Cost Management

Cost management is interwoven through nearly every element of a project and accurate and reliable cost data is critically important. MBP develops project budgets, provides design phase estimates to verify design to budget, tracks project cost performance, and computes the cost of change.

Cost Feasibility/Budgeting

At the earliest phases of project development, the establishment of reasonable expectations for the cost of a project is critical for success of the project. MBP supports owners and designers with establishing appropriate budgets based on known project parameters and historical information for similar projects. Unique aspects are specifically analyzed for cost influences. This early project assessment allows owners to evaluate the feasibility of their projects as well as set realistic budgets for all aspects of the project or program.

Design Phase Cost Estimates

Using industry-recognized cost estimating software and the most current cost data, MBP develops estimates based on each phase of design development. MBP’s estimators bring a wealth of design and construction experience in all disciplines: architectural, civil, structural, mechanical, electrical, plumbing, automated controls systems, fire life safety, vertical transportation, specialized finishes, and equipment. MBP’s estimates consider many complex variables to include specific site conditions and phasing requirements, cost growth due to economic factors, allowances for design and construction contingencies, as well as overhead costs. Inherent project or contractual risks are evaluated, and these design phase estimates allow owners and designers to determine whether the project, as designed, remains within budget.

Cost Estimate Validation

In many cases, an owner has engaged a contractor or construction manager at-risk (CMaR) during the design phase. Customarily, the contractor/CMaR will then provide design phase cost estimating services. In these situations, MBP can provide value to the owner and/or design through a cost validation exercise. This effort includes confirmation of project scope and validation of key quantities and unit prices, analysis of the reasonableness of overall and division/trade estimated costs, as well as a detailed review of the contractor’s general conditions, overhead and other estimate mark-up values and/or percentages. A key component to this review is analysis of how the contractor/CMaR has translated inherent or contractual risk into costs. Overall, the cost estimate validation provides confidence to the owner or designer as to the reasonableness of the estimate provided by the contractor/CMaR and that the overall contractor/CMaR costs are in line with contract requirements.

Change Order Evaluation

MBP provides clients with independent change order evaluation to assist in the equitable and expeditious resolution of change orders. MBP reviews contractor’s change order proposals, prepares independent change estimates, and assists clients with change order negotiations. MBP evaluates the contractor’s entitlement to the change, reviewing the contract documents to verify that the proposed change falls outside of the base contract. MBP’s estimators then examine the costs sought in the change proposal to include evaluating the reasonableness of material, equipment and labor costs, validating quantities, considering the appropriate deductions for base contract work no longer to be installed, and verifying that requested markups meet contract requirements. MBP is committed to providing recommendations for change order that are fair and reasonable and allowable under contract.