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Supermarkets are among the UK’s

top 10 construction clients. In this cost model, Davis Langdon & Everest and Mott Green Wall

examine the costs, specification and procurement of new build and existing stores.

Cost model

datafile

The supermarket sector

Grocery in the UK is dominated by sixsupermarket groups, which control 80% of amarket worth £110 billion per year. The currenttakeover battle for Safeway, the UK's fourthlargest chain, with 480 stores and a turnover ofalmost £10 billion, represents the latest stage inan ongoing rationalisation of a mature market.With food retail comprehensively covered andmost opportunities for cost reduction in thesupply chain already taken, most chains havediversified into non-food and convenience

retailing, triggering investment in thereorganisation of existing stores and the fit-outof a new generation of neighborhood outlets.Internet retailing represents 2-3% of food retailsales, and although this proportion is expectedto increase over the next five years, this servicewill in most cases continue to run out ofexisting stores rather than purpose-builtwarehouses. Accordingly, bricks and mortarwill continue to be the main battleground fordominance in UK grocery retail

Customer focus effects on supermarket design

Customer focus - understanding how and why people shop and theirspecific needs - is fundamental to supermarket retailing. The design ofthe supermarket shell and fit-out is increasingly tailored to meet theneeds of specific markets and modes of shopping.

The food retail market is mature, with fierce competition on price andquality. Year on year growth in sales is sustained by expanding theoverall size of the market. In parallel with this expansion, supermarketretailers such as Sainsburys are using increasingly sophisticated methodsto target existing markets and develop new opportunities. For example,food retail has become increasingly focused on families and also on thecash-rich, time-poor younger market that is attracted to high quality,high margin products, such as prepared meals.

Using information on the demographics and income profile of targetmarkets and sales data taken from loyalty cards, retailers have built aclear picture of the different modes of shopping that occur in differenttypes of store. Layouts and interiors can be designed to encouragedifferent shopping trips and additional spending. This approach can beseen in city centre stores which focus on very distinctive convenienceand top-up food retail offers and which use clear zoning tocommunicate the range of products to customers.

One of the key elements of the design of a supermarket developmentis the retail floor plan, determined by a store’s target markets, which setsout in detail the layout of aisles, gondolas and product. The objective ofthe plan is to maximise sales. It will determine the ideal routes thatcustomers will adopt in different shopping modes so that the positioningof the departments ensures customer convenience, promotes impulsesales or prevents theft. Along with constraints associated with the siteand planning consents, the retail floor plan will determine many of therequirements for the shell and fit out, so it is important that it isfinalised as early as possible. Elements of the project affected by theretail plan typically include:n Size and shape of the retail shell, including the perimeter availablefor product displayn Overall requirement for back-of-house storagen Requirement for specialist areas, including restaurantsn Extent and location of refrigerated cabinets and roof-mountedrefrigeration plantsn Design of gondolas, display units, shelving and display signagen Requirements for visibility of store contents from outside of thestore.

Acknowledgements

David Langdon & Everest would like to thankBarry Horrell of Sainsburys Property Company,Malcolm Rae of Sainsburys Procurement andNeil Woodard of Sainsburys Supermarkets fortheir assistance in the production of this Costmodel. Contributions have also been made byChristine Cormack of CHQ Architects, GaryGabriel Associates, Roberts and Partners, andRichard Taylor of DLE's Retail Specialist Group.

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Design drivers

The main design drivers in supermarket retail relate to layout, planning,programme, cost and distribution technologies. To generate greater valuefrom their development programmes, supermarket chains have movedaway from the heavy masonry construction that has previously beenassociated with development in greenfield sites, to make greater use offast construction methods for the distribution industries. Supermarketsare also becoming more deliberate in matching store design to the targetmarket and the needs of local planners.

LayoutLayout design is concerned with the integration of externalappearance, internal traffic flows and the organisation of retailproducts. Externally, the location and visibility of the entrance and itsrelationship with parking and public transport are very important. Inparticular, town centre stores with off street parking need carefulplanning to address the needs of both pedestrian and car-drivingcustomers. As just-in-time logistics become more common, thelocation, size and operation of the goods yard, which is key to theefficient operation of a store, need to be carefully considered,particularly on constricted sites. Internally, the layout will be drivenby the target market, with key issues including the extent of theperimeter available for display, the collocation of preparation anddisplay areas and the positioning of highly services elements toutilise shared services.

