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01 / The PRS market

There has been a surge of interest in the private rented sector (PRS) in recent years, prompting a growth in the development of institutionally backed and developer-led PRS accommodation in our towns and cities, which challenge traditional concepts of acceptable housing.

This emerging asset class represents an opportunity for investors, developers and local authorities to diversify and reduce risk across their property portfolios.

Key drivers
One of the major drivers of PRS growth has been the lack of housing availability and supply, particularly for first-time buyers, compounded by spiralling house prices in London, the South-east and other metropolitan areas. This has resulted in a sharp increase in the number of renters, with the proportion doubling (from 15% to 30%) in some locations and the average age of a first-time homebuyer in the UK pushed to almost 40. In London alone, one in four of those aged 25-35 still lives with their parents. Yet there is little consolation for renters, in London at least. Figures from January 2016 show that Londoners spend, on average, nearly two-thirds of their income on rent.

However, there are other issues to consider. Increasingly, employers are demanding flexibility from their workforce. The talent pool is now global. City-hopping professionals need to be responsive to the labour market, and so short, hassle-free tenures may well prove more viable than a long-term mortgage. Graduates will also have experienced good quality, purpose-built student accommodation during their studies. Realistically, few of them will be able to buy a home in the capital or other major cities, and so they will expect a high standard of rental accommodation as they embark on their professional careers.

Nothing new?
As an idea, PRS 鈥� large-scale developments with purpose built, private rented apartments 鈥� is not new. In the first half of the 20th century, the idea flourished, with projects such as Du Cane Court in Balham, south London becoming more prevalent. The art deco development offered 676 apartments with a range of amenities and was, at the time, the largest privately owned development in Europe. Since then, although becoming well-established in Europe, South-east Asia, the Middle East and North America, PRS has formed only a small part of the UK鈥檚 residential property market.

However, the UK government鈥檚 hopes to stimulate PRS as a way to unlock housing supply continue, namely through its Private Rented Sector Taskforce and the 拢1bn Build to Rent fund outlined in its Housing Strategy. Investors and developers are starting to demonstrate a preference for PRS schemes too, enabling them to avoid the intense sales and marketing activities associated with sales of individual units, instead developing an ongoing estate, offering steady, longer-term gains.

Think clearly
The opportunity around PRS may be substantial, but addressing the issues requires clear thinking. Quality is key 鈥� the reputation for poor standards that currently underpins the buy-to-let sector must be replaced with service, support and facilities equal to or surpassing those on offer in the market or comparable asset classes, such as the best student accommodation.

New delivery models may also be required. A joint venture that draws on a developer鈥檚 local market knowledge and expertise in overseeing delivery, backed up by an institutional investor鈥檚 equity support may be a strong proposition, reducing short-term risk and maintaining a return over a longer period. A local authority-developer model may also work well, combining asset ownership and planning knowledge with commercial expertise.

02 / PRS: What and where?

With PRS, one size does not fit all. Investors, developers and local authorities will need to oversee a range of typologies with considerable variation in design, capacity and style, to respond to local market demands.

Needs will vary according to demographics 鈥� from studio and one-bedroom apartments for recent graduates or young professionals, through to larger living spaces to support the increasing numbers of families moving into PRS. As the typical age of first-time buyers looks to increase, intergenerational communities may also become prevalent. The population may be ageing, but those older people still want to live in a mixed and vibrant community. Conversely, the opportunity to differentiate PRS according to lifestyle or age group also presents unique opportunities and introduces the 鈥減ull factor鈥� associated with the congregation of similar social groups.

There will be an impact on planning. Schemes purpose-built for rent may be laid out to a different specification to those built for immediate sale. Authorities will need to be flexible with their adopted design standards. Similarly, design teams must acknowledge that amenity space and facilities will be major differentiators for potential tenants, potentially outweighing the investment in architecture or high-end fixtures that would be more standard in a for-sale model (although this remains an important factor, especially at the upper, 鈥渆xecutive鈥� end of PRS).

Yet there is no reason to doubt that PRS will continue to build momentum. Funding from the centre will help, with schemes like Build to Rent demonstrating the government鈥檚 keenness for PRS as a vehicle to help achieve housing demands.

Housing zones and regeneration
London will continue to attract PRS developments, prompted in part by the creation of 20 housing zones by the mayor of London in 2015, which are expected to deliver 50,000 more homes in total. And, while inner London has traditionally seen a larger number of private renters, investment interest is turning towards a 鈥渄oughnut鈥� clustered around zones 2, 3 and 4, buoyed by higher yields and good transport links into the centre.

