Cost Management

For a smooth project management and supervision, it is not enough just to keep records of actual revenues and costs in a project. Experienced and competent project managers are aware that all project management philosophies need to be built on the forecasting the future revenues, costs, and technical problems of the project. One of the golden rules to keep in mind in construction projects is that the project has a dynamic structure that will change both the cost and timing forecasts in the framework of a schedule based on the performance. Therefore, the conventional operational methods of accounting and finance departments are not qualified to reflect this dynamic structure.

Making the budget and cash flow studies for the future revenue and cost forecasts is very important in terms of increasing the effectiveness of the company’s equity use and also allowing the operating profits of the company to be used in the proper areas without waiting for the end of the project. And also, it is a crucial requirement for the company’s reputation in terms of effective management of project profit, making payments to various stakeholders involved in the project in time.

For a realistic revenue forecast, Loop Consulting Group’s experienced cost consultants first develop an approach that recognizes the project payment system based on contractual provisions and integrate this system with the project schedule. For an effective cost study, our specialists provide a unique service to our customers in integrating detailed unit price research and resource forecasts to be used in the project with the work schedule to create a detailed and realistic project budget and cash flow. A clear understanding of the provisions of the project contract and a well-defined work schedule has a critical importance for making an accurate cost estimate. As part of monitoring project cost management and the project risks.

Loop adopts a systematic approach that includes the following steps for cost and revenue forecasting;

– Contract Analysis,
– Analysis of the Project’s Scope of Work,
– Preparing Breakdown Structure of the Cost of a Project,
– Determining the Payment System of the Project,
– Determining the Progress Measuring System of the Project,
– Identifying the Risks,
– Determining the Risk Provisions,
– Identifying the Key Performance Indicators (KPI) to Provide Accurate Cost Estimates,
– Realization of a Cost Estimate Considering Optimistic, Pessimistic, and Possible Scenarios,
– Integrating the Project Work Schedule with Resource and Cost Data,
– Preparing Risk Mitigation Plan,
– Periodic Review of the Project Risk Records,

For more information about our services on the periodic review of project risk records, construction cost and revenue forecast please call us or click here.

Many departments took part in the implementation of a construction project with various purposes. The target budget and the cash flow prepared by the project control department at the beginning of the project is monitored by the accounting and finance department in the future stages of the project and they will be compared to the cost realizations and also their actual performance evaluations will be regularly reviewed based on cost management. With the same approach, the procurement department must establish the supply chain in both material and service procurement processes in accordance with the framework of the target program by using prepared planning data.

In order to enable various departments to be involved in the project at different stages and to compare the budget and resource planning to the actual figures, Loop Consulting Group assists its clients in the use of internationally recognized cost and resource coding systems. Loop Consulting Group’s cost estimation experts are competent in identifying the current national & international construction and engineering unit prices of materials, labor, and equipment and maintaining their historical data, preparing cost estimates for various stages throughout the construction process of the projects around the world and/or supervise the accuracy of the proposed construction costs.

Our consultants assist our clients by the following services by using the most up-to-date software and standards for project cost & resource coding and cost estimation system;

SECTORAL PROJECT CONTROL AND FORECASTING SOFTWARE

– Oracle Primavera Contract Management,
– Oracle Primavera Unifier,
– Oracle Primavera P6 Professional,
– Oracle JD Edwars,
– Timberline,
– Rs Means,
– Project 4d,
– MS Project,
– Microsoft Excel,
– 1C,
– Itwo,

CONSTRUCTION COST ESTIMATION SERVICES

– The Conceptual Project Budgets,
– Construction Quotation Estimates,
– Reviewing Contract Cost,
– Lump-Sum Estimating,
– Fixed Price Estimating,
– Value Engineering Cost Estimates,
– Calculation of Bill of Quantities,
– Life Cycle Cost,
– Scope Change Assessments,
– Analysis of Material Price Increase,
– Project Closing Costs,
– Pricing and Evaluation of Claims,

For more information about our services on Cost & Resource Coding and Cost Estimating System, please call us or click here.

In long-term projects, the periodic increases in the prices of materials and labor often lead to disagreement between the investor and the contractor. The contractual provisions for the price increases in the related items are used as a means of describing both the income planning and cost planning issues and they require a fair approach for both parties in order to make a backward price adjustment legally.

Loop Consulting Group can create historical pricing profiles for construction materials by using historical data and various pricing indixes. We support our clients in analyzing material price increases in the following issues;

– Contract Management,
– Estimating Construction Cost,
– Assessment of the Statistical Data,
– Price Analysis by the Years,
– Mediation and Arbitration Support,
– Litigation Support,

Material price increase analysis is an approach that prevents the growth of the disagreement between the parties and it is a means of objective solution between the two parties when it is handled properly. Loop’s cost/price increase specialists support our clients by using their experience based on price increase analyzes of the previous years and statistical data. Material price increase analysis can proactively play an important role in preparing contract documents and in presenting as a legal litigation support as well as expert reports and witness statements.

Call our team or click here for assistance for a new contract or a construction cost increase analysis for an ongoing project.

Mathematics is a science that uses abstraction and logic to be able to count, calculate, and measure the forms and movements of physical objects through a systematic study, and it develops in this way. We, the engineers as a user of mathematics, manage our projects with the awareness that an unmeasured process cannot be managed. In this context, preparing the project budget in accordance with the possible accurate estimates by adopting the practical and realistic approach as a guide for ourselves, determining the actual costs and evaluating their effects on the current budget on a regular basis can only be possible by the management of earned value analysis.

Earned Value Analysis allows a project manager to manage and complete the project by ensuring the target budget profitability. It allows monitoring both the cost and resource and also timing performance at any stage of the project. In summary, it allows seeing the horizon before the ship runs aground.

Loop Consulting Group uses earned value analysis systems to measure and monitor progress before the contractor. Loop can assist the contractor or the investor monitor the cost and schedule indicators whether they are ahead of or behind the schedule of the project, or whether they exceeded the target budget or not by using earned value management system.

We assist our clients to improve, monitor, and measure the following performance parameters;

EARNED VALUE MEASURES

– Budgeted Cost of Work Scheduled (BCWS),
– Budgeted Cost of Work Performed (BCWP),
– Actual Cost of Work Performed (ACWP),
– Cost Variance (CV),
– Schedule Variance (SV),
– Cost Performance Index (CPI),
– Schedule Performance Index (SPI),

For further information about our earned value management services, call us or click here.

The productivity in the construction projects directly affects the performance of the project as well as the time and cost estimates projected in the planned work schedule. Loop regularly monitors the schedule variances and schedule performance indicators on a regular basis both to verify the accuracy of the forecasts in the baseline schedule and to assess the performance that will be achieved during the progress of the project.

The experienced experts of Loop Consulting Group can develop specific methods for each client to monitor and improve the project productivity on a continuous basis. We offer the following services on project productivity;

– Monitoring and Control of the Productivity,
– Monitoring of Cost Variance (CV),
– Monitoring of Cost Performance Indicator (CPI),
– Productivity Benchmarking,
– Material and Labor Cost Assessments,
– Labor and Equipment Productivity Assessments
– Waste of Material and Rework Analysis,

Loop’s professionals are competent to assess the productivity of your project by using appropriate methods to ensure that your project is completed in line with your goals and expectations, regardless of your field of activity in the sector.

For more detailed information about our services on assessments of construction productivity and schedule performance, please contact us or click here.