Cost Management

Cost Management

WHY USE OUR COST MANAGEMENT SERVICE?

Cost Management is a skill. It is about delivering projects that meet all of the functional and operational requirements of our clients within their budgets.

It combines the use of sector-specific cost data, quantification, and pricing expertise with the ability to work collaboratively with clients, designers, contractors, and supply chain partners to deliver optimised outcomes.

Cost Management is viewed as a managerial process, that generates information to support decision-making, to stimulate cost reduction and continuous improvement.

 

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It requires detailed understanding of the design, procurement, construction and operational aspects of projects. Our sector specialists use their in-depth knowledge of the cost and value drivers on projects to predict and control construction costs from inception to completion.

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Key services

Construction Cost Management

Construction cost management involves the process of planning, controlling, and monitoring the costs related to a construction project. It encompasses various activities such as estimating costs, budgeting, cost control, and financial reporting.

The goal of construction cost management is to ensure that the project is completed within the allocated budget while maintaining the desired quality and meeting the specified requirements. Effective cost management involves careful analysis of expenses, proactive budgeting, and diligent monitoring of expenditures throughout the construction process. It also involves identifying cost-saving opportunities and implementing strategies to optimize resources and minimize financial risks.

Overall, construction cost management plays a crucial role in the successful execution of construction projects.

Project Budget Preparation

Construction budget preparation involves the systematic process of estimating the total costs associated with a construction project, from inception to completion.

This comprehensive process includes identifying and quantifying all expenses related to labour, materials, equipment, permits, subcontractors, overhead, and contingencies. Additionally, it involves forecasting potential cost escalations, market fluctuations, and unforeseen expenses to develop a realistic and resilient budget.

The construction budget serves as a financial blueprint, guiding project stakeholders in making informed decisions, allocating resources, and monitoring expenditures throughout the construction lifecycle.

Thorough budget preparation is crucial for ensuring that the project remains financially viable, stays on track, and achieves its objectives within the specified financial constraints.

Cost/Value Engineering

Cost value engineering is applied to identify opportunities to optimize project costs without compromising the project’s objectives or quality.

This process involves examining various aspects of the construction project, such as materials, design, construction methods, and systems, with the goal of achieving cost savings while maintaining or enhancing overall value.

Cost value engineering typically involves collaboration among various stakeholders, including architects, engineers, contractors, and clients, to brainstorm and implement innovative ideas that can reduce costs, improve efficiency, and enhance the project’s value. The ultimate aim is to achieve the best possible value for every pound spent on the construction project.

Project Estimating

Project estimating is the process of forecasting and approximating the costs, resources, and duration required to complete a specific project. It involves evaluating and quantifying various elements such as labour, materials, equipment, overhead, and other expenses associated with the project.

Project estimating is a critical phase in project management, as it provides the basis for budgeting, resource allocation, and decision-making throughout the project lifecycle. Accurate project estimating requires a comprehensive understanding of the project scope, specifications, and requirements. It involves analyzing historical data, utilizing industry benchmarks, consulting with subject matter experts, and considering various factors that may impact costs and timelines.

The goal of project estimating is to provide stakeholders with reliable cost and resource projections, enabling informed decision-making, risk management, and effective planning.

Project estimating is essential for developing realistic project budgets, facilitating contract negotiations, and establishing a solid foundation for project execution. It plays a crucial role in ensuring that projects are completed within budget and on schedule.

Cost Reports

Cost reports are comprehensive documents that provide detailed information about the financial aspects of a project, including its expenditures, budget allocations, and cost performance.

These reports typically include a breakdown of costs by category, such as labour, materials, equipment, subcontractors, and overhead expenses. They also compare actual costs to the budgeted amounts, highlighting any variances or deviations. Cost reports serve as valuable tools for project management, offering insights into the financial health of a project and enabling stakeholders to make informed decisions. They provide visibility into where the project stands in terms of costs, identify potential cost overruns or savings, and help in forecasting future financial needs.

Additionally, cost reports facilitate transparency and accountability by documenting the financial progress of the project and providing a basis for financial analysis and performance evaluation. They are essential for tracking project costs, identifying trends, and making adjustments to ensure that the project remains on track financially.

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