Other areas of the UK offer good PRS potential too. The further 20 housing zones outside London identified in the March 2015 Budget will be a focus, thanks to central government funding to kickstart home building in brownfield sites. Regeneration areas such as the Greenwich Peninsula, Stratford, Lewisham Gateway and Croydon will see PRS as a positive way to bring new people into an area quickly. Major cities such as Manchester, Birmingham, Leeds and Glasgow will see significant PRS demand thanks to their vibrant economies and growth, which will be encouraged further by regional initiatives like the so-called 鈥渘orthern powerhouse鈥�.

03 / Design

In any project, design and specification must be balanced against its ultimate viability, and PRS developments are no exception. In particular, operating and running costs will need to be included in the business case to ensure yields remain an incentive for investment.

Land costs will still be a major consideration. Aecom鈥檚 PRS cost model takes a typical development in London鈥檚 zone 2 / 3 as its starting point. Although not within prime inner London residential territory, these locations will be competitive, mainly due the combination of housing zone funding and good transport connectivity.

Tenant preferences should also be considered in the rental model. The opportunity cost for greater initial capital investment associated with enhanced specifications may not necessarily be recovered through yields, as tenants typically consider lower short-term rents preferable.

Design guides and differentiators
Ultimately, the price of land will influence the positioning of the final product in the rental market. To help mitigate these potentially high costs, and ensure continued take up, PRS developers need to identify differentiating factors at the design stage that make their product more appealing to end users.

The mayor of London鈥檚 Housing Design Guide (LHDG) will still be a touchstone for design teams, as well as any local authority design requirements. However, for PRS projects, amenities and communal areas will require more consideration. Amenity spaces, such as gyms, business areas, cafes and creches may be viewed more favourably by potential tenants. Areas that can be hired for private functions will also be popular, and communal outdoor spaces 鈥� roof gardens, green areas, quiet corners 鈥� will be important for families.

All of these are often perfunctory in developments created exclusively for sale. Taking time to think them through will pay dividends. Given that there are few current planning precedents or PRS-specific guidelines, discussion with local authority planning teams may be necessary.

Longevity
Given the potential diversity of the end-user tenant base, a mix of units will be necessary. Studios and one-bedroom apartments should be balanced with larger units designed for sharing or families. Maintenance should be minimal and straightforward. Design teams should look to standardise fixtures and fittings, enabling operators to keep a stock of key items. This will speed up repairs, reduce disruption to tenants and minimise the risk of potential void periods.

Within the units, the standard of finishes will be critical, but developers should not be tempted by super high-end fit-outs. Instead, select for quality and durability. Good warranty cover for ironmongery, sanitary ware and kitchen appliances is a must. Branding will play a crucial part in helping to create a specific PRS offer and the case for consistency of branding across materials and products, and the use of brand guidelines will help drive cost effective procurement.

In terms of MEP, fast broadband is crucial, as are IT points to main reception rooms. Broadband must work from day one, so routers and providers should be signed up to before tenants move in and then switched over to the tenant on occupation.

Functional areas are also important. Front and back of house spaces will be required for the estate management office, for maintenance and for storage space. Back of house should include dedicated routes for tenants to move in and out.

Even so, flexibility in design is also necessary. PRS developments may be given planning approval to allow units to be sold after a specified time, and so design teams should be mindful of this. The task is made easier by the degree of commonality in the occupational habits and behaviour of tenants and homeowners.

04 / Procurement and construction

Effective procurement and a first-class supply chain are the secret to getting PRS delivery right. Simple, straightforward procurement routes are important. Clear and easily understood risk transfers, with a process that selects a main contractor quickly once the tender has been returned and the supply chain soon after, will help achieve certainty.

Although the market continues to be constrained, there has been a potential softening with the realisation that pricing levels are becoming unsustainable from a viability perspective. The PRS market also presents clear opportunities for long-term partnering agreements with certain suppliers and trades, which will help keep costs reasonable and provide consistency in branding. Quality and repeatability are key when selecting these affiliations or supply chain agreements.

One- or two-stage tenders?
With two-stage tendering continuing to dominate main contractor procurement routes, this strategy remains preferential, for both PRS and for-sale models. Current wisdom is to keep first-stage tenders to a basic level, pricing only preliminaries, overheads and profit, contractor risk and programme. Developers may find contractors raising concerns about the second stages extending and delaying financial close.

There may be room for competitive, single-stage tendering, although contractors will favour a short and sweet process with, for example, a reduced number of contractors tendering, a reasonable tender period without tender addendums or additional design releases, and an obvious match with the contractor鈥檚 strengths and business plan.

Despite this, there still may be resistance from trades, especially the larger ones, many of whom prefer two-stage deals or preconstruction agreements for their initial bids. Some trades may only price jobs for contractors that have secured the main contract.

Construction
When it comes to construction, prevailing wisdom on major residential developments applies. On phased completions with early occupation, keeping 鈥渉ard鈥� construction activities physically separate is critical, from both a safety and a reputational perspective.

