The key to effective cost management is to enable clients’ requirements to be detailed and the scope of works fully identified and costed within the project cost plan.
For the provision of robust cost engineering a cost plan is an essential tool to enable projects to be delivered within budget. The process of developing a cost plan often highlights areas of risk and uncertainty and may well help to clarify the team’s thinking on issues of scope, specification and programme; all of which affect the cost.
Risk analysis can be undertaken to seek to identify the expected outturn cost of a project and to develop mitigation measures to each risk. Software such as @risk can be used to simulate risk occurrences.
By using a cost plan during a project, cost can be managed and not just reported upon.
Our services within this area include:
Development of cost models
Design to cost
Estimating from base principles
Elemental cost estimating
Our application and development of “Best Practice” Cost Engineering processes ensures we can complete accurate cost forecasting which is vital to establish the cost plan.
Once the plan is established, a strict contract management process must be maintained to administer change during the life of a project, the cost plan management through cost control, and performance measuring including earned value techniques.