The cheapest time to change a project is before it has been designed. Early cost advice gives owners, developers and builders a realistic budget while there is still room to change the brief, the site or the design. It is the first service a quantity surveyor provides on most projects, and often the most valuable.
What is early cost advice?
Early cost advice is a preliminary estimate of what a project should cost, prepared from a brief, a sketch design or a concept. It usually includes:
- an order-of-cost estimate based on floor areas, building type and site conditions;
- allowances for site works, services, professional fees and authority charges;
- contingency and escalation to the expected construction period;
- a clear list of assumptions and exclusions.
Why it matters
- Feasibility: it tests whether the project stacks up before land is bought or finance is committed.
- Design to budget: it gives the design team a target to work to.
- Funding: it supports finance applications and investment decisions.
- Fewer surprises: big-ticket risks such as ground conditions, services upgrades and retaining walls are identified early.
How a feasibility budget is prepared
- Understand the brief: uses, areas, quality level, programme and any planning constraints.
- Review the site: slope, access, soil classification, existing services and neighbours.
- Measure the concept: gross floor areas by use, external works areas and key elements.
- Apply rates: current Perth and regional WA cost rates for each element or area.
- Add on-costs: professional fees, authority charges, headworks and connection costs, and contingency.
- Allow for escalation to the mid-point of construction.
- Report: a summary budget with assumptions, exclusions and the key risks.
Budgeting techniques that work
- Elemental cost planning: break the budget into elements (substructure, frame, envelope, finishes, services, external works) so changes can be tracked.
- Risk-based contingency: size contingency from a list of identified risks rather than a flat percentage. See what is a contingency sum?
- Options testing: price alternative designs, such as double-brick vs framed, or one storey vs two, before committing.
- Cash flow forecasting: show when the money is needed, not just how much.
What affects the accuracy of an early estimate?
- How developed the design is. The less information, the wider the range.
- Site unknowns: ground conditions, contamination, services capacity.
- Market conditions: trade availability and price movements in WA.
- Programme: a longer or later start means more escalation.
A good early estimate states its likely range and is updated as the design develops into a full cost plan with value engineering.
Who provides early cost advice?
Usually a quantity surveyor working with the architect, engineers and the client. Builders also provide budget pricing, particularly on design and construct or early contractor involvement projects.
Frequently asked questions
How much detail do I need for early cost advice?
A brief and a sketch with approximate areas is enough to start. More detail gives a tighter estimate.
Can early cost advice help with finance?
Yes. Lenders and investors typically want an independent estimate before committing funds.
How long does it take?
Usually a few days for a residential or small commercial project, depending on how complete the information is.
Testing a project in Perth or regional WA? Call Measure Manage on 0498 202 445 or see our quantity surveying services. We are RICS & AIQS Accredited.