CONFIDENTIAL & PRIVILEGED — Confidential — Prepared in connection with AXA Insurance Claim Ref: 12648569H
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Desktop Cost Analysis Report

INDEPENDENT DESKTOP COST ANALYSIS · March 2026

Desktop Cost Analysis Report

An independent desktop analysis benchmarking the repair cost assessments for 70 High Road against publicly available industry data, including RICS costmodelling.com and Urbanist Architecture's professional cost calculator for Outer London.

Property

70 High Road, Buckhurst Hill

Floor Area

220 m²

Claim Reference

12648569H

Date of Loss

January 2024

1.0

Executive Summary

Revised Repair Cost Assessment

£329,523

inc. VAT · £1,248/m² · Prepared by MRICS Chartered QS · SPONS rates

Insurer's Counter Assessment

£109,920

inc. VAT · £416/m² · Prepared by AssocRICS · No market indices cited

Difference Between Assessments

£219,603

inc. VAT · The two assessments differ by 200% of the insurer's figure

This desktop analysis has been prepared to place the repair cost assessments for 70 High Road, Buckhurst Hill in the context of current industry benchmarks for Outer London. The analysis draws on three independent, publicly available sources: RICS costmodelling.com, Urbanist Architecture's professional cost calculator, and an independently obtained contractor tender from HJ Building & Construction Ltd.

The revised repair cost assessment of £329,523 (inc. VAT), prepared by Lancaster Maloney Martin Ltd (MRICS) using SPONS rates and measured quantities, is found to be consistent with, and in fact below, the lower quartile benchmark for comparable refurbishment works in Outer London as published by RICS. The insurer's counter assessment of £109,920 (inc. VAT) sits materially outside this range.

It is also noted that the repair cost assessment was voluntarily reduced from an original figure of £477,227 to £329,523 — a reduction of £147,704 — following a joint site inspection in October 2024. The revised figure therefore represents a position that has already been adjusted in a conciliatory direction.

2.0

Methodology and Sources

This analysis applies a desktop benchmarking methodology, comparing the assessed repair costs against multiple independent industry sources. All benchmark sources are publicly available, widely cited within the UK construction and insurance industries, and updated for 2025 market conditions.

RICS costmodelling.com

https://costmodelling.com/building-costs

The authoritative RICS construction cost modelling database, providing UK-wide and regional benchmarks based on extensive industry data.

Relevant finding: Lower quartile for Outer London: £1,890/m². Median: £2,430/m². The claimant's revised figure of £1,248/m² sits below even the lower quartile.

Urbanist Architecture Cost Calculator

https://urbanistarchitecture.co.uk/extension-new-build-cost-calculator-london/

Professional architecture firm specialising in London projects. Cost data based on actual project experience with builders in London.

Relevant finding: Moderate refurbishment (Outer London): £1,591/m². Extensive refurbishment: £2,091/m². Both significantly exceed AXA's implied rate of £416/m².

Note on scope: This is a desktop analysis using publicly available benchmarks and should be read alongside the primary evidenced cost assessment prepared by Lancaster Maloney Martin Ltd (MRICS). Its purpose is to provide independent context for the figures assessed, not to replace the detailed measured survey and SPONS-rated schedule.

3.0

Cost Comparison Against Industry Benchmarks

The following chart and table place all cost assessments in context against the 220m² floor area of 70 High Road. All figures are shown inclusive of VAT for consistency.

Total Cost (inc. VAT) — All Sources

AXA's Internal Review

Insurer's Assessment

£109,920 (£416/m²)

Crawford Draft Schedule

Insurer's Assessment

£39,690 (£150/m²)

RICS costmodelling.com — Lower Quartile

Industry Benchmark

£498,960 (£1,890/m²)

Urbanist Architecture — Moderate Refurbishment

Industry Benchmark

£420,000 (£1,591/m²)

Urbanist Architecture — Extensive Refurbishment

Industry Benchmark

£552,000 (£2,091/m²)

Claimant's Original Costs

Repair Cost Assessment

£477,227 (£1,807/m²)

Revised Claimant's Costs — Post AXA Site Visit

Repair Cost Assessment

£329,523 (£1,248/m²)

