SERVICES
Cost Management
Cost Planning & Cost Modeling
MODE PM shall assist the Client’s financial and procurement departments to design, update and develop the cost elements of the development. MODE PM will identify phases or lots of the development and associate cost planning and estimating which Design Team shall follow in matching the design development, contracts and deliverables with the cost planning and estimating strategy. MODE PM will also agree with the Client on a suitable contingency allocation.
The initial cost model will include the following items:
- Project WBS and CBS to identify an easy-to-update structure for the project,
information throughout the development phases, - Main Building categories (substructure, superstructure, services, etc.),
- Building type and incidence of different cost items,
- Asset’s base selling specifications reflected to model,
- Target square meter costs for identified product,
- Early identification, development, and update of “Asset’s product cost schedules”.
Cost Estimating
MODE PM shall do estimates of development costs; by managing a Quantity Surveyor (QS) Consultant which will also produce Bills of Quantities to be used in Tenders. Development of estimation will be through an Elemental Cost Plan which shall also outline the target Construction budgets.
Cost estimates and report staging shall be based on the following design stages.
i. Final Schematic Design.
ii. Draft Detailed Design.
iii. Final Detailed Design.
iv. Tender and Construction Documentation Sets
There will be detail analysis of quantities, materials, construction methodologies and comparison to previous estimates for each above stage.
Cost Control
MODE PM will advise the Client of any concerns including any circumstances which may or will have a cost effect and which are not taken into account in budgets, estimates, cost plans, cost comparisons, cash flow forecasts and cost reports.
A cost report to the Client will be provided at the end of each month with details of the estimated final account, a comparison with approved contract expenditure, the cost effect of Variation Orders and Variation Order Requests under consideration, the cost effect of claims (actual and potential) for additional payments, adjustment of Provisional Sums, the status of the re-measurement of the Works (where applicable) and cash flow forecasts and risk profile.
Also, the reports shall be identifying improvement areas, opportunities for savings, and key performance of cost elements by Earned Value Analysis.