Pricing Books Are A Direct Method For Applying Rates

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Pricing books are a direct easy to use method for applying rates. One possible method would be the use of independent pricing books. There are many options for pricing books, but the most popular and widely used within the construction industry are SPONS and Wessex. SPONS the cost data is updated yearly by Davis Langdon (AECOM) Common sources of published historical data used in industry include Spon’s Architects’ and builders Book and Laxton Building Price Book. Spon’s architects’ and builders book is one of the most detailed, professionally relevant sources of construction price information that is available. Laxton Building price book is very detailed and offers practical information and advice too. Other sources of published…show more content…
As pricing books are printed, the information contained within them is naturally historic. Therefore in a volatile market, rates may quickly be outdated by the end of the year. So items are more exposed to inflation than others and may distort any cost pricing. As identified by (Kirkham, 2007, p. 219), that ‘in periods of rapid inflation or market changes they have suffered the drawback of having to prepare their information well in advance of the year of publication’. this could lead to cost data being misaligned with current market rates and will not reflect the true value in construction. Online Cost Services Another option would be BCIS. This stands for Building Cost Information Service, and is a subsidiary of; and therefore championed by the RICS. The BCIS carries out statistical analysis of UK construction projects and as an online tool allows the user to filter the data in such a way that allows for better cost estimation. The BCIS also gives the inflation and location indices to improve accuracy of cost modelling. So in comparison with pricing books, the data is more recent and can be updated for both location and price. Upon this basis I would recommend that that practice considers using this as the tool from which all prices are sourced. When the organisations are pricing each item they allow for a reasonable amount of work to be required.

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