Should Cost Model
The Construction Playbook, Government Guidance on sourcing and contracting public works projects and programmes Version 1, produced by the Cabinet Office and published in December 2020, is focused on getting projects and programmes right from the start. Its principles and policies are intended to transform how public works projects and programmes are assessed, procured and managed. It is a ‘compact’ between government and industry, setting out how they will work together in future.
It states:
‘Having a clear understanding of the whole life costs and risks of delivering a project or programme is best achieved by producing a Should Cost Model (SCM). A SCM provides a forecast of what a project or programme ‘should’ cost over its whole life, including both the build phase and the expected design life.
‘All projects and programmes should produce a SCM. The level of investment in producing a SCM will vary with the complexity and significance of the procurement. For major works projects and programmes a SCM will be more detailed and, while the level of detail will evolve, they should be produced during the planning and preparation stage to support the DMA (Delivery Model Assessment).
‘The SCM will drive a better understanding of the whole life costs and risks associated with different options and scenarios. This will inform engagement with bidders and the appropriate commercial strategy including methods to incentivise the supply chain to focus on whole life cost. It will drive more realistic budgets by providing greater understanding of the impact of risk and uncertainty on both cost and schedule. The SCM should also be linked to the whole life carbon assessment.’
For more information see: The Construction Playbook.
NB Government Functional Standard, GovS 008: Commercial, Version: 2.0, published by HM Government in September 2021, defines should cost modelling as: ‘A financial modelling technique to determine the expected cost of goods or services that are provided by suppliers.’
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA, JIB and JTL back Fabian Society call to invest in skills for a stronger built environment workforce.
Women's Contributions to the Built Environment.
Calls for the delayed Circular Economy Strategy
Over 50 leading businesses, trade associations and professional bodies, including CIAT, and UKGBC sign open letter.
The future workforce: culture change and skill
Under the spotlight at UK Construction Week London.
A landmark moment for postmodern heritage.
A safe energy transition – ECA launches a new Charter
Practical policy actions to speed up low carbon adoption while maintaining installation safety and competency.
Frank Duffy: Researcher and Practitioner
Reflections on achievements and relevance to the wider research and practice communities.
The 2026 Compliance Landscape: Fire doors
Why 'Business as Usual' is a Liability.
Cutting construction carbon footprint by caring for soil
Is construction neglecting one of the planet’s most powerful carbon stores and one of our greatest natural climate allies.
ARCHITECTURE: How's it progressing?
Archiblogger posing questions of a historical and contextual nature.
The roofscape of Hampstead Garden Suburb
Residents, architects and roofers need to understand detailing.
Homes, landlords. tenants and the new housing standards
What will it all mean?
The Architectural Technology podcast: Where it's AT
Catch-up on the latest episodes.
Edmundson Apprentice of the Year award 2026
Entries now open for this Electrical Contractors' Association award.
Traditional blue-grey slate from one of the oldest and largest UK slate quarries down in Cornwall.
There are plenty of sources with the potential to be redeveloped.
Change of use legislation breaths new life into buildings
A run down on Class MA of the General Permitted Development Order.
Solar generation in the historic environment
Success requires understanding each site in detail.