Introduction To The Concept Design Stage

Section 1

Purpose

RIBA Stage 2 Concept Design marks the transition from feasibility-level cost assessment to structured, elemental cost planning. The design team develops the architectural concept, structural strategy and building services approach, generating sufficient information for the QS to prepare Formal Cost Plan 1 in accordance with RICS NRM 1 (2nd edition, 2012).

The QS role at Stage 2 shifts from order-of-cost estimating to active cost management: establishing elemental cost targets benchmarked against BCIS data, initiating the project Risk Register, providing an early Life Cycle Costing assessment, preparing the initial Cash Flow Forecast, and supporting the Value Engineering review. Cost Plan 1 becomes the formal cost baseline against which all subsequent design development is measured.

This guidance note introduces the QS obligations at RIBA Stage 2, the five principal deliverables (Cost Plan 1, Risk Register, LCC assessment, Cash Flow Forecast and VE support), and the RICS professional standards that govern practice throughout this stage.

Section 2

Key Principles

NRM 1: RICS New Rules of Measurement — Order of Cost Estimating and Cost Planning (2nd edition, 2012, effective January 2013): mandatory framework for Formal Cost Plan 1 preparation.
BCIS Elemental Standard Form of Cost Analysis (SFCA, 4th edition): defines consistent elemental categories for benchmarking and cost plan preparation.
RICS Cost Analysis and Benchmarking (1st edition, 2016): guidance on applying BCIS adjustment factors (TPI, location, specification, size) to benchmark data.
RICS Whole Life Costing (1st edition, 2016): requires the QS to advise on whole-life cost implications of design decisions from Stage 2 onwards.
RICS Management of Risk (1st edition, 2020): framework for establishing the project Risk Register and quantifying cost risk using probability × impact (EMV) methodology.
RIBA Plan of Work 2020 — Stage 2 Concept Design: defines stage deliverables, including the cost plan, sustainability assessment and project programme.
RICS Quantity Surveying and Construction Professional Statement (2021): mandatory obligations for QS firms providing cost management services.

Section 3

Practical Application

Step 1

Review the Stage 1 Order of Cost Estimate and reconcile with the agreed client budget. Identify and document any cost movement, changed assumptions or scope developments before proceeding.

Step 2

Agree the Cost Plan 1 structure with the client and design team: confirm the NRM 1 elemental framework, scope inclusions/exclusions, base date, inflation assumptions and contingency strategy.

Step 3

Prepare Formal Cost Plan 1 by apportioning the budget across NRM 1 Group Elements 0–8 using BCIS benchmark data, adjusted for TPI, location, specification and size.

Step 4

Prepare the initial Risk Register: carry forward Stage 1 risks, categorise Stage 2 risks, score each by probability × impact (EMV), assign RAG status and nominate risk owners.

Step 5

Prepare an initial Life Cycle Costing assessment advising the client on whole-life cost implications of key specification choices (façade, structure, M&E strategy).

Step 6

Prepare the initial Cash Flow Forecast using the Cost Plan 1 budget and indicative construction programme, applying S-curve methodology for spend profiling.

Step 7

Support the Value Engineering review: identify elements exceeding BCIS benchmarks and prepare cost comparisons for alternative design options.

Step 8

Issue Cost Plan 1 report with full assumptions register, exclusions list, Risk Register summary and Cash Flow Forecast. Obtain written client sign-off before the Stage 2 design gateway.

Section 4

Common Mistakes to Avoid

Failing to reconcile Cost Plan 1 with the Stage 1 OCE — any cost movement must be explained and formally accepted by the client before progressing to Stage 3.
Issuing Cost Plan 1 without a full assumptions register — undocumented assumptions create significant dispute risk at later stages when costs change.
Conflating design contingency (a percentage uplift covering design development) with risk allowance (an EMV-based sum for identified, quantified risks).
Omitting whole-life cost considerations — RICS guidance requires LCC advice from Stage 2, even at indicative level, to inform specification choices.
Not obtaining formal client sign-off on Cost Plan 1 — without written approval, the cost baseline has no authority for change control purposes.
Treating Value Engineering as optional — VE is most cost-effective at Stage 2; post-Stage 3 design changes carry progressively higher abortive work costs.

Section 5

APC Competency & Quick Reference

APC Competencies: Cost Management (L2) | Design Economics & Cost Planning (L2) | Life Cycle Costing (L1) | Value Management (L1)

What is the primary deliverable at RIBA Stage 2 for the QS?

Formal Cost Plan 1 in NRM 1 elemental format, benchmarked against BCIS data, with a full assumptions register, Risk Register, initial LCC assessment, initial Cash Flow Forecast, and written client sign-off.

How does Cost Plan 1 differ from a Stage 1 Order of Cost Estimate?

The OCE provides a single budget figure using floor area or functional unit rates. Cost Plan 1 breaks costs into NRM 1 Group Elements, setting individual cost targets and providing a structured framework to test design decisions against the approved budget.

What contingency rate is typical at Cost Plan 1 stage?

Design contingency of 10–15% of construction cost is typical at Stage 2, reflecting the level of design development. This reduces to 5–10% at Cost Plan 2 (Stage 3) as design is further developed and risks are progressively resolved.

Section 6

Concept Design Stage Checklist

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Stage 1 OCE reviewed and reconciliation prepared

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Cost Plan 1 structure agreed with client (NRM 1 elements, scope, exclusions, base date)

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BCIS benchmark data sourced and adjusted (TPI, location, specification, size)

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Risk Register prepared with EMV calculations and RAG status for each risk

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Initial Life Cycle Costing assessment prepared for key specification options

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Initial Cash Flow Forecast prepared using S-curve methodology

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Value engineering review supported with elemental cost comparisons

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Cost Plan 1 report issued with assumptions register and written client sign-off obtained

Section 7

CPD Learning Outcomes

Explain the QS role, key deliverables and RICS obligations at RIBA Stage 2 Concept Design.
Apply NRM 1 elemental structure and BCIS benchmarking to prepare Formal Cost Plan 1.
Identify the inter-relationship between Cost Plan 1, the Risk Register, the LCC assessment and the Cash Flow Forecast as integrated Stage 2 deliverables.

Section 8