Ann: FBR Corporate Presentation November 2021, page-77

Hi People

I need some input from readers. I am trying to assess how the cost of laying walls on page 9 of the presentation was assessed and then put my take on it.

I've assessed the $57 per m2 for manual labour for Maxibrick. That was easy to calculate, however I'm stuck on the H109 modelling. When I apply my methodology I get quite a large amount of consumables when calculating the CMU rate, however, if I am correct the Porotherm Clay block lay rate would not be 50% of CMU rate (ie. $35 to $18).

Firstly, this is how the $57 per m2 was assessed by FBR in their Corporate Presentation (allow for rounding error):



The key assumptions state to allow for "mortar, sundries and cut bricks". The $6.40 must be this amount. Is this reasonable? I wondered whether the $6.40 covered the actual cost of the brick but quickly discounted as this would make each maxi brick cost around $0.30 ($6.40 / 20.24) and my 5 minute internet search has maxi bricks probably costing around $1.50 each for a heavily discounted buy.

This is where it gets confusing I tried to assess what the day rate of operating the Hadrian X CMU Unit, having calculated that "according to the presentation slide" the build time for a 351m2 home should total ~22.50 hours. So the estimated lay rate should be the cost to operate for 2 days divided by 351m2



If $4,185 seems reasonable, then 2 days cost should be $8,370

In order to get the FBR rate of $35 per m2, this would make the FBR consumables be $11.15 per m2.



Here is the issue, if my consumables figure is too high, the the daily Hadrain X op costs must be higher, however I think my costings are quite accurate given the assumptions made by FBR and my own take on things.

Extrapolating the Porotherm Clay Block, I would expect the Hadrian rate to halve to about $12 per m2, but the consumables should stay the same at about $11 (perhaps a little bit of saving but not 50%.

So my back of the envelope calculation should site the Porotherm Clay block rate at about $21 - $23 per m2 not $18, Doesn't sound like much difference of up to $5, but that is a discrepancy of about 28% which is huge in terms of profitability.

Can I get some critical evaluation as I am trying to assess how FBR calculated the amounts and then adjust for what I believe to be more current costings and lay rates.

Off to dinner my wife is screaming at me.

cheers

NGNG