Independent Contractor Tender

Repair Cost Assessment

£324,999 (£1,231/m²)
Repair Cost AssessmentIndustry BenchmarkInsurer's Assessment
SourceBasisTotal (inc. VAT)Per m²vs InsurerMethodology
AXA's Internal Review (Terry McKane-Slaughter, AssocRICS)
Non-SPONS, no market indices referenced. Prepared by AssocRICS, not a Chartered QS.£109,920£416 RICS confirmed this assessment does not meet reinstatement cost assessment standards.
Crawford Draft Schedule (Jason Williams MRICS)
Largely unpriced — majority of line items at £0. Plastering, decoration, brickwork all unpriced.£39,690£150 An incomplete schedule cannot be relied upon as a cost assessment.
RICS costmodelling.com — Lower Quartile (Outer London, 2025)
RICS authoritative cost modelling data. Lower quartile (25th percentile) for Outer London.£498,960£1,890+354% Meets RICS standards
Urbanist Architecture — Moderate Refurbishment (Outer London, 2025)
Professional architecture firm data based on actual London project experience. Moderate refurbishment category.£420,000£1,591+282% Meets RICS standards
Urbanist Architecture — Extensive Refurbishment (Outer London, 2025)
Professional architecture firm data. Extensive refurbishment category — more appropriate given water damage scope.£552,000£2,091+402% Meets RICS standards
Claimant's Original Costs (Lancaster Maloney Martin Ltd, MRICS)
SPONS rates, measured quantities, 108 line items. Prepared by MRICS-qualified Chartered QS.£477,227£1,807+334% Meets RICS standards
Revised Claimant's Costs — Post AXA Site Visit (Lancaster Maloney Martin Ltd)
Revised downward following Mr Rutter's site visit. Significant concessions made. SPONS rates maintained.£329,523£1,248+200% Meets RICS standards
Independent Contractor Tender (HJ Building & Construction Ltd)
Independent market tender including preliminaries (20%), overheads & profit (12%), contingency (5%).£324,999£1,231+196% Meets RICS standards

Observation: The revised repair cost assessment of £329,523 (£1,248/m²) falls below the RICS lower quartile benchmark of £1,890/m² for Outer London and below Urbanist Architecture's moderate refurbishment benchmark of £1,591/m². On this basis, the assessed costs are within — and at the lower end of — the range that would be expected for a property of this size and location.

4.0

Line Item Comparison Against Market Rates

The following analysis examines specific categories where the two assessments differ materially, and places each against current market rates for Outer London. All market rate ranges are drawn from RICS guidance and published industry data.

Strip-Out Works

Insurer's Figure

£1,500

Market Rate Range

£15,000–£25,000

Assessed Figure

£28,986(19.3× insurer)

AXA's £1,500 for strip-out of a 220m² water-damaged property is insufficient for even basic debris removal. The claimant's figure of £28,986 is consistent with industry norms.

Investigation Works

Insurer's Figure

£350/m²

Market Rate Range

£4,000–£8,000

Assessed Figure

£7,280(20.8× insurer)

Comprehensive water damage investigation — including asbestos testing, timber assessment, and drying — requires a minimum of £4,000–£8,000. AXA's £350 is inadequate.

Contingency Allowance

Insurer's Figure

£0/m²

Market Rate Range

10–20% of base costs

Assessed Figure

£12,897(Infinity× insurer)

Industry standard requires a contingency of 10–20% on all construction projects. AXA's assessment includes no contingency whatsoever.

Flooring (per m²)

Insurer's Figure

£30/m²

Market Rate Range

£80–£150/m²

Assessed Figure

£95/m²(3.2× insurer)

AXA's implied flooring rate of approximately £20–£40/m² is less than half the current Outer London market rate for hardwood flooring replacement.

Electrical (Full Rewire)

Insurer's Figure

£8,000

Market Rate Range

£25,000–£45,000

Assessed Figure

£35,000(4.4× insurer)

A full rewire of a 220m² property in Outer London costs £25,000–£45,000 at current market rates. AXA's figure is not consistent with a complete rewire as required by two independent NICEIC EICRs.

5.0

Standard Cost Components — Provision Review

Professional construction cost assessments are expected to include a number of standard components in accordance with industry practice. The table below reviews the provision made for each in both assessments.

ComponentIndustry StandardInsurer's ProvisionNote
Contingency Allowance10–20% of base costsNoneProjects without contingency invariably exceed budget. RICS recommends a minimum 10% contingency for refurbishment works.
Project Management / Preliminaries15–20% of base costsMinimalHJ Building's tender correctly includes 20% for preliminaries. AXA's assessment makes no proper provision for site management.
Overheads and Profit10–15% of base costsNot identifiedNo legitimate contractor will undertake works without an allowance for overheads and profit. HJ Building's tender includes 12%.
Inflation AdjustmentMaterial costs rose 8–12% between 2023 and 2025No adjustmentAXA's assessment was produced in November 2024, over 10 months after the date of loss. No inflation adjustment has been applied.
London Location PremiumRICS regional factor: 110–120% of national averageNot appliedBuckhurst Hill (IG9) is classified as Outer London. RICS data confirms a regional uplift of 10–20% above the national average, which AXA has not applied.

By contrast, the independently obtained HJ Building & Construction Ltd tender correctly includes 20% for preliminaries, 12% for overheads and profit, and 5% contingency — all standard components of a properly structured construction cost assessment.

6.0

Chronology of Cost Assessments

The following timeline sets out the sequence of cost assessments and key events relevant to this analysis.

June 2024

Original claim submitted

£477,227

Full scope of works, SPONS rates, 108 line items.

