Developers require specific and tailored cost management services that will maximise their profitability and minimise their risk.
Getting the figures right at the outset is key to the profitability of a project. Accurate financial data that is usable on site for the management of a project is one of our key strengths.
Feasibility Studies – At the outset of a project, we will undertake a detailed feasibility analysis to set out all costs associated with a development, from land costs to construction costs, finance, administration, fees and charges and marketing costs to give a complete assessment of a project. This is compared with projected income to assess the total profit of a scheme.
Detailed Budgets – Following on from the feasibility study, we prepare detailed budgets as the design develops to ensure that costs are managed and controlled as the scheme design is being developed. The budgets are split into labour, material, plant and subcontract budgets as required by our client for the next stage.
Tender Packages – Once the design is developed and the detailed budgets completed, we prepare tender packages for competitive tender. These are then compared to our detailed budget for cost management. Subcontractors are signed up to standard subcontract agreements.
MMC Quantity Surveyors Workflow
Developer services are bespoke to each client, some require minimal involvement, others may require detailed involvement. We provide flexible services to accommodate developers individual needs.
Ideally, how it would work is that we would work on an outline feasibility study for a site prior to planning, or even the purchase of a site. This helps a developer to gauge the level of risk & profit a site may present.
Following that, once a scheme for planning approval is produced, we would produce a more detailed estimate including a detailed siteworks and abnormals estimate and a cost per m2 for the houses based on similar recent projects. This informs the client and design teams of the likely cost when the cost of making changes is still low.
Once planning is approved, we move on to detailed house type budgets including detailed labour, material, subcontract and plant budgets. In these estimates all aspects of the construction are broken down into their constituent parts. These are so detailed that we take into account costs for nails and fixings.
These estimates are prepared in a trades format so that they can be easily managed by site staff.
These are then generally given to the developer for his site team to manage, where they can easily track the cost of individual trades against the overall budget. This gives great visibility to the project finances.