Section 3: instructions

3.2.1 Element costs

Total costs should be provided for each element and subelements as appropriate. Costs should be shown

separately where required in the elemental definitions and for different forms of construction.

The costs of subelements should total to the element costs. The cost of the elements should total to:

• the contract sum less main contractor’s profit, where identified;
• preliminaries;
• contingencies; and
• where appropriate, contractor’s design fees.

The cost of each element and the items comprising it should correspond with the specification.

If no cost is attributed to an element a note should be made to that effect.

Where the costs of more than 1 element are grouped together, insert a note against each of the affected elements explaining where the costs have been included. For example, if windows in curtain walling are included in ‘External walls’ it should be so stated in the element ‘Windows’, and details of the cost and specification included with the element ‘External walls’.

Where various forms of construction or finish exist within 1 element, the net areas and costs of the various types of construction should be included separately in the specification notes.

3.2.2 Preliminaries

State the cost of preliminaries for the building being analysed and express it as a percentage of the contract sum excluding preliminaries, contingencies and, where appropriate, contractor’s design fees.

3.2.3 Main contractor’s overheads and profit

State the cost of overheads and profit, where identified separately, and express it as a percentage of the contract sum excluding main contractor’s overheads and profit, contingencies and where appropriate, contractors’ design fees.

3.2.4 Contractor’s commercial risk

Where contractor’s commercial or other risk is included in a target cost, or something similar, allocate it across the elements and preliminaries or as shown in the contract.

3.2.5 Client’s risk (contingencies)

State the cost of contingencies for the building being analysed but do not make it part of the building analysis.

3.2.6 Contractor’s design fees

State the cost of contractor’s design fees for the building being analysed but do not make it part of the building analysis.

3.2.7 Project design team fees and other development/project costs

Where available, state the project design team fees and other development/project costs but do not make them part of the building cost analysis.

3.2.8 Cost of building per m² or functional unit

Where the total building cost is expressed as £/m² floor area or £/functional unit, the cost of the building should be the sum of elements 1-7, with preliminaries and main contractor’s overheads and profit percentages apportioned. Unless shown otherwise in the contract, the preliminaries and main contractor’s overheads and profit shall be apportioned as shown in 3.2.2 and 3.2.3.

Note: The expression of cost of External Works and Facilitating Works related to gross internal floor area of the building is not particularly meaningful. It is used in the ‘Summary of element costs’ so that the totals agree arithmetically.

3.2.9 Cost of element per m² or functional unit

Where the cost of an element is expressed as £/m² floor area or £/element unit quantity, state whether or not the costs include preliminaries and/or main contractor’s overheads and profit.

3.2.10 Works outside the site

Show the costs and details of any work included in the contract that are outside the site separately.