05 / Cost influences

The fundamental cost principles behind residential delivery, regardless of signature design or functionality, remain the same for PRS projects. Optimise the available area for tenants, with the right number of apartments per floor and the right size (or mix of sizes) for the apartments, supported by an effective building shape and core arrangement (including efficient wall-to-floor and net-to-gross ratios). Provide it for the right cost and complete construction in the quickest time, emphasising quality and repetition.

Specification
Adopting a similar approach to a residential for-sale development is a good yardstick, at least for the design and construction stages, although greater emphasis should be placed on communal and amenity areas. Comparing the net rentable area to the gross area is useful. The building鈥檚 efficiency will be affected by the amount of amenity space 鈥� while more amenity space means a less efficient building, good amenities may help attract a higher rental value.

The apartment types chosen will also affect cost. Studio and one-bedroom apartments offer the highest yield but cost more per square foot to build and fit out due to their obvious density. Other tenure types may be necessary to meet end-user demand, with a lower cost per square foot but lower yields too.

Apartment specification should also be planned carefully. Depending on the provider鈥檚 model, apartments may need to be fully furnished and kitted out, enabling tenants to take occupancy immediately on completion, instead of a more familiar shell and core / fit-out model. The 鈥渢urnkey鈥� approach will include furniture, fittings and equipment, down to crockery, cutlery, bed linen, TV and the like.

Operations and maintenance
There is, however, one major difference between for-sale and PRS cost estimates, and that is the importance of operations and maintenance to PRS schemes. Developers should consider adopting a whole lifecycle model that incorporates these stages, with operations teams (or operators, if they are different entities) involved early on.

There may be trade-offs. For example, improving the durability of developments 鈥� to reduce future maintenance and to create a quality product where people will want to live for decades to come 鈥� will increase upfront development costs.

In terms of procurement, furniture, fittings and equipment (FFE) and operations and service equipment (OSE) should form part of the project brief and procurement strategy. Operators may choose to adopt procurement models from other sectors, such as using specialist agents to source FFE and OSE from the international market and driving cost benefits from repetition and volume. This is largely dependent on the development and operational model adopted.

Alternatively, operators may choose to establish their own supply chain and use their own in-house management expertise. In any case, operators will be responsible for maintaining a good standard of service of the final asset, so durability, ease of replacement and longevity should be key factors.

Brand and marketing
While the aggressive sales strategies of for-sale schemes are rarely necessary in PRS schemes, some investment in marketing is required. Many tenants will hold relatively short leases, and so operators will need to attract a steady stream of new occupants to keep revenues flowing.

Creating and managing a credible brand is important. Key marketing messages should emphasise the quality of apartments, the range of amenities and the use of straightforward, flexible contracts. Peer marketing 鈥� via word of mouth within corporates who may use the same apartments for several tenants, or via social media for other groups 鈥� is becoming increasingly prevalent. A successful brand will also help to create momentum as investors and developers expand their offering to new cities or districts.

06 / Sustainability

Sustainability underpins all aspects of a PRS scheme. A development needs to be economically viable across its whole lifecycle, while minimising its environmental impact. And it can contribute to the creation of new communities and help regenerate others.

The whole lifecycle costing model will be important here too. Running costs, maintenance and replacements are just as important as construction costs. Service charges must be minimal, as they can only be recovered through rental costs.

In terms of construction, green building principles will be enshrined in local building regulations. These will generally follow, and improve upon the now-defunct Code for Sustainable Homes.

Innovation in 鈥渆co-friendly鈥� design and construction can also be a useful marketing tool. Ideas such as the clever use of construction waste and low-energy technology should be investigated. Community-friendly initiatives work in the same way. Apprenticeships or local volunteering can build links with local people and help differentiate a scheme from competitors.

07 / Cost model

Aecom鈥檚 PRS cost model is based on 200 apartments located in zone 2 / 3 in London. The apartments are being built for PRS and are arranged in a single 11-storey building with two cores. Each core has its own apartment entrance lobby. The building also includes a residents鈥� gym (GIA 2,000 ft2), a private screening room and cinema (1,000ft2) and a residents鈥� lounge and multifunction area (2,000ft2), as well as a dedicated estate management suite (GIA of 1,500ft2) and two retail units (GIA 3,000ft2).

The building has a reinforced concrete frame with post-tensioned slab to maximise floor-to-ceiling heights. The external facade assumes 5% articulation and incorporates balconies to all apartments. The cladding is made up of a timber rainscreen with brickwork panels supported on a metsec / SFS backing system. Sanitary appliances and fittings have been selected for durability and ease of replacement with bathroom pods being provided to achieve the quality standards needed over the building鈥檚 lifecycle. Allowance has also been included for enhanced warranties for key items including kitchen fittings and appliances.

