Cost Planning And Management
Cost planning and management from project inception to completion is the method by which construction costs are established, value managed and controlled. This ensures cost certainty through all project phases.
Cost planning ensures that the project is completed to the client’s requirements, while optimising value for money without compromising quality of design, reliability, performance or delivery of the project.
Our services include:
- Cost estimating, advice and control through all design stages from concept to completed design
- Evaluation of design and/or material alternatives to identify the most cost effective options
- Optimising value for money through value management
- Risk identification, analysis and management
- Buildability advice
- Cash flow forecasting and analysis
Contract Procurement
We can provide advice in relation to contractor procurement and contractual arrangements based on the client’s and/or projects principle objectives, without compromising cost certainty, quality of design, workmanship or delivery of the project.
Our services include:
- Preparation of Schedule of Quantities
- Advice on form of tendering and tenderer selection
- Preparation of tender documentation
- Tender review and evaluation
- Contractor appraisal
- Contractor negotiation
- Advice on contractual arrangements and form of contract
- Preparation and negotiation of contract documentation
Contract Administration
Effective cost control during the construction process is provided through the monitoring and reporting on all aspects of construction cost. Only through regular cost monitoring, can an up-to-date position on cost be advised and any potential cost overruns be identified and mitigated.
Our services include:
- Progress claim assessment and certification
- Financial cost reporting and final cost forecasting
- Cash flow forecasting and analysis
- Variation assessment and negotiation
- Final account negotiation
- Extension of time claim assessment
- Dispute resolution
- Independent client representation
- Acting as ‘Engineer to the Contract’
Financial institution services
Most developments or projects that require funding from a financial institution will require an independent professional quantity surveyor to review every aspect of the project and complete pre-condition and cost-to-complete reporting and certification.
We currently act for all of the major trading banks and financial institutions lending to the New Zealand construction industry.
Our services include:
- Pre-condition reporting and certification including auditing project budgets, programme, documentation, contractual arrangement, contractor appraisal, authority approvals and contingency assessment
- Cost-to-Complete reporting and certification including monitoring project expenditure, progress vs programme, authority approvals and contingency assessment
- Risk identification, analysis and management
- Independent client representation
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Life cycle costing
Life cycle costing is a method of establishing the true cost of a building component throughout the expected life of the building. By comparing design and material alternatives, the true cost of various proposed options are represented as a present day value, taking into consideration capital cost, running cost, maintenance cost and life expectancy. This analysis ensures the appropriate investment decision can be made.
Canterbury Reconstruction
Kingstons are employed as independent auditors for IAG New Zealand and their reinsurers on the Canterbury earthquake reconstruction work. IAG encompasses insurance brands State and NZI amongst others. IAG have employed a project manager to manage the reconstruction on their behalf.
Kingstons conducted an initial review of the set-up phase of the project, including an audit on:
- The project manager’s proposed personnel for the project
- Contractor prequalification meetings
- Materials procurement procedures
- Pricing strategies
- Savings achieved by discount structures from supply chain
- Proposed contract agreements between builder and customer
- Payment terms applicable to contract agreements
- Staged payment process based on set milestones
- Consultant agreements regarding observation, practical completion certification (where applicable), professional indemnity insurance, etc.
During reconstruction Kingstons is undertaking random audits on the individual projects to audit the total process, including:
- Initial scoping
- Pricing
- Adherence to procurement procedures
- Progress payments
- Personal reports on contractor and project management staff
- Audit of variations
- Audit of final account
- Recommendations for improvement
- Monitoring of IAG’s brand representation on projects.
These reports are made available to IAG’s reinsurers as an independent audit of IAG’s expenditure on the rebuilding.
Other specialist services
Other specialist services we provide include:
- Adjudication and Arbitration Support Services
- Audit Quantity Surveying
- Dispute Mediation
- Client Representation
- Insurance Replacement Valuations
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