Using Benchmarking to Optimise Project Costs

Don’t guess — compare.

Better Data Results in Better Decisions

One of the biggest challenges in construction cost management is understanding what normal looks like. Without data, it's hard to determine whether your estimates are realistic, your procurement is competitive, or your design choices are financially efficient.

That’s where cost benchmarking comes in.

At DQS, we utilise benchmarking to help clients make smarter decisions from the outset. By comparing your project to similar schemes in our database, we can identify where your cost plan stands and where opportunities for optimisation may exist.

What Is Cost Benchmarking?

quantity-surveyor-calculator-pen-budget-sheet

Cost benchmarking involves comparing your project costs—both forecast and actual—against established data from similar projects.

It helps you understand:

Whether your budget aligns with market standards
Where your design might be causing cost deviations
How procurement routes influence final expenditure
Which work packages are performing below or above expectations
What cost-saving opportunities could be worth exploring

It turns intuition into evidence.

How We Use Benchmarking at DQS

We incorporate benchmarking at every stage of cost planning and project delivery. Our service includes:

Access to historical cost data from previous live projects
Use of BCIS and other industry-wide data sources
Comparative analysis at the elemental or work-package level
Insights into market shifts, inflation trends, and regional variations
Custom benchmarking reports tailored to your sector and scope

We present this data in clear, visual formats to support stakeholder confidence and financial transparency.

Why Benchmarking Delivers Value

Cost benchmarking is a proven technique that enables project teams to compare their budgets, estimates, or outturn costs against reliable industry data and similar schemes. By measuring performance against recognised standards, benchmarking helps ensure that decisions are not made in isolation but are informed by real market intelligence. Benchmarking is especially useful when:

Developing early feasibility studies or business cases — it provides a reality check on initial assumptions and ensures proposals align with market norms before significant design work begins.
Reviewing contractor pricing during the tender stage — comparing submitted bids with benchmark data highlights potential overpricing or areas where negotiation can improve value.
Identifying value engineering options — benchmarks reveal opportunities to achieve the same performance at lower cost without compromising quality or compliance.
Assessing scope changes during delivery: Real—time comparison with industry data helps evaluate whether variations reflect fair market value.
Closing out projects and validating final accounts — benchmarking final costs against similar projects provides reassurance that the scheme has delivered value for money.

In summary, benchmarking broadens your view of project performance. It enables clients, contractors, and consultants alike to test assumptions, challenge costs, and make evidence-based decisions with confidence that the figures are accurate.

FAQ

      What’s the difference between benchmarking and cost planning?
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      Cost planning builds a forecast; benchmarking checks that forecast against external data.
    
      Is benchmarking only useful early in the project?
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      Not at all — it’s valuable at multiple stages, from feasibility through to final account.
    
      Where does benchmarking data come from?
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      We use a combination of internal project data, BCIS, and published industry sources.
    
      Can benchmarking identify if a tender is overpriced?
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      Yes — we often use benchmarking to flag outliers and assess tender competitiveness.
    
      Will benchmarking compromise contractor confidentiality?
      ⌄
    
      No — we anonymise all data and follow strict confidentiality protocols when sharing insights.

Discover more

We offer a comprehensive range of quantity surveying services, helping you push the boundaries of sustainability in construction.

Want to Benchmark Smarter?

Whether you're just starting or already deep into delivery, benchmarking can improve the quality of your decisions. Talk to DQS about using cost data to optimise your next construction project.