Before embarking on any construction project, clients need answers to important questions:
Alphega provides complete cost management incorporating the generation of cost models, value management, risk management, and life cycle costing.
Cost management includes all project costs, not simply the construction costs of the building works; the out-turn cost, comprising works costs, fees, land and non-works costs, equipment costs, development contingencies and VAT.
Option studies of proposed solutions to the client requirements are prepared producing each solution's out-turn cost. Each study involves cost modeling, value management and risk management techniques to produce realistic budgets.
Life cycle costings are introduced into the equation to determine the true cost of the proposed buildings. Risk registers are produced for the options and allowances for project risk calculated for inclusion as capital planning contingencies. Finally, each option is cash flowed and converted to a net present value to determine the preferred option.
Once the preferred option is established, a sensitivity analysis is carried out to ensure that the suggested preferred option is indeed the preferred option.
The option studies and the identification of the preferred option will form part of the Business Case of a proposed development. Our method of producing the preferred option provides clients with the information they need most:
Identification of accurate costs is only half the story. Once identified, costs need to be managed to eliminate the risk of over expenditure. This requires awareness, foresight, pro-action and constant monitoring.
At Alphega we always create full cost models of construction projects, which are continually reviewed and updated. We also keep in constant touch with clients, designers and contractors to ensure we have full knowledge of events. We offer solutions and advice to proposed and actual changes. This approach allows us to manage the costs extremely effectively.