Cost Estimating and Cost Control
QualEx takes great pride in the ability to produce detailed and accurate project cost estimates. Estimates may be produced for a wide variety of accuracy ranges depending on the Client’s needs, which may range from an “order of magnitude” for scoping and viability considerations to a “definitive” estimate required to appropriate project funding. QualEx uses Aspen In-plant Cost Estimator software (formerly known as Aspen ICARUS Project Manager), which is individually tailored for our Client’s specific needs as it relates to labor costs, labor productivity and indirect costs. Material and labor cost libraries contained within the software are checked and factored on a periodic schedule to reflect current conditions associated with changes in the local economy and the marketplace in general. Project cost estimates are produced from material takeoffs generated and entered into the program by the lead engineer / designer in each discipline. Once the estimate has been generated, the estimate is then checked and reviewed internally by management using established checking procedures and historical data to insure accuracy as well as a uniform and consistent end product. As a part of the total estimate package, a written summary is produced as an advisement to the Client for the costs that are contained in or which have been excluded from the estimated costs. During review of the estimate with the Client, a Risk Assessment is made and an appropriate contingency value is added to account for the level of completeness of the current engineering documentation for the identified scope and to account for future development of the current project scope.
Project Cost Tracking is a service offered to evaluate “known cost” and “projected cost to complete” values against the “estimated” cost values and is offered as an advisement to the Client for the purpose of early identification of cost issues that may require action to stay within budget constraints. A Cost Status Report baseline is generated using estimated costs from the approved project cost estimate apportioned according to the project’s indirect costs and the material and subcontract philosophies. Bid prices for materials and labor are compared to the estimated prices prior to committing each purchase order. Allocation of the contingency, when required, is closely monitored to assess the final projected cost of the project. Scope changes and additions must be addressed in the Project Cost Tracking Report to accurately predict and control the final cost of the project.
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