Construction Management

A fully detailed cost plan is the primary management tool. Each element is measured, market rates applied, and a robust cost plan produced. If the project is predicted to be over budget the cost plan is interrogated with ‘what if’ scenarios. Areas of unnecessary overspend, opportunities for value engineering or design inefficiencies are examined with the full cost of savings going back to the client.

Engaging us from the outset allows us to contribute towards design strategy and helps manage costs in line with design development. This directly influences design affordability and reduces the risk of your project being over budget before it is ready for market testing. Over budget schemes increase pre-construction periods, incur re-design costs and result in a loss of some sort to the client during a value engineering exercise.

All trade packages are market tested to at least three sub-contractors before a commitment is made to enter into a sub-contract. These fixed costs replace the budget cost plan allowance. This provides cost plan certainty. For risk adverse clients, or where cost certainty is critical to funding, the cost plan can be market tested to 90-95% certainty before committing to starting on site.

Each month the cost plan is updated in line with expenditure, interrogated, and the cost outcomes are continuously reviewed. If an overspend risk is identified, the team target efficiencies elsewhere to neutralise the effect.

Itemised contingency allowances are recommended for unforeseen elements and are monitored throughout the project. Contingency funds not expended can either be redeployed, used to enhance the specification elsewhere or taken as client savings.

Procurement is managed in line with design information release. This means final design decisions are not necessary before the project can be market tested. The benefit is an accelerated overall programme, overlapping design with procurement and construction activities since the traditional tender period is eliminated. This can be months saved to the overall programme, including associated cost savings.

We own the risk for performance against programme. The management fee is therefore a ring-fenced figure. The only risk to you is if the scope increases, or unforeseen activities are encountered and can’t be mitigated within the critical path activities. However, entitlement to recovery of additional time is no different to traditional forms of contract.

We manage risk to the benefit of the client when risks are mitigated. This is done using a Risk Register. Conversely, under other forms of contracts the Principle Contractor seeks to capitalise from risk, including mitigation.

We charge a fixed fee to manage pre and construction stages. The pre-construction phase fee is often recovered through buildability savings, less risk of abortive design work or project delays if VE processes are required post tender return (i.e. under a traditional approach).

Preliminary costs are proportional to the traditional forms of contract.

All construction costs are charged nett, including variations. You are therefore not paying a Principle Contractors Overhead and Profit (OHP).

All financial savings are to the benefit of the client and are returned in full.

We set up all sub-contract agreements between the sub-contractor and the client direct. We manage the application, evaluation and certification process in accordance with the Construction Act. You just write the cheques directly to each trade contractor.

Having direct trade contracts reduces your risk should anything happen to us.

You are obligated to adhere to the CDM Regulations 2015. Your responsibilities are discharged since we act as your Principle Contractor throughout. We also make sure that the Principle Designer role is either in place, or if not they are appointed.

This is a uniquely collaborative form of contract. We are driven by best solutions and the right outcome for you since we have no agenda to preserve our own commercial interests or risk management.

We act as your Cost Consultant and Employers Agent. These are roles that you would have to procure separately for D&B / Traditional contracts and this would typically incur a circa 3% project value fee for these combined roles. Under Construction Management this is an effective further 3% saving.

We’d love to hear about your next project. Please click here to get in touch for a free no obligation chat to see if Construction Management is right for you.