The elemental cost plan is the critical breakdown of the cost limit for the building or buildings into cost targets for each element. It provides a statement of how the design team proposes to distribute the available budget among the elements of the building, and a frame of reference from which to develop the design and maintain cost control.
It also provides both a work breakdown structure (WBS) and a cost breakdown structure (CBS). By codifying these, the work in each element can be redistributed into construction work packages for procurement purposes.
Cost planning is a method of cost prediction.