PlanningPlanning policy, affecting supermarkets, aims to direct developmenttowards urban locations and to limit growth in car usage. PlanningPolicy Guidance notes 6 and 13 have encouraged greater use in townbrownfield sites and the growth of town-centre convenienceretailing, typically located in developer's retail shells or as part of amixed use development.

In the past, planners have had a powerful influence on the appearanceof stores encouraging one-off detailing and, in particularly high profile

locations, very high quality architect-led designs which can be difficult toextend or adapt. However, in order to make maximum use of the supplychain, to achieve fast construction to allow for long-termadaptability, supermarkets are adopting a kit of parts approach. Thispermits flexibility in the specification of external and internal finisheswhile retaining the benefits of a standardised shell.

Other planning issues that can affect supermarket developments,particularly main stores, include the potential costs of planning gainagreements for community improvements and highway works.

ProgrammeSpeed of construction is very valuable to retailers, contributing toearly revenue streams and increasing total turnover. Construction isfast, with contract durations for new build stores of 6000-7000 m2

typically ranging from 22 to 26 weeks. Rationalised design andstandard products are necessary to achieve such compressedprogrammes. However, high-level prefabrication of building envelopeand services distribution components has not been widely adopted.This is a result of the simplification of general buildingcomponents and the variability and low volume of requirements forspecialist modules, such as in-store bakeries, which affects theeconomics of pre-fabrication. Design strategies adopted to simplifyand shorten the construction programme include:n Use of local air handing and refrigeration plant to rationalisemechanical services distributionn Use of cladding systems in lieu of masonry walling. Blockworklining walls can also be omitted if security requirements permitn Specification of large bay concrete pours and fibre reinforcementfor ground slabsn Commencement of finishes installations ahead of the completionof a weather tight shelln Omission of suspended ceilingsn High level services distribution to minimise the need for below-floor ducts to increase flexibility for re-planning of the store.

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Datafile

cost/m2 %

Supermarket Shell element gfa of total

£ cost

Initial and whole life costSupermarket clients are concerned about reducing initial build cost but,as owner occupiers, they also take into account the long-term impact ofinvestment decisions. They use payback and life cycle costingassessments to determine additional investment in flexibility, reducedrunning costs or sustainability.

With large new build, fit-out and refurbishment programmes, any costreduction that can be achieved across the programme will generatesignificant total savings. As the development market is verycompetitive, supermarket projects are heavily value-engineered with allcost centres continually under review. A store's target market will alsoinfluence materials for elevations and floor finishes partially determinedby location, demographics and projected turnover. In finishes,alternatives to terrazzo floor tiles, including bare screed or vinyl finishesare being considered in areas where wear levels and visual impact arelow.

The supply chain is also mobilised to reduce construction costs withstandardisation, framework agreements and bulk purchasingarrangements all being used.

Distribution technologiesDistribution is a design driver because of the increasingly wide range ofproducts on sale and due to step changes in the efficiency of storelogistics. More efficient distribution driven by automated technologiesincluding mechanical handling and computerised inventory control isenabling the overall proportion of space devoted to storage to bereduced, even though a wider product range, including pharmacy andhousehold appliances, requires more diverse storage. On extension andrefurbishment projects, back-of-house space is being rationalised toincrease sales area and provide space for new product line preparationareas. However, requirements for efficient operation will usuallyoverride the drive for maximum sales floor area. Target figures for totalback-of-house space have fallen from 50% of gross internal floor area to25-40%, depending upon the size and target market of the store.

