Project preparation

You should now go out to tender on all remaining elements in the budget, in particular the fit-out, furniture, IT etc. There will sometimes be a legal requirement for an element of competition (especially for local authorities and government bodies). Even if you do not need to go to tender, if time permits, tendering can still make prices keener and give you an opportunity to test the understanding of the tenderers. This is a very important aspect of any project – it will have its ups and downs and the ability of the team to work together through difficult times will be highly important.

It is vital that you are prepared to appoint any of the invited tenderers and that they meet your criteria at the time of invitation. Do not invite anyone you have no intention of appointing. Let them all know how you will make your selection, telling them which criteria are important. For example, design, price, programme etc.

Give tenderers time to submit their proposal, rushed tenders inevitably lead to high prices initially or to claims for extra payments later. A minimum of two weeks should be given. Don’t forget, tenderers are not waiting around for your particular invitation to come in. If they are successful, they will be busy – so they will need to programme in your tender in the same way as any other work. Once a selection has been made, tell the successful tenderer. Do not forget to tell the unsuccessful tenderers either, giving reasons for their failure to secure the project.

Cost Control
This is the procedure where, as the design proceeds, the cost of specific design proposals are worked out and compared with the cost plan. This is done throughout the whole design process to make sure costs are kept within the budget and to avoid proceeding down a design route that would be too expensive. The ways of checking can vary according to the stage of the design process.

Although there may be a need for changes or adjustments, it is important to minimise them if you wish to avoid additional costs. Should changes occur, you should ask why they are necessary and whether there are any cost and time implications. If there are any, you should seek proposals for avoiding or mitigating time overrun and the subsequent cost penalties.

Cost planning
Where non-traditional Procurement routes are used, the responsibility for developing the cost plan may change. For example on Design and Build (D&B) schemes, your quantity surveyor will be responsible for the cost plan at feasibility and outline proposal stage; while the design and fitting-out specialist will be responsible for developing the cost plan with his design team to produce a tender.

Pre-contract Cost Planning & Cost Management
This is where the budget is allocated to the various elements of a project to provide the design team with a balanced cost framework. It allows for redistributing the budget between elements as the design develops.

Cost management is the process that ensures the project is carried out within the constraints of the budget or cost limit. It helps the design team to work within a fixed cost as opposed to the quantity surveyor costing a design.

The aim of this is to ensure you obtain an economical and efficient project in accordance with the agreed brief and budget. This reduces the time needed to produce a successful design and makes sure all requirements are included in the cost planning process.

Throughout the cost planning process, the agreed budget or cost limit must be regarded as the maximum cost. The quantity surveyor will, therefore, work with the design team to make sure that costs fall on or below that figure while still adhering to the desired objectives of quality and function. If a provision for contingencies has been made in the original budget, you

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