Order of Cost Estimates Level (1)

Question 1

RIBA stage?

Answer 1

Order of cost estimates are produced as an intrinsic part of RIBA Stages 0 and 1, or OGC
Gateways 1 and 2. The requirements of RIBA Stages 0 and 1, as described in the RIBA Plan of
Work, are described 5in more detail here.

Question 2

Information required/expected?

Answer 2

Outcome: Initial project brief approved by the client and confirmed that it can be accommodated on
the site.
The client requirements for the project are considered in more detail, in connection with a
specific site or sites.
The initial project brief will contain guidance on the project outcomes, sustainability outcomes
and quality aspirations. These will influence how the client, design and construction teams are
assembled to form the project team as part of the procurement strategy, defining each party’s
roles and responsibilities within the responsibility matrix as well as the methods of information
exchange. It may also dictate the core milestones in the project programme.
Stage 1 is about developing the information that the design team will need to commence the
design process at RIBA Stage 2 (Concept Design).

Question 3

Measurement format expected? (eg GIFA, M2, Functional Unit)

Answer 3

Tasks: The quantity surveyor/cost manager is to:
1 Prepare order of cost estimates to test the feasibility of achieving the emerging project brief
including quality aspirations and project strategies when carrying out feasibility studies (also
referred to as option studies), taking into consideration any project risks associated with each
option.
2 Break down the cost of elements to highlight any areas that might cause significant cost related
project risks (e.g. foundation type) and consider the risk profile of potential market
changes and effects of inflation. Refer to section 2.7.
3 Agree the cost limit.
The purpose of an order of cost estimate is to establish whether the proposed building project is
affordable and, if so, to establish a realistic cost limit for the building project. The cost limit is the
maximum expenditure that the client is prepared to make in relation to the completed project
(i.e. authorised budget), which will be managed by the project team.

Question 4

Level of cost estimate expected?

Answer 4

2 Break down the cost of elements to highlight any areas that might cause significant cost related
project risks (e.g. foundation type) and consider the risk profile of potential market
changes and effects of inflation. Refer to section 2.7.