New build supermarket with 50,000 ft2 sales area

Substructure 348,000 46.2151 19.26

Pad foundations and ground beams 6960 m2 @ £15

150 mm reinforced concrete ground floor slab; 175 mm granular fill, powerfloated finish; including

formation of below floor ducts to checkout areas only 6960 m2 @ £35

Frame 362,300 48.1142 20.05

Steel propped portal frame, cold rolled purlin sections, surface treatment, excluding decorations;

allowance based on 41kg/ m2 286t @ £1050

Fire casing to columns and beams under first floor, including cavity barriers 570 m2 @ £28

Structural steel frame to form first floor 50t @ £920

Upper floors 28,500 3.7849 1.58

Holorib decking and insitu concrete topping to first floor 570 m2 @ £50

Roof 447,700 59.4555 24.78

Standing seam aluminium roof, curved to 172 m radius, including inner liner tray 5500 m2 @ £40

Eaves detail to roof cladding 170m @ £135

Single layer polymeric roof covering, built-up system including 85 mm insulation board and inner

liner tray to flat roof areas to front of store 1640 m2 @ £50

Allowance for rainwater goods, including symphonic drainage to standing seam roof item @ £30,000

Allowance for mansafe system and hatches to flat roof item @ £15,000

Profiles metal pvf2 coated cladding to form canopy, including secondary steelwork, flashings and

decoration 210 m2 @ £370

Stairs 20,000 2.6560 1.11

Reinforced concrete stairs to first floor level; galvanised steel balustrade and handrails

2nr @ £10,000

External walls, windows and doors 225,200 29.9070 12.46

Profiled galvanised steel built-up cladding system, 120 mm quilt insulation with white inner liner

sheet; polyester power coating 890 m2 @ £35

Feature cladding band to store front and customer restaurant, composite cladding system with

bonded liner and insulation 675 m2 @ £20

Allowance for louvres, flashings and detailing 65 m2 @ £20

Allowance for column casings Item @ £10,000

Polyester powder coated aluminium shopfronts; double glazed with safety

glass; including 4 nr double manual doors and frames 300 m2 @ £310

Aluminium windows; polyester power coated; sealed double glazed units 25 m2 @ £260

Softwood framed, metal lined external doorsets, including ironmongery

and decoration 17 nr leaves @ £750

Allowance for shutters to loading bay doors Item @ £3000

Disposal installations 125,000 16.6401 6.93

Below slab drainage, manholes, covers, etc 6960 m2 @ £18

Protective installations 4,000 0.5312 0.22

Allowance for lighting protection Item @ £4,000

Preliminaries and contingency 246,000 23.6693 13.61

Contractor's site establishment and supervision @ say 6% Item @ £94,000

Contractor's overheads and profit @ say 4% Item @ £66,000

Contingency @ say 5% Item @ £86,000

TOTAL CONSTRUCTION COST 1,807,000 239.98 100.00

(Shell only, rate based on GIFA)

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Design innovation in supermarkets has been mainly driven by costand programme reduction, although initiatives to increase availablefloor space and to rationalise sales floor layouts are also common.Areas of innovation adopted by the main building disciplines are asfollows:

Structuren Reductions in floor loadings requirements to match BritishStandards, generating significant savings in design of slabs forstorage areasn Use of supported portal frames in lieu of long span roof trusses.Although the number of internal columns has increased, affectingretail layouts and long-term flexibility, cost savings are significantand, from an architectural perspective, the structure is bettersuited to store designs which omit sales area ceilings. Typical clearspans of 16-20 m can be achieved with a portal frame, with aspacing between portals of 6-7m.n Use of lightweight steel and ply construction for upper floorsand steel for stairs, to achieve faster construction and reduce deadloads.

Architecturen Introduction of mezzanines Where planning restrictions make itdifficult to gain consent for new build stores or extensions, theintroduction of mezzanine floors is being considered as a means toincrease sales floor areas. Mezzanines require a clear height to theunderside structure of around 8m, which can be provided eitherby building the entire store to the raised level, maximising visibilityof the mezzanine, or by raising the roof over the mezzanine levelonly. Apart from the complexities of retrofitting in existing shells,

cost/m2 %

Supermarket fit-out element gfa of total

£ cost

New build supermarket with 50,000 ft2 sales area

Internal partitions & doors 237,000 31.47 4.71

Internal metal stud partitions, including sundry metalwork 2160 m2 @ £55

Fire protection / stopping 2160 m2 @ £20

Carpentry and joinery including internal doors and frames and trucking doors Item @ £50,000