The gross internal floor area of the building is 165,390ft2 with a net-to-gross efficiency of 75% and a wall-to-floor ratio of 0.47. The rates are base dated at Q1 2016 and reflect prices obtained from a two-stage competitive tender, procured through design and build. The cost model excludes demolitions, any main contractor鈥檚 first stage or pre-construction fees, professional fees and contractor鈥檚 post-novation design fees. Also excluded are residential furniture, fittings and equipment (FFE) and operations and service equipment (OSE), Section 106/278 agreements and VAT.

Description / item	Total 拢	拢/尘2 GIFA	拢/ft2 GFA	Percentage of work
Shell and core works
Substructure	1,125,550	73.25	6.81	4.40%
Works to existing site; site clearance and removal of existing vegetation, etc.; (1,280 m2 @ 拢10/m2)
Excavation and disposal of material off site; assumed average 1.5m reduce level dig (2,200 m3 @ 拢50/m3); including 15% bulking
Allow for 15% contaminated soil (330 m3 @ 拢100/m3)
Allow for removal of unknown obstructions (item @ 拢25,000)
Allowance for piling mat to footprint of building; say 400mm deep; including excavation and disposal and compacting (1,280 m2 @ 拢40/m2)
Allowance for mobilisation and demobilisation of piling rig; include for setting up piling rig at pile positions (item @ 拢75,000)
CFA piling; approx. 600mm diameter piling 35m deep; cut off top of pile; allow for pile cap; disposal of spoil; etc, (2,625 m @ 拢150/m)
Allowance for sundries: integrity tests, NDT, etc, (item @ 拢20,000)
Allowance for 500mm thick reinforced concrete slab; excavation and disposal; 350mm thick hardcore bed, 50mm sand blinding, dpm, insitu concrete slab, reinforcement (150kg/m鲁), etc, (1,280 m2 @ 拢250/尘2)
Allowance for underslab drainage (1,280 m2 @ 拢35/m2)
Allowance for plant bases (item @ 拢10,000)
Allowance for lift pits (4 nr @ 拢7,500 each)
Frame and upper floors	4,149,525	270.06	25.09	16.30%
Allowance for reinforced concrete frame; comprising columns and core walls to ground floor (1,280 m2 @ 拢200/m2)
Allowance for reinforced concrete frame; including columns, beams and core walls to upper floors (14,085 m2 @ 拢125/m2)
Upper floor; post tensioned concrete slab; 225mm thick slab; 100kg/m3 reinforcement; 6kg/m虏 post tensioned strands, formwork, etc, (14,085 m2 @ 拢140/m2)
Extra over allowance for enhancements to podium slab; transfer structures over retail areas, etc, (1,280 m2 @ 拢100/m2)
Allowance for steel support to lifts (44 nr @ 拢750)
Roof	482,200	31.38	拢2.92	1.90%
Roof slab; post tensioned concrete slab; 225mm thick slab; 100kg/m3 reinforcement; 6kg/m虏 post tensioned strands, formwork etc, (1,280 m2 @ 拢140/m2)
Allowance for lift overruns, AOVs, etc, (item @ 拢15,000)
Allowance for membrane roof covering to concrete slab including insulation, waterproofing, drainage, etc, (1,280 m2 @ 拢125/m2)
Extra over allowance for green roof coverings to podium roof (1,280 m2 @ 拢100/m2)
Stairs	193,500	12.59	1.17	0.80%
Precast reinforced concrete stairs; with powder coated metal balustrading and handrails; ground to 11th floor (22 nr @ 拢8,000 each)
Allowance for sundry platforms to plantrooms (item @ 拢7,500)
Access ladders to roof (4 nr @ 拢2,500 each)
External walls, windows, doors and balconies	5,986,000	389.59	36.19	23.60%
Structurally glazed wall to principle facade, apartment entrance lobbies and retail (878 m2 @ 拢800/m虏)
Rainscreen cladding system: comprising timber rainscreen and brickwork panels on insulation and metsec / SFS backing; 60% of facade area (3,834 m虏 @ 拢 580/m2)
Extra over for material interfaces and feature detailing (item @ 拢250,000)
Allowance for double-glazed thermally broken aluminium windows; powder coated; 40% of facade area (2,556 m虏 @ 拢550/m2)
Extra over for glazed sliding double doors to retail units, apartment entrance lobbies, gym and estate management suite (6 nr @ 拢3,500 each)
Extra over for glazed double door to residents lounge (1 nr @ 拢2,000 each)
External louvered doorsets to residential refuse stores, retail, plant area and roof (7 nr @ 拢5,000 each)
