Initial Cost Advice and Feasibility Studies
This is normally the Quantity Surveyors first task on a project. Usually there is little design information available which requires the Quantity Surveyor to draw upon their detailed knowledge and experience of the construction industry. At MacMinn O’Reilly Mahon, we have developed an extensive database of cost information which allows us to accurately advise Clients at an early stage of the project.
MacMinn O’Reilly Mahon Quantity Surveyors will consider issues such as development scale, quality, program,
location and procurement method when establishing inititial order of magnitude costs.
As Quantity Surveyors, we are acutely aware that early and accurate cost advice is key to ensuring that our clients are in a position to make informed investment decisions.
Following initial cost advice, the Quantity Surveyor will assist Clients in developing a project budget. In calculating the overall project budget, and depending on the Client’s requirements, MacMinn O’Reilly Mahon will review some or all of the following:
- Site acquisition costs
- Stamp duty
- Acquisition fees
- Capital contributions
- Planning fees
- Local authority fees
- Construction costs
- Professional fees
- Interest on loans
- Advertisement and marketing fees
In order to ensure that the final cost of a project does not exceed the initial budget, a cost framework is prepared by the Quantity Surveyor. This cost framework can be monitored throughout the project and changed where necessary within the original parameters. As Quantity Surveyors, we will ensure that the budget is at all stages commensurate with the developing design.
Some of the items a Quantity Surveyor will include in a cost plan are:
- Elemental analysis of cost
- An approximate quantities measure of the works required
- Budgets for nominated sub-contractor works
- Provisional sums for works that cannot be entirely foreseen
- Approximation of the preliminaries and insurances required
This is the contractual arrangement or path by which a Client has their building or project built. As Quantity Surveyors, MacMinn O’Reilly Mahon will advise on the optimum procurement route for each project. MacMinn O’Reilly Mahon will examine many factors including:
- The building design
- The brief
- The cost
- Programme duration
- Method of financing
- Level of involvement required by the Client.
Advice On Contractor Selection
Having worked as Quantity Surveyors throughout Ireland and the UK, MacMinn O’Reilly Mahon has a detailed knowledge of contractors operating within the industry. Using our experience, MacMinn O’Reilly Mahon will assist clients in verifying each contractor’s credentials and will help to develop the most optimum tender list.
Preparation of Tender & Contract Documentation
When seeking tenders for a project, the quantity surveyor must provide information in a form which allows for accurately comparing tenders and which will also provide a method for assessing variations and payment applications post contract. The Quantity Surveyors role is extremely important at this stage, as inadequate or incorrect tender documents may give rise to disputes and claims during the contract.
The form these tender documents take will vary depending on the Client’s requirements, project type and other variables. In our role as Quantity Surveyor, MacMinn O’Reilly Mahon will advise clients on the most suitable form of tender documentation. The list of tender documents generally includes: –
- Instructions to tenderers
- Form of Tender
- General Condition of Contract
- Special Conditions of Contract
- General Specification
- Particular Specification
- Bill of Quantities
- Methods of Measurement
- Tender Drawings
- Additional Appendices
Cash Flow Projections
Preparing and monitoring the project cash flow is an important activity for the Quantity Surveyor. At MacMinn O’Reilly Mahon, we understand that the timing of cashflow can have a significant impact on our Clients finances due to tighter lending restrictions. MacMinn O’Reilly Mahon will develop the cashflow following a detailed analysis of the construction program and using the extensive in house experience of the particular project type.
Cost Control & Reporting
Whilst the preparation of detailed tender documentation minimises the likelihood and extent of variations, most projects will required some design change post contract or an unforeseen event may occur which could give rise to a claim. Cost control during the construction stage is a core function of the Quantity Surveyor. The Quantity Surveyor must continually monitor activities on site and take prompt action where an event occurs which could result in a claim. MacMinn O’Reilly Mahons’ extensive construction experience helps to ensure that potential issues are spotted early and are eliminated or mitigated.
Issue Monthly Cost Reports
Cost reports can be issued by the Quantity Surveyor at intervals agreed with each Client. MacMinn O’Reilly Mahon recognises the value of prompt cost advice to ensure Client’s are fully aware of financial commitments.
A Quantity Surveyor’s cost report will typically include:
- Provisional and P.C. Adjustments
- Anticipated Variations
- Claims or Potential Claims
- Amount of Anticipated Final Account
- Amount Paid to Date
- Cashflow (Adjusted)
Valuation of Work in Progress
This generally occurs monthly and will involve the contractor’s Quantity Surveyor preparing an interim payment application. This could include such items as:
- Work in progress
- Materials On Site
- Materials Offsite.
- Nominated Sub-contractor claims
- Price variation clause claims.
Following a thorough review and site inspection, MacMinn O’Reilly Mahon will assess the payment application under some or all of the above headings and make our Payment Recommendation.
Settlement of final account
At this stage of the project, the Contractor’s Quantity Surveyor will submit a final account claim within the period stipulated under the contract.
MacMinn O’Reilly Mahon will examine this claim and meet with the contractor to review any areas of dispute. Stringent cost control during the construction process is important to ensure that the final account can be agreed in a prompt manner and within the Client’s budget.