Security and fire shutters generally Item @ £25,000

Internal finishes 338,200 44.91 6.72

300 x 300 terrazzo flooring to sales area 5100 m2 @ £35

Checkout duct covers Item @ £25,00

Allowance for Aluminium access covers and frames Item @ £5,000

150 x 150 white wall tiles to bakery, including epoxy grout 440 m2 @ £32

150 x 150 ceramic floor tiles to bakery, prep areas, serveries and WC's, including epoxy grout,

skirtings, angles, etc 540 m2 @ £45

Vinyl sheet flooring to back-up areas, including skirtings, trims, DPM 425 m2 @ £48

Allowance for other miscellaneous wall / floor finishes Item @ £25,500

Suspended ceilings to domestic areas and customer WC's 465 m2 @ £45

Allowance for in situ finishes, including screeding, etc. Item @ £25,000

Fittings and equipment 1,309,000 173.84 26.01

Allowance for internal signage Item @ £18,000

Allowance for trolley protection rails Item @ £20,000

Allowance for ATM / cash office Item @ £30,000

Specialist joinery to create front brand wall Item @ £20,000

Shopfitting to Pharmacy Item @ £30,000

Allowance for gondolas to sales floor generally 4,645 m2 @ £38

Servery, plant and equipment to bakery Item @ £260,000

Shopfitting to specialist areas including hot food, deli, meat and fish,

salad bar, etc Item @ £130,000

Allowance for checkouts (not including service desk and kiosk) 30nr @ £3000

Allowance for miscellaneous shopfittin/specialist items, etc Item @ £150,000

Fitting out to customer restaurant (excluding catering equipment) 300 m2 @ £835

Fitting out to staff WC's Item @ £16,000

Fitting out to staff dining room Item @ £45,000

Allowance for fit-out to staff offices / meeting room / training room Item @ £15,000

Allowance for racking to bulk stock areas Item @ £50,000

Compactor Item @ £8,000

Water installations 30,000 3.98 0.59

Allowance for plumbing and water installation Item @ £30,000

Services equipment 734,800 97.58 14.60

Refrigeration distribution installation complete; including pipework

and installation Item @ £150,000

Refrigeration plant, including packs and condensers (2nr 200 kW dual

temperature systems) Item @ £140,000

Refrigeration cabinets to shopfloor, including mixture of full height glass

door cabinets, opentop cabinets, etc 4,645 m2 @ £85

Packaged coldstores including controls, etc Item @ £50,000

Space heating, air treatment and ventilation 468,900 62.27 9.32

Ventilation ductwork including insulation, grilles, diffusers, etc 7530 m2 @ £26

Air treatment plant, air handling units and central boiler plant supplying 18 m2 /s at

30 degC 7,530 m2 @ £21

Pipework to heating system Item @ £95,000

Allowance for special attenuation Item @ £20,000

Electrical installation 507,500 67.40 10.08

Mains and sub-mains 7,530 m2 @ £11

Trays and trunking 7,530 m2 @ £6

Small power 7,530 m2 @ £7

General lighting to sales floor (800 - 1,000 lux) 4,645 m2 @ £28

Allowance for feature lighting to sales floor 4,645 m2 @ £10

Back of house lighting 2,885 m2 @ £15

Power to services installations; containment Item @ £27,000

Allowance for electrical works to specific departments / customer restaurant Item @ £80,000

Design innovation

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Datafile

the main design challenges relate to attracting customers up to theupper level, making use of location, visibility and good quality verticalcirculation. The entrance zone is well suited to mezzanineconstruction, creating a landmark entrance as well as more publicspace. New build shells are increasingly designed to allow for theretrofitting of mezzanines.n Omission of suspended ceilings Sales floor ceilings have beenomitted in many new stores, reducing dead loads, simplifyingonsite activities and saving capital costs. Some extra costs areassociated with enhanced finishes to the roof and services, althoughin general, exposed roof level services require better co-ordinationrather than a higher specification to provide an acceptableappearance. A further benefit of the remove of ceilings is theopportunity to introduce natural light via roof flights withoutcomplex detailing.n Rationalisation of supermarket design Chains such asSainsburys have introduced programmes to simplify store design tomaximise the benefits of supply chain integration, and to providelong-term flexibility and adaptability at a minimum cost. Examples ofrationalisation involve using standard store models and the wider useof cladding in lieu of solid walls, using profiled metal, terracotta ormasonry. Other opportunities include the collocation of staff andcustomer facilities, which enables the shared use of servicesinstallations and allows highly services areas to be concentrated inone location, in a two-storey entrance area.

