Project management
Cost reduction
Alphega contributes to a target cost reduction scheme in many ways, but predominantly by using the experience of integration and strict co-ordination of all parties involved in the construction and building use activities.
Key factors that must be considered to enhance the “fit for purpose” and “value for money” issues are:
- Assisting in the provision of a full design brief by giving advice on best practice, practical cost effective solutions to the client’s teams, advisors and end users.
- Coordinating client, contractors and service providers in terms of timescale, budget and effects upon other related designed elements.
- Identifying the appropriate design life and related on-going maintenance requirements. Analysis of Life Cycle Costing.
- Controlling budgets, setting a suitable cost plan over construction time and monitoring to achieve further reduction of cost against the budget yardstick.
- Construction method utilisation and standardisation. Identifying modular and integrated building systems suitable for use or minor redesign for incorporation. Standardise methods of construction throughout to reduce the necessity for high waste and climate dependant construction activities.
- Using appropriate procurement methods for suppliers, contractors and specialist consultants in a partnering form with further cost savings to be identified through issue of volume work, batching (timing of works), bulk procurement and competitive market costing.
- Ensuring and assist in the measurement of cost reduction by monitoring cost performance against the performance of others in the industry through key performance indicators (KPIs).
- Encouraging and seeking out partnering relationships.
With a long-term relationship established, savings are achieved with the continuity of work possible from a known workload. Suppliers have the opportunity to input with regard to the programming of their work, which assists in cost savings, as does the ability of bulk purchasing.
This long term relationship enhances quality, performance, reduce costs, time in pre-planning and increase the amount of contracts commenced and completed in each 12 month period. The partnering arrangement would be put in place for a minimum of three years, with a mutual break clause after eighteen months.