How to apply different build cost rates to Use Class components of a development

In This Tutorial:

• Overview of Appraisal!;

• Using square meter Building Works costing;

• Flexibility and detail in cost analysis;

• Practical steps to build a development appraisal.

Summary:

This tutorial explores BOOM! Appraisal, focusing on the building works component. Learn how to use square meter building works costing to evaluate construction expenses for mixed-use developments. Discover how Appraisal provides flexibility in cost breakdowns, including external works, preliminaries, and contingencies, for detailed and adaptable project appraisals.

Exploring the Building Works Component in Appraisal

Step 1: Setting Up Your Project

1. Open Appraisal in BOOM!;

2. Select a hypothetical project, such as a mixed-use development including:

   1. Class C3 (residential);

   2. Sui Generis (co-living);

   3. Class E (commercial);

3. View the project summary, noting key metrics like:

   1. Development profit;

   2. Return on GDV (e.g., 92% in the example).

Step 2: Calculating Building Works Costs

1. Navigate to the Building Works section;

2. Input Square Meter Costs for different use classes:

   1. Class C3: £3,300/m² (35% of total GEA);

   2. Sui Generis: £5,600/m² (60% of total GEA);

   3. Class E: £2,250/m² (remaining 5% of GEA);

3. Adjust factors such as the GEA component to account for external walls.

Step 3: Adding External Works

1. Estimate the external works area (e.g., 2,000 m² for a 3,500 m² site with a 1,500 m² building footprint);

2. Input a fixed or per-square-meter cost (e.g., £2,500/m² for external works).

Step 4: Preliminaries, Overheads, and Profit

1. Add preliminaries as a percentage of building works (e.g., 8%);

2. Include main contractor overheads (e.g., 3%) and profit (e.g., 2%);

3. Optionally, add consultant fees (e.g., architect costs at 3% of building works).

Step 5: Contingency Planning

1. Define contingencies as fixed costs, per plot, or percentages;

2. Use per plot costs for simplicity (e.g., £2,500/plot).

Step 6: Review and Save

1. Review the total cost estimate (e.g., £28 million for building works and associated components);

2. Save the appraisal for future reference and refinement.

Why Use BOOM! for Building Works Analysis?

BOOM!’s appraisal tool offers unparalleled flexibility for:

• Breaking down costs by use class and area;

• Adapting to project-specific requirements;

• Providing clear and actionable cost insights.

Streamline your development cost analysis today! Watch the tutorial to see how BOOM! enhances your appraisal process with detailed and adaptable tools.