the UK, above certain value limits may be required to register for VAT in the UK.

VAT exempt supplies

If a supply is exempt from VAT this means that no tax is payable but equally the person making the exemptsupply cannot normally recover any of the VAT on their own costs relating to that supply.

Generally property transactions such as leasing of land and buildings are exempt unless a landlord chooses tostandard-rate its supplies by a process known as opting to tax. This means that VAT is added to rental income andalso that VAT incurred on, say, an expensive refurbishment, is recoverable.

Supplies outside the scope of VAT

Supplies are outside the scope of VAT if they are:

Made by someone who is not a taxable person Made outside the UK; or Not made in the course or furtherance of business

In course or furtherance of business

VAT must be accounted for on all taxable supplies made in the course or furtherance of business with the corre-sponding recovery of VAT on expenditure incurred.

If a taxpayer also carries out non-business activities then VAT incurred in relation to such supplies is genera

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