How much will my construction project cost?
Construction project costs vary significantly depending on the type, size, location, and complexity of the build. This guide explains how to estimate a realistic ballpark budget, understand professional fees, and see real-world UK examples of what projects actually cost.
(Spoiler: our project manager day rate starts at £800)
"Always clear on what needs to be done, who is responsible, and timeframes"
- Retail Development Client
So, how much does it cost to build a construction project?
The most common question we are asked is simple:
“How much will it cost to build?”
The honest answer is: it depends. There is no true “average” construction project. Even relatively small schemes can vary widely depending on design choices, specification, site constraints, programme, and risk.
That said, “it depends” isn’t very helpful if you’re trying to decide whether a project is affordable. So here’s how to get to a sensible starting point.
Set your budget and brief early
Before you invest time and money in detailed designs, you need confidence that your project is affordable and justifiable.
We were once approached by a client with a beautifully designed office scheme. Unfortunately, budget had never been discussed. When we reviewed the specification, the cost to build was close to £2 million. The client’s budget was £500,000. The project was abandoned before it began.
This situation is more common than you might think.
The project brief is the single most important stage of the process. A good brief makes clear:
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what you are trying to achieve,
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what constraints you have, and
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what success looks like.
Without a clear brief and budget, designers tend to design everything you ask for, not everything you can afford.
How to estimate construction costs (before you have drawings)
The Iconic Project Cost Explorer
If you’ve never commissioned a construction project before, it’s normal not to know what it might cost. Independent benchmarks are a good place to start.
The guides below are commonly referenced by clients, consultants, and cost managers across the UK construction industry. They are not Iconic estimates and are provided to help you sense-check affordability early.
Spon's Architects' and Builders' Price Book
You can also use Spon’s Architects’ and Builders’ Price Book by multiplying typical rates by your intended floor area.
These figures are indicative only, but they provide a realistic starting point and help avoid the common mistake of underestimating costs.
How much will you pay for a construction project manager?
Most UK building projects require professional services, and these should be included in your overall budget.
If you need a full professional team (architect, quantity surveyor, project manager, building control and specialist consultants), you should typically allow up to 14% of the total construction cost.
Construction project management fees (UK)
Project management fees are usually charged in one of two ways.
1. Percentage of construction cost
As a general guide, you should expect to pay:
• 2.5%–4% of the total construction budget, depending on:
o project complexity,
o level of risk, and
o scope of service.
Examples:
• A basic office fit-out: project management fees of around £11,400
• A large business park office: fees of approximately £363,100
2. Day rates
For complex or long-duration projects, clients sometimes appoint a project manager on a day-rate basis.
Our UK day rates are:
• Project Director: £1,150 per day
• Senior Project Manager: £925 per day
• Project Manager: £800 per day
Project Director
£1,150
Senior Project Manager
£925
Project Manager
£800
All prices are exclusive of VAT.
Real-world examples of project management costs
The examples below show how project management fees typically relate to construction cost in practice.
Office refurbishment - Central London.
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Construction cost: £1.8 million
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Project management fees: £72,000
Iconic acted as project manager and employer’s agent, coordinating contractors, professional teams, IT, AV, security, and specialist suppliers.
Drive-thru restaurant fit-out - Gloucestershire
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Construction cost: £500,000
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Project management fees: £12,500
We managed design, procurement, utilities coordination, construction delivery, and specialist contractors for a fast-growing QSR brand.
Student accommodation - Oxford
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Construction cost: £11 million
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Project management fees: £170,000
New-build, ultra-low-carbon student accommodation delivered to Passivhaus standards, with full project governance and stakeholder coordination.
See also...
Why transparency matters
A good construction project manager should reduce risk, control cost, and protect your investment, not add uncertainty.
We publish our rates because:
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clients deserve clarity,
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budgets are easier to set honestly, and
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good project management stands up to scrutiny.
Talk to us before you commit
If you’re considering a construction project and want an honest view on affordability, risk, and the level of professional support you actually need, we’re happy to have an initial conversation.