A Feasibility Study (sometimes called Viability Study) will provide you with a realistic budget to work with, plus an opinion of both hard and construction costs. We will develop a cost model that reflects the owner’s requirements, takes into consideration site conditions or site options, any government requirements that may affect cost, as well as local market conditions. The level of detail will depend on the nature, complexity and sensitivity of the project.
Another benefit of the Feasibility Study is that it identifies risks. Quantity Surveyors will recommend appropriate levels of contingency in order to ensure your cost model takes into account these risks.
A Program Estimate typically happens during the Planning Stage. It will be based on pre-design document called a Functional Program which describes the functional requirements or users’ requirements in sufficient detail to initiate preliminary costing. A Functional Program includes such detail as space types and sizes, space finishes, space adjacencies, special mechanical or electrical services, and any equipment.
For both Feasibility Studies and Program Estimates it is common that more than one option is explored.
Life Cycle Costing
Life Cycle Costing (LCC) evaluates design options comparing not only the initial capital investment but also the cost of maintaining and operating the building and its components (particularly Mechanical and Electrical systems) over the expected life span. Life Cycle Costs are presented in ‘current day values’ known as net present value (NPV). Varying materials, systems and/or alternative designs can be evaluated over the long term to compare overall LCC (total cost of ownership) and provided a basis for smart choices.
Building Condition Assessments
Building Condition Assessments (Property Condition Assessments) outline the capital repair requirements of the building’s various components and systems over short-term and long term periods. Reports include a detailed capital plan and a reserve fund cash flow table to show the timing and costs for items identified for repair or replacement.
For private sector clients, a BCA is an important part of due diligence for commercial real estate transactions or for financing purposes. Purchasers & Lenders want to know the potential costs of repairs for the building they are investing in.
In the public sector, BCA reports are used in capital planning and asset management. Typically municipal and government agencies have a large portfolio of facilities that require upkeep and BCA reports are required to effectively plan for routine maintenance, code adherence and functionality.
Insurance Valuation & Building Reinstatement Cost Estimate
An Insurance Valuation & Building Reinstatement Cost Estimate calculates the cost of the building for insurance purposes. This will ensure you are not over-insuring your building and paying more for insurance than you need to, but also ensures you have enough insurance to cover your building should a loss occur. Learn more about when you need a Reinstatement / Reconstruction Cost Estimate and why.