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Applying the cost structure in practice

📐 Topic6 min read

What you will learn Why a cost determination must carry several orderings at once, which ordering criteria the standard provides alongside the cost groups, what happens when the leading ordering changes, and what role model-based methods play.

The cost groups are the base structure of cost planning, but they are not the only ordering a project needs. Design proceeds by element, procurement by trade, construction by phase, and accounting by contract.

A cost determination that knows only one of these orderings works in exactly one project phase. In every other it has to be translated, and each translation costs accuracy.

Ordering criteria side by side

The standard expressly provides for costs to be ordered by further criteria. These criteria sit alongside the cost groups rather than replacing them.

Ordering criterion What it is needed for
Cost groups by element comparability with benchmarks, cost control across stages
Procurement packages and trades tendering, award, accounting
Execution types comparing options, material decisions
Construction phases and sections control where delivery is phased
Types of measure in existing buildings showing strip-out, disposal, repair and new work separately

The last row is particularly useful in existing buildings. Since partial demolition and repair are allocated under the standard to the cost group whose element they affect, they spread across the whole of cost group 300. An additional ordering criterion makes them visible again as a block without abandoning the element structure.

What happens when the leading ordering changes

From the pre-tender estimate onwards the standard additionally orders by procurement package, and the tender sum follows that ordering. The change is substantively unavoidable, because what is procured is what a contractor executes.

It has two consequences, both of which argue against a complete switch. Both concern tasks that still have to be performed after procurement.

Consequence Why it arises
Cost control breaks off trades and element groups are not congruent; case law has held that schedules by trade and updates by cost group yield no comparability beyond the bare total
Chargeable costs become harder to derive chargeability attaches to cost groups; a purely trade-based schedule does not permit determination without an allocation

The workable answer is to retain the cost group structure as leading and carry procurement packages in parallel. The system is covered in the article on trade-oriented cost structure.

Why the standard permits the switch nonetheless

The standard expressly allows a cost determination to be structured on an execution basis, that is by trade or procurement package rather than by element. This is no contradiction but a response to particular project situations.

Modernisation is named in particular. In existing buildings the element structure is frequently less informative than the trade structure, because whole elements are not created; individual measures are carried out on existing ones.

Trade-oriented structuring is permissible so long as chargeable costs can still be properly determined from it. That qualification is the real condition and belongs in the agreement.

Model-based methods

Where design proceeds with a building information model, what changes is not the structure but the origin of the quantities. Model elements are linked to cost groups, quantities are taken across and priced with benchmarks or unit rates.

The benefit lies less in speed than in traceability: every quantity remains attributable to a model element, and a design change acts directly on the cost determination. Cost determination thus becomes an analysis of the model rather than a schedule of its own.

The limits lie in the level of detail of the model, which varies considerably between design phases and between disciplines. The system and its preconditions are covered in the article on BIM-based cost determination.

Reference units as the silent precondition

Every cost group has a reference unit in which quantities are measured. It is the precondition for an item being comparable at all, and it is the thing most frequently omitted in practice.

The difference shows when two projects are compared, and it decides whether the comparison explains anything at all. Without the reference unit any comparison is a ranking without an explanation.

Figure What it permits
amount per cost group establishing that one is more expensive
amount per reference unit, e.g. per m² external wall, per m² roof, per m³ excavation establishing why

A recommendation follows for cost determination that costs little and achieves much: alongside the amount per cost group, carry the corresponding quantity. Only then does a later deviation reveal whether quantity or unit rate was the cause, and that is exactly the distinction cost control requires.

What makes the difference in practice

Four requirements follow from the foregoing, applying regardless of project size and tools. None of them presupposes any particular software.

# Requirement Why
1 Fix a leading ordering keep it across all stages, normally the cost group structure
2 Carry additional ordering criteria in parallel switching instead of adding loses comparability
3 Show quantities and unit rates separately so that variances stay attributable
4 Record the allocation rules a decision that exists only in the preparer's head survives neither a change of staff nor an audit

What the standard does not cover

DIN 276 captures the costs of the construction project, that is the investment. Costs arising after handover are the subject of a separate standard.

The separation is clean but creates a gap in the basis for decisions, because many design decisions shift costs between investment and operation. How the relevant standards relate to one another is covered in DIN 276, DIN 277 and DIN 18960 compared.

This article reflects the position at the date of checking and serves professional orientation. It does not constitute legal advice and does not replace assessment of the individual case.

Frequently asked questions

By carrying the ordering criteria side by side rather than swapping one for the other. The article shows the structure.

Comparability between the determinations breaks. A reconciliation then becomes essential.

Because procurement requires an execution-oriented classification. Both orders have their purpose.

They ease the allocation but do not replace the decision on the order. The reference units still need checking.

Explore the articles in this guide

Cost planning under DIN 276: cost groups and cost determination