What Is A Cost Plan?
A cost plan is a detailed costing with all the build elements broken down and can be used at tender analysis stage. The reason why this service is beneficial to you is because this document enables you to be in a better position with regards to negotiating the best price for your project. You can also use this document to compare with quotes you will be obtaining from builders/contractors. Our costs are based on the average market rates for a comprehensive builder which will ensure the prices are accurate and realistic.
Why Do You Need Cost Planning In Construction?
A cost plan is essential in any construction project as it provides an accurate indication of the build costs before going to tender. You can then use this as a benchmark for your building tenders and ensure that the prices that your builders give you are within the correct parameters. It acts as an independent review of your project, allowing potentials for an increase in cost to be highlighted and overcome before the project begins.
Helps You Budget Your Construction Project
Budgeting for a building project can be tricky as there are numerous elements to consider. With a cost plan, however, you can get a breakdown, item by item, showing you how much you’re likely to spend. With a construction build budget in hand, you can:
- Make better financing decisions
- Approach creditors with more confidence
- Plan your cash flow from start to finish
Keeps You In Control Of Costs
Commercial and residential developers and builders are notorious for overspending on projects. A detailed cost plan, however, shows you how much you should be spending and enables you to identify elements of the building project which are pushing you over budget. With a cost plan in hand, you can quickly scan for budgeting issues and find out why the cost of your building is coming in higher than you originally planned.
Helps You To Manage Future Cash Flow
A building project may have the potential to be profitable, but without proper cash flow, the whole enterprise can come to a screeching halt. Without cash in the bank, builders won’t be able to complete projects and may miss out on the opportunity to deliver a profitable project. Cost planning in construction can help to:
- Plan cash flow to continue paying suppliers and workers
- Show you the points during the construction process where you’re likely to face financial bottlenecks
- Allows you to plan finances in advance
How Does Construction Cost Planning Work?
You will be given advice and guidance by our professional, expert and experienced consultants to ensure that your project runs smoothly and that stress is taken out of project planning.
- 1A building consultant will look at plans for your project and then take into account numerous factors which could affect the future cost.
- 2The consultant performs a thorough review and then feeds data into a cost model.
- 3At the end of the process, you’ll know how much money you’ll have, your main risks to costs, and where you might be able to make savings.
Frequently Asked Questions
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