Budget and value report, Risk Management

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A strategy value assessment, based on calculating the budget of the project. Discussion should not restrict itself to construction cost control but should consider the life cycle and phasing implications and the value balance between capital cost, quality, sales and life cycle costs for PHASE ONE.

Guidelines

  • Do a budget for the phase one main buildings as indicated in the phase plan. Information to support this is the accomodation schedule and the Turner Townsend cost document (posted on the BNEweb).
  • Allow for consultancy design and other fees of 15% and justify an allowance for infrastructure costs
  • Put this budget on a time base and qualitatively consider the revenue streams which will apply to offset the cost

Your appendix should show

  • A cost budget on a time base
  • The workings for your cost build up
  • Any other relevant references you have used
  • Identify assumptions

This element of the project is NOT displayed at the crit.

Your report should critically evaluate the options and phasing and indicate how they can induce value into the scheme.  Rationalise how you have managed the constraints and derived your income and expenditure projections.  Show that you understand and justify the priority of benefits within an understanding of the magnitude of the cost of obtaining it.

Some notes.

You may use the gross floor areas of different types of use in PHASE ONE as stated in the accomodation schedule. You may use the cost schedule guidelines to work out a cost/m2 to obtain what you think is a competitive budget for the university. In assessing revenues and asset disposals this can be done qualitatively so you are not tempted to artificially raise values to make cash flows balance.


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