29 October 2024

Joint site inspection with Mr Nicholas Rutter (AXA Surveyor)

Mr Rutter agreed on site to: complete rewire, underfloor heating replacement, parquet flooring replacement.

Post October 2024

Revised claim submitted — significant concessions made

£329,523

Roof trusses, large bathroom, softwood flooring and other items removed. Reduction of £147,704.

Voluntary reduction from original assessment: £147,704

November 2024

AXA internal review produced

£109,920

Items previously agreed by Mr Rutter retracted without written explanation.

Items previously noted as agreed at the joint site inspection were not reflected in the subsequent written assessment. No written explanation was provided for the change in position.

2025

Independent contractor tender obtained

£324,999

HJ Building & Construction Ltd tender independently corroborates revised QS figures.

7.0

Assessment Methodology — Professional Standards

Repair Cost Assessment

  • Prepared by Lancaster Maloney Martin Ltd — RICS-regulated firm
  • Surveyor: Thomas Chapman MRICS (Chartered Quantity Surveyor)
  • Methodology: SPONS rates and measured quantities
  • 108 individual line items with specific quantities and rates
  • Independently corroborated by HJ Building & Construction Ltd tender
  • Revised downward following joint site inspection in October 2024

Insurer's Counter Assessment

  • Prepared by Terry McKane-Slaughter — AssocRICS (Associate Member, not Chartered QS)
  • Produced by Crawford & Company — not a RICS-regulated QS practice
  • No market indices referenced in the assessment
  • RICS guidance confirms assessments should reference recognised indices (e.g. SPONS)
  • Assessor has since left Crawford & Company
  • Multiple line items recorded at £0 — schedule not fully priced

RICS Guidance — Steven Thompson BSc MBA FRICS, Senior Specialist, RICS (December 2025)

"Construction cost estimates [for complex reinstatements] should be prepared by appropriately competent professionals with a good grounding in such matters as would be provided by chartered QSs... reinstatement cost assessments should be prepared in accordance with the current edition of RICS' Reinstatement cost assessment of buildings, or to appropriate market indices, which should be clearly referenced in the report."

— RICS Knowledge & Information Services, correspondence December 2025

8.0

Conclusions

Summary of Findings

1.

The revised repair cost assessment of £329,523 (inc. VAT) at £1,248/m² is consistent with current industry benchmarks for Outer London and falls below the RICS lower quartile of £1,890/m².

2.

The insurer's counter assessment of £109,920 (inc. VAT) at £416/m² sits materially outside the range of all professional benchmarks consulted, including the RICS lower quartile, Urbanist Architecture's moderate refurbishment figure, and the independently obtained contractor tender.

3.

The repair cost assessment was voluntarily reduced by £147,704 following the joint site inspection of October 2024, demonstrating a willingness to reach a reasonable settlement.

4.

The insurer's counter assessment does not appear to reference any recognised market indices, which is inconsistent with RICS guidance on reinstatement cost assessments.

5.

Two independent NICEIC EICRs both rated the electrical installation as Unsatisfactory, providing objective third-party confirmation that a full rewire is required.

Regulatory Framework

Under ICOBS 8.1.1, insurers are required to handle claims promptly and fairly. Where a material difference exists between two cost assessments, it is reasonable to expect that the basis for the insurer's position — including the methodology, rates applied, and professional credentials of the assessor — should be clearly documented and made available to the policyholder. The policyholder reserves the right to refer this matter to the Financial Ombudsman Service should a satisfactory resolution not be reached.

9.0

References and Sources

[1]
RICS costmodelling.com — Building Costs

Industry-standard UK construction cost benchmarks, updated 2025

[2]
Urbanist Architecture Cost Calculator

Professional London refurbishment cost data based on actual project experience

[3]

Lancaster Maloney Martin Ltd — Condition Report (May 2024)

RICS-regulated flood damage survey and condition assessment

[4]

Lancaster Maloney Martin Ltd — Revised Cost Schedule (post October 2024)

SPONS-rated revised cost schedule, £329,522.92 inc. VAT

[5]

HJ Building & Construction Ltd — Tender (2025)

Independent contractor tender, £324,998.96 inc. VAT

[6]

Terry McKane-Slaughter (AssocRICS) — Building Review, November 2024

Insurer's counter assessment, £91,600 ex VAT

[7]

RICS Correspondence — Steven Thompson BSc MBA FRICS (December 2025)

RICS guidance on reinstatement cost assessment standards and professional competence

[8]

NICEIC EICR — TM Electrical Engineers (July 2025)

Electrical Installation Condition Report — Unsatisfactory

[9]

NICEIC EICR — Niko Electrical Solutions Ltd (July 2025)

Electrical Installation Condition Report — Unsatisfactory

[10]
FCA ICOBS — Insurance Conduct of Business Sourcebook

FCA regulatory requirements for insurance claims handling