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Last edited 31 Dec 2020
Cost certainty is the likelihood that before a project, or part of a project starts, it will be completed within the agreed budget. Cost certainty is affected by time certainty which is the likelihood that a project, or part of a project, will be completed within the agreed time period agreed.
Construction clients often hold these two concepts as their top priorities as delays and cost overruns can be disastrous. It is for this reason that clients will tend to hold a contingency fund to deal with unforeseen eventualities.
- Increases in overheads.
- Hiring more operatives.
- Longer plant-hire periods.
- Storage of materials costs.
- Delayed payments from the client.
- Clients making changes.
- Unforeseen ground conditions.
- Delays in material or equipment supplies.
- Inclement weather.
- Labour disputes.
- Changes in market conditions.
- Poor management.
- The contractors’ inability to predict and control the time needed to complete a project.
- Inaccurate material estimating.
- Poor productivity.
- Inadequate planning.
- Poor site management.
Cost certainty tends to improve as a project progresses, as some of the works are complete, and so their actual cost is known, and some risks may have been avoided or mitigated. It is for this reason that the client may reduce the amount they hold as contingency as the project proceeds.
 Related articles on Designing Buildings Wiki
- Capital costs.
- Construction costs.
- Construction price and cost indices.
- Cost-benefit analysis in construction.
- Cost control.
- Cost engineering.
- Cost information.
- Cost of building.
- Cost overruns.
- Cost plans.
- Cost vs price.
- Front-loaded costs.
- Hard costs v soft costs.
- Irrelevant cost.
- Life cycle assessment.
- New Rules of Measurement.
- Operational costs.
- Other development/project costs.
- Quantity surveyor / Cost consultant.
- Relevant cost.
- Whole life cost.
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