Building Costs in Alberta and BC: Beyond Price per Square Foot

Give the estimate a defined scope

The Royal Architectural Institute of Canada's cost-planning guidance distinguishes construction cost from the owner's wider project expenditure. Architectural and consultant compensation, land and other professional fees sit outside its definition of construction cost. [1] That distinction matters when a client uses a building allowance as the limit for the entire undertaking.

We would put the relevant costs into a project budget before comparing options. Show site work, professional services and owner purchases where they apply, alongside construction and the appropriate allowances. Mark costs already included in a contractor's price. Adding a separate contractor fee to a rate that already includes it gives a misleading total.

Use the same basis for a comparison

Consider an illustrative comparison between two offers for the same house. One includes foundations and installation. The other prices a supplied building package and leaves those works to the owner. Dividing both totals by the floor area does not make them comparable. First add the missing scope to the appropriate offer and confirm that the completion standard is the same.

The area definition needs to match too. Establish how garages, basements and covered outdoor space are treated. Record the date and location of the pricing information. A rate becomes useful when the reader can see what it measures and which assumptions would have to change for the proposed project.

Discuss the design behind the number

Suppose a house has several small roof forms, each following a separate room. We would test whether a simpler enclosure could accommodate the important spaces with fewer changes in level. The comparison would need to include the consequences for daylight, structure and the intended ceiling heights. Simplification is only worth pursuing if the resulting house still serves the brief.

A restaurant might need a different conversation. A well-positioned service point could be important enough to retain while a secondary finish changes. Substituting a material without checking its durability or acoustic role may save on one line and leave a problem for the operator. Our role is to explain the design consequences so a price reduction can be judged properly.

Ask the people preparing the estimate to price the specific alternatives. A proposed saving remains provisional until its scope and implications have been checked.

Keep unknowns visible

Site information can change the budget before the building itself changes. An Edmonton infill, an Alberta acreage and a sloping Okanagan property need their own assessment of access, ground conditions and servicing. Identify the missing information and the investigation that could resolve it. A regional average cannot answer those site questions.

Distinguish a known item awaiting a price from a risk allowance. A required retaining wall needs an allowance in the scope; contingency is not a reason to leave it out. Give each contingency a stated purpose and basis, and check that separate allowances are not protecting against the same exposure twice. RAIC's guidance stresses explicit assumptions and recognises that estimates are not guaranteed quotations. [1]

Keep the budget with the design

At each decision point, compare the developing proposal with the agreed budget and record what has changed. If the brief grows, the cost discussion should happen when that requirement is introduced. Waiting for a finished set of drawings makes every previous design decision harder to revisit.

The client needs to see which qualities the team is trying to preserve and which alternatives remain open. A credible early range, with clear exclusions, can support that discussion. A precise total detached from the current design cannot.