Building servicesn Simplified air supply and extract distribution Fabric ductwork canbe specified in lieu of galvanized steel on schemes with exposedservices. This option has benefits of lower dead loads, simplified

installation, an acceptable self-finish and lower capital cost, and iswell suited to exposed applications. However, due to requirementsfor the cleaning of the fabric, maintenance costs of this option arehigher than for conventional galvanized steel.n Decentralisation of main plant and simplification of primaryservices distribution This could reduce plant room space andsimplify site works. However, due to increases in the number ofmachines and builders' work, capital and running cost can be higherthan a centralised installation. There may also be planning issuesassociated with roof level plant. This option would only be adopted ifthese costs were offset by revenue derived from an increased salesfloor area of earlier trading.n Localised high level heating to freezer cabinet aisles usingindependent warm air jet systems This reduces the need for acentral ventilation system and increasing the control of airflows andtemperatures within the aisles themselves.n Revisions to sales area lighting The omission of suspendedceilings has led to an increasing emphasis on feature lighting. Generallighting levels in sales areas are typically specified at 800 to 1000 lux.Retailers generally prefer universal levels of lighting across the store,and while there are opportunities to save capital and running costsby concentrating lighting on aisles, this is an option that will take timeto be accepted by retailers and customers alike.n Consideration of heat recovery Supermarkets generate largequantities of waste heat as a by-product of refrigeration andthere are opportunities to recycle heat to warm up treated airin preparation and sales areas. However, initial costs are high,particularly when decentralised services are specified and abusiness case based on whole life cost reduction is difficult tojustify.

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Procurement

Supermarkets are some of the UK's biggest clients and with long-termstore development programmes, driven by investor expectations forsustained sales growth, the supermarkets are in an ideal position toestablish framework and partnering arrangements with consultants andcontractors. In determining procurement options, the primaryobjectives for supermarket clients are:n Overall speed of project deliveryn Certainty of cost and programmen Minimum capital cost.

Progress towards meeting these and other objectives are commonlymonitored by clients using bespoke KPI systems, assessing performanceon a project-by-project basis and providing a framework to drivecontinuous improvement.

Speed of project deliveryThe objective of the retailer and contractor is the earliest possiblecompletion to gain additional trading weeks to increase overall turnover.The primary means of achieving early opening are:n Commissioning of specialist designers and contractors, appointed on aframework basis, to ensure fast response times and recycling of projectlearning in settled teamsn Use of design-and-build procurement to give the project team earlycontrol over the programme - enabling work to proceed ahead of thecompletion of the retail store plann Use of two-stage appointments: the first stage is based on agreed fees,preliminaries and overheads and profit; in the second stage the tenderedwork packages. This creates a balance between speed of appointmentand effective price competition on major work packages.

n Appointment of specialist subcontractors and suppliers on a frameworkbasisn Use of standard components to minimise the impact of long lead-initems on the overall programme and reductions in the extent of on-sitefabricationn Use of standard documentation accessed through extranets or othercommon platformsn Simplification of on-site works.

For refurbishment and extension projects, additional objectives ofminimal disruption to trading and maximum impact on reopening alsoapply, and night-time working is the norm. Managing preparatoryworks outside of peak trading hours with the completion of worksduring a short shut down period requires very careful programming,well organised supply chains and reliable sources of specialist labourgeared-up to out-of-hours working.

Certainty of cost and completion dateCertainty of delivery is very important for supermarket clients, but thisrequirement has to be combined with the flexibility needed toaccommodate changed introduced by retail or property clients at anystage during the development programme.

