Budget estimate.
A budget estimate is produced early in a project, often before detailed drawings exist. It helps the client decide whether to proceed and sets the financial framework for the project.
Who this guide is for
Clients needing an early cost indication, contractors providing feasibility figures, and quantity surveyors preparing cost plans at RIBA Stage 1 or 2.
What a budget estimate contains
A budget estimate typically includes: total floor area and rate used, elemental cost breakdown (substructure, superstructure, finishes, services), allowances for preliminaries, contingency (typically 10–20%), professional fees, and exclusions. The estimate should clearly state what information it is based on and the expected accuracy range.
Miniature example
80 m² rear extension: Substructure £16,000, Superstructure £48,000, Finishes £18,000, Services £15,000, Preliminaries £12,000, Contingency (15%) £12,030. Total budget estimate: £121,030 (±20%). Based on outline planning drawings. Excludes VAT, furniture, and external landscaping.
Common mistakes
- Presenting a budget estimate as a fixed price quotation
- Omitting the accuracy range, leading clients to expect precise outcomes
- Underestimating contingency — early-stage projects always have unknowns
Related guides and tools
Compare with detailed estimates and client copy estimates. Generate a Budget Estimate using the free tool.