PROPOSED AFRICAN REINSURANCE CORPORATION, AT THE CENTRAL BUSINESS DISTRICT, ABUJA-NIGERIA.

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 COST PLAN AND PRELIMINARY ESTIMATE
INTRODUCTION

The Cost Plan and Preliminary Estimates are sub-divided into:

(1) Main Building

(2) External Works (Civil & Services)

The Cost plan and the corresponding outline specification as shown below indicate the allocated cost target for the various elements
which if approved shall form the basis for the detail design.

The Estimated Cost of the African Reinsurance Office complex amounts to N12,887,882,821.23 (Twelve Billion, Eight Hundred
and Eighty Seven Million, Eight Hundred and Eighty Two Thousand, Eight Hundred and Twenty -One Naira, Twenty Three
Kobo. ) Only
The Estimates are upon the prevailing market price of materials and labour.

The breakdown of the cost is listed in the table below

S/NO DESCRIPTION AMOUNT

N K
a Main Building 9,908,119,341.49
b External works 368,378,311.65
c Preliminaries 822,119,812.25
d Contingency 443,944,698.62
Sub total 1 11,542,562,164.01
e Professional fees (Stage 1-3) 611,611,951.45
Residency services fees 120,000,000.00
Sub total 11 12,887,882,821.23
f Vat @ 5% 613,708,705.77
g Estimated Total cost (ETC) 12,887,882,821.23

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CONTENTS

1.0 DESCRIPTION OF THE PROJECT

2.0 SPECIFICATION/PRELIMINARY ESTIMATE

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The Estimates exclude the following under listed items, but we make reasonable cost forecast to cushion those items as need arises.

(1) Statutory Fees (eg. Building Approval) - N20,000,000.00 (Provisional)

 Application forms N10,000.00

 Completed application forms are to be accompanied with photocopies of title documents such as
Certificate of Occupancy or Right of Occupancy with receipts of payments

 Title Deed Plan (TDP) properly prepared plans on standard A3 size in 3 copies drawn to scale of
not less than 1:500 site plan and floor plans of 1:200 and 1:100 architectural drawings.

 3 copy each of Structural, Mechanical and Electrical drawings.

 Site analysis Report (SAR)

 Environmental impact Analysis Report(EIA)

 All Plans and Report are to be sealed by the relevant Professional and submitted both in hard and
soft copies.

 Payment for Building Approval

 Approval granted construction commence within 2 years.

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  Setting Approval when excavation is done

 Reinforced concrete stages of Approval during construction

(2) Unprecedented Inflation - cannot be determined now but projection of 1.6% for the total ETC should be set
aside

(3) Cost of Soil investigate and analysis - N650,000.00

(4) Furniture and Window Blinds - N550 million (Provisional).

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1.0 DESCRIPTION OF PROJECT

The Proposed African Reinsurance Corporation is located at Central Business District. Abuja.

The Office development is sub-divided as follows:

1) Main Building

2) External Works (Civil)

Head Office Complex

The building is in 9 floors consisting of the following:

1) Two level Basement

 Car parks-183nr
 Utility and Equipment bay
 Basement Staircase
 Lift / Lift lobby
 Toilets

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2) Ground Floor
 Diplomatic lounge
 Security monitor room
 Reception
 Exhibition Lounge
 Sick bay
 Janitors
 Toilets
 Garden
 Shop
 Stairs
 Lift / Lift lobby
 Entrance lounge
 Main lobby
 Panty
 Kitchenette
 Buffet square
 Staff canteen
 Info desk
 Ventilation corridor
 Services
 Car Park (7Nrs)
 Emergency exit
 Greens
 Green Pots
 Water cascade

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3) First Floor (Ancillary Floor)
 Lift / Lift lobby
 Gym/fitness centre
 Kitchenette
 Toilets
 Management canteen
 Instructor
 Info desk
 Lobby
 Open offices
 Staff training centre
 Janitor
 Ventilation corridors
 Green Area
 Green pots

