Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
Cost per square metre is total construction cost divided by built-up area. It is used for early estimates before detailed drawings and to compare projects, but it varies a lot with specification, basement, facades and foundation type.
Why it matters on a project
It is the first figure an owner asks for, but contracting on it alone is risky: two projects of the same area can differ widely in cost.
Measurement and pricing
Total cost ÷ built-up area, stating what it covers: structure only, finishing or turnkey, and whether boundary walls and external works are included.
Worked example
A villa costing 2,375,000 SAR with 700 m² built-up area: 2,375,000 ÷ 700 = about 3,393 SAR per m².
Common mistake
Comparing one contractor's shell rate with another's turnkey rate without aligning what each includes.
Frequently asked questions
Does the rate include the basement?
It must be stated; basements cost more than upper floors and some offers price them separately.
Can I contract on a rate per square metre?
Only for early estimates; safe contracting is on a BOQ from the drawings.
Related terms
- Engineer’s estimateThe cost estimate prepared by the consultant or owner to compare contractor offers.
- TurnkeyDelivering the complete project ready for use with one party responsible for design and construction.
- Building coverage ratioThe share of the plot area that each floor may cover.
- Cost planThe project budget split across its elements before design is complete.
Read next
- Villa construction cost in Riyadh 2026: price per m2
- Work out quantities with our free calculators: concrete, tiles, paint and plaster. Open the calculators
Does your project need quantity take-off and BOQ pricing? Send the drawings or a short description and we reply within one working day.
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