Construction Cost Estimates & Cost Planning

Construction Cost estimates (Cost Plans) – feasibility studies, sketch design estimates and pre-tender estimates

Cost planning ensures value for money and responsible management of project finances

Cost planning is the process in which a construction project can be financially analysed. From concept to pre-tender stage, the accurate costing of projects is crucial to the overall success of that project.

The cost planning process guarantees that a project can be costed with great accuracy as well as allowing many options to be costed and analysed in order to assess value management principles.

Throughout the design and documentation process there are many factors that can affect the cost of a project:

  • Design changes and decisions
  • Economic factors
  • Social Factors
  • Stakeholders
  • Environmental factors
  • Financial factors
  • Council requirements
  • Government Policy

These costs need to be quantified and estimated accurately so as to measure the financial impact on the project.

Feasibility Studies (Studies of various options)

A feasibility study is used to measure the viability of a project very early in the planning process. It is used to determine if it’s:

  • Technically Feasible
  • Financially Feasible
  • Profitable

Once this is ascertained, the cost planning process can move forward to the Preliminary and Sketch design Phases.

Preliminary and Sketch Design Cost Plans (From the end of detailed design through to tender)

Preliminary and sketch design cost plans are completed with minimal design and documentation. It is used to ascertain how the design of the project is progressing financially. Drawings are very basic and documentation is minimal but this is where Auswide Quantity Surveyors excels. We have the construction know-how and the financial knowledge to back it up so this important document forms the basis of the architect and clients decision in where the project is headed from a design standpoint.

It is important that these estimates are updated in stages as the project drawings and documentations progress so Architects can gain a snapshot of the financial state of the current design at any point in time.

Pre-Tender Estimates (Prepared alongside tender documentation)

Pre-Tender Estimates are final estimates completed at the end of the design phase, right before the project goes to tender. It gives a basis for comparing tender when they are returned. Returned tenders are compared with the pre-tender estimate (Now a budget) to enable the client to make more informed choices about the adequacy of returned tenders . The pre-tender estimate is a useful and powerful document and should be used as a tool in all decisions made by the client and architect after tender.

Cost Plans evolve throughout the life of the the project and is imperative that they are used at every stage of the design process. Call Auswide Quantity Surveyors to get more information regarding the cost planning services we offer.