How to Answer Planners' Cost Questions in Early Design

When a planner asks what your product will cost before the design is fixed, give a budget price with its assumptions, a range where the design is still open, and a validity date. Say what is included and what is not, in the unit the planner uses for the cost estimate, for example per square metre or per item. Then update the figure as the design firms up. A budget price written this way can help the planner keep your product in the cost estimate, and it can protect you when the final quote differs.

This guide is for sales and technical teams at building product manufacturers who receive cost questions from architects, engineers and cost planners. It covers how to answer them. It does not cover how to set your prices.

Why planners ask early

Planners estimate costs at several points during design. In Germany, the basic services for buildings in the fee regulation for architects and engineers, HOAI Annex 10.1, include a cost estimate under DIN 276 in the preliminary design stage (stage 2) and a more detailed cost calculation under DIN 276 in the design stage (stage 3), compared with the earlier estimate. DIN 276 is the German standard for building costs and structures costs into cost groups. In the UK, the RICS publishes NRM 1, the rules for order of cost estimating and cost planning for capital building works.

For you, this means a cost question can come at an early stage, when the product is only one option among several. A clear answer makes it easier for the planner to include your product. An answer that comes late or without context can lead the planner to use a general figure from another source instead.

Who asks and what they need

Ask who will use the figure and for what. A figure for a comparison of options needs different context than a figure for the official cost estimate.

What to clarify before you give a figure

Before you answer, ask a few questions. You may not get every answer, but each one makes the figure more reliable.

1. Which product or system? If the design is open, agree on one or two reference options.

2. Which quantity and unit? Square metres, metres, items, or a lump sum for a system.

3. Supply only, or supply and installation? Your company may only supply. If the planner needs installed costs, say that installation is priced by others or give a separate figure only if you can support it.

4. Which location and delivery conditions? Delivery, access and logistics can change the price.

5. Which time frame? When is the project likely to be built? Prices can change until then.

How to write a budget price

Put the figure in writing, with its context. A short template:

Budget price for [project name], [date]

Use a range where the design is still open, and say what drives the range. For example, a higher figure applies if a special finish is chosen. This gives the planner a figure to work with and tells them which design decisions move it.

Keep the figure honest

A budget price that is too low can help in the short term and cause problems later. If the final offer is much higher, the planner may have to explain the difference to the client, and your product may be replaced to stay within budget. Give a figure you can stand behind. If you are unsure, give a range and explain why.

Do not add a figure for work you do not do. If the planner asks for installed costs and your company only supplies, say so and point to the trades who price installation.

Update the figure as the design develops

Treat the budget price as a living figure. Record in your CRM:

• the date and version of each figure you gave,

• the assumptions behind it,

• the design stage of the project at the time,

• who received it.

When the design changes or moves to the next stage, ask the planner whether the assumptions still hold and send an updated figure. At tender stage, the figure is replaced by your offer or by the contractor's price.

Cost questions beyond the purchase price

Some planners and clients also look at costs over the life of the building, for example for maintenance, cleaning or replacement. If you have reliable data on these, for example maintenance intervals or service life under stated conditions, offer it with its source and its limits. For background on life cycle costs, see our article on life cycle costs.

How Building Radar fits in

According to our features page, Building Radar discovers new construction projects early, brings project and contact data into one place and connects new project data to existing deals. Your team can use that to research projects and the planners involved, and to keep project information next to the figures you have given. Pricing and budget figures stay with your team.

Frequently asked questions

Should we give a price before the design is fixed? Yes, if you can state the assumptions. A budget price with a range, a validity date and a clear status gives the planner a usable figure and documents your assumptions.

What is the difference between a budget price and an offer? A budget price is a figure for cost planning based on assumptions. An offer is a binding proposal for a defined scope. Mark budget prices clearly as non-binding.

Which unit should we use? The unit the planner uses in the cost estimate. Ask before you answer.

How often should we update a budget price? When the design changes in a way that affects your product, when the project moves to the next design stage, and before the validity date runs out.

Talk to us about project-based sales

If you want to discuss how your team researches projects and the planners behind them, you can schedule an initial consultation.