Allowance for canopies to entrances (6 nr @ 拢10,000)
Allowance for scaffolding to external wall areas generally (7,268 m2 @ 拢60/m2)
Allowance for single doors to balconies (200 nr @ 拢1,250)
Allowance for balconies to apartments; bolt on steel balconies; including balustrades; cold bridging details, etc, (200 nr @ 拢3,000)
Internal walls, partitions and doors	1,445,870	94.1	8.74	5.70%
Blockwork walls; 300mm overall thickness to ground floor; including windposts (1,300 m2 @ 拢125/m2)
Blockwork walls; 100mm overall thickness to ground floor; including windposts (380 m2 @ 拢90/m2)
Partitions to residential corridor; 260mm overall thickness, 15mm soundblock plasterboard, 12.5mm WBP plywood lining, vapour control layer, 2 nr 50mm metal studs, 100mm air gap, 2 nr 15mm soundblock plasterboard (2,376 m2 @ 拢120/m2)
Partitions between apartments; 260mm overall thickness, 15mm soundblock plasterboard, 12.5mm WBP plywood lining, vapour control layer, 2 nr 50mm metal studs, 100mm air gap, 2 nr 15mm soundblock plasterboard (4,800 m2 @ 拢120/m2)
Double leaf timber doors, to ground floor storage (2 nr @ 拢1,800 each)
Single leaf, timber doors to ground floor storage and WCs (5nr @ 拢850 each)
Single leaf, timber entrance doors to apartments (200 nr @ 拢900 each)
Single leaf, timber doors to amenity areas (72 nr @ 拢850 each)
Single leaf, timber doors to risers (96 nr @ 拢500 each)
Allowance for WC and shower cubicles to amenity areas, etc (8 nr @ 拢2,000 each)
Allowance for temporary protection to doors, etc (item @ 拢75,000)
Wall finishes	509,545	33.16	3.08	2.00%
Plasterboard lining to core walls, service cupboards, etc (3,496 m2 @ 拢40/m2)
Plasterboard linings to blockwork walls (2,843 m2 @ 拢40/m2)
Paint to internal partitions; residential corridors, linings and back of house areas (8,895 m2 @ 拢8/m2)
MDF skirtings with painted finish to lift lobbies, residential corridors, gym, estate management suite (2,905 m @ 拢15/m)
Enhanced finishes to apartment entrances and lift lobbies; at ground level (item @ 拢50,000)
Timber panelling to residents lounge (150 m2 @ 拢250/尘2)
Acoustic panelling to cinema room (115 m2 @ 拢150/m2)
Extra over for forming recesses for projection screen and other detailing generally; to cinema room (item @ 拢5,000)
Service panelling to WCs and showers (75 m2 @ 拢300/m2)
Porcelain tiles to WCs and showers (120 m2 @ 拢75/m2)
Floor finishes	284,532	18.52	1.72	1.10%
75mm levelling screed to corridors and lift lobbies, apartment entrance lobbies, cinema room, residents lounge, estate management suite and gym (3,118 m2 @ 拢30/m2)
Sealant to plant areas (418 m2 @ 拢15/m2)
Power float finish to retail areas (279 m2 @ 拢3/m2)
Carpet finish to residential corridors and lift lobbies (2,282 m2 @ 拢40/m2)
Luxury carpet to cinema room (88 m2 @ 拢75/m2)
Stone floor finish to apartment entrance lobbies (186 m2 拢250/尘2)
Timber batten floor to residents lounge and estate management suite (301 m2 @ 拢35/m2)
Engineered timber flooring to gym area (162 m2 @ 拢125/m2)
Porcelain tiles to WCs and showers (53 m2 @ 拢100/m2)
Epoxy resin to storage areas, refuse areas, etc (46 m2 @ 拢20/m2)
Allowance for drainage channels including stainless steel grilles to changing facilities to gym (10 m @ 拢250/尘)
Ceiling finishes	170,028	11.07	1.03	0.70%
Painted plasterboard ceiling to residential corridors, cinema room, residents lounge and back of house areas (2,561 m2 @ 拢38/m2)
Acoustic rated demountable suspended ceiling, including paint finish to estate management suite and gym (293 m2 @ 拢60/m2)
Allowance for specialist acoustic ceiling to cinema room (88 m虏 @ 拢75/m2)
Enhanced finishes to reception and lift lobby areas at ground level (item @ 拢25,000)
Painted moisture resistant plasterboard ceiling to WCs and showers (53 m2 @ 拢45/m2)
Sealer to exposed ceiling soffit to retail units, plant and storage areas (743 m2 @ 拢15/m2)
Allowance for additional bulkheads and level changes generally (item @ 拢10,000)
