Value Management COMMERCIAL MANAGEMENT Commercial management services are more milestone based than the other services, we outline this stage by stage. However, since Value Management (VM) is a fundamental part of our commercial management service at all stages, we outline our approach to this now. Arguably, with good VM, Value Engineering (VE) shouldn’t be necessary. On this development, the branding will be of paramount importance and will dictate many of the design elements. This emphasises the importance of maintaining “value” rather than just reducing costs. However, this will also be strongly linked with the timing of investment and the level of potential self-financing based on the sale of the lodges, etc. Design changes and on-going value engineering are more difficult to implement as design develops as sections of the design have to become crystallised. We will therefore ensure that an accurate assessment of the cost of the project and an efficient cost management plan is established early on in the form of cost and financial management guidelines comprising the required procedures based on specific project requirements. This aims to have an established and effective cost control system and procedures understood by all members of the project team. In parallel with the design development, the commercial manager and his team will undertake cost planning at each stage with interim updating as the design develops to ensure that the budget is adhered to. CONCEPT DESIGN We consider the concept design stage to be crucially important for the reasons given above together with reducing the risk of abortive design work during later stages. The concept design cost plan will be detailed enough to ascertain whether the current budget is likely to be achievable and whether or not value engineering needs to be carried out then. In any case, our attention will always be on identifying potential for reducing costs whilst maintaining value. The design would not have been developed very far at this stage and so it is essential that the cost planning encompasses all elements whether or not designed or even included and this will rely on our knowledge of hospitality operations.
For this development, our services during concept design will also include verification of the submitted design competition entries, not only to accurately determine the CAPEX but also to ensure consistency of approach. The cost of each will be one of the factors on which the selection will be based. Alongside the above, we will provide on-going cost (design alternatives, etc) and procurement. SCHEMATIC DESIGN The level of detail in the schematic design will be quite high and will enable accurate measurement to be undertaken but there will inevitably still be elements that are not fully designed, specified or even identified. Notwithstanding our design management input, this is again where our operational knowledge will bring great benefits and this will be sourced from both our PM and CM teams. The Bills of Quantities (BQs) will now start to evolve and the related measurement will be fed into the schematic design cost plan maximising accuracy. At this stage we will also need to discuss in detail the procurement path and also determine the contractual basis for the project. DETAILED DESIGN The schematic design cost plan will be updated at approximately 50% through this stage but the budget compliance monitoring will not be limited to this. With continual VM, we will ensure that the budget is kept to. This is additionally important because the BQ measurement will now proceed in earnest. The procurement and contractual issues must now be finalised, and the selection of tenderers needs to commence. TENDER DOCUMENTATION This is an extension of the detailed design stage during which all of the documentation so far developed will be completed. The main deliverable at this stage will be the BQ, most of the work involved having been carried out during the detailed design stage. We will then price the BQ, (the pre tender estimate). This facilitates a final check that the design is still on budget and whether any VE needs to take place prior to tendering.
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PMKConsult.com
Roanhead Lodge Development
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