Clients need a realistic assessment of the success rate of a potential project. We investigate both the technical and financial aspects of the project to assess the potential of moving forward with it and identify the best available delivery method.
Feasibility studies are complex by nature, given the wide range of topics they analyse. Risk, lifecycle costs, value for money, return on investment and many other factors should be balanced out to achieve optimum results. We perform comprehensive qualitative and quantitative assessments and provide our clients with pragmatic recommendations that best match their vision.
Budget Cost Advice
Accurate budgets are a key priority for clients, and completing the project within the allotted budget is paramount. Investors seek reasonable certainty about costs that are likely to be incurred on the project. Our budget cost advice helps clients to determine achievable cost limits for a project’s capital expenditure (CAPEX) and operational expenditure (OPEX), which enables them to set a reasonable target budget.
Our cost advice focuses on the sensitivity of the project costs in relation to risk, complexity of the building specification and constraints of the site, and the local supply chain, and assesses the costs of alternative design options to meet the client’s objectives.
Despite the high level of uncertainty surrounding projects, our experience and in-house database of current and existing project cost data contribute to achieve a reasonably confident cost assessment of every unique project we deal with.
In today’s fast-changing business environments, clients need a thorough strategic plan to make the most of their real estate portfolios. We advise on how to achieve optimum outcomes: increasing value and income, reducing costs and minimising risk exposure.
Our strategic planning service assesses the value of current assets and operating costs (OPEX) within the context of current market conditions. Advice on the opportunities for acquisitions, redevelopment of existing facilities and the optimum timing for disposals is provided, while taking into consideration both the taxation and legal perspectives.
Cost Management – Pre-contract
Clients need reliable information about costs throughout the different design stages of the project. Our project cost control service monitors costs throughout the various milestones, from early estimates of approximate order of magnitude to detail design conclusion.
Our cost planning and control uses current market cost information, together with statistical and historical data collected from previous projects, to provide reliable estimates. A well-established cost plan clarifies how and where the allocation of monies has been made and provides a framework for design and cost changes.
Costs are controlled through cost review meetings aimed at discussing stakeholders’ concerns and planning for the upcoming milestones.
Cost Management – Post-contract
Throughout the project execution stage, our post-contract cost management team works on maintaining costs within the client’s budget.
Our cost reporting process advises clients on current expenditure versus the approved budget, cost effect of variations and claims and cash flow forecasts. Our team also manages a change control system to contain the effect of changes on the actual project costs and expenditure.
Our cost managers quantify executed works, check payment applications, assess variations and claims and approve final accounts. They also conduct meetings with the client on a regular basis to advise on the current budget position and recommend corrective actions and/or adjustments whenever required.
The procurement strategy is fundamental to the project’s success. It influences the appointment of contractors and affects the time and cost expenditure. It identifies the best route for achieving the project objectives while realising the optimal value for money, taking into account the various risks and constraints on the project.
Our vast experience in procurement enables our team to recommend the best procurement strategy, based on the client and the project’s needs. Those project delivery methods range from traditional contracts, where design and construction are separate responsibilities, to integrated project teams collaborating over the whole life of the project.
The tendering process is key to the project success; selecting the best contractor or integrated project team to deliver the project is crucial.
The selection process should account for the technical experience and past performance of the tenderers, rather than focus solely on the cost element of the tender.
Our long experience in tendering encompasses supporting our clients throughout the tendering process, from establishing the project brief and tender documentation to selecting the most suitable contractor and finalising the contract.
Lifecycle costing has a major impact on the design and construction options: up to 80% of the operation, maintenance and replacement costs of a building can be determined in the first 20% of the design process.
In our view lifecycle costing should be considered for every construction project in the same way as for CAPEX and OPEX cost planning. Our lifecycle cost analysis quantifies the costs of construction, maintenance, operation and disposal of a built asset, over key milestones of the project. It allows alternative options to be compared on the same basis.
Project Cost Benchmarking
Project cost benchmarking provides reliable cost information from similar projects to help determine accurate estimates of a new construction project’s costs. It can be provided to the client as part of a report to show how their project cost compares to similar projects.
We use project cost benchmarking throughout the construction project. In the early stages, our analysis of data from relevant completed projects identifies a cost range and helps to set the budget. During design development and construction, we continue to monitor the client’s costs against project benchmarks, taking into account the uniqueness of each.