Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A cost plan splits the project budget across elements such as frame, facades, finishes, MEP and external works during design. It is updated at each stage and checked against the target budget.
Why it matters on a project
It keeps the design within budget instead of finding the overrun at tender. Any element exceeding its share is dealt with early through value engineering.
Measurement and pricing
It starts with a rate per square metre for each element, moves to approximate quantities, then to a full BOQ with the construction drawings.
Worked example
A 2,400,000 SAR villa budget: structure 34% = 816,000, finishing and MEP 62% = 1,488,000, external works 4% = 96,000 SAR.
Common mistake
Preparing a cost plan once at the start without updating it as the design develops.
Frequently asked questions
Who prepares the cost plan?
The quantity surveyor or cost consultant with the designer and owner.
When is it updated?
At the end of each design stage and after any major change in areas or specification.
Related terms
- Engineer’s estimateThe cost estimate prepared by the consultant or owner to compare contractor offers.
- Value engineeringA structured review to deliver the required function at lower cost without lowering quality.
- Design developmentThe stage that turns the approved concept into a defined design.
- ContingencyA sum added to the budget to cover the unforeseen.
Read next
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