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Budgeting & Cost Estimation

Planning spend, estimating repair and build costs, and protecting against overruns.

Budgeting is the process of planning how much money is available for a project and how it will be spent — covering materials, labour, equipment, professional fees (architects, engineers), and contingency for the unexpected. Accurate cost estimation turns that budget into a realistic plan for both repairs and new builds.

Common Damage

1. Direct Costs

  • Repair materials and replacement components
  • Labour for skilled trades and supervision
  • Specialist equipment hire

2. Indirect Costs

  • Downtime and loss of use of the property
  • Temporary relocation or alternative accommodation
  • Disruption to surrounding works or tenants

3. Investigation Costs

  • Surveys, inspections, and reports
  • Structural and material testing
  • Specialist consultancy fees

4. Cost Drivers

  • Type and extent of damage (cosmetic vs structural)
  • Accessibility of the affected area
  • Urgency and out-of-hours working

Repairs

minor Repairs

  • Preliminary estimate — rough cost at early stage
  • Crack repairs and localised making good
  • Small contingency allowance (around 10%)

moderate Repairs

  • Detailed estimate with measured quantities and unit rates
  • Waterproofing, structural strengthening, foundation stabilisation
  • Contingency of 15–20% for hidden defects
  • Allowance for temporary works (scaffolding, propping)

major Repairs

  • Revised estimate updated as works are uncovered
  • Full Bill of Quantities (BOQ) for large repair packages
  • Contingency of 20–30% where defects are uncertain
  • Cash-flow forecasting across the programme

New Installation

When Replacement Is Needed

  • Before any new build or major refurbishment
  • When applying for finance or insurance settlements
  • Whenever scope, materials, or specification change

Installation Steps

  1. Inspection & Assessment

    • Survey the site and existing structure
    • Identify required works and constraints
    • Agree the basis of the estimate with the client
  2. Quantify & Price

    • Measure quantities of materials and labour
    • Apply current unit rates (cost per item or per m²)
    • Use elemental cost planning for new builds
  3. Build the Budget

    • Construction costs plus design and consultancy fees
    • Legal, planning, and approval costs
    • Contingency (typically 5–15% on new builds)
    • Inflation allowance for longer programmes
  4. Monitor & Control

    • Track actual spend against the budget
    • Issue revised estimates when scope changes
    • Report variances early to the client

Lifespan

Preliminary Estimate
Early stage — indicative only
Detailed Estimate
Valid 3–6 months at current rates
New Build Contingency
Typically 5–15%
Repair Contingency
Typically 10–30%

Warning Signs

  • Scope or specification has changed since the last estimate
  • Hidden defects uncovered during opening-up works
  • Material prices or lead times have shifted significantly
  • Programme has extended beyond the inflation allowance
  • Spend is tracking ahead of forecast at key milestones

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