Project cost control estimate for Client Company to control Contractor and save cost
Dear all,
We are all well aware that the planning / QS engineer prepare the tender for a contracting company and submit to client.
On the time of negotiation, the contracting staff is not aware that the entire homework has been done by the client. So the contractor in majority of the contracts reduces the prices. Which clearly indicates that the client has done his homework properly.
Find enclosed herewith a detailed estimate for one of the projects which was done by me as a consultant few years back. As a consultant/client we hire nominated contractors for specialized jobs and add the same in the BOQ. The contractor should be aware of the nominated contractors prices also so that he can coordinate with the nominated contractor for smooth flow of contract. Which is been generally defined in the contract conditions for which the client pays supervision charges of certain percentages.
Considering all these subjects enclosed herewith is a detailed estimate for one of the prestigious projects of Mumbai few years back. In this process I have removed the overheard and profit margins purposefully being the reason that overhead and profit margin varies from one organization to another. By doing this analysis in what items the contractor claiming more money than our budgeted cost.
This estimation is highly complicated one. Try to understand in depth of the methodology of analysis, methodology of correlating each and every option. This estimation based on some assumptions and basic prices for various materials along with nominated contractors prices.
If you refer the BOQ,cost difference pages you will come to know how these methodologies are calculated. If you want to be master in costing/budgeting ,control estimation kindly understand the concepts. Understanding and applying these concepts will definitely ensure your conceptual strength.As these estimations is done some few years back kindly note that the values are given based on that period.
Now the prices might vary for deriving today's prices you have to modify/correct according to current prices and current locations. This estimate has to be treated as purely a guideline.
Best of luck guys ,you will understand and this will enhance your career.
this cost analysis prepared in the year of 2009. coefficient are defined, once you inserted today rates you shall derive Today's cost as the links are established.
Its a best example for both contractor as well as clients engineer to understand the costing as money is important factor of any Project.
Dear all,
We are all well aware that the planning / QS engineer prepare the tender for a contracting company and submit to client.
On the time of negotiation, the contracting staff is not aware that the entire homework has been done by the client. So the contractor in majority of the contracts reduces the prices. Which clearly indicates that the client has done his homework properly.
Find enclosed herewith a detailed estimate for one of the projects which was done by me as a consultant few years back. As a consultant/client we hire nominated contractors for specialized jobs and add the same in the BOQ. The contractor should be aware of the nominated contractors prices also so that he can coordinate with the nominated contractor for smooth flow of contract. Which is been generally defined in the contract conditions for which the client pays supervision charges of certain percentages.
Considering all these subjects enclosed herewith is a detailed estimate for one of the prestigious projects of Mumbai few years back. In this process I have removed the overheard and profit margins purposefully being the reason that overhead and profit margin varies from one organization to another. By doing this analysis in what items the contractor claiming more money than our budgeted cost.
This estimation is highly complicated one. Try to understand in depth of the methodology of analysis, methodology of correlating each and every option. This estimation based on some assumptions and basic prices for various materials along with nominated contractors prices.
If you refer the BOQ,cost difference pages you will come to know how these methodologies are calculated. If you want to be master in costing/budgeting ,control estimation kindly understand the concepts. Understanding and applying these concepts will definitely ensure your conceptual strength.As these estimations is done some few years back kindly note that the values are given based on that period.
Now the prices might vary for deriving today's prices you have to modify/correct according to current prices and current locations. This estimate has to be treated as purely a guideline.
Best of luck guys ,you will understand and this will enhance your career.
this cost analysis prepared in the year of 2009. coefficient are defined, once you inserted today rates you shall derive Today's cost as the links are established.
Its a best example for both contractor as well as clients engineer to understand the costing as money is important factor of any Project.
