About

Every building and construction project is unique with its own opportunities and risks. And as many building and construction projects are highly capitalised, it’s imperative that effective budgeting is established prior to commencement of the project as well as a robust cost management process throughout the construction phase.
Clients and contractors alike have need to minimise construction costs within criteria set for functional requirements and quality to delivery best value for money.

Highly successful projects are reliant on quality of advice and cost containment, minimising risk and eliminating surprises.

This course provides all the necessary skills and tools to help you get up to speed with the complex construction budgeting and cost management process, contract-related pricing challenges whilst managing risks and controlling costs that are inherent in the construction process.
Key Learning Objectives

• Effectively manage pre-construction budgeting and construction phase costs
• Understand and use the right tools for accuracy, reliability and efficiency
• Prepare and present budgets
• Develop effective cost management best practices

Who Should Attend?

• Project Managers
• Construction Managers
• Architects
• Quantity Surveyors
• Contractors
• Contract Managers
• Facilities Managers
• Private Owners and Developers
• Government Agencies and Public Owners
• Professionals involved in the construction industry

Outline

Day One

Introduction to the preconstruction budgeting process
•  Overview of current and projected market trends
•  Overview of preconstruction budget and cost management
•  Defining your project scope
•  Organising the preconstruction budgeting process
•  Conducting preconstruction cost evaluation

Construction cost development and management
•  Developing a cost model
•  Sources of cost data
•  Gathering accurate construction cost data
   - obtaining preliminary estimates from subcontractors, vendors and suppliers
•  Establishing preliminary costs
•  Conducting constructability reviews
•  Evaluating lifecycle costs
•  Tracking cost performance

Value management
•  Understanding the methodology
•  Best implementation strategies
•  Case Studies

Risk management
•  Identifying risk factors
•  Sensitivity analysis
•  Making Contingency provisions
•  Risk and resource management

Project delivery systems and contract pricing
•  Procurement Options
•  Forms of Contract
•  Key contract considerations from a construction project perspective
•  Contract Price Resolution
•  Special issues of subcontracts

Day Two

Construction phase cost management
•  Effective project team communications
•  Payment mechanisms
•  Cost to Complete requirements for Funders

Cashflow analysis and reporting
•  Establishing effective cashflow forecasts
•  Cash flow monitoring and reporting

Establishing ideal cost reporting systems
•  Key deliverables in keeping cost management control
•  Formats for effective cost management communications
•  Identifying and assessing cost changes
•  Tracking and reporting cost changes

Effective management of variation claims
•  Establishing a process for administering variation claims
•  Avoiding dispute  delays and cost overruns
•  Processing and resolving construction claims
•  Negotiation techniques

Facilitator

Peter Waterhouse

Peter Waterhouse has worked and lived in United Kingdom and has been a director of a nation-wide consultancy practice of Quantity Surveyors and Project Managers for 30 years in New Zealand.

Peter has established Value Solutions Ltd which specialises in facilitation of project improvement processes such as Value Management, Strategic Planning and Risk Management, together with Project Management and Engineers to the Contract and Client Representative Roles for public and private sector organisations throughout New Zealand. He has developed value management and const engineering commercial models for best practice across a number of industries, most particularly construction.

Among some of Peter’s project experience include Britomart Office Building Developments, Redevelopment of Eden Park, Carisbrook Stadium Trust, Wellington Waterfront Redevelopment, Christchurch Street Renewals, University of Auckland New Business School, Viaduct Harbour Development and on-going governance/management structure, Botany Town Centre redevelopment, Telstra Pacific Events Centre and many more.

In-house Training