Six-figure savings through effective cost management

September 12, 2023
Six-figure savings through effective cost management

Prendos was engaged as design and cost consultants for the structural upgrade of a five-storey office and retail building in Takapuna to bring it in line with new seismic requirements. Supporting Prendos’ structural engineering and design teams, our in-house Quantity Surveyors undertook cost management services for this complex project.

Without specific cost estimates for the work, our Quantity Surveyors were able to evaluate tenders and make informed recommendations to the client on contractor appointment. This was thanks to the extensive cost data Prendos has access to from similar projects carried out over our three decades in the industry. With the benefit of this historic data, our Quantity Surveyors were able to provide expert guidance and estimate expected costs.

We then compiled the contract documents for the project, and throughout the programme provided regular cost reporting, payment certification, assessment of variations and cash flow programmes.

One of the project’s key challenges was that the building’s five tenants needed to remain in the building and fully operational throughout the work. This resulted in occasional delays to the programme, so it was of particular benefit to the client to be able to access design, structural and QS services all under one roof, as it helped streamline the programme of work and enable faster decision-making.

At the end of the project, the client received a significant variation claim from the contractor, which our QS team thoroughly assessed. Following this assessment, the client was able to negotiate a saving of six figures on the original claim amount. With evidence to prove the counterclaim was fair and reasonable, the contractor accepted, and the claim was finalised without leading to a dispute.