SPECIALIZED BUDGET MANAGEMENT SERVICES
DECASULT’s past experience and project portfolio have enabled it to develop a range of specialized services in budgetary management of construction projects, which extend from construction cost estimating to implementation of precise cost control tools and processes.
Tailored estimating and cost controls services
DECASULT houses a complete estimating department of highly qualified and respected cost management professionals, able to advise our clients on all matters relating to construction costs, total project costs, value engineering or risk management.
More specifically, the costs database employed by our estimating department is borne not only of national and regional market statistics but augmented by real data from similar projects currently under construction. These complementary references allow us to provide our clients with the best available information at every stage of a project, from the preconceptual and design phases to execution contract award.
Budget Management Services can be included in comprehensive Project Management mandates or provided individually, according to specific project needs.
Estimating Services
The establishment of construction cost estimates and total project costs provide a baseline reference for all projects, and a necessary anchor point to track their progress.
Generally, these services include :
- Quantity Take-Off and Program Validation
- Unit Price Assessment, based on our proprietary cost database, current market data and comparable projects
- Direct Construction Cost Estimating
- Soft Cost Budgeting (professional fees, general conditions, inflation, etc.)
- Benchmarking, Cost-Benefit Analysis and Value Management
- Project Risk Identification and Impact Quantification, in terms of Probability, Occurrence and Cost
- Calculation and establishment of Project Risk Reserve
- Project Opportunities Identification and establishment of Harvesting Strategies
- Implementation of Risk Management Plan
- Project Contingencies Assessment
- Cost tracking for financing purposes
Cost Validation
Real estate developers and owners usually use the services of a cost consultant as part of their construction project financing activities. In this regard, the services offered by our team include the production of an initial report on the project, which will be used for the due diligence review performed by the financial institution.
Once the financing of the project is confirmed, and upon request of the lender and the financial institution, our team produces a monthly disbursement report, intended for the monthly disbursement decisions of the financial institution.
Other specific services can be added :
- Review of the loan agreement
- Confirmation of the issuance of project drawings and specifications
- Analysis of the direct and indirect cost budgets, and issuance of the appropriate recommendations
- Analysis of the terms and conditions of the construction contract
- Verification of project management fees with appropriate comments
- Review of the project schedule
- Analysis of the level of compliance of the budgeted contingency envelope
- Verification of the validity of required and obtained permits
- Verification of the borrower’s coverage of the lender’s financing requirements and obligations;
- Issuance of an initial project report for the purpose of financing applications
- Verification of down payment fuflfillment
- Verification of site work progress
- Progress comparison of with Master Schedule
- Validation that the contractor’s and subcontractors’ application for payment has been completed
- Confirmation that the payment certificate has been issued by the project consultants
- Opinion on the value of the work performed and invoiced
- Review of the attained work scope versus the overall program
- Comparative analysis of the budget, with implementation of suggested corrections, if required
- Analysis of the evolution of project contingencies
- Study of cost projections and financial requirements for project completion
- Control of the certificates of conformity issued by the project consultants
- Verification of contract declarations and releases
Specialized Services in
Project Budget Management
By intervening in the field of Project Budget Management, we help our clients, and all other stakeholders involved in the financial strategy of the project, ensure rigorous tracking of project costs and thus enable better tools for maintaining a project’s budgetary objectives throughout the project cycle.
These services can include :
- Preparation / Validation of the Baseline Budget, in pre-construction phases
- Secondary assessment of third-party budgets
- Expert recommendations on work estimates and bids
- Total Project Budgeting for all construction project types, including renovations and heritage restorations
- Periodic Control Estimating, class C, B or A, according to progress milestones
- Management of Project Cost Optimization / Rationalization initiatives
- Coordination of Value Management sessions
- Assistance in defining the Project Delivery Method, and the process to implement it
Cost Control Services
These specialized services represent an additional layer of verification of adherence to established project budgets, their tracking and analysis, to ensure optimal cost efficiency. This expertise can also be applied through the implementation of tracking tools and processes, and the preparation, if required, of regular cost reports and detailed cost renditions.
These services can include :
- Proactive monitoring of approved Baseline Project Budget through fixed-period Cost Reporting
- Market Cost Trends Analysis
- Preparation of regular Progress Reports, highlighting relevant observations and issuing recommendations
- Analysis and recommendations of Requested Scope Changes from project stakeholders
- Assistance in establishing Change Order control, validation and documentation processes
- Assistance in implementing and administering the Risk Management Plan
- Assistance in providing recommendations in case of disagreements or potential disputes
Cost Estimating, a specialty we have made our own
DECASULT’s estimating department is recognized in the industry for the thoroughness and breadth of its analyses, and for the complexity of the projects it has been called to work on.
Whether our estimating professionals assist our project teams or deliver on specific mandates required by our clients, their combined expertise ensures a more Optimal Control of established parameters within pre-set project objectives.
A few of our Budget Management mandates
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