📤 The cost plan is created and continually updated through the plan of work stages

👩‍🏫 Cost plans are generally prepared by cost consultants (often quantity surveyors), but an informed or experienced project team could carry out the work depending on the scale and complexity of the project.

✅ Once the initial cost appraisal is completed, the project team will decide the scope of costs that will in future be monitored by the contractor and those that will be monitored and controlled by the project team.

The cost and budget work is begun in Stage 1 as an initial cost appraisal of the options presented by the feasibility studies. These are used to feed the investment appraisal and procurement strategy. Stage 1 activities provide more insights on project budget, costs and revenues which helps to form the early high-level information. Initial cost appraisals are carried out without the benefit of a full design for the project. They include costs that may not feature in later cost plans and as a result will almost certainly need input from the finance director or financial advisers.

The cost plan is developed alongside the procurement process and reappraisal of the investment model.

The main parts of the cost plan that are created are:

• elemental cost plan (Stage 2)

• approximate quantities cost plan (Stage 4)

• pre-tender estimate (Stages 2–4)

• tender pricing document (Stages 2–4)

• contract sum (Stages 2–4)

• contract sum analysis (Stages 4–5)

• final account (Stages 5–6)

Other than initial cost appraisals, these all relate to the construction cost of the project (rather than wider project costs that the client might incur, which could include fees, equipment costs, furniture, the cost of moving staff, contracts outside of the main works, and so on). It is important that the client makes clear what costs should be monitored by the cost consultant and what will remain within the control of the client organisation.

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