Life Cycle Costing

Our approach to Whole Life Costs and Life Cycle Costs (WLC/LCC) is one which focuses on the business needs for our clients, and delivers a service which enables our clients to make informed decisions in relation to their property assets over long term.

We create best value in sustainable operational solutions for our clients by integrating capital, energy, carbon and operation/life cycle replacement costs with the aim of delivering cost savings to our clients.

We collect data from numerous sources including industry-published data and our own internal data from previous and live projects. The data can be applied in WLC/LCC models of projects from initial feasibility stage through to financial close out and operation. The WLC/LCC models can be applied to any concession length of time and irrespective of individual assets or large portfolios.

Procurement

Selecting the correct procurement strategy for a particular project is key to commercial success. Based on the client’s principal objectives in relation to cost certainty, quality of design, workmanship and program, we undertake a review of these objectives and provide recommendations in relation to the optimal procurement strategy that best achieves these objectives.

Selecting the most appropriate contractor or supplier is equally important. We can evaluate the most suitable contractor/supplier for a project based upon scope of work, content, complexity, procurement and the need for specialist knowledge and innovative thinking.

We play an important role at the tendering stage to ensure the project is procured with integrity through:

• Advising on the most appropriate procurement and contract strategies
• Drafting contract clauses to suit the special circumstances of the project, and to promote fair and equitable allocation of risks and a partnering relationship between the contracting parties
• Applying best practice in tendering procedures
• Obtaining competitive prices from selected contractors by tendering, using bills of quantities, or by adaptation of this system to suit the particular requirements of the project time constraints.

In order to provide uniformity of contractors’ pricing and to promote reasonable contract pricing, bills of quantities are adopted for tendering purposes.

Bills of quantities translate the design team’s drawings and specifications into a quantitative document that is prepared in accordance with the rules of the Standard Method of Measurement. Issued to each contractor for pricing purposes, it enables each tenderer to estimate his price on exactly the same basis as his competitors for the project.

Upon award of a contract, the bills of quantities become a part of the construction contract that is a highly useful document for cost control purposes. It can be used as a basis for interim payment valuations, valuation of variations, settlement of the final account, etc. The document also provides a contractual basis for the contracting parties in case a contractual dispute arises during the course of a project.

Bills of quantities can be adapted for use for different types of contracts, such as lump-sum contracts, management contracts and fast-track contracts.

We can introduce social value metrics into the tender process to achieve the client’s social value objectives. We undertake preparation of tender and contract documents which provide full details of the project requirements and clearly identify responsibility for risks. Undertaking a detailed tender analysis ensures both compliance with the tender requirements and parity between the bids.

Contract Administration

Cost certainty during the construction phase relies on robust methodology and experienced staff. We can fulfil the traditional Quantity Surveyor role or undertake a Contract Administrator’s or Employer’s Agent role to suit clients’ requirements. The key element of our role is to manage the construction costs through:

• Post contract cost control via a robust change management process
• Proactive cost monitoring of design changes
• Cost studies on alternative design solutions
• Valuation of potential cost extras and raising early warning
• Valuation of variations and agreeing the cost of variations
• Regular financial reporting on contingency draw-down and estimated final cost

When our clients enter into construction contracts or relationships, we provide support through:

• Identifying, understanding and managing risks
• Instigating cost reductions
• Testing contingency plans
• Ensuring regularity compliance
• Protecting company reputation