INSPECTION OF THE CONSTRUCTION COST ESTIMATES
Evaluation & inspection of the construction works cost estimate is necessary for both, the customer (developer, investor, owner) and the contractor.
The inspection of the cost estimate will have the following results:
- The customer will make sure that the costs to be made are reasonable;
- Simplified control over the construction process;
- Guarantying the contractor that upon completion of the construction works or any stages thereof, the amount of remuneration for the performed work would not cause any doubts;
In many cases, before commencement of the construction works the customer does not pay proper attention to inspection of the construction cost estimate, relying on qualification and credibility of the contractors. As a result, the contractor may submit to the customer the bills for the additional works and materials that should have been taken into consideration in the cost estimate, with the prices much higher than those offered at the market.
Evaluation & inspection of the cost estimates of the construction works would protect the customer from unpleasant surprises, such as:
- Artificial overstating of the value and scope of the works to be completed;
- Duplicating works and extra charges;
- Overstating the costs of materials and machinery to be used, etc.
Evaluation &Inspection of the construction works cost estimates includes:
- Comparison of the scope of works specified in the cost estimate with the defined work scope in project;
- Identification of compliance with the material and labor costs, and use of the machinery specified in the cost estimate with the acting technical regulations;
- Comparison of the material and labor costs, and use of the machinery specified in the cost estimate with the average market prices;
- Comparison of the unforeseen costs, overheads, costs for temporary buildings and structures with the average market data;