Initial cost appraisal for design and construction
Initial cost appraisals are carried out without the benefit of a design for the project. They include client costs that may not feature in later cost plans and as a result will almost certainly need input from the client's finance director or financial advisers. Once the initial cost appraisal is completed, the client will decide the scope of costs that will in future be monitored by the cost consultant and those that will be monitored and controlled by the client organisation.
Initial cost appraisals might include:
- Assumptions about the nature of the project, identifying variables. This will include a guestimate of gross internal floor area and a rate psm to be applied from a range of historical data. Repetivity with standard solutions carries with it cost efficient options. For more information, see Cost of building.
- Inclusions and exclusions.
- Look at location and site constraints. Central London will attract a premium. Ground conditions and proximity of neighbouring buildings affect costs.
- Adjust for market conditions.
- The building's function and facilities influence design loadings, floor to floor heights and and structural spans which may affect costs. Special spaces with acoustic or vibration control will attract a premium.
- State the procurement route as an assumption.
- Land costs and purchase prices.
- Book value.
- Legal fees (including vendor).
- Agent fees (including vendor).
- Stamp duty.
- Site investigations and surveys.
- Consultant team fees including expenses and unusual items such as models.
- Running costs.
- Building and infrastructure costs. At this stage building and infrastructure costs should be set on an overall unit basis, based on comparable projects, with assumptions relating to different types of areas and abnormal items. Units costs could include the number of; dwelling units, parking spaces, rentable area, hotel bedrooms, hospital beds, prison cells and so on. . .
- Fixtures, fittings and equipment.
- Relocation / migration costs.
- Promotion and marketing.
- Capital gains tax.
- Corporation tax.
- Irrevocable VAT.
- Planning fees.
- Building control fees.
- Void costs.
- Establishment costs.
- Funding costs.
- Capital allowances.
- Inflation escalation.
- Operational and whole-life cycle costs.
 Related articles on Designing Buildings Wiki
- Approximate quantities cost plan.
- Bid strategies.
- Bills of quantities.
- Business plan.
- Common arrangement of work sections.
- Contract sum.
- Contract sum analysis.
- Cost consultant.
- Cost plans.
- Elemental cost plan
- Final account.
- New Rules of Measurement.
- Pre-tender estimate.
- Tender pricing document.
- Whole-life costs.
Featured articles and news
UK-GBC green paper proposes more powers for cities on new-build housing.
The Pompidou Centre – not a monument but an event.
The Chartered Institute of Building restructures and launches 29 new local hubs.
Designing Buildings Wiki talks to the founder of the world's first indoor biophilic gym, now open in London.
£1.3bn Swansea Bay project to be backed as a 'pathfinder' for other tidal lagoon projects.
Designs released for a proposed Las Vegas stadium to entice the Oakland Raiders.
Have a look at these award-winning concept designs for a thermal bath in Latvia.
Flagship project no longer "a going concern" according to the Garden Bridge Trust as funding slows.
How the work of 20th century urbanist Jane Jacobs continues to resonate in light of the government's garden village plans.
New landmark for the Ecuadorean capital of Quito utilises a sinuous facade mold system.
Have a look at this glass piano and violin building in China.