We recommend a coordination meeting be held for all members of the project team to highlight the objectives including target time, budget, and design/quality. A detailed programme is normally set up, clarifying a clear benchmark on each step with a specific person on duty and due date.
For cost planning, we normally provide professional services using the following steps:
- Brief Stage (Indicative) Cost Estimate
A first cost indication of the project based on the client’s need. This estimate is an important input to the property development feasibility study. By knowing this, the developer will know the margin of the project or the target purchase price on the land (under a certain profit level). Brief stage (indicative) cost estimate becomes the marker against which subsequent estimates are compared.
- Outline Proposal (Preliminary) Cost Estimate
A first cost estimate of the project based on the preliminary design concept. We prepare this based on the client’s brief, site condition, and preliminary design sketches, if any are available. The client may need this type of estimate to form a project proposal to attract funding, etc.
- Sketch Design Cost Estimate
A further developed cost estimate of the project based on sketched design drawings and sometimes, Development Approval documents. It presents the cost limits on the project and the design will follow this. The client may use this type of estimate to secure financial support.
- Tender (Construction Drawings) Cost Estimate
A most detailed cost estimate of the project based on fully designed tender documents or construction drawings. It not only limits the project budget but also allocates the total amount into different trades, providing a solid basis for cost-checking later. Practically, this type of estimate is used to assess the lowest prices on the tender and form the basis of tender analysis.
Once the tender is closed and tender analysis is done, the contract price is set. Hence, the cost planning comes to an end.
The next stage is the post-contract financial control and auditing.