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| Case study: Office building component costs | |||||||||
| BCIS ref | Element | Element total £ | cost/m2 gfa £ | Plant and machinery @25% WDA £ | Element total £ | cost/m2 gfa £ | Plant and machinery @25% WDA £ | 100% ECA | Capital allowance total £ |
| Office building cost plan: Calculation of the plant and machinery allowances and enhanced capital allowances | |||||||||
| Non-energy-saving technologies | DEFRA-approved energy-saving technologies | Ìý | Ìý | ||||||
| 1 | Substructure | 1,380,000 | 138.00 | 1,380,000 | 138.00 | ||||
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 2 | Superstructure | 5,447,000 | 544.70 | 16,000 | 5,447,000 | 544.70 | 16,000 | Ìý | 16,000 |
| 2a | Frame | 1,382,000 | 138.20 | 1,382,000 | 138.20 | ||||
| 2b | Upper Floors | 950,000 | 95.00 | 950,000 | 95.00 | ||||
| 2c | Roof | 263,000 | 26.30 | 263,000 | 26.30 | ||||
| 2d | Stairs | inc in 2a | inc in 2a | inc in 2a | inc in 2a | ||||
| 2e | External walls | 1,981,000 | 198.10 | 1,981,000 | 198.10 | ||||
| 2f | Windows and external doors | 372,000 | 37.20 | 372,000 | 37.20 | ||||
| 2g | Internal walls and partitions | 277,000 | 27.70 | 277,000 | 27.70 | ||||
| 2h | Internal doors | 222,000 | 22.20 | 16,000 | 222,000 | 22.20 | 16,000 | 16,000 | |
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 3 | Internal finishes | 991,000 | 99.10 | 246,000 | 991,000 | 99.10 | 246,000 | 246,000 | |
| 3a | Wall finishes | 229,000 | 22.90 | 229,000 | 22.90 | ||||
| 3b | Floor finishes | 547,000 | 54.70 | 59,000 | 547,000 | 54.70 | 59,000 | 59,000 | |
| 3c | Ceiling finishes | 215,000 | 21.50 | 187,000 | 215,000 | 21.50 | 187,000 | 187,000 | |
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 4 | Fittings | 70,000 | 7.00 | 70,000 | 70,000 | 7.00 | 70,000 | 70,000 | |
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 5 | Services | 3,524,000 | 352.40 | 2,858,000 | 3,644,000 | 364.40 | 2,463,000 | 773,000 | 3,236,000 |
| 5a | Sanitary appliances | 61,000 | 6.10 | 61,000 | 61,000 | 6.10 | 61,000 | 61,000 | |
| 5c | Disposal installations | 126,000 | 12.60 | 15,000 | 126,000 | 12.60 | 15,000 | 15,000 | |
| 5d | Water installations | 123,000 | 12.30 | 74,000 | 123,000 | 12.30 | 71,000 | 3,000 | 74,000 |
| 5e | Heat source | 37,000 | 3.70 | 37,000 | 49,000 | 4.90 | 49,000 | 49,000 | |
| 5f | Space heating and air treatment | 862,000 | 86.20 | 862,000 | 898,000 | 89.80 | 562,000 | 336,000 | 898,000 |
| 5g | Ventilating systems | 462,000 | 46.20 | 462,000 | 465,000 | 46.50 | 446,000 | 19,000 | 465,000 |
| 5h | Electrical installations | 853,000 | 85.30 | 393,000 | 903,000 | 90.30 | 393,000 | 308,000 | 701,000 |
| 5i | Gas installations | 11,000 | 1.10 | 11,000 | 11,000 | 1.10 | 11,000 | 11,000 | |
| 5j | Lift and conveyor installations | 230,000 | 23.00 | 230,000 | 234,000 | 23.40 | 216,000 | 18,000 | 234,000 |
| 5k | Protective installations | 87,000 | 8.70 | 65,000 | 87,000 | 8.70 | 65,000 | 65,000 | |
| 5l | Communication installations | inc in 5h | inc in 5h | inc in 5h | inc in 5h | inc in 5h | inc in 5h | inc 5h | |
| 5m | Special installations | 547,000 | 54.70 | 547,000 | 562,000 | 56.20 | 522,000 | 40,000 | 562,000 |
| 5n | Builders work in connection | 125,000 | 12.50 | 101,000 | 125,000 | 12.50 | 101,000 | 101,000 | |
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 6 | External works | 1,598,000 | 159.80 | 351,000 | 1,598,000 | 159.80 | 351,000 | 351,000 | |
| 6a | Site works | 926,000 | 92.60 | 8,000 | 926,000 | 92.60 | 8,000 | 8,000 | |
| 6b | Drainage | inc 6a | inc 6a | inc 6a | inc 6a | inc 6a | inc 6a | inc 6a | |
| 6c | External services | 672,000 | 67.20 | 343,000 | 672,000 | 67.20 | 343,000 | 343,000 | |