Fittings, furnishings and equipment	298,000	19.39	1.8	1.20%
Statutory signage (item @ 拢30,000)
Mail boxes (200 nr @ 拢125 each)
Allowance for mirrors to gym (item @ 拢10,000)
Allowance for vanity units to changing rooms (item @ 拢7,500)
Allowance for cubicles, showers and fittings to gym changing areas (6 nr @ 拢2,500 each)
Allowance for fittings to changing rooms and WC鈥檚 areas; hand driers, soap dispensers, towel racks, etc (item @ 拢5,000)
Allowance for lockers to changing rooms (20 nr @ 拢500 each)
Allowance for benches to changing rooms (item @ 拢2,500)
Allowance for FF&E to cinema room; including projection screen and equipment; joinery cabinetry and millwork, etc (item @ 拢20,000)
Allowance for cinema room seating (12 nr @ 拢1,500)
Allowance for back of house storage for estate management suite and maintenance facilities (item @ 拢20,000)
Allowance for FF&E to gym areas; vanity units, mirrors, etc (item @ 拢15,000)
Allowance for servery joinery and equipment to residents lounge (item @ 拢5,000)
Study desks and panelling to residents lounge (10 nr @ 拢1,000 each)
Residents lounge bookcases (5 m @ 拢1,500/m)
Sundry joinery to residents lounge; window seating, bars, etc (item @ 拢20,000)
Timber screens and panelling to residents lounge (item @ 拢10,000)
Fireplace and wall feature to residents lounge (item @ 拢7,500)
Allowance for general storage and joinery to estate management suite (item 拢15,000)
Allowance for desks and seats - Excluded
Allowance for meeting room furniture - Excluded
Sundries; notice boards, signage, etc (item @ 拢5,000)
Allowance for gym equipment - excluded (by operator)
Reception desks to apartment entrance areas and estate management suite (item @ 拢 40,000)
MEP generally
Sanitaryware	28,164	1.83	0.17	0.10%
Cleaners鈥� sink(s) (3 nr @ 拢450)
Sanitaryware to estate management suite (4 nr @ 拢650)
Sanitaryware including showers to gym (12 nr @ 拢783)
Sanitaryware to cinema room (2nr @ 拢650)
Sanitary ware to work residents lounge (8 nr @ 拢650)
Extra over disabled provision (lot @ 拢5,000)
Associated subcontractor preliminaries (lot @ 拢3,318)
Disposal installations	308,474	20.08	1.87	1.20%
Rainwater disposal from roof outlets connection to underground drainage (15365 m2 @ 拢3/m2)
Foul disposal to amenity areas and apartment complete with associated vent stacks, connection to underground drainage (15365 m2 @ 拢13.50/m2)
Drainage from plant rooms, bin stores and the like via floor gullies (lot @ 拢14,000)
Capped connection to retail (lot @ 拢2,500)
Associated subcontractor preliminaries (lot @ 拢38,451)
Water installations	354,465	23.07	2.14	1.40%
Cold water installation incoming main, storage tank, water treatment, multi booster pump set, distribution to apartments including tenant sets with water meter (15,365 m2 @ 拢16.50/m2)
Cold water distribution to sanitary ware including estate management suite, cleaners cupboards and gym (lot @ 拢18,500)
CAT 5 water points & plant to wash down points and to roof BMU (lot @ 拢15,000)
Hot water installation to sanitary ware including estate management suite, cleaners cupboards and gym via a plate heat exchanger, including pumps, pipe work etc (lot @ 拢18,250)
Capped connections to retail (lot @ 拢5,000)
Associated subcontractor preliminaries (lot @ 拢44,192)
Heat source	223,612	14.55	1.35	0.90%
Gas fired boiler installation (3 nr @ 拢26,275)
Flue to atmosphere (lot @ 拢78,750)
Plant room pipework, pumps sets, controls etc (lot @ 拢38,413)
Associated subcontractor preliminaries (lot @ 拢27,624)
Space heating and air treatment	463,374	30.16	2.8	1.80%
Distribution to apartments, valves, etc; terminating in HIUs (HIUs part of fit out) (15,365 m2 @ 拢15.50)
Landlords heating via radiators to stair cores and back of house areas (lot @ 拢11,500)
Underfloor heating to reception areas (lot @ 拢7,000)
Air treatment to reception, gym, office areas; VRF installation and mini AHU (lot @ 拢149,000)
Associated subcontractor preliminaries (lot @ 拢57,716)
Ventilation installations	265,770	17.30	拢1.61	1.00%
Plant room ventilation (418m虏 @ 拢90)
