Budget estimate.
A budget estimate is produced early in a project, often before detailed drawings exist. It helps the client decide whether to proceed and sets the financial framework for the project.
Authored by Alexandr Vreme & Maksym Vasylkov
Published — Next review
Who this guide is for
Clients needing an early cost indication, contractors providing feasibility figures, and quantity surveyors preparing cost plans at RIBA Stage 1 or 2.
What a budget estimate contains
A budget estimate typically includes: total floor area and rate used, elemental cost breakdown (substructure, superstructure, finishes, services), allowances for preliminaries, contingency (typically 10–20%), professional fees, and exclusions. The estimate should clearly state what information it is based on and the expected accuracy range.
Miniature example
80 m² rear extension: Substructure £16,000, Superstructure £48,000, Finishes £18,000, Services £15,000, Preliminaries £12,000, Contingency (15%) £12,030. Total budget estimate: £121,030 (±20%). Based on outline planning drawings. Excludes VAT, furniture, and external landscaping.
Common mistakes
- Presenting a budget estimate as a fixed price quotation
- Omitting the accuracy range, leading clients to expect precise outcomes
- Underestimating contingency — early-stage projects always have unknowns
Related guides and tools
Compare with detailed estimates and client copy estimates. Generate a Budget Estimate using the free tool.