Design-and-build procurement gives the contractor a high level ofcontrol over the process, but is often associated with a reduction in theclient's influence. However, on a framework arrangement, a goodunderstanding of the client's objectives, a common purpose and effectiveperformance measurement achieve an appropriate balance betweenflexibility and control. Key drivers behind providing cost andprogramme certainty include:n Use of guaranteed maximum price contacts

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Datafile

cost/m2 %

Supermarket fit-out (cont’d) element gfa of total

£ cost

New build supermarket with 50,000 ft2 sales area

Lift installations 100,000 13.28 1.99

Allowance for 8 person goods lift to first floor 2 nr @ £30,000

Scissor lift to service yard Item @ £20,000

Dock levellers/shelters 2nr @ £10,000

Protective Installations 154,600 20.53 3.07

Allowance for sprinkler installation 7,530 m2 @ £20

Earthing and bonding Item @ £4,000

Communications installation 154,400 20.50 3.07

Fire alarm installation 7,530 m2 @ £20

Public address system 7,530 m2 @ £1

Telephone installation Item @ £5,500

Structured cabling Item @ £20,000

Allowance for CCTV installation 19nr @ £1,400

Security Tagging Item @ £35,000

Special installations 270,000 35.86 5.37

BMS / controls Item @ £85,000

Allowances for catering equipment to customer restaurant 9115 covers) Item @ £185,000

Builder's work 150,000 19.92 2.98

Allowance for builder's work in connection with services say @ 6% Item @ £150,000

Preliminaries and contingency 578,000 76.76 11.49

Contractor's site establishment and supervision @ say 6% Item @ £267,000

Contractor's overheads and profit @ say 4% Iteam @ £189,000

Contingency @ say 2.5% Item @ £123,000

TOTAL CONSTRUCTION COST 5,032,400 668.30 100.00

(Rate based on GIFA of extended store)

External worksSite works 797,000 105.84 28.98

Allowance for site preparation 22,000 m2 @ £9

Tarmac surfacing to car park and access road 13,000 m2 @ £20

Concrete surfacing to service yard 1,200 m2 @ £35

Paving to front of store 800 m2 @ £40

Signage and street furniture Item @ £50,000

Trolley bays Item @ £5,000

Allowance for soft landscaping, including topsoiling Item @ £140,000

Boundary fencing Item @ £70,000

Drainage 132,000 17.53 4.80

Allowance for drainage and sewer connections 22,000 m2 @ £6

External services 331,000 43.96 12.04

BWIC underground services Item @ £61,000

External lighting installations including BWIC 15,000 m2 @ £8

Allowance for utilities supplies, directs and diversions Item @ £150,000

Minor building works 1,165,000 154.71 42.36

Allowance for stand alone substation/pump house; complete Item @ £15,000

Allowance for 6 pump PFS, including car wash and jet wash Item @ £450,000

Allowance for kiosk Item @ £450,000

Allowance for section 106 / 278 works Item @ £250,000

Preliminaries and contingency 325,000 43.16 11.82

Contractor's overheads, site establishment and supervision @ say 8% Item @ £194,000

Contingency @ say 5% Item @ £131,000

TOTAL CONSTRUCTION COST 2,750,000 365.20 100.00

(External works only, rate based on GIFA)

TOTAL CONSTRUCTION COST 9,589,400 1,273.48

(Rates based on GIFA)

n Widespread use of standard componentsn Long-term supply chain relationships with main second tiersuppliers, either employed as direct contracts or novated to theproject teamn Effective use of change management systems.

Minimum capital costLeast cost solutions are driven by efficient design, reducing changesin scope and effective mobilisation of the supply chain. Approachesused to delivery least cost solutions include:n Employing specialist designers as part of the contractor's teamn Second stage tendering of major construction work packages,using specialist contractors on framework agreements, combined withbenchmarking of cost, time, quality and performancen Bulk purchase of components from third tier suppliers, securinglow rates and opportunities for long-term value engineering in returnfor security of turnover. Typical equipment subject to bulk purchaseincludes air handling units, sprinkler systems, display units andgondolas.