Stairwell make up via AoV (2 nr @ 拢7,500)
Smoke clearance to corridors (24 vents @ 拢7,500)
Associated subcontractor preliminaries (lot @ 拢33,150)
Electrical installation	1,044,671	67.99	拢6.32	4.10%
Primary distribution board, landlords power and lighting boards, cabling and containment, sub metering, ryefield installation to apartments (15,365m2 @ 拢24/m2)
Life safety standby generator and flue (lot @ 拢111,125)
Life safety cabling & equipment to fire fighting lifts, smoke extract and sprinkler installations (15,365 m2 @ 拢2.50/m2)
Small power to landlords areas and circulation space (lot @ 拢8,000)
Power to mechanical installations (15,365m2 @ 拢2.50/m2)
Lighting to landlord areas and circulation areas including lighting control and emergency lighting (2,978 m2 @ 拢58/m2)
Back of house lighting (15,365 m2 @ 拢1/m2)
Power and lighting to office and gym (lot @ 拢94,100)
Feature lighting internal / external (lot @ 拢40,000)
Earthing and bonding (15,365 m2 @ 拢1.50/m2)
Capped connections to retail (lot @ 拢5,000)
Associated subcontractor preliminaries (lot @ 拢129,724)
Gas installation	26,330	1.71	0.16	0.10%
Gas installation to boilers (15,365 m2 @ 拢1.50)
Associated subcontractor preliminaries (lot @ 拢3,282)
Protective installations	247,918	16.14	1.5	1.00%
Sprinkler distribution to apartments, monitored floor valves (15,365 m2 @ 拢10/m2)
Dry risers (24 outlets @ 拢2,000 each)
Lightning & surge protection (15,365 m2 @ 拢1/m2)
Associated subcontractor preliminaries (lot @ 拢30,903)
Communication installations	530,879	34.55	3.21	2.10%
Fire alarm to landlord areas, interlink to apartments (15,365 m虏 @ 拢6.50/m2)
Disabled refuge and WC alarm installation (lot @ 拢66,000)
Containment for data / telephone installations (15,365 m2 @ 拢3.50/m2)
Satellite farm and aerial installation to roof (4 nr satellites and 1 aerial; lot @ 拢20,000)
Telephone / TV / Satellite to apartments (15,365 m2 @ 拢7/m2)
CCTV and access control to ground floor areas and plant rooms (12 nr CCTV cameras, 6 nr access control points; lot @ 拢62,500)
Data outlets to landlord areas and Wi-Fi installation to residents lounge (lot @ 拢25,000)
Door entry and sub door entry installation (3 nr entrances; lot @ 拢30,000)
Associated subcontractor preliminaries (lot @ 拢66,174)
Special installations	340,761	22.18	2.06	1.30%
Remote metering to apartments and billing system for LTHW heating only (200 nr @ 拢300 each)
BMS (15,365 m2 @ 拢9/m2)
Cinema room installation (lot @ 拢100,000)
Associated subcontractor preliminaries (lot @ 拢42,476)
Lift installations	655,200	42.64	3.96	2.60%
13 person, 1.6m/s (2 nr @ 拢130,000 each)
17 person, 1.6m/s (2 nr @ 拢150,000 each)
Enhanced finishes to lift car and 2 sets of drapes (lot @ 拢25,000)
Associated subcontractor preliminaries (lot @ 拢70,200)
Builders work	416,202	27.09	2.52	1.60%
BWIC
Preliminaries and contingencies	5,845,754	380.46	35.35	23.02%
Main contractors preliminaries @ 15.5%
Overheads and profit @ 4.5%
Contractors risk @ 2.5%
Post novation design fees (excluded)
Contingency and design reserve @ 5%
Total shell and core works	25,396,323	1,652.87	153.56	100.00%
RESIDENTIAL FIT-OUT WORKS
Internal walls and doors	1,041,250	67.77	6.30	6.9%
Plasterboard stud partitions within apartments (8,700 m2 @ 拢50/m2)
EO allowance for boxing out and acoustic treatment to SVP鈥檚 including crossovers (item @ 拢50,000)
Internal apartment doors: flush painted, solid core, single leaf doorset including ironmongery (475 nr @ 拢750 each)
Utility cupboard doors; flush paint, solid core, double leaf doorset; including ironmongery (200 nr @ 拢1,000 each)
Wall finishes	785,695	51.14	4.75	5.2%
Painted plasterboard lining to internal face of external wall, core walls, external wall of bathroom pod, etc, (8,500 m2 @ 拢40/m2)
Paint finish to all internal partitions (17,400 m2 @ 拢8/m2)
Plywood behind kitchen walls (1,800 m2 @ 拢15/m2)
Allowance for glass splashbacks to kitchens generally (500 m2 @ 拢200/m2)
Allowance for mastic (200 nr @ 拢250 each)
