Over recent years many construction projects carried out in the U.K. have hit the headlines for the wrong reasons giving rise to a perception that construction projects can easily result in financial disaster. Clearly major projects such as The Millennium Dome, the Channel Tunnel, Wembley Stadium, the Scottish Parliament Building and the Jubilee Line extension are complex projects which carry many risks.
Notwithstanding, to clients on a project of any size such financial outturns are completely unacceptable. Kirkby and Diamond quantity surveyors recognise that the cost of a project cannot be controlled in isolation. However, from many years of experience the firm recognise many of the factors that give rise to cost and time overruns.
Negative factors to be avoided include:
- insufficient and incorrect information pre-tender and for construction
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poorly prepared tender documents
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contract variations not properly managed
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an adversarial role developing between the parties
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a blame culture
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a lack of will to resolve problems at an early stage
Kirkby & Diamond recognise the need for clients to be properly informed at all stages and advised of any items at risk. The Quantity Surveyor will ensure that tender information is as comprehensive as possible and that financial provision is made for work that has not been fully designed at tender stage. Throughout the contract Kirkby & Diamond surveyors provide regular cost reports which list all variations and adjustments, include an appropriate Contingency or Forward Reserve and report a realistic Contract Outturn Figure. Bad news is not “buried”, problems are brought out into the open as early as possible for sensible resolution.
Mechanical and Electrical Services are so frequently a major cause of cost overruns therefore the quantity surveyor will pay particular attention to these elements keeping a close dialogue with the services consultant. These days most contractors are quite good at reporting costs and variations to the quantity surveyor. Kirkby & Diamond recognise the importance of this process and will spend time with the contractor on a regular basis to keep fully up to date.
Repeat business is very important at Kirkby and Diamond Chartered Surveyors and the firm recognises that clients need to feel confident with Cost Reports and the financial management of projects.