Capital Point Management Services is a Professionally Managed Project Management & Advisory services firm focused on infrastructure & real estate project.provide services of Advisory
The process of forecasting the cost of constructing a physical structure is known as construction cost estimating. A good cost estimate saves the client money by avoiding overpaying contractors or the financial impact of cost overruns and project failure. Accurate estimates are especially important for development projects, which have tight budgets and timelines tied to repaying lenders and generating revenue as soon as possible. Because of their large scope, they are also required for large civil projects or mega-projects. Cost estimates improve accountability, transparency, and trust in the ability to manage the project properly, and are now an essential component of earned value management.
The Cost Plan and Budget provide an estimate of the likely costs. A budget includes an outline plan for how the money will be spent as well as a breakdown of the items on which it will be spent. Budgets set spending limits, which can help determine what is affordable. They should be established as early as possible in order to manage expectations. Cost plans evolve over the course of a project, becoming more detailed and accurate as more information about the nature of the project becomes available. They can range from preliminary cost estimates to tender pricing documents and the final bill.
Budget Review is a thorough third-party examination of a proposed budget for any construction project in order to analyse each line item and confirm that the values submitted are reasonable. The scope may also include a review of any approved or potential budget changes caused by scope changes, design changes, value engineering, or force majeure.
Bills of quantities are created elementally or in work packages through a process known as ‘taking off,’ which involves identifying construction work elements that can be measured and priced. The bill of quantities assists tenderers in calculating construction costs for their tender, and it also provides a fair and accurate system for tendering because it requires all tendering contractors to price the same quantities (rather than taking-off quantities from the drawings and specifications themselves). Quantum prepares BOQs using cutting-edge software.
The tender and contract management process includes everything from finalising the contracting strategy to awarding the contract. If we follow the standard process, vendor selection becomes very much more secure and easier. In this section, QS will finalise the contracting strategy with the client’s assistance and prepare the Tender Event Schedule, tender document with general and special contract conditions, BOQ, estimates, drawings, insurance format, free issue material list, basic rates of materials, form of contract, and other necessary documents, and compile all of these documents to form the full Tender Document. This Tender document is distributed to shortlisted vendors based on vendor prequalification. Other processes covered in this section include pre-bid meetings, vendor submission of completed tenders, and comparative statement.Preparation negotiation meetings, resubmission of estimates by vendors following the first round of negotiation meetings, and the same procedure is repeated 2 to 3 times, with QS preparing a final comparative statement with final offers submitted by vendors. Following client approval, QS will award the work to the final approved vendor. QS will submit the final Tender report to the client.
Consider materials availability, construction methods, transportation issues, site limitations or restrictions, planning and organisation, costs, profits, and so on. Benefits that can be delivered include lower life cycle costs, higher quality, lower environmental impacts, and so on. As the project progresses, the majority of the project team will participate in this exercise. It is necessary to take a broader perspective and examine the selection of materials, plant, equipment, and processes to determine whether a more cost-effective solution that achieves the same project objectives exists.
The value engineering process entails the following steps:Bill certification is a critical step in the post-contract process. Bills can be of three types: running account bills, pre-final bills, and final account bills. The process includes submitting a bill to QS in the prescribed format, including all necessary documents such as invoice copies, measurement sheets, work order copies, approval from site engineers, quality departments, safety departments, and any other departments that may be required depending on the type of bill. QS will review all bills and, after making any necessary corrections and attaching the Certificate of Payment, it will be sent to the client’s technical department, followed by the client’s account department.QS will prepare a cost report and submit it to the client on a monthly basis after certifying all bills. It consists of the total budget, total work orders and purchase orders issued against the budget, as well as the respective cumulative bill amount. It also reflects non-tendered item values, variations in quantity, and rates for each package, giving the client an idea of whether the project is within or outside of budget.
Contract administration involves making decisions and the timely flow of information and decisions to enable completion of the project as required by the contract documents including review and observation of the construction project. The scope of services offered by Quantum for Contract administration typically involves the following :