How to save money using an expert’s estimate

With construction costs going up due to raw material price increases, labour shortages, and continuing international shipping delays good cost management and leadership is more important than ever.

When does cost planning start? At the project inception, using a ‘mudmap’/ feasibility study with square metre rates referencing other similar projects to test the budget with various design schemes to help understand your expectations. The initial price range can be used inform your decisions and adjust the project scope going forward. However, the actual cost of works may be higher or lower depending on market forces at the time of tender.

An example of a series of mudmap design schemes (left).

Currently the pandemic is still pushing prices up, so I recommend the best way to handle this is to engage a specialist residential quantity surveyor to prepare a full estimate when the project is halfway through Phase 3 (Documentation), when there is enough detail to accurately cost the job (including input from Structural Engineers and other consultants), and enough time to make further cost saving changes to the design (alternative material and finishes selections, reducing scope) where required.

The QS’s estimate will outline a schedule (or trade breakdown) showing the value of each trade and this can be used to cross-examine the allowances and contingencies with a rigorous and logical approach. The Architectural and Structural drawings and specifications can then be adjusted prior to Tender, and a list of further cost-saving items developed to easily make changes if Tenders are over-budget.

Who should engage the QS? The client, so the advice is independent, and emotion is removed.