Cost Plan
A Cost Plan is a detailed breakdown of the estimated costs of a construction project, organised by building elements or work packages. It serves as a financial roadmap throughout the project lifecycle, enabling cost control and informed decision-making.
Purpose of Cost Planning
Cost planning allows the project team to:
- Establish realistic budgets at early design stages
- Monitor costs as the design develops
- Identify potential cost overruns before they occur
- Make value engineering decisions with cost implications
- Provide cost certainty for clients and stakeholders
Stages of Cost Planning
According to NRM 1, cost plans evolve through the RIBA stages:
- Order of cost estimate – Early feasibility stage
- Formal cost plan 1 – End of concept design
- Formal cost plan 2 – End of developed design
- Formal cost plan 3 – End of technical design
- Pre-tender estimate – Before going to market
Content of a Cost Plan
A typical cost plan includes:
- Facilitating works and building works costs
- Main contractor preliminaries and overheads
- Contingency allowances
- Professional fees and other development costs
- VAT assessment
Related Terms
See also: Preliminary Estimate, Project Budget, Quantity Surveyor, Value Engineering