4) Second - Fourth Floor (Rentable Floor)

 Lift / Lift lobby
 Info desk
 Lobby
 Toilets
 Green pots
 Janitor
 Ventilation corridors
 Stairs

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5) Fifth Floor (Executive Floor 01)
 Lift / Lift lobby
 Meeting room 01
 Server
 Data Centres
 Toilets
 Battery
 Open offices
 Info desk
 Lobby
 Green pots
 Janitor
 Ventilation corridors
 Archive section 01
 Stairs

6) Sixth Floor (Executive Floor 02)

 Lift / Lift lobby
 Meeting Room 02
 Archive Section 02
 Toilets
 Open offices
 Info desk
 Lobby
 Green pots
 Janitor
 Ventilation corridors
 Stairs

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7) Seventh Floor (Executive Floor 03)
 Lift / Lift lobby
 Meeting Room 03
 Garden
 Board Room
 Library
 Refreshment/Preparation/Pre-function room
 Toilets
 Open offices
 Info desk
 Lobby
 Green pots
 Janitor
 Ventilation corridors
 Stairs

8) Eighth Floor (Chief Executive’s Floor)

 Lift / Lift lobby
 Projector/Monitor room
 Terrace
 Chief Executive’s Office
 Secretary/Waiting lounge
 Meeting Room 04
 Toilets
 Open offices
 Info desk
 Lobby
 Green pots
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  Janitor
 Ventilation corridors
 Stairs

9) Ninth Floor (Executive Floor)

 Lift / Lift lobby
 Roof Deck
 Toilets
 Open offices
 Info desk
 Stairs

10) Roof Floor (Telecom Mast)

 Mast
 Lift
 Stairs

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1.0 PROPOSED AFRICAN REINSURANCE CORPORATION, OFFICE COMPLEX ,ABUJA

The breakdown of the Assumed specification used and the summary of the estimates are given below in elemental form:-

TOTAL

PILING

1 01 General requirement, piling works, pile cap, Ramp and Retaining wall 262,856,278.00

SUBSTRUCTURE/BASEMENT

1 02 Excavation and earthworks, laterite and hardcore, raft foundation, Basement 944,781,500.31
1 suspended slab 200mm thick, Beam in basement, reinforced concrete
column, Blockwall, Ground floor slab 200mm thick, Beam in ground floor,
liftwall in basements , staircase in basement, polythene, expansion, BRC
and additional works in foundation

FRAME

1 03 Reinforced concrete beam, lift wall and reinforced concrete column. 261,183,066.63

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 UPPER FLOORS

1 04 Reinforced concrete suspended floor slab sundries 254,550,397.23

STAIRCASE

1 05 Reinforced concrete staircase, Granite floor finishes treads/risers & landing, 41,189,053.71
, rendering, screeding and emulsion paint to soffit of stair and landing.

ROOF CONSTRUCTION AND COVERING

1 06 Reinforced concrete roof beam, reinforced concrete suspended roof slab, 135,931,745.00
gutter slab and parapet, single layer felt waterproofing membrane with
backing, steel entrance canopy and roof drainage.

EXTERNAL/INTERNAL WALLS

1 07 Sandcrete hollow blockwall, window concrete box fins and reinforced 142,237,411.99
concrete lintel

WINDOWS AND CURTAIN WALL

1 08 Powder coated aluminium profile and tinted glazing with flyscreen as 1,727,098,260.70
sliding windows, curtain wall, aluminium sun breaker and sub frame

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 DOORS
1 09 Aluminium doors/Entrance doors, door, frame and ironmongery, sundries 121,490,924.15
and name plate

FINISHES

Floor Finishings
1 10 Vitrified ceramic floor tiles on screeded bed, granite finishes in public area, 251,917,049.15
raised floor, epoxy resin floor in controls, green pot, green cascade and
Garden

Wall Finishings
1 11 Glazed ceramic wall tiles on screeded backing, rendering, P.O.P screeded 246,117,456.65
wall internally, emulsion paint on rendered surfaces internally/externally
and Aluco bond cladding.

