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
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.