Cost Planning-Cost Control | SFS Management Contracting

Cost Planning

The Architect and Structural Engineer have by and large completed their design work. Consequently, we will have drawings and specifications to work from for the actual building work.

We assume a feasibility study has been carried out, so there would be a reasonable understanding of any location based issues. Any problems will have been for the most part taken into account within the design.

Anyone who has read the article on Feasibility will have a fair idea of how much work was done. This was to make sure that the unexpected is kept to a minimum.

The scheme has probably been presented for planning by now. Therefore, we will know whether or not planning permission has been granted.

Now it’s time to find out what the construction is really going to cost. Accuracy is crucial to allow for the budgeting of all the essentials. Plus those little luxuries that always seem to crop up!

At this point most Self Builders or Developers are left completely swinging in the wind. There is nothing out there to help them determine the true costs of their project at a reasonable cost.

Getting a couple of quotes from local jobbing builders or tradesmen seems to be the favoured first approach. This is probably in a vain attempt to find out how much the work will cost.

But in their efforts to win the contract, local builders could be tempted to leave crucial elements off their estimate and add them later as extras. Also, it’s very hard to compare estimates written on the back of cigarette packets, or even worse, given verbally.

A main building company would almost certainly provide a detailed and properly scheduled, quantified price. A professional estimator normally carries this out, most likely using generic estimating software to give an accurate cost base.

Unfortunately, the type of costing software used for this purpose can be a bit rigid in its data input requirements. As a result, the document produced ends up looking more like a major book manuscript, than a schedule of work. Also, being so large and ultra technical, makes it very difficult for any layman to digest.

This cost of this process has to be covered of course. And when all things are considered, those companies will probably only get about 50% of any work they price. The cost of all the abortive estimates has to be included within the company overheads for the contracts they do get awarded. This is a perfectly reasonable position for them to take, as there are no free lunches in this life.

On the other hand we would carry out the Cost Plan process for you. The task requires high concentration and technical competence, which demands that the job be carried out by a proficient and experienced mind. Specifications, Drawings, Quantities, Prices, Hourly Rates, PC sums etc. All these things have to be juggled like plates in the air, whilst keeping one eye on the design to make sure nothing gets forgotten.

We use our own customised spreadsheets and estimating tools tailored to suit each individual project. Adjustments can made for the real world context of any given situation, instead of relying completely on the ‘book price’. Using our own work package format means that variations and additions are simpler to achieve. Later on the Cost Plan spreadsheets can be combined with other customised analysis tools, assisting with the control of expenditure.

The following is a PowerPoint presentation taking you through our Cost Plan process. Showing how we use our own flexible format to cost the Work Packages in the first place, then use the same tools to analyse the costs once the work begins.

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Our Pledge to You

To manage your project with a professional and non-partisan approach.

Work in partnership to gain the best from the Building Experience.

Assist you to finish up with the most cost effective project.