Ceiling Finishings
1 12 Armstrong suspended ceiling and Armstrong cellio Aluminium ceiling strips 587,749,500.00
in basement.

FITTINGS AND FIXTURES

1 13 Stainless hand railing with glass and Aluminium duct cover grille. 19,125,000.00

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 SERVICES

Electrical Installation

1 12 Internal lightening fittings and switches, Internal power and A/C socket 2,753,687,315.53
outlets, uninterruptible power supply, distribution boards and RCCB’S, MV
Panels, Busbar Riser, MV Cabling, Fire detection and Alarm and public
system, External lightening, Lightening protection, Sundries, Complete
generator system, security system, ICT system, Solar Panel, Energy floor
and Sound responsive lightening.

Mechanical Installation

1 13 Sanitary fittings, cold water supply and distribution, water storage, treatment 2,158,204,382.45
and pumps, bore holes, soil/waste water drainage, storm water drainage,
kitchen equipment, fire fighting, air conditioning and ventilation, lift
installation, water heating and ventilation corridor.

GENERAL EXTERNAL WORKS

1 14 Driveway/parking and walkways including basement, connection to central 368,378,311.65

sewer, external electrification/connection charges, fencing/gatehouse &
gate, landscaping/horticulture,

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 PRELIMINARIES
1.15 Fixed preliminaries cost item, Running cost items & terminal cost items 822,119,812.25

CONTIGENCIES
1.16 Unforeseen circumstances 443,944,698.62

1.17 PROFESSIONAL FEES

Professional fees for Architect, Project Manager, Quantity Surveyor, 611,611,951.45
Structural engineer, Mechanical Engineer & Electrical Engineer.

RESIDENCY FEES
1.18 Residency fees for Architect ,Structural Engineer, Quantity Surveyor, 120,000,000.00
Mechanical Engineer & Electrical Engineer

1.19 VAT
Statutory Value added tax @ 5% 613,708,705.77

GRAND TOTAL N12,887,882,821.23

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FEASIBILITY STUDY

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SPACE DISTRIBUTION

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 SPACE DISTRIBUTION
PROPOSED AFRICAN REINSURANCE CORPORATION AT CENTRAL BUSINESS DISTRICT ABUJA
S/no Floor Descriptions Total Area per Rentable area per square Usage pattern
square Meter Meter
a Basement 1 4144
b Basement 2 3914
c Ground floor 1980 1351 Commercial/Ancillary
d First floor 1291 1014 Commercial/Ancillary
e Second floor 1980 1656 Rentable floor
f Third floor 1980 1661 Rentable floor
g Fourth floor 1980 1653 Rentable floor
h Fifth floor 1980 1653 Executive floor
i Sixth floor 1980 1653 Executive floor
j Seventh floor 1980 1372 Executive floor
k Eighty floor 2016 1678 Executive floor
l Ninth floor 584 448 Executive floor
Total Area 25809 14139

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Total 25809 square meter
Construction
Area
Total Rentable 14139 square meter
Area
Percentage of 54.78%
area to be rent
out
Available Land 5856.02 Square meter
Area

Construction Cost Analysis

Total floor Area 25809 square meter
Rate of construction of building N 499,356.15 per
square meter
Total cost of construction N 12,887,882,821.23
Total rentable space (54.78% of the total area) 14.139 square meter
Projected period for space to be rented 100% 1 year
Period of Construction 4 years

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EXPECTED RENTAL INCOME

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Expected Rental Income.

The propose site is in the heart of the city, our pricing formulas are determined by the availability of similar
construction and rental charge, level of demand for the office space.

