From conception the initial budget is derived from previous similar projects. Floor area by the appropriate rate is the method most frequently utilised at this early stage to establish the overall budget. This overall budget evolves into the Cost Plan as the decision is made to proceed.
The Cost Plan is the key control document to ensure accurate budget control. Costs must be balanced against aesthetics, quality and time to achieve an acceptable budget. As the scheme design evolves each building element must be checked to ensure it remains within its limit and within the overall budget constraints.
At Insight Project Services we utilise Buildsoft Global Estimating and Microsoft products to produce detailed Cost Plans.
The Cost Plan is prepared in conjunction with the project team and takes into account all known requirements. The Cost Plan also makes contingency allowances for certain unknown items or risks. Risks should be identified and controlled to prevent future 'surprises'. The Cost Plan facilitates the decision making process in seeking alternatives should they be required.
Choosing the most suitable procurement route will depend on attitudes towards quality, flexibility, cost control, risk allocation and speed.
Cost control is reinforced by detailed tender and contract documentation. Bills of Quantities are essential for identifying the most competitive tender as all contractors are pricing the same documents.
Insight Project Services can assist in Project Cost Control and Planning by providing the following services:
- Preparation of detailed elemental Cost Plans
- Risk Identification and Analysis
- Identifying Value Management opportunities
- Selection of the appropriate Procurement Route
- Preparation of Bills of Quantities
- Preparation of Tender and Contract Documentation
- Advice on Contractor Selection
- Preparation of Tender Reports
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