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý |
| 7 | Preliminaries | inc | inc | inc | inc | inc | inc | 8,000 | |
| Total (excl professional fees) | 13,010,000 | 1,301.00 | 3,541,000 | 13,130,000 | 1,313.00 | 3,146,000 | 773,000 | 3,919,000 | |
| Professional fees @ 10% | 1,301,000 | 130.10 | 354,100 | 1,313,000 | 131.30 | 314,600 | 77,300 | 391,900 | |
| Total | 14,311,000 | 1431.10 | 3,895,100 | 14,443,000 | 1444.30 | 3,460,600 | 850,300 | 4,310,900 | |
| 100% | 27.22% | 100% | 23.96% | 5.89% | 29.85% | ||||
| Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | |
| GIFA | 10,000m2 | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | Ìý | |
| Case study: Which bits qualify | |||
| ¾«¶«Ó°ÊÓ specification and capital allowances overview | |||
| BCIS Ref | Element | Element description | Plant and machinery allowances claimed |
| 1 | Substructure | Pad foundations and ground beams | |
| 2 | Superstructure | Ìý | |
| 2a | Frame | Steel frame | |
| 2b | Upper floors | Reinforced concrete; 450 mm deep | |
| 2c | Roof | Lightweight reinforced concrete slab and asphalt | |
| 2d | Stairs | Precast concrete stairs and powder coated metal balustrades | |
| 2e | External walls | Curtain walling and rainscreen cladding and part planar glazing | |
| 2f | Windows and external doors | Double-glazed units within curtain-walling. Powder coated aluminium doors | Qualifying ironmongery |
| 2g | Internal walls and partitions | Fixed plasterboard partitions | |
| 2h | Internal doors | Hardwood veneered doors | Qualifying ironmongery |
| 3 | Internal finishes | Ìý | |
| 3a | Wall finishes | Three coats of emulsion to plasterboard walls. Ceramic tiling in toilets | |
| 3b | Floor finishes | Limestone floor to entrance, carpet and 600 × 600 mm raised access floors, | Carpets and matwells to cores |
| Altro safety flooring to back-of-house areas | Ìý | ||
| 3c | Ceiling | Suspended concealed grid, metal panel tiling and plasterboard (acting as return extract air plenum) | Proportion of ceiling forming plenum ceiling |
| 4 | Fittings | Reception desk, signage, kitchen fittings and tea stations, sanitary appliances, vanity units | Qualifying fittings |
| 5 | Services | Ìý | |
| 5a | Sanitary appliances | Armitage Shanks sanitary ware | All sanitary appliances |
| 5c | Disposal installations | Cast-iron rainwater and foul water drainage and PVCu connections | Qualifying components |
| 5d | Water installations | Domestic-type hot and cold water services | Hot water services, and trace heating |
| 5e | Heat source | Gas-fired cast-iron sectional boilers with condensing heat exchanger | Boilers |
| 5f | Space heating and air treatment | 4-pipe fancoil air-conditioning installation | Air-conditioning installation |
| 5g | Ventilation systems | Toilet and kitchen extract ventilation | Toilet and kitchen extract ventilation |
| 5h | Electrical installations | LV distribution, LV power, power wiring to mechanical plant, lighting 500 × 500mm modular light fittings, basic lighting control installation, maintained emergency lighting, CCTV, cable containment | LV distribution, lighting controls, emergency lighting, power wiring to mechanical plant, CCTV |
| 5i | Gas installations | Gas distribution pipework to boilers | Gas distribution pipework |
| 5j | Lift and conveyor installations | Four eight-person lifts (one part goods) | Lifts |
| 5k | Protective installations | Dry risers, fire alarms, lightning protection | Dry risers, fire alarms |
| 5l | Communications installations | Cable containment for future telecommunications system | Cable containment |
| 5m | Special installations | ¾«¶«Ó°ÊÓ management system | ¾«¶«Ó°ÊÓ management system |
