Category: Tips

#2 Understanding the tools for Cost management/control

by elia gonzalez

Pre-tender estimates / Skøn før udbuddet

Pre-tender estimates are prepared immediately before calling the first tenders for construction.

This is the final cost-check undertaken by the cost manager before tender bids for the building project, or any part of the building project, are obtained.

Therefore, it is essential that the design has finalized, the project has been quality checked, and no more changes to the project material are done after the Quantity Surveyor begins the Tender estimate.

This way, the estimate is based on the very same conditions that the different contractors will base their own offers in the tender. This allows as well to prepare the basis for the tender analysis later on, and allows to compare side by side all offers received against the pre-estimate expected.

When a bill of quantities (BQ) is the basis of obtaining a tender price, the pre-tender estimates will be based on the BQ.

6 advantages of having cost management on projects for total advisors

by elia gonzalez
  1. Highly qualified specialist discipline focusing on economy.
  2. continues economy control of the design development.
  3. Value driven design development removing the risk for redesign.
  4. High quality structured estimates and report to the client showing clearly project change and development.
  5. Clear change, risk and economy process with full integration with design disciplines.
  6. Reduction of the risk for redesign due to not design within the budget frame work.

6 advantages of having cost management on projects for client advisors

by elia gonzalez
  1. Higher quality economic advice for clients.
  2. Completely alternative perspective in project setup, control and delivery.
  3. Continues project economy control and focus.
  4. Reduction of the risk of redesign or economy failure.
  5. More economy focused contracts with design teams and contractors.
  6. Complete commercial strategy for the project including project controls process thus offering high quality of service to clients.

6 advantages of having cost management on projects for developers

by elia gonzalez
  1. A clear commercial strategy is implemented ensuring clear guidelines for managing the cost through the entire project life cycle.
  2. A clear risk management strategy with calculated risk and contingency allocations.
  3. Continues follow up and management of the project economy.
  4. High quality economic documentation and guidelines for the Client Advisor and Total Advisor to follow.
  5. A different perspective and knowledge base focusing 100% on economic impact.
  6. Procurement specialist focusing of valuable commercial information.

Commercial benefits of ensuring a good quality of the design when tendering

by elia gonzalez

A good quality of the design when tendering, from a Commercial perspective, will:

  • Reduce the contractor’s uncertainties and risk considered.
  • Keep to a minimum changes during the construction period.
  • Minimise the number of claims due to on-site decisions to deal with design deficiencies.
  • Secure there is no missing scope on the tender offer.
  • Strenth the project specific contract conditions between parties.