A cost target is the recommended total expenditure for an element of a building. The cost target for each element is usually derived from the costs of several sub-elements and components.
Cost targets are set in the cost plan by allocating the overall budget across the elements of the building. They give each member of the design team a clear budget to design to: for example, the structural engineer designs the frame to its cost target and the services engineer the mechanical and electrical installations to theirs. As the design develops, cost checks compare the latest estimate for each element with its cost target, and any overspend has to be balanced by savings elsewhere or agreed with the client.
- Cost targets are often expressed as a total and as a cost per m² of GIFA.
- The sum of the cost targets should not exceed the cost limit.
Related terms: cost plan, cost checking, element, cost limit.
