The cost of a project is the most significant factor in its becoming a reality. Costs are dealt with at the beginning of a project by a conceptual cost estimate incorporating relevant historical cost data and the creative skill of a seasoned estimator with similar project experience. The result of this estimate is a “project budget.” This is the most important, as well as the most difficult, type of estimate to prepare accurately.
As a project evolves through the normal design process, additional evaluations of cost (cost checks) are made. These cost estimates are done as precisely as possible and include appropriate contingencies for unknown items. These “concept estimates” help to keep the project design within budget. Once the design is complete, the project is bid by building contractors utilizing a variety of estimating methods. A final Pre-tender estimate is normally prepared as a check for the owner to ascertain the right financing is available to implement construction, and as a measure to gauge actual costs against relative market prices.
Project Cost Monitoring
We provide Mortgage Monitoring services to Owners and financial institutions for both residential and commercial projects. We review the Developer /Contractor’s budget as part of the initial report process then make monthly site visits during construction to certify the value of work done to date and update the budget to account for any scope changes which may have occurred. We also certify progress in monthly reports for Client’s Project Managers as an added service to Cost management during design.
Our approach is to start with an initial report, where we will check the Contractor/Developer initial budget. In our report/service we translate these costs into elemental units to be able to analyze and consistently measure progress at progress claim reviews.
Although we do not provide assurances as to quality, we include Professionals quality & code assurance reports in our monthly draw reports. Anytime we see construction that is questionable or non-compliant LCVM directly reports issues directly to the prime or engineering consultants responsible.
The purpose of the cost monitoring is to determine authorization for Cost Control, and Expenditure.
As the project is being built, estimates are prepared establishing the cost of changes and “extras,” for purposes of negotiating changes with contractors. A Procedure Manual will provide a basis for the many areas of estimating that may be faced by the construction professional. It will provide examples to facilitate a familiarity with different types of estimates and their components. With this basis, a person, through research, study and practical application, can further expand their cost estimating skills relative to their own profession or branch out into new areas of estimating.
Business Case Development
A business case is a proposal or argument, usually documented, that is intended to convince a decision maker to approve some kind of action. LCVM has a structured process integrating Value Engineering principals that covers project and scope identification, includes background and statistics gathering to develop alternatives. The development of a working document with our clients includes a Cost Benefit Analysis & Life Cycle costing for implementation. Analyzing each project in quantitative and qualitative terms, every business case has to articulate a clear path to an attractive return on investment (ROI). Every business case is presented in a well-structured written document. We prepare Professional “Quantity Surveyors Opinion of cost” reports as will as preparation of documents for loan or monitoring services.
Contractor's Take-off and Pricing
LCVM provides a professional measuring and estimating Service for External contractors and Sub-trade Contractors, bidding commercial and industrial lump sum tender projects. This scope can include the development of Bills of Quantities and Specifications. We work confidentially with a number of preferred contractors, measuring/pricing General Contractor and specific Trade companies.
On a global perspective, governments are in a situation where ready cash is not available for major Construction Initiatives and Infrastructure / Facilities are traditionally paid for up front, and the benefits to the users lasts the economic life of the buildings (normally 30-50 years). DBFM (Design Build Finance and Maintain) contracts are developed to spread these initial capital costs over a longer period (the DBFM contract life) while providing guarantees on the building quality and maintenance.
LCVM provides costing assistance to the owners and designers assisting in budget development and evaluating best value alternatives for these projects.
The Integrated Project Delivery Process (IPD) is a non-traditional framework that turns individual participants – consultants, engineers and contractors – into collaborative team members. The IPD approach ensures that the whole project team shares responsibility for planning and execution, contractually aligning the team with a united vision for the completed project.
Life Cycle Costing
Life Cycle costing is applied for Owners in decision making, especially at early design stages. LCVM have done various studies on building systems and components, as well as total project assessment of alternatives over multi-year projections. We provide Net Present Value assessments over selected time frames. with Capital , Annual and Cyclical cost estimates combined. LCVM also provides this service for local Quantity Surveying and Engineering firms.
The purpose of Value Management workshops and studies is to develop consensus on user needs and determine the optimum solution for the benefit of all the stakeholders. Value Management for construction is applied at strategic & conceptual planning, during design development, in construction stages and also used for continuous improvement during operations. LCVM and OUR associates provide full-service Value Management / Value Engineering services.
The design and construction of any modern building is a very complex matter which offers, for each discipline, numerous alternatives that are often interdependent and have competing, functional, aesthetic capital cost and long term operating (life cycle) cost implications. LCVM has facilitation experts available to lead Value Management initiatives and also have Quantity Surveyors on staff trained specifically to provide Whole Life Costing to evaluate Capital, Operating and Cyclical cost impacts for Workshops and Business Cases.
This is a new method of government aquisition for design and construction services. A shadow bid takes place at the same time as a contractor’s bid in order to demonstrate value for money and ensure fair expenditure of taxpayer funds. The City of Edmonton completed a pilot project in 2017, and LCVM is involved in “Shadow Bidding” from 2019 through to 2023.
Insurance and legal claims
We provide expert witness reports for construction related claims, including change order issues