You are employed by a cost consultancy firm and are providing project and cost control services to your client, Coastal Holidays, who specialise in the rental of self-catering holiday villas.

Coastal Holidays owns a number of three- and four-bedroom holiday homes across the country and in order to expand their business they are about to embark on a programme of upgrading and refurbishing their existing holiday villas to high-end luxury accommodation.

Your boss has asked you to prepare guidance on a suitable cost plan for your line manager to review.

In the form of a briefing note, explain the process to be followed to prepare an elemental cost plan for this scheme. You must also critically discuss the factors that will have to be considered when choosing an appropriate cost analysis.

Include in your discussion examples of adjustments that may be required when using the data from an appropriate cost analysis.

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