Cost Planning

1        Feasibility Cost Plan

This initial cost plan is generally based upon RIBA Stage A/B and provides the foundation to a confident development budget. Provision of a clear and concise cost plan based upon a limited amount of information from the design team. The cost plan is formulated in an elemental format complete with methodology, sensitivity analysis and schedule of assumptions made.  At this stage a range of +/- 15% would be considered appropriate.

2        Level 1 Cost Plan

As the design progresses to RIBA Stage C/D a detailed estimate for the scheme based on the outline design information can be formulated. The cost plan will be broken down into individual elements of work which will be quantified. The document also includes all assumptions made at this time, inflation analysis, risk analysis and an outline programme of works. At this stage a range of +/- 10% would be considered appropriate.

3        Level 2 Cost Plan

This cost plan is based upon the RIBA Stage E (detailed design) that increases the design and coordination information available for the elemental pricing document. Resolution of final details and an increased knowledge of the engineering services to the building provides a further breakdown of the building services and civil engineering costs. At this stage a range of +/- 5% would be considered appropriate.

4        Option Appraisals

Elements of design are often subject to choices either via commercial or design constraints. In order to ensure that the project meets the client’s brief, appraisals can be undertaken to review the design options available to understand the financial implications to the project and to aid the project development. The option appraisals can be carried out at any of the cost plan levels though early resolution of major design issues will reduce the costs to the client and increase the program.

5        Value Engineering

In the design development stages if the anticipated project costs within the cost plan are not in line with the original budget costs set at feasibility stage a value engineering exercise can be undertaken with the team to review design details and specification. The cost savings realised early on within a project are always more significant as savings at post contract stage are limited.

Case Studies