In summary, supermarket clients use procurement to get the best ofboth worlds, securing low cost construction with a high degree ofcustomer focus. This is achieved with buying power, investment instandardisation and development of long-term working relationshipswith the supply chain, demonstrating performance improvement yearon year.

The extent to which these principles can be applied to other sectorsof construction, where workload is more intermittent, is open toquestion.

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Cost breakdown

This cost model features a detailed cost breakdown of a new buildsupermarket, together with indicative costs of both store extensionand refurbishment projects. The costs of the new build store arebased on a scheme with a gross internal floor area of 7530 m 2

including first floor staff accommodation, and a sales floor areas of4656 m2 . All fit-out costs and costs of external works are detailed,including the costs of a petrol station and kiosk. The store is built to avalue engineered specification, featuring a portal frame, profiled metalcladding and a standing seam aluminium roof. The ventilation andrefrigeration installations are based on centralised plant. The costs ofthe extension and refurbishment schemes are based on genericmodels. The extension model is based on a side extension, withoutthe construction of a new entrance.

Rates in the model are current at second quarter 2003, based on acompetitively tendered works packages from framework contractors,at average UK price levels. Project costs are inclusive of preliminaries,and contingencies. Demolitions and site preparation, professionalfees, client on-costs and VAT are excluded.

Rates in the model may need to be adjusted to take account ofspecification, site conditions, procurement route and programme. Asmost of the rates are based on national framework arrangements,general location factors are not generally applicable to these costs.

cost/m2 %

Supermarket extension element gfa of total

£ cost

Cost breakdown

Works to existing 215,000 28.33 4.20

Allowance for repairs and alterations to existing shell, including redecoration Item @ £215,000

Extension to shell 1,241,300 163.54 24.26

Extension to rear sales wall including remove of equipment; demolition of existing; pad foundations

and floor slab, steel frame, external walls and doors to match existing, tiled roof structure,

incorporation of new M&E with existing systems, internal finishes 280 m2 @ £690

Ditto to non-entrance side extension 1,115 m2 @ £940

Fitting out 2,575,800 339.37 50.35

Part refurbishment / part new shoplifting to existing sales area and new shoplifting to extended area

include M&E works 4,365 m2 @ £535

Allowance for changes to back-up areas Item @ £175,000

Internal finishes, branding and signage 4,365 m2 @ £15

External works 280,000 36.89 5.47

Allowance for external works, including groundworks, foul and surface water drainage, services

diversions, fencing, and street furniture Item @ £280,000

Preliminaries and contingency 804,000 105.93 15.72

Contractor's overheads, site establishment and supervision @ say 13% Item @ £560,000

Contingency @ say 5% Item @ £244,000

TOTAL EXTENSION COST 1,967,600 1,547.08 100.00

(Rate based on GIFA of extneded store)

Supermarket refurbishmentRemedial works/finishes 1,028,800 823.04 52.29

Removal of existing asbestos contaminated ceiling and replacement with metal tile suspended

ceiling; to sales floor 1250 m2 @ £130

Repair and make good existing sales area floor finishes, including overlay with vinyl 1250 m2 @ £85

Additional lighting to sales floor Item @ £45,000

Refrigeration plant / infrastructure costs Item @ £155,000

Upgrade / remedial works to M&E services Item @ £385,000

Internal finishes, branding and signage Item @ £60,000

Alteration works to existing customer entrance Item @ £50,000

Changes to back-up areas Item @ £65,000

Fitting out 497,800 398.24 25.30

Refurbishment of store including new and reused shopfittings; associated M&E works 1250 m2 @

£305

Allowance for new checkouts Item @ £65,000

Allowance for new staff restaurant and other back of house works Item @ £50,000

External works 25,000 20.00 1.27

Allowance for limited external works Item @ £25,000

Preliminaries and contingency 416,000 332.80 21.14

Contractor's site establishment and supervision @ 10% Item @ £155,000

Additional cost of nightworks and 24hr working Item @ £50,000

Allowance for special attendances Item @ £40,000

Contractor's overheads and profit @ 4.5% Item @ £77,000

Contingency @ say 5% Item @ £94,000

TOTAL REFURBISHMENT COST 1,967,600 1,547.08 100.00

(Rate based on sales floor area)