Laserfiche WebLink
• What happens when a cost check report a <br /> COST CUTTING ALTERNATIVES: predicted over-run? <br /> This can occur on any project for a variety of <br /> reasons and the corrective measures open to you are <br /> Investigate where corresponding shown. Sometimes there may be client-sponsored <br /> snvmgs may be possible within the budget over-runs in the form of increased space or <br /> element which is predicted to be over higher quality levels, and if these are significant <br /> budget (eg., 1f the window costs are <br /> you will probably have to accept the cost <br /> over, can they be reduced in quantity, <br /> consequence and increase the budget to fund the <br /> size, construction or quality?). over-run. <br /> g <br /> Nevertheless, this important function of cost <br /> p <br /> - Investigate where savings may be consulting can reveal a cost problem before it is <br /> possible !n any other elements, once too late to make remedial action, and before the <br /> ft is determined that # 1 is not <br /> practical, to compensate for the over item gets onto working drawings and specifications. <br /> run. <br /> What about options and alternatives? <br /> 3 Flund the predicted overrun from the A very important cost control function, generally <br /> design contingency and balance the implemented in this stage, is that of evaluation of <br /> budget (the design contingency is options and alternatives produced by or in co- <br /> incorporated in the budget for operation with the designers. In architectural, <br /> ` • precisely this use). structural, mechanical, electrical and equipment <br /> design, many different solutions exist for design <br /> problems. All available and mutually compatible <br /> options or alternatives should be cost tested <br /> prior to commitment to drawings and specifications. <br /> Sometimes these can be extensive exercises but they <br /> always pay off in the knowledge that designs are <br /> being subjected to cost scrutiny, and when they are <br /> committed to paper they are known to be on target. <br /> As the project proceeds, options tend to become <br /> fewer and at the time ofoin bi usually 95 <br /> g g to d, Y <br /> per cent of the buildings systems, sub-systems <br /> and materials are fixed. The remaining 5 per cent, <br /> whether they extend or reduce the design elements, <br /> should be identified in the bid document to <br /> provide flexibility in negotiating the final <br /> contract sum. <br /> L <br /> 14 <br />