Cost Report Activities and Output Documents

The following table summarizes the main cost report activities and their output documents.

a: Outline Cost Plan The Outline Cost Plan is a schedule of principal cost holding categories that are established at the start of the design process and remain constant up to the Analysis Of Outturn Costs stage. The value of each cost holding category can be subject to change during at the various validation stages in the delivery process of a project, ranging from realistic target costs in the Outline Cost Plan to actual incurred costs at the Analysis of Out turn Costs. The initial values entered in the Outline Cost Plan should be realistic target costs. In summary the Outline Cost Plan should be based on: ■ The Outline Sketch Scheme (design) / Preliminary Planning (design) developed for the most realistic cost effective option in a range of options for a project; ■ Benchmark cost data adjusted to establish realistic targets for each principal cost-holding category; ■ Costs associated with the assessment of site / ground conditions – using updated historical cost data and approximate quantities where appropriate.The Outline Cost Plan total should in addition include for VAT at the appropriate rates. As every project is different, professional judgement should be exercised as to the levels of investigation and reporting requirements that are needed for a particular project – including appropriate investigation into market behaviour and prices. The Outline Cost Plan is a key cost document that informs Project Review 3.

b: Developed Cost Plan, Outline Cost Plan (Revised) The Developed Cost Plan / Outline Cost Plan (revised) is the key cost control document developed at the conclusion of the Developed Sketch Scheme / Preliminary Planning stage. The principal cost holding categories in the Outline Cost Plan are disaggregated into sub-cost holding categories as appropriate in the Developed Cost Plan/Outline Cost Plan (revised) and adjusted in line with design changes as the design evolves during Project Reviews 4 and 6 in the planning stage. The Developed Cost Plan/Outline Cost Plan, Revised is a key cost document that informs Project Review 4. It is at this review stage that clearance from the Sanctioning Authority is required before the project can proceed. These cost plans may be subject to amendment as the project passes through Project Reviews 5 and 6.

c: Tender Cost Analysis The Tender Cost Analysis takes place at tender evaluation stage based on the preferred tenderer’s price. Its purpose, during the tender evaluation stage, is to enable the comparison of the detailed tender costs under the relevant principal and subsidiary holding categories with those in the pre-tender budgeted costs as set out in the most recently developed/revised cost plan. ■ For Employer-designed projects, this will be the Developed Cost Plan (Building Works) or Outline Cost Plan Revised (Civil Engineering Works); and ■ For design-and-build projects, this will be the last cost plan developed in advance of the transfer of design risk to the Contractor – typically, the Outline Cost Plan.

d: Analysis of Out turn Costs The Analysis of Out turn Costs takes place as part of the Post-project Review when the project has been completed. Its purpose is to compare the actual out turn costs of the project with the budgeted costs as set out in the Tender Cost Analysis It is structured in the same way as the Tender Cost Analysis with adjusted costs (as a result of compensation events) for the principal and subsidiary categories.