Project cost report · April 2026
M&E Subcontract · Leodis Developments Ltd
Contract value
£520,832
Net of MC discount, inc VO#1
Cumulative application
£103,387
Apps 1 & 2, ex retention
Retention held
£5,169
5% of applications
Cost of sales
£60,989
Parts, labour & subcontracted
Gross profit
£42,398
41.0% margin
Position summary
The project is tracking well at the end of April 2026. 19.85% complete against contract, with cost of sales running £9,247 under the expected spend for this stage — an encouraging early-stage performance. The 41.0% gross profit margin is in line with budget and, if the current burn rate holds, projects to a final gross profit of approximately £213,581. Two applications have been submitted totalling £103,387 net of retention. The primary risks at this stage relate to subcontracted packages not yet formally invoiced and the volume of scope items yet to commence.
| Trade | Parts | Labour | Total | % of CoS |
|---|---|---|---|---|
| HVAC | £5,491 | £3,463 | £8,954 | 14.7% |
| Plumbing & Heating | £11,111 | £6,410 | £17,521 | 28.7% |
| Electrical | £11,455 | £3,500 | £14,955 | 24.5% |
| In-house subtotal | £41,429 | 67.9% | ||
| Heating / UFH (subcontracted) | — | — | £11,774 | 19.3% |
| Design — DSBSC (subcontracted) | — | — | £7,000 | 11.5% |
| Dry Riser (subcontracted) | — | — | — | No cost yet |
| Misc (equip hire, postage) | — | — | £786 | 1.3% |
| Total cost of sales | £60,989 | 100% | ||
P&H parts include pipe insulation (£168) and sanitaryware (£490). Heating/UFH, Design and Dry Riser are subcontracted.
Projected profit at completion
Projection based on current burn rate. Additional costs expected as subcontracted packages are invoiced.
Cost mix
Overall spend of £60,989 is £9,247 below the expected cost at 19.85% completion, which is an encouraging position. The majority of in-house trades are tracking within tolerance. The primary driver of cost to date is Plumbing & Heating (£17,521), reflecting the early-stage focus on mechanical first-fix and UFH installation across the block.
Heating/UFH subcontract spend (£11,774) is slightly ahead of the expected position based on line percentage, though this is consistent with the nature of screed and UFH work front-loading early in the programme. Electrical lines are largely underspent relative to their stage, reflecting work that has not yet commenced. No lines are materially over budget at this stage.
The project is at 19.85% overall completion based on cumulative applications. Work is concentrated in the mechanical trades, with Sub Mains Cabling (70%), Communal Riser Distribution (75%), and Containment (70%) the most advanced electrical lines. The UFH subcontract is progressing well at 25%.
A significant portion of the contract scope has not yet commenced — notably Distribution Boards & CU, CCTV, Fire Alarm, EV Chargers, External Lighting, and several finishing items. These are expected to commence in line with the build programme as the structure progresses. No lines are behind programme at this stage based on the current site sequence.
Two applications for payment have been submitted, totalling £108,556 gross (£103,387 net of retention). Both have been certified without dispute. Retention of £5,169 is being held at the standard 5% rate and will be released in line with the contract terms at practical completion and end of defects.
Application 3 is anticipated in May/June 2026 as further mechanical second-fix and electrical works commence. Given the current programme, the next application is expected to reflect progress on containment, sub mains, and distribution board commencement. The remaining unapplied contract value is £417,445.
Contract value summary
Retention position
Subcontracted packages not yet invoiced
Design (DSBSC), Dry Riser and remaining UFH works have not yet been fully invoiced. The cost budget includes provision for these. Monitoring required to ensure actual invoices are captured promptly and do not distort period reporting.
Owner: Finance — action: confirm invoice schedule with subcontractors
Burn rate projection assumes consistent cost profile
The projected final cost of £307,251 is based on the current burn rate of £3,073 per 1% of completion. This is likely to change as higher-value electrical packages commence. The projection should be reviewed once Application 3 is submitted.
Owner: Finance — action: refresh projection at App 3
Large volume of scope yet to commence
Over 60% of schedule lines are at 0% completion. While this is expected at the current programme stage, close monitoring will be required as the build programme accelerates. Fire alarm, EV chargers and CCTV are subcontracted items requiring procurement confirmation.
Owner: Operations — action: confirm procurement status of subcontracted packages
VO#1 basement screed complete
Variation Order #1 (£1,850) is at 100% completion and has been incorporated into the contract value. No further action required on this variation.
Closed
| Item | Value | Completion | Progress |
|---|
The contract value of £520,832 reflects the original sub-contract sum net of the main contractor discount, plus Variation Order #1 (VO#1 — basement screed, £1,850). Gross profit of £42,398 at 41.0% is consistent with the budgeted margin and reflects no cost overruns at this stage.
Retention of £5,169 has been withheld at the standard 5% rate across both applications. This will be recoverable in two tranches: 50% on practical completion and the balance at the end of the defects liability period. No disputes on certification have arisen to date.