What is Cost Management in Construction?

What is Cost Management in Construction?

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Cost management is the process in which we constantly review a construction as it develops to find cost saving initiatives and incorporate innovative design to honour our maximum price guarantee to you, the client.

Project Cash Flow

When a project starts, we provide a Project Cash Flow report. This outlines the expected progress of the construction phase along with the estimated monthly claiming schedule. As any number of factors can cause changes to the schedule, be it to speed it up or slow it down, we duly update the cash flow report and make it available to you throughout the life of the build. We will regularly update this for you throughout the project.

Lump sum costing

What will my project cost? Suffice to say, every project is different. So it’s hard to know exactly until we cost it. But our pricing aims to be consistent. With that, all our clients are given a lump sum costing. This ensures a fixed total price thereby eliminating any risk of budget blow out. This provides certainty that once the contract is signed, the costing is locked in. For clarity and transparency, all our quotes include line items and descriptions for all proposed inclusions across trades, items, permits and equipment.

Maximum price guarantee

One of the first tools we pick up on any job is a calculator. That’s because we always provide our clients with an initial cost estimate as part of our briefing and due diligence phase.

Our estimate comes with a maximum price guarantee during the approval phase. Once approved and construction begins, were diligent in managing costs to ensure we stay on budget until project end.

Want more information about Cost Management? Give us a call at 1300 343 578 or send us an email info@sofc.com.au.

We look forward to having a friendly conversation with you

Call us on 1300 343 578 or email us at info@sofc.com.au to discuss your project.