Order of cost estimate
The purpose of an order of cost estimate is to establish affordability of a proposed development for a client.
Methods for preparing order of cost estimates are set out in the New Rules of Measurement:
- NRM 1: Order of cost estimating and cost planning for capital building works
- NRM 3: Order of cost estimating and cost planning for building maintenance works.
NRM1 defines an order of cost estimate as; '...the determination of possible cost of a building(s) early in design stage in relation to the employer’s fundamental requirements. This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.'
A wide range of information may be required from the parties to the project to prepare an order of cost estimate:
From the employer:
- Location and availability of site.
- Statement of building use and size.
- Any refurbishment requirements.
- Initial project/design brief.
- Enabling works details.
- Draft programme.
- Site conditions.
- Budget/cash flow constraints.
- Construction procurement options.
- Life span of the proposed building.
From the architect:
- Design study sketches or drawings.
- Schedules of areas.
- Legislative constraints.
- Initial risk register.
Information can also be provided by the services engineer, structural engineer, and other consultants if these have been appointed.
The key constituents of an order of cost estimate are typically:
- Facilitating works.
- Building works.
- Contractor’s preliminaries.
- Contractor’s overheads and profit.
- Construction cost.
- Fees.
- Other development/project costs.
- Risk allowances.
- Inflation.
Cost prediction, Professional Statement, 1st edition, published in November 2020 by the Royal Institution of Chartered Surveyors (RICS), defines an order of cost estimate as: ‘An estimate based on benchmark data for a similar type of project based on a defined brief.’
[edit] Related articles on Designing Buildings
Featured articles and news
Reform of the fire engineering profession
Fire Engineers Advisory Panel: Authoritative Statement, reactions and next steps.
Restoration and renewal of the Palace of Westminster
A complex project of cultural significance from full decant to EMI, opportunities and a potential a way forward.
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this...
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses, their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description from the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.