Cost per Square meter for renting standard office space depending on the facilities available, from our findings down
floors is comparatively higher than the upper floors. We have considered the average charge of top and bottom floors.
For the purpose of this exercises our benchmark is N80, 000.00 per square meter.

Expected Rental Income calculation

Commercial /Ancillary area
Commercial/Ancillary Area
Let table floor area
Rentable area (sq.m) Cost per square metre Total Expected income
/rentable floor per annum per annum
Amount
2365 80,000.00 N 189,200,000.00

Expected Rental Income calculation

Rentable floor
Rentable area Rentable area Cost per square metre Total Expected income
(sq.m) /rentable floor per annum per annum
Amount
Let table floor area 4970 80,000.00 N 397,600,000.00

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Expected Rental Income calculation
Executives’ floor
Executives floor Rentable area Cost per square metre Total Expected income
(sq.m) /rentable floor per annum per annum
Amount
Executives floor 6804 80,000.00 N 544,320,000.00

SUMMARY OF EXPECTED INCOME CALCULATION PER ANNUM

Commercial/Ancillary N189,200,000.00
Rentable floor N 397,600,000.00
Executives floor N 544,320,000.00
Total Expected Income per annum N 1,131,120,000.00

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AVERAGE RUNNING COST

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Average running cost is the amounts sets aside for maintaining the premises and makes the entire office functional. The
fees is usually in the regions of 5-10% of the cost per square meter per rentable area

Average Running cost calculation

Commercial /Ancillary area

Commercial/Ancillary Area Rentable area (sq.m) Cost per square meter Total Expected income
/rentable floor per annum per annum
for running cost
Amount
Let table floor area 2365 4,000 N 9,460,000.00

Average Running cost calculation

Rentable floor
Rentable area Rentable area (sq.m) Cost per square metre Total Expected income
/rentable floor per annum per annum
Amount
Let table floor area 4970 4,000.00 N 19,880,000.00

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Average Running cost calculation

Executives’ floor
Executives floor Rentable area (sq.m) Cost per square metre Total Expected income
/rentable floor per annum per annum
Amount
Executives floor 6804 4,000.00 N 27,216,000.00

SUMMARY OF AVERAGE RUNNING COST CALCULATION PER ANNUM

Commercial/Ancillary N9,460,000.00
Rentable floor N19,880,000.00
Executives floor N 27,216,000.00
Average Running cost per annum N 56,556,000.00

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ESTIMATED PAYBACK PERIOD

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S/no Stages Measure Rental value
/Earning per year
A Construction 1st -4th NILL
stages year

B Rental stages
1 1st year 1,131,120,000.00
2 2nd year 1,131,120,000.00
3 3rd year 1,131,120,000.00
4 4th year 1,131,120,000.00
5 5th year 1,131,120,000.00
6 6th year 1,131,120,000.00
7 7th year 1,131,120,000.00
8 8th year 1,131,120,000.00
9 9th year 1,131,120,000.00
10 10th year 1,131,120,000.00
11 11th year 1,131,120,000.00
12 12th year 1,131,120,000.00
Total N13,573,440,000.00

For the purpose of this exercises, we are not considering rent increase after certain period of years say 5
year to 10 year which can attract between 20%-45% increase depending on the economy status as of that
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time. From our findings, Not all the space can be fully occupy at once this can take like 3 year for
maximum occupying of the space there by dropping the net rent earning for like 2 % to 5%.

Therefore, Payback period is calculated with the formula below

Development cost (D)

Payback period = Annual revenues(R) - Annual Operations cost (P)

Development cost= N12,887,882,821.23

Annual revenues = N 1,131,120,000.00
Annual Operations Cost= N 56,556,000.00

Payback period=11.99 years

Approximate 12 years

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CONCLUSION
We find that this project is necessary cost effective and feasible from a technical and engineering stand point.

Pricing parameter is determined availability of similar construction and rental charge, the level of demand for the
product, and total costs required to complete the project.

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