MDF skirting with paint finish (8,633m @ 拢15/m)
Floor finishes	1,072,650	69.81	6.49	7.1%
Acoustic timber batten sub floor to general areas (10,072 m2 @ 拢35/m2)
Carpet finishes to bedrooms; approximately 30% of net residential area (3,022 m2 @ 拢40/m2)
Timber flooring to all other areas (7,050 m2 @ 拢85/m2)
Ceiling finishes	487,736	31.74	2.95	3.2%
Painted plasterboard ceiling (10,072 m2 @ 拢38/m2)
Allowance for blind boxes / recess (1,400 m @ 拢50/m)
Access hatches (200 nr @ 拢175 each)
Fittings/fitting out	4,805,440	312.75	29.06	31.7%
Allowance for kitchen including sink, taps and white goods (oven, hob, fridge freezer, washer / dryer, extract hood); studio (15 nr @ 拢7,000 each)
Allowance for kitchen including sink, taps and white goods (oven, hob, fridge freezer, washer / dryer, extract hood); 1 bed (80 nr @ 拢8,000 each)
Allowance for kitchen including sink, tap and white goods (oven, hob, fridge freezer, washer / dryer, extract hood); 2 bed (105 nr @ 拢9,000 each)
Allowance for enhanced warranty provision (200 nr @ 拢250 each)
Roller blinds (2,556 m2 @ 拢40/m2)
Wardrobes to bedrooms generally (654 m @ 拢 800/m)
Bathroom pod incorporating; sanitary ware, finishings and fittings (305 nr @ 拢8,000 each)
MEP generally
Sanitary ware
Included within the pod construction
Disposal installations	103,470	6.73	0.63	0.7%
Soil and waste to white goods, connection to bathroom pods (200 nr @ 拢453 each)
Associated subcontractor preliminaries (lot @ 拢12,870)
Water installations	213,108	13.87	1.29	1.4%
Hot and cold water pipework to white goods, connection to bathroom pods (200 nr @ 拢909 each)
Associated subcontractor preliminaries (lot @ 拢31,308)
Heat source	326,491	21.25	1.97	2.2%
Twin plate heat exchanger for heat and hot water generation with heat meter (200 nr @ 拢1,429 / each)
Associated subcontractor preliminaries (lot @ 拢40,691)
Space heating and air treatment	502,919	32.73	3.04	3.3%
LTHW underfloor heating (11,585 m2 @ 拢38/m2)
Heated towel rails within pod construction
Associated subcontractor preliminaries (lot @ 拢62,689)
Ventilation installations	425,656	27.70	2.57	2.8%
Whole house ventilation with heat recovery and boost function (200 nr @ 拢1,863 each)
Associated subcontractor preliminaries (lot @ 拢53,056)
Electrical installation	1,096,704	71.38	6.63	7.2%
Tenant鈥檚 distribution board, meter (200 nr @ 拢401 each)
Small power distribution points, connection to pods (200 nr @ 拢1,287 each)
Lighting, wiring, installation and switches, connections to pods (305 nr @ 拢2,947 each)
Earthing and bonding (200 nr @ 拢165 each)
Associated subcontractor preliminaries (lot @ 拢136,704)
Protective installations	242,646	15.79	1.47	1.6%
Sprinkler protection (200nr @ 拢1,062 each)
Associated subcontractor preliminaries (lot @ 拢30,246)
Communication installations	313,246	20.39	1.89	2.1%
Fire alarm (200 nr @ 拢259 each)
Data / voice / TV outlets, wiring (200 nr @ 拢612 each)
Entry system (200 nr @ 拢500 each)
Associated subcontractor preliminaries (lot @ 拢39,046)
Special installations	82,024	5.34	0.50	0.5%
Local control to heating (200 nr @ 拢359 each)
Associated subcontractor preliminaries (lot @ 拢10,224)
Builders work in connection	165,313	10.76	1.00	1.1%
BWIC
Preliminaries and contingencies	3,487,720	226.99	21.09	23.0%
Main contractors preliminaries @ 15.5%
Overheads and profit @ 4.5%
Contractors risk @ 2.5%
Post-novation design fees (excluded)
Contingency and design reserve at 5%
Total residential fit out works	15,152,068	986.14	91.61	100.0%
External works and utilities
External works - allowance for external works	250,000	16.27	1.51	35.2%
Utilities	460,000	29.94	2.78	64.8%
Water infrastructure charges (200 nr @ 拢350)
Plus connection charge (item @ 拢25,000)
Foul Infrastructure charges (200 nr @ 拢350)
Plus connection charge (item @ 拢40,000)
Electrical connection - no reinforcement (1 nr @ 拢125,000)
Fibre installation (item @ 拢100,000)
Gas (item @ 拢30,000)
Total external works and utilities	710,000	46.21	4.29	100.0%
Total PRS cost model	41,258,391	2,685.22	249.46	100.0%