Worked post-tender example

For the purposes of the worked example is based on a new build office building pre-let to a single tenant.

Lowest tender  £25,000,000
   
Post-tender negotiations  
Firmed up provisional sums                (£75,000)
   
Variations due to further site investigations  
Contaminated soil; EO cost of removal of  
Hazardous excavated material (2,500m3 @ £250) £625,000
   
Client/tenant modifications  
Revised entrance fit out £50,000
Omit fit out of top floor  (£150,000)
   
Total construction costs £25,450,000
   
Risk register/allowance  
Quantified risk register updated  £1,000,000
Design fees   £3,000,000
Site surveys £150,000
Legal fees £150,000
Section 106 contribution £250,000
Financing costs £3,000,000
   
Total project costs   £33,000,000