Initiation is the beginning of a project and the most critical because decisions are made to move the project forward. During this phase, the project is defined; high level goals/objectives are established; and the feasibility of the project is evaluated.  The following are examples of “cost” activities during this phase:

• Identify funding sources from owner.
• Identify tenant’s equipment responsibility matrix.
• Assemble historic cost data on similar facilities.
• Review and evaluate historical cost data
• Develop conceptual construction estimates
• Develop total project cost estimates
• Research all infrastructure component requirements
• Research and identify cost associated with permit and zoning requirements
• Develop soft cost budgets with other stakeholders i.e., ITS/FFE/relocation
• Recommend contingency budget based on project risks
  • Contractor contingency included in GMP
  • Owner’s contingency included in GMP
  • Owner’s contingency for soft costs outside GMP

Pre-construction is the planning and design phase of a project. Schematic design, design development and construction documents are generated. This phase offers the best opportunity to mitigate  risks. Project cost is agreed upon by the end of this phase. The following are examples of “cost” activities during this phase:

• Cost evaluation, verification, reconciliation at each stage of design
  • Schematic
  • Design development
  • Construction documents
• Value Engineering
  • Money savings, best value, life cycle alternatives
  • Methods or materials maximizing efficiency incentives
  • Scope reduction
  • New and alternative technology
• Refine project allowances
  • ITS
  • FFE
  • Soft costs
• Construction contract value
  • GMP
  • Cost plus
  • At-risk
• Establish and implement financial tracking and communications in Procore
• Preliminary coordination with utility providers
• Review project for contractual compliance
• Review project safety plan and implementation
• Review project for workmanship quality
• Confirm owner project requirements with 3rd party vendor
• Final reviews and sign-offs to authorize moving to construction phase

Construction is the execution phase. The building is constructed and verification via photo documentation and site visits is ongoing to ensure construction documents are followed. Scope, schedule and cost management are vital in keeping a project on time and within budget.The following are examples of “cost” activities during this phase:

• Cost evaluation and verification
• Identify cost issues and report to owner as to impact on schedule, scope and cost
• Project reporting
  • Financial issues
  • Cost projections
  • Contingency management, tracking, approvals
• Document control
  • Change order management, tracking, approvals
  • Pay applications reviews and approvals
• Quality control
• Risk mitigation
• Issue tracking