A Closer Look at BCIS Elements: Enhancing Cost Planning in Construction

The Building Cost Information Service (BCIS), a vital arm of the Royal Institution of Chartered Surveyors (RICS), stands as a cornerstone in the construction industry. Since its inception in 1961, BCIS has been pivotal in offering comprehensive, accurate, and independent cost and price information, facilitating better decision-making and financial planning for construction projects. The core of BCIS's utility lies in its detailed approach to elemental cost plans, which break down the total construction cost into manageable, functional parts known as elements.

Understanding Elemental Cost Plans

An elemental cost plan is a strategic tool used in construction projects to divide the overall cost into specific elements. Initially, this division is based on a percentage allocation of the total construction cost. As the project progresses and design details become clearer, the cost plan evolves to reflect actual quantities of work and materials required, providing a more precise financial roadmap.

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The BCIS data structure categorizes these elements systematically, ensuring all aspects of construction are considered. Here’s an outline of the key elements:

1. Facilitating Works

• Toxic/Hazardous Material Treatment
• Major Demolition Work
• Temporary Supports and Specialist Groundworks

2. Substructure

• Foundational elements such as groundwork and basements.

3. Superstructure

• The main structural components, including frames, roofs, walls, and doors.

4. Internal Finishes

• Finishing touches like wall, floor, and ceiling finishes.

5. Fittings, Furnishings, and Equipment

• Interior fittings and equipment necessary for functionality and aesthetics.

6. Services

• Essential services installations like plumbing, heating, ventilation, and electrical systems.

7. Prefabricated Buildings and Building Units

• Modular and prefabricated construction elements.

8. Work to Existing Building

• Modifications and renovations to existing structures.

9. External Works

• Landscaping, paths, fences, and other external features.

10. Main Contractor’s Preliminaries

• Preparatory works required by the main contractor.

11. Main Contractor’s Overheads and Profit

• Financial overheads and profit margins for the contractor.

12. Project/Design Team Fees

• Fees for consultants and design teams involved in the project.

13. Other Development/Project Costs

• Miscellaneous costs that don't fall into other categories.

14. Risk (Client’s Contingencies)

• Provisions for various risks including design development, construction, and client changes.

The Evolution and Relevance of BCIS Elements

The elemental structure provided by BCIS has evolved to address practical issues identified through the drafting of measurement rules, notably through the New Rules of Measurement (NRM). The NRM, also published by RICS, offers standardized measurement rules for estimating and cost planning, ensuring consistency and reliability in project costing.

The integration of these common elemental definitions and cost breakdown structures with the NRM has significantly enhanced their utility. They allow for the development and analysis of both capital and lifecycle maintenance cost plans in a unified format, benefiting professionals and clients alike.

Real-World Application of BCIS Elements

Consider a scenario where a construction firm is tasked with building a new office complex. Initially, the firm uses an elemental cost plan to allocate the estimated $5 million construction budget across different elements, based on standard percentages. As the architectural design and engineering details are finalized, the firm revises the cost plan to reflect actual material and labor costs.

For instance, the substructure might initially be allocated 10% of the budget ($500,000). Upon detailed planning, it might become evident that due to challenging soil conditions, additional groundworks are necessary, increasing the substructure cost to $600,000. The elemental cost plan allows the firm to adjust budgets for other elements accordingly, ensuring the overall project remains financially viable.

BCIS elements are more than just a breakdown of costs; they represent a structured approach to understanding and managing the financial complexities of construction projects. By providing a detailed, systematic way to allocate and adjust budgets, BCIS helps ensure that projects are completed on time and within budget, while also accommodating necessary adjustments and unforeseen challenges. As the construction industry continues to evolve, the role of BCIS in fostering accurate, reliable, and transparent cost planning remains indispensable.

The Writer: Chathurka VINDANA, the founder of MrQS; the newsletter for sharing the QS and Contracts Management wisdom around the Globe for FREE!