In the RICS professional statement Cost prediction, a cost plan is defined as “an estimate based on a specific design. A statement showing an apportionment of an estimate of or an agreed budget between cost headings”. It need not be in elemental form. Cost planning is a method of cost prediction.
In UK practice, cost plans are most often prepared in elemental form in accordance with NRM 1, with the cost broken down into group elements, elements and sub-elements. NRM 1 sets out a series of formal cost plans that are developed as the design progresses through the RIBA stages, each one building on the last and checked against the cost limit. The elemental format makes it easy to compare the design against cost targets and against benchmark data from other projects.
- Each cost plan should state its base date, design information used, assumptions and exclusions.
Related terms: order of cost estimate, cost target, cost checking, NRM 1.
