Release date 1 July 2018
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. It is quite possible for costs to vary from -15% to +10% from the guide costs given here depending on the quality and specification of the finished building. Even this range is not absolute but is a guide only.
Costs are set at current index 180 - 3Q2018 (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.
|Utilities and Civil Engineering Facilities|
|Surface car parks||1000m2||£110|
|Surface car parks with landscaping||1000m2||£130|
|Multi-storey car parks||15000m2||£500|
|Underground car parks with mechanical ventilation||2000m2||£1,140|
|Vehicle showrooms with workshops||2000m2||£1,340|
|Vehicle repair and maintenance buildings||2000m2||£1,340|
|Factory, light industrial for letting with incoming mains only||5000m2||£690|
|Factory, light industrial for letting including lighting and power, toilets and basic office accommodation||5000m2||£870|
|Factory, light industrial for owner occupation including all services and basic accommodation||5000m2||£1,110|
|Factory, heavy industrial for owner occupation including all services and basic accommodation||5000m2||£1,790|
|High-technology workshops with air-conditioning||5000m2||£2,940|
|High bay warehouse 10m to 15m high (excluding racking)||10000m2||£360|
|High bay warehouse 16m to 24m high (excluding racking)||10000m2||£400|
|Office, non-air conditioned||3000m2||£1,540|
|Office, low rise, air conditioned||3000m2||£1,660|
|Office, medium rise, air conditioned||6000m2||£2,000|
|Office, high rise, air conditioned||10000m2||£2,270|
|Bank (city centre/head office)||2000m2||£2,520|
|Shop - shell||1000m2||£830|
|Shop - fitting out shell||1000m2||£780|
|Shopping mall, air-conditioned||80000m2||£4,040|
|Health and welfare buildings|
|Group practice surgery||2000m2||£1,520|
|Home for the handicapped||3000m2||£1,540|
|Home for the elderly||3000m2||£1,490|
|Refreshment, entertainment and recreation buildings|
|Swimming pool (international standard)||8000m2||£3,760|
|Swimming pool (local authority standard)||3000m2||£2,720|
|Sports hall including changing rooms||3000m2||£1,190|
|Educational, cultural and scientific buildings|
|Sixth form college||5000m2||£1,450|
|Learning resource centre||2000m2||£1,770|
|Housing association schemes apartments/flats||2000m2||£1,600|
|Housing association schemes bungalows||2000m2||£1,360|
|Housing association schemes houses||2000m2||£1,330|
|Sheltered housing flats with lifts and warden's accommodation||2000m2||£1,270|
|Private developments 3 to 5 storey flats||2000m2||£2,200|
|Private developments two and three storey houses||2000m2||£1,850|
|Private house, single detached||250m2||£1,980|
|Apartments - high quality in residential tower||7000m2||£2,550|
|Hotel - luxury city centre||5000m2||£3,590|
|Hotel - business town centre with conference and leisure facilities||5000m2||£2,660|
|Hotel - mid range with conference and leisure facilities||5000m2||£2,110|
|Hotel - budget city centre with dining and bar facilities||3000m2||£1,930|
|Hotel - budget roadside excluding dining facilities||2000m2||£1,720|
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, 5000m2 gross floor area, with a proposed construction start date of July 2019.
|Base cost from cost per m2 table above|
|Office, medium rise, air conditioned||5000m2 x £2,000||10,000,000|
|Adjustment for location (York = 95)||0.95|
|Adjustment for project value|
|Base cost factor (6000m2 x 2,0000 = 12,000,000)||0.87|
|Cost factor for this project (base value 9,500,000)||0.88|
|Adjustment (0.88 - 0.87) / 0.87||1.15%||109,000|
|Adjustment for construction start date|
|Current tender price index Julyl 2018||180|
|Forecasted tender price index July 2019||188|
|Adjustment (185 - 180) / 180||2.78%||267,000|
|Allowance for external works||say 20%||1,975,000|
|Allowance for risk||say 15%||1,778,000|
|Indicative total building works cost||£13,750,000|
Estimate base date: 1 July 2018.
Cost excludes land purchase, fees and VAT.