Feasibility Cost Reporting

Section 1

Purpose

The feasibility cost report is the primary written deliverable from the QS at RIBA Stage 1. It consolidates the outputs of the Order of Cost Estimate, benchmarking review, budget setting, risk identification, and procurement appraisal into a single, professionally presented document that the client can use to make a fully informed decision on whether to proceed with the project, at what budget, and on what basis.

The report serves a dual purpose: it is the client’s decision-support document and the QS’s professional record. As a professional record, it must be drafted to a standard that would withstand scrutiny in a dispute, a professional indemnity claim, an RICS audit, or an APC assessment. Every cost figure must be traceable to its source and methodology; every assumption must be stated; every exclusion must be explicit.

The RICS Cost Prediction Professional Statement (reissued June 2024) is mandatory. Its five disclosure requirements are set out in GN-FE-01 §2 and are not restated here. The reporting obligation is that all five disclosures must appear in the body of the feasibility cost report — not relegated to an appendix or footnote. A report that satisfies the disclosures only by reference to supporting documents is non-compliant regardless of the quality of the underlying estimate.

Section 2

Key Principles

The feasibility cost report must be a standalone document. It should not require the reader to refer to other documents to understand the cost advice. All key assumptions, exclusions, the measurement basis, the benchmark source, the adjustments applied, and the accuracy range must appear in the report itself.
Version control is mandatory. Every report must carry a version number, a date of issue, and — for revisions — a brief statement of what has changed and why. A document file without version control makes it impossible to reconstruct the sequence of cost advice given, which is a significant liability in any dispute.
The report must be formally issued under cover. An email attaching the report with a covering note is acceptable. The covering note should direct the recipient to the key figures, the accuracy range, and the required client actions (e.g. approval of the cost limit, decision on procurement route). A report emailed without a covering note, or shared informally without a record of issue, does not constitute formal issue.
The RICS Cost Prediction PS accuracy range must be stated prominently, not buried. At feasibility stage the typical range is −15% to +20%. The client must understand that the cost limit recommended is a central estimate within a range — not a guaranteed maximum price.
The report must distinguish clearly between costs included and costs excluded. The full exclusions schedule is determined at the OCE stage in accordance with GN-FE-01; the reporting obligation is to present that schedule in the body of the report under a clear heading, in a format the client can readily review. Exclusions buried within narrative text or omitted from the report are a primary source of client dispute, regardless of whether they were considered during estimating.
Client acknowledgement of the report must be obtained and filed. The QS should request written confirmation that the client has read, understood, and accepted the report — including the accuracy range, assumptions, and exclusions. This acknowledgement is the baseline for all subsequent cost management on the project.
The feasibility cost report is the first in a series. It establishes the format and structure that will carry through the cost plan series (Formal Cost Plans 1, 2, and 3 at Stages 2, 3, and 4). Consistency of format across all cost reports makes variances easy to identify and explain, and demonstrates rigorous cost management discipline.

Section 3

Practical Application

A compliant feasibility cost report should contain the following sections, in this order:

Step 1

Executive Summary. One page maximum. State: project name and description; GIFA (or functional unit quantity); recommended cost limit (as a range: lower, central, upper); accuracy range per Cost Prediction PS; procurement route recommended; key programme milestones; and the two or three most significant risks. The executive summary is the document the client reads first and the one they will refer to in meetings — it must be accurate, clear, and complete.

Step 2

Project Description and Brief. Set out the project scope as understood by the QS: building type, GIFA, number of storeys, location, specification level, sustainability/ESG targets, phasing, and programme. State explicitly that this description is the basis of the cost estimate and that any changes to the brief will require the estimate to be revised.

Step 3

Order of Cost Estimate. Present the cost estimate in a structured summary table that itemises every component required by NRM 1, with the central, lower, and upper figures shown on the same line. The build-up methodology, BCIS source, adjustments, and abnormal cost workings are produced under GN-FE-01; the reporting obligation is to surface the headline figures and the supporting workings in a format the client can read without needing to request supplementary calculations. Adopt the same table layout and component order that will be used in Formal Cost Plans 1, 2, and 3 — consistency of format across the cost plan series is what makes variances easy to identify and explain.

Step 4

Accuracy Range Statement. In a clearly headed section, state the expected accuracy range per the RICS Cost Prediction Professional Statement and explain its basis (design stage, level of information available, quality of benchmark data). Present the lower and upper bounds of the estimate as absolute figures (not just percentages) so the client can see the full range of financial exposure.

Step 5

Assumptions and Exclusions. Reproduce in full the assumptions schedule and the exclusions schedule that were established under GN-FE-01. Both schedules must appear under their own clearly numbered headings — not embedded in narrative or relegated to an appendix — and each item must be listed individually so the client can review and confirm them line by line. Do not paraphrase or summarise the schedules: any item omitted from the report may be assumed by the client to be included in the cost limit, regardless of whether it was considered at the OCE stage.

Step 6

Risk Register Summary. Present the top risks by EMV, their probability and impact scores, the response strategy, the named risk owner, and the total quantified risk allowance. State the optimism bias allowance and its basis. Cross-reference to the full risk register held on the project file.

Step 7

Procurement Recommendation. Summarise the options appraisal and state the recommended procurement route and contract form. Note the client’s decision if already confirmed. If not yet confirmed, state the date by which the decision is required to meet the programme milestones.

