The basic principles for the analysis of the cost of building work are as follows :
A building within a project shall be analysed separately.
Information shall be provided to facilitate the preparation of estimates based on abbreviated measurements.
Analysis shall be in stages with each stage giving progressively more details, the detailed costs in each stage should equal the costs of the relevant group in the preceding stage. At any stage of analysis any significant cost items that are more important to a proper and more useful understanding of the analysis shall be identified.
External Works shall not be apportioned to any particular building but analysed separately for the whole project.
For comp1ex contracts, i.e., whereby there are more than one building in a contract, the Prime Cost and Provisional Sum for that contract shall be apportioned to the particular building to be analysed by the following formula i.e. (Figure a) unless they can be assigned to or otherwise . more appropriately apportioned to the respective buildings.
In the case of rationalised rates in the Bills of Quantities, the rationalised rates shall be used instead of tendered rates.
Lump Sum adjustments shall be spread pro-rata amongst a11elements of the building(s) and external works based on all works excluding Prime Cost and Provisional Sum contained within the elements.
Professional fees shall not form part of the cost analysis.
Contingency Sum to cover unforseen expenditure shall not be included in the analysis.
The definition of Terms shall be as given in this Manual.
The List and Contents of the Elements shall be as given in this Manual.
* Cost of building excluding PC and Provisional Sum, Preliminaries and External Works.