Professional Cost Consultancy firms are rekindling hope in the construction industry that is often clouded with unforeseen cost and funding challenges. Cost consultancy, as a practice, has empowered the key stakeholders of construction projects to take confident decisions about project feasibility by furnishing them with accurate cost estimates.
Turner Project Management India, a leading firm offering various project management services including cost consultancy, has depicted the universe of cost elements in a construction project through the following info-graphic:
Source: Turner Project Management India
Cost Consultancy benefits
Inconsistency between the initial project estimate and its final cost has been an area of concern for the project owners and the contractors. Achieving 100 percent accuracy in estimation may not be a practical expectation owing to the scale of projects, multi-party involvement, approvals, and processes. However, cost consultancy has enabled the developers to make important choices with authority by providing comprehensive estimates. The feasibility and business viability of a potential project can be determined using advanced methods of cost estimation and projections. Decisions concerning funding, financing and procurement of investments can also be driven on the basis of the consultant’s estimation report. Cost consultancy can render any project more pliable in terms of changes and modifications in project design and materials.
One of the outstanding benefits of on-boarding a Cost Consultancy firm is probably that it keeps all parties focused and committed to delivering the project on time and under budget. It can hold contractor and agencies accountable for any increase in time and costs overruns.
In a nutshell, cost consultancy presents the client with a direction which when worked towards with integrity can increase value while reducing costs.
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