Step 8

Issue Formally and Obtain Acknowledgement. Issue the report under formal cover to the client and PM. Request written acknowledgement within a stated timeframe (typically 5 working days). File the issued report, the covering communication, and the client’s acknowledgement on the project file. Assign a version number and date stamp to the filed copy.

Section 4

Common Mistakes to Avoid

Issuing the report without a version number and date. An undated, unversioned report cannot be reliably placed in the sequence of project events if a dispute arises. Every report must carry a version number (e.g. Rev 1.0), issue date, and — for revisions — a change record.
Burying the accuracy range in a footnote or appendix. The Cost Prediction PS requires the accuracy range to be disclosed to the client as a material part of the cost advice. A range mentioned only in an appendix does not satisfy this obligation.
Omitting the schedule of exclusions. Clients regularly assume that items not mentioned in the cost report are included in the budget. A comprehensive exclusions list is the QS’s primary protection against this misunderstanding.
Issuing the report informally — by email without a covering note, verbally in a meeting, or as an embedded attachment without an explicit reference to it. Informal issue does not constitute a formal report and does not trigger the client’s obligation to acknowledge or respond.
Not filing the client’s acknowledgement. The acknowledgement is evidence that the client received, read, and accepted the report on the stated basis. Without it, the QS cannot demonstrate that the client was informed of the accuracy range, assumptions, and exclusions.
Producing a report that cannot stand alone. If the reader needs to request additional documents to understand the cost advice, the report is incomplete. All material information must be contained within — or clearly summarised within — the report itself.

Section 5

APC Competency & Quick Reference

This guidance note is relevant to the following RICS APC competencies: Cost Management (, Levels 1–3); Client Care (B2, Levels 1–2); Communication and Negotiation (B4, Level 1); Data Management (, Level 1).

What are the mandatory disclosure requirements of the RICS Cost Prediction Professional Statement, and where should they appear in a feasibility cost report?

The RICS Cost Prediction PS (reissued June 2024) requires disclosure of: (1) the basis of the cost prediction — what design information it is based on; (2) the method used — floor area, functional unit, or elemental; (3) key assumptions underpinning the estimate; (4) material exclusions; and (5) the expected accuracy range. All five must appear in the body of the feasibility cost report — not in a footnote or appendix. At Stage 1, the typical accuracy range is −15% to +20%. The upper and lower bounds should be expressed as absolute £ figures so the client understands the full range of financial exposure.

Why is version control important in feasibility cost reporting, and what should a version record contain?

Version control is essential because cost advice evolves as the brief develops, market conditions change, and risks are resolved or crystallise. Without version control it is impossible to reconstruct the sequence of cost advice given — which is critical in any dispute or professional review. Each version of a cost report should carry: a version number (e.g. Rev 1.0, Rev 1.1); the date of issue; the name and role of the author; and — for all versions after the first — a brief change record stating what has changed and why. The issued version and the client’s acknowledgement must both be filed on the project record.

What are the requirements for formal issue and acknowledgement of a feasibility cost report, and why does informal issue create professional risk?

A feasibility cost report must be issued under formal cover — typically an email or letter that identifies the report by version number and date, directs the recipient to the headline figures and the accuracy range, and sets out any client decisions required (e.g. approval of the cost limit, confirmation of procurement route). The QS should request written acknowledgement within a stated timeframe, typically five working days, and file the report, the covering communication, and the acknowledgement together on the project record. Informal issue — by verbal briefing, embedded attachment without explicit reference, or a forwarded email without a covering note — creates two professional risks. First, it does not trigger the client’s obligation to read, consider, and respond to the cost advice, which weakens the QS’s position if the client later disputes the basis of the budget. Second, the absence of an acknowledgement on file makes it impossible to demonstrate, in an RICS audit or PI claim, that the client was informed of the accuracy range, assumptions, and exclusions on the stated date. The acknowledgement is the baseline against which all subsequent cost advice is measured.

Section 6

Feasibility Stage Checklist

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Report carries version number, date of issue, and author details

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Executive summary present — cost limit range, accuracy range, procurement recommendation, and top risks all stated

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Full NRM 1 cost summary included — all components itemised, £/m² rate and adjustments stated

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RICS Cost Prediction PS accuracy range stated prominently in the body of the report as absolute £ figures (lower, central, upper)

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Assumptions schedule included — all material conditions taken as true are listed

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Exclusions schedule included — VAT, FF&E, IT, S106/278, tenant fit-out, and all other excluded items explicitly listed

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Risk register summary included — top risks by EMV, response strategies, owners, and total risk allowance stated

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Report formally issued under cover — written client acknowledgement obtained and filed on project record

Section 7

CPD Learning Outcomes

Produce a compliant feasibility cost report that integrates the Order of Cost Estimate, accuracy range, assumptions, exclusions, risk register summary, and procurement recommendation into a single, standalone professional document suitable for client decision-making and project audit.
Apply RICS Cost Prediction Professional Statement disclosure requirements within the body of a cost report, presenting the accuracy range as absolute £ figures and ensuring all five mandatory disclosures are visible and accessible to the reader.
Implement version control and formal issue procedures for cost reports, including covering communications, client acknowledgement, and project file retention, to create a defensible professional record at each stage of the project.

Section 8