Cost-Related Preconstruction Services a) Validate agency/consultant estimates — Construction Manager will evaluate the estimate as it is originally intended and determine if the scope can be executed within the constraints of the budget.
Cost-Related Preconstruction Services. □ Validate agency/consultant estimates—constructor evaluates the estimate as it is originally intended and determines if the scope can be executed within the constraints of the budget. □ Prepare project estimates—constructor provides real-time cost information on the project at different points in the design process to ensure that the project is staying within budget. □ Cost engineering reviews—review that includes not only the aspects of pricing but also focuses on the aspect that “time equals money” in construction projects. □ Early award of critical bid packages—construction manager determines which design packages should be completed first to ensure that pricing can be locked in on the packages. □ Life-cycle cost analysis—construction manager provides input to design decision that impact the performance of the project over its lifespan. □ Value analysis—process that takes place during preconstruction where the CMGC contractor identifies aspects of the design that either do not add value or whose value may be enhanced by changing them in some form or fashion. The change does not necessarily reduce the cost; it may actually decrease the life-cycle costs. □ Value Engineering—systematic review by a qualified agency and/or construction manager personnel of a project, product, or process so as to improve performance, quality, safety, and life- cycle costs. □ Material cost forecasting – The construction manager utilizes its contacts within the industry to develop estimates of construction material escalation to assist the owner and designer make decisions regarding material selection and early construction packages. □ Cost risk analysis—furnishing the agency with information regarding those cost items that have the greatest probability of being exceeded. □ Cash flow projections/Cost control – The construction manager conducts earned value analysis to provide the owner with information on how project financing must be made available to avoid delaying project progress. This also may include an estimate of construction carrying costs to aid the owner in determining projected cash flow decisions.
Cost-Related Preconstruction Services. Validate agency/consultant estimates—constructor evaluates the estimate as it is originally intended and determines if the scope can be executed within the constraints of the budget. Prepare project estimates—constructor provides real-time cost information on the project at different points in the design process to ensure that the project is staying within budget. Cost engineering reviews—review that includes not only the aspects of pricing but also focuses on the aspect that “time equals money” in construction projects. Early award of critical bid packages—contractor determines which design packages should be completed first to ensure that pricing can be locked in on the packages. Cost risk analysis—furnishing the agency with information regarding those cost items that have the greatest probability of being exceeded. Cash flow projections/Cost control – The contractor conducts earned value analysis to provide the owner with information on how project financing must be made available to avoid delaying project progress. This also may include an estimate of construction carrying costs to aid the owner in determining projected cash flow decisions. Shape the project scope to meet the budget: If the project budget is at risk, Construction Manager will inform the owner of most cost effective approach to reducing scope and stay on budget.
