Job Book 9th Edition - Book - Page 134
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Stage 1 > Preparation and Brief: Supplementary Material: 1/SM7
Other costs
Other costs to be taken into account might include:
• fees for statutory approvals
• fees and expenses for the design team
• fees and expenses for the CDM coordinator.
An estimate should also clarify the VAT position and the possible effects of
inflation, and warn that fluctuations are possible after the start of the building
contract, even in the case of a lump sum contract. It might also be helpful to
suggest the phasing of payments so that the client can begin to consider how best
to manage their cash flow. VAT in relation to construction projects is a complex
area and the client should be guided to take appropriate professional advice on
the interpretation of VAT charges.
In addition to the estimate of the capital cost of the building project, the client will
need to take into account the cost of the site, legal and other fees, finance costs,
the risk and profit element, and an assessment of in-use costs for the building.
