Typical UK Construction Costs of Buildings

Release date 12 October 2018

Typical Construction Costs of Buildings

Below is a guide to typical construction costs of various buildings per m2 of gross internal floor area (internal area measured over internal walls and partitions, stairwell openings etc). The costs are typical guide costs for a building of the size stated, constructed to a typical or mid-range specification. Building shape, number of storeys, design and material specification can all have a significant impact on costs. It is quite possible for costs to vary from -10% to +20% from the guide costs given here and even this range is not absolute but a guide only.

Costs are set at current index 178 - 4Q2018 (Year 2000 = 100), at UK national average (index 100). See the Construction Indices, the Regional Variations and the Project Value Adjustments pages for more details. The costs are for the building only, inclusive of preliminaries and contractor's overheads and profit. The costs are exclusive of furnishings, external works, allowances for risk (contingencies), fees and VAT.

If you don't know any better, we would typically add a further 20% of the costs below to cover the possible costs of external works (hard pavings, landscaping, external fences and walls, etc., foul and surface water drainage, and external services) and to the new sub-total figure a further 15% to cover risk (contingencies). This is only very much a rough guide and depends very much on the size of the site associated with the building and the level of specification and complexity of the external works. Professional fees can be anything from 5% to 10% depending on the size of the project - generally the larger the project the smaller fee percentage.

Building prices can be influenced significantly by local conditions, local market conditions, size and specification. The prices given here are intended only as an indicative guide and should be used with caution as prices outside these ranges can be encountered in meeting local conditions and specific client requirements.

An example of how a construction works budget may be put together is given at the end of this page.

Industrial buildings
Advance factory including office accommodation (core service supplies to factory) 5000m2 £770
Warehouse including office accommodation 5000m2 £830
High bay warehouse 20m high including offices and dock-levellers (excludes racking) 10000m2 £1,250
Distribution centre including office accommodation 71750m2 £600
Administrative buildings
Office, low rise, non-air conditioned 3000m2 £1,510
Office, low rise, air conditioned 3000m2 £1,710
Office, high rise, non-air conditioned 10000m2 £1,730
Office, high rise, air conditioned 10000m2 £1,910
Shop unit (block of three small units) 500m2 £1,430
Shop unit with flats above 1500m2 £1,290
Shop unit with offices above 1000m2 £1,260
Retail warehouse 5000m2 £800
Health and welfare buildings
General hospital 10000m2 £2,540
Psychiatric ward 1500m2 £2,650
Pathology lab 1200m2 £2,910
Health centre 2000m2 £2,400
Hospice 3000m2 £1,930
Nursing home 2000m2 £1,790
Home for the elderly 2000m2 £1,800
Home for the mentally ill 5000m2 £1,800
Refreshment, entertainment and recreation buildings
Restaurant 700m2 £2,000
Community centre 500m2 £1,900
Leisure centre with swimming pool 4000m2 £2,400
Sports hall with swimming pool 9000m2 £2,390
Sports changing pavilion 200m2 £1,360
Library 700m2 £2,280
Youth club 800m2 £1,530
Educational, cultural and scientific buildings
Nursery school 250m2 £2,300
Primary school 2000m2 £1,880
Secondary school 4000m2 £1,720
College, non-air conditioned 5000m2 £1,740
College, air conditioned 5000m2 £1,900
Residential buildings
Estate housing 800m2 £930
Detached house 200m2 £1,230
Apartment block 7000m2 £1,690
Hall of residence 1500m2 £1,750
Student residence 8000m2 £1,430
Sheltered housing 3000m2 £1,550
Hotel, non air conditioned 5000m2 £1,810
 

Example of putting a budget together

The following is an example of how an early cost advice budget may be put together when all that is know about the project is building size (gross floor area), location and an indicative start of construction date.

This example is for a proposed new office block in York, 3000m2 gross floor area, with a proposed construction start date of October 2019.

Base cost from cost per m2 table above
Office, low rise, air conditioned 3000m2 x £1,990 7,200,000
Adjustment for location (York = 97) 0.97
6,984,000
Adjustment for project value
Base cost factor (5000m2 x 1,990 = 9,950,000) 0.88
Cost factor for this project (base value 6,984,000) 0.90
Adjustment (0.90 - 0.88) / 0.88 2.27% 159,000
7,143,000
Adjustment for construction start date
Current tender price index October 2018 178
Forecasted tender price index October 2019 182
Adjustment (182 - 178) / 178 2.25% 161,000
7,304,000
Allowance for external works say 20% 1,461,000
8,795,000
Allowance for risk say 15% 1,315,000
10,080,000
Indicative total building works cost £10,000,000

Estimate base date: 12 October 2018.

Cost excludes land purchase, fees and VAT.