- Initial cost appraisals (studies of options prepared during the feasibility study stage).
- Elemental cost plan (prepared during the project brief stage and carried through to detailed design).
- Approximate quantities cost plan (from the end of detailed design through to tender).
- Pre-tender estimate (prepared alongside tender documentation).
- Tender pricing document (strictly speaking this is not a priced document, but is part of the tender documentation issued to the contractor for pricing).
- Contract sum (agreed with the contractor during the tender period and adjusted during the construction period).
- Contract sum analysis (a break down of the contract sum prepared by the contractor on design and build projects).
- Final account (agreed during the defects liability period).
Other than initial cost appraisals, these all relate to the construction cost of the project (rather than wider project costs that the client might incur, which could include; fees, equipment costs, furniture, the cost of moving staff, contracts outside of the main works and so on). It is important that the client makes clear what costs should be monitored by the cost consultant and what will remain within the control of the client organisation.
The elemental cost plan is a detailed cost plan which is broken down into a series of elements. Initially, the elemental cost plan will simply be the total construction cost for the project divided into elements on a percentage basis. As the design becomes more detailed however, the elemental cost plan will be ‘measured’, based on the actual quantities of work and materials that will be required to construct the project.
The elemental cost plan should be prepared in a spreadsheet format that is easy to interrogate and import into costing software and should adopt a standard approach such as that defined by the new rules of measurement (NRM).
The elemental cost plan should set out any assumptions that have been made, should identify any exclusions agreed with the client and should present an outline assessment of whole life costs. It might also include a list of abnormal or non-standard items, to help inform any value management exercises.