If your architect friend has done projects like this before can they recommend some builders you can get quotes from? As well as cost, you want builders you can rely on.
Are you planning to live there while the building work goes on? After our experience last year of having less intrusive work than you are planning, I would say you'd be mad to ;) If your parents still live nearby could you move there at least to sleep/eat wash while the work is at it worst? Or rent somewhere. if you are nearby that would help so you can turn up to the building site when (yet another) a decision needs to be made and talk to the builders face to face.
Planning permission needed? You'll need someone from the council to come out and check it's all legal at some points in the process. I'm worryingly vague on this - our builder and architect organised all that side of things - but I think I mean building control. If it is needed, allow at least 3 months.
Costs - no idea how much what you are planning would be, again I'd ask the architect to draw up plans for a certain budget, then check the quotes you get from builders are close enough to this. Then add several thousand on top. Plus some more. We didn't think of so many extras in our budget (curtains, cost of decorator, cost of flooring, new/extra furniture) and this was after some months of making lists of everything.
To keep costs down you would have to project manage the build yourselves. Ultimately this would involve finding and scheduling workmen, organising when materials are needed on site and scheduling deliveries, paying all involved, checking everything is running smoothly. We were far too inexperienced to attempt this (no contacts, no experience of building work beyond basic DIY), and the only people I know who have considered this are on their third extension.
Assuming no reinforcing had to be done on the single story, I'd expect a build time of 2-3 months, plus extra for delays (weather, unexpected discoveries). Keep the time needed down by moving out, then the builders won't have to work round you and make things vaguely habitable at the end of the day.
And I completely agree with Hermione - keep records (we had a piece of A4 paper stuck to the wall, when I gave the builder money, he signed and dated the amount he received) and keep the tea/coffee/biscuits stocked.
I'd recommend a portaloo as well.