Difference between cost plan and budget
It is important not to confuse cost plans and budgets.
A budget is a statement of the amount of money available to spend over a period of time, or on a specific thing, such as a building. The budget is set by the client (although they make seek help to do this). It may include an outline plan for how that money will be spent, and a breakdown of the items it will be spent on. Budgets set a limit for expenditure and this can help determine what is affordable. They should be set as early as possible so that expectations can be managed. It is important that they are based on evidence and that they are realistic, rather than simply stating the amount of money available, or being a wild guess, because, once the budget is set in people's minds, it can be very difficult to change.
For more information see: Budget.
Cost plans are typically prepared by a cost consultant and provide an estimate of what the actual costs are likely to be. Cost plans evolve through the life of the project, developing in detail and accuracy as more information becomes available about the nature of the project. They can range from very early initial cost appraisals through to tender pricing documents and the final account. If the cost plan exceeds the budget, it may be necessary to reduce the cost or scope of the project.
For more information see: Cost plan.
[edit] Related articles on Designing Buildings
- Budget.
- Capital costs for construction projects.
- Construction costs.
- Cost control.
- Cost plans for construction projects.
- Cost management techniques used to monitor the cost of construction projects.
- Difference between collateral warranties and third party rights.
- Difference between preliminaries and preambles
- Elemental cost plan for design and construction.
- Final account.
- Outturn cost.
- Quantity surveyor.
- Tender pricing document.
Featured articles and news
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.
A brief run down of changes intentions from April in an onwards.
Reslating an ancient water mill
A rare opportunity to record, study and repair early vernacular roofs.
CIOB Apprentice of the Year 2025/26
Construction apprentice from Lincoln Mia Owen wins this years title.
Insulation solutions with less waste for a circular economy
Rob Firman, Technical and Specification Manager, Polyfoam XPS explains.
Recycled waste plastic in construction
Hierarchy, prevention to disposal, plastic types and approaches.
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.