Appendix 1 - Beechgrove House Feasibility Cost Plan
Perth and Kinross Council · 29 November 2023
Back to Housing and Social Wellbeing Committee — 29 November 2023 and its agenda
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Chartered Quantity Surveyors • Construction Consultants • CDM Consultants Project No. 4789 Issued: 28th September 2023 Perth & Kinross Council Beechgrove, Perth Feasibility Cost Plan (Rev 1)
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Residential Development Beechgrove, Perth Perth and Kinross Council Feasibility Cost Plan (Rev 1) 1. Introduction Brownriggs were requested by Perth & Kinross Council to update the previously prepared Feasibility Cost Plan (dated 31st January 2022) to reflect construction cost inflation in the period, which was for two (2) potential options for development of an existing care home site at Beechgrove, Perth, based on the limited drawings available. In the absence of any additional/updated design information, it was agreed this Cost Plan should be simply updated to reflect construction cost inflation in the period between 1Q 2022 and 3Q 2023, therefore no cognisance has been made for enhanced building standards, energy performance/sustainability requirements or the like which may have arisen in the period. For the purposes of updating for construction cost inflation, current published BCIS Indices have been assessed which indicate an inflationary increase of circa 12% and has been utilised to update previous Construction Costs. The two (2) options currently being considered can be summarised as follows: Option 1 - New Build Housing Demolition of the existing care home building, site clearance and construction of thirty-three (33) new build houses together with associated external/infrastructure works. Based on the drawing information available, anticipated construction costs have been prepared by applying benchmark costs/m2 to house types and calculating elemental unit quantities for site works and drainage with current build rates applied thereafter. The Anticipated Construction Cost, Cost per m2 Gross Floor Area (2,639 m2) and Average Cost per Unit (33 Nr) are summarised in the table below. Anticipated Costs Description Construction Development Anticipated Cost £6,223,060 £6,503,560 Anticipated Cost per m2 £2,358 £2,464 Anticipated Average Cost per Unit £188,578 £197,078 Option 2 - Conversion/Refurbishment of Existing Building Re-modelling and refurbishment of existing care home building to provide new flatted accommodation. Based on the drawing information available, anticipated construction costs have been prepared by applying costs/m2, obtained from recent project similar in nature, to the Gross Floor Area of the existing building for re-modelling/refurbishment works. A Provisional Sum allowance of £300,000 has been included for associated site works and drainage. Page 1
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Residential Development Beechgrove, Perth Perth and Kinross Council Feasibility Cost Plan (Rev 1) The Anticipated Construction Cost and Cost per m2 Gross Floor Area (1,794 m2) are summarised in the table below. Anticipated Costs Description Construction Development Anticipated Cost £3,395,970 £3,495,970 Anticipated Cost per m2 £1,893 £1,949 Anticipated Average Cost per Unit TBC TBC * Note: The above figures relate to Construction Costs and exclude Other Development Costs In the absence of indicative Architectural layouts for this option, it is not known how many flats/persons are likely to be accommodated within the existing building and will need to be established in due course. Based on our assessment of a previous project, similar in nature, on a pro-rata Gross Floor Area basis we would envisage twenty (20) to twenty-five (25) one and two bedroom flats may be achievable. The costs contained within this report reflect the RIBA Architect's Plan of Work - Stage 1. The Drawings used in preparation of Cost Plan were as follows:- Option 1 • SK-190411 Proposed Site Layout Option 2 • L(90)-01 Site Block Plan • Lot 6 Beechgrove RHE GF • Lot 6 Beechgrove RHE 1F The costs are based on the project proceeding as a single stage selective tender and should be read in conjunction with Section 3 - Qualifications and Section 4 - Exclusions Page 2
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Residential Development Beechgrove, Perth Perth and Kinross Council Feasibility Cost Plan (Rev 1) 2. Cost Summary - Option 1 - New Build Description Amount Building Cost £ 3,826,550.00 External Works & Drainage £ 1,134,435.00 £ 4,960,985.00 Preliminaries £ 595,320.00 £ 5,556,305.00 Inflationary Adjustment (1Q 2022 to 3Q 2023) - allow circa +12% based on assessment of current BCIS Indices 666,755.00 Total Construction Cost £ 6,223,060.00 Add Project Development Costs (Excluding Land) £ 280,500.00 Option 1 Total £ 6,503,560.00 Page 3
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Residential Development Beechgrove, Perth Perth and Kinross Council Feasibility Cost Plan (Rev 1) 2. Cost Summary - Option 2 - Conversion Building Cost £ 2,520,570.00 External Works & Drainage £ 300,000.00 £ 2,820,570.00 Inflationary Adjustment (1Q 2022 to 3Q 2023) - allow circa +12% based on assessment of current BCIS Indices 338,470.00 3,159,040.00 Contingencies £ 236,930.00 Total Construction Cost £ 3,395,970.00 Add Project Development Costs (Excluding Land) £ 100,000.00 Option 2 Total £ 3,495,970.00 Page 4
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Residential Development Beechgrove, Perth Perth and Kinross Council Feasibility Cost Plan (Rev 1) 3. Qualifications The following qualifications should be read in conjunction with the foregoing cost summary. 1) Costs based on a single construction project 2) An allowance of £8,500.00/unit has been allowed for the Development Costs within Option 1. 3) An allowance of £100,000.00 has been allowed for the Development Costs within Option 2. 4) The costs are based on reasonable ground conditions with no allowance for any 'abnormals' 5) Base date for cost is 3Q 2023 with no allowance for future inflation 6) Given the limited scope of works for Option 2, the costs include a 7.5% contingency allowance. No contingencies have been allowed for Option 1. 7) A provisional allowance of £150,000.00 has been allowed for demolitions within Option 1. It is assumed that all soft strip out will be carried out by client prior to demolition. 8) A provisional allowance of £300,000.00 has been allowed for Option 2 external works until a scope of works is available. 4. Exclusions The following exclusions should be read in conjunction with the foregoing cost summary. 1) Excludes finance charges, land purchase, legal costs and V.A.T. 2) Excludes floor finishes 3) Excludes off-site works 4) Excludes any allowance for blinds/curtains/white goods/furniture/fittings/equipment 5) Excludes fully replacing existing roads/pavements outwith the site boundary. 6) Excludes any works for upgrading the existing Scottish Water network. 7) Excludes any asbestos removals 8) Excludes any pre-contract design team fees & non-novated post contract fees. Page 5