Flip the card and read carefully until you understand the paragraphs about building costs.

The building costs include all the expenses for goods, services and charges necessary to carry out a development. Before planning and constructing a property, the client needs to be aware of all the expenses associated with the development. Architects and engineers have a detailed knowledge of the costs involved and are able to support the client by preparing a realistic cost estimate. The client will then be able to determine the feasibility and affordability of the project. The design team may need to recommend adjustments in order to bring the scope of the project into line with the client’s means. The final step of this early process is the agreement of the budget for the project. The total expense budget, at the start, is the sum of a large number of individual items. As work progresses, the expense budget is replaced by actual costs until, on completion, the final statement is drawn up with the total cost of the project. Throughout the period of development, as actual costs are invoiced, it is essential to monitor progress against the original budget or revised budget if alterations have been agreed along the way. Since there is a tendency for all parties to pitch estimates on the low side, it is always prudent to allow for a contingency sum.