| 5n | Builders work in connection | Holes, chases, plinths and ducts for services | Builders work associated with qualifying expenditure barriers, street furniture, service ducts |
| 6 | External works and landscaping | Soft landscaping. External illuminated car park with automatic access barrier | Qualifying external works, car park |
| 7 | Preliminaries | Apportioned across the elements | Apportioned between qualifying and non-qualifying expenditure |
| 8 | Professional fees | Architect, structural engineer, services engineer, quantity surveyor, planning supervisor etc | Apportioned between qualifying and non-qualifying expenditure |
| Case study: The cost of going green | |||
| ¾«¶«Ó°ÊÓ specification and capital allowances overview | |||
| Item | Non-energy-saving technologies | DEFRA-approved energy-saving technologies | Additional cost (inc preliminaries) |
| Boilers | Gas-fired cast-iron sectional boiler with condensing heat exchanger (3 × 444 Kw) | Gas-fired cast-iron sectional boiler with high efficiency condensing heat exchanger from ECA energy technology product list | £12,000 |
| Chillers | Packaged screw compressor water chillers | Packaged screw compressor water chillers with high-efficiency motor components from ECA energy technology product list | 0 |
| Pumps | Cast-iron single and twin head pumps | Variable speed pumps with inverter control and energy-efficient motors from ECA energy technology product list | £11,000 |
| AHUs | Supply and extract AHUs | Supply and extract AHUs with inverter control and energy efficient motors from ECA energy technology product list | £9,000 |
| Extract fans | Fixed speed extract fans to toilets and sundry other areas | Extract fans with inverter control and energy efficient motors from ECA energy technology product list | £3,000 |
| Fancoil units | 4 pipe fan coil system | 4-pipe fan coil system with motors from ECA energy technology product list | £7,000 |
| Thermal insulation | Thermal insulation in accordance with industry practice to piped and ducted services | Thermal insulation to piped and ducted services with enhanced thickness to piped systems installed in accordance with BS 5422 | £9,000 |
| Lighting | Programmable lighting control installation utilising eight-way lighting control modules and addressable luminaries. Expansion capability for full automatic control | Automatic control installation as table 10 of ECA lighting guidance notes and EN 50081, EN 50082 and relevant parts of EN 60669 or EN 60730 | £50,000 |
| Lifts | Machine roomless lift installation | Machine roomless lift installation utilising energy efficient motors from ECA energy technology product list | £4,000 |
| Controls | Automatic building control system | Automatic building control system with components selected from ECA energy technology product list | £15,000 |
| SUB TOTAL | £120,000 | ||
| Professional fees | £12,000 | ||
| TOTAL | £132,000 | ||
| Case study: How it stacks up | |||
| Cost comparison of the ECA tax relief and energy cost savings over the whole life of building | |||
| Cost comparison | Non-energy-saving technologies | DEFRA-approved technologies | Savings |
| Capital costs | Ìý | Ìý | Ìý |
| Net present value of cash saved following capital allowances claims** | £942,000 | £1,078,000 | £136,000 |
| Energy costs | Ìý | Ìý | Ìý |
| Annual energy costs | £110,000 | £95,000 | £15,000 |
| Cumulative net present | Ìý | Ìý | Ìý |
| value of energy costs after: | Ìý | Ìý | Ìý |
| Year 5 | £485,000 | £419,000 | £66,000 |
| Year 10 | £896,000 | £774,000 | £122,000 |
| Year 15 | £1,244,000 | £1,074,000 | £170,000 |
| Year 20 | £1,537,000 | £1,327,000 | £210,000 |
| **Assuming 30% corporation tax rate and 6% discount rate | |||
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