- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 22 Jan 2018
Cost reporting is a process used to inform a client (or other party) about the magnitude of a construction project’s predicted, or actual cost. This can be expressed either in absolute terms or as a variance compared to the project budget.
Cost reports are typically prepared by a cost consultant (such as a quantity surveyor) and updated regularly (perhaps monthly), to keep the client informed and to help them and the project team control costs.
Typically, cost reports will evolve through the life of the project, developing in detail and accuracy as more information becomes available about the nature of the design, and then actual prices are provided by specialist contractors, contractors and suppliers, and actual costs incurred.
A cost report will generally include all the costs incurred by the date of the report, where they are known, a forecast of the costs likely to be incurred during the rest of the project, in so far as these can be foreseen and estimated, and risk allowances for the possibility of unforeseeable costs. Contingencies to cover these risks are often expressed in terms of percentages. The percentages applied are at their greatest in the early stages of the project when there are the greatest number of possible risks, but they can then be reduced as better particulars about the project become available and some risks have passed or been overcome.
It is important to be clear what costs will be included in cost reports. For example, the client may have costs that, whilst they are directly related to the project, they would prefer to account for them themselves. This might include; land acquisition costs, specialist plant or equipment, furniture, construction contracts outside of the main contract and so on.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
Applications have to be in by the end of the week.
Reflections on the 5th Annual Global Congress of Knowledge Economy, held in Qingdao, China.
An artist finds ruined and decaying buildings a source of inspiration for his work. Book review.
When is there a right to light, and what happens if it is obstructed?
What would the nationalisation of economic infrastructure mean for GB?
A new guide to improving value by reducing design error.
We've reached 80,000 page views a day and 10,000 registered users. Why not join them?
A masterplan is a framework within which a location is encouraged to develop or change. Read our introductory article.
New consultation announced on a specialist Housing Court to settle landlord-tenant disputes.
ICE responds to a transport consultation advising the government to make decisions enabling more inclusive cities.
BRE and Loughborough University complete first phase refurbishment of demonstration home.