Cost Control for Projects - How EVER safeguards our clients, and our top tips for a cost-effective build
Image (c) Tammy Law
Let’s face it, cost control is by far the most difficult aspect of the project process for us as Architects. As we’ve stepped through a time of unprecedented price escalations, high demand mixed with supply shortages, we’ve adapted our practices to provide better cost feedback to our clients as we step through the project with them.
Firstly, an important point to be aware of.
Few Architects are experts at Cost Control - because it falls outside our professional Scope of Practice
This may come as a shock to you, as matters of cost are often such a big decision driver in projects. And let me be clear - we do care deeply about the wise stewardship of our clients’ resources.
But the truth is - Architects are NOT cost professionals.
In fact, when it comes to cost control our skills are predominantly helpful in terms of area. In other words, the more we can create layouts that are right-sized and spaces that blend functions, the more we can achieve great bang-for-buck for our clients. Every square metre saved is thousands saved. Savings can also be found in structural efficiency, services stacked close to each other, and using construction methodology that is well-known.
Doing more with less - that’s our responsibility. If we are talking selections or finishes, we’ve probably lost the battle already.
So… who can we turn to for help with costings?
The people best placed to assist with matters of costings are qualified Quantity Surveyors. In our specific context (housing in South East Queensland), a good Builder may be able to assist as well. We strongly advocate the involvement of either a Quantity Surveyor or a trusted Builder for our projects from Documentation stage onwards.
The First Check - Procalc Report
We begin the project process by estimating the Cost of Works for the project. This is a very rudimentary excercise that is based on area, ‘square metre rates’ and other general allowances. The idea is to come up with a general ballpark, which is related to the scope and quality of the outcome .
Once the initial Concepts are developed, our office uses the Procalc online estimation platform to generate an early Opinion of Probable Cost. This relies on the input of quantities (areas and lineal length), plus selections regarding type of finish, site conditions, contract type etc. This tool has been extremely helpful for us in a changing market as Procalc constantly updates its cost data.
The output of the report is a “Low, Medium and High” range of prices, which will assist our clients in their early thinking regarding staging or decision-making.
The Second Check - Preliminary Cost Estimate
Once the Design is developed further to a level generally sufficient for any Council-related Development Application, we usually recommend the involvement of a Quantity Surveyor or trusted Builder to provide a Preliminary Cost Estimate. This may cost in the region of $1,800 to $4,000 depending on the Consultant or Builder.
Our preference is to involve a trusted Builder from this point onwards. Keep in mind that working with their preferred Structural Engineer and Building Certifier often leads to a smoother Documentation process, and a more efficient build on site.
Care Detail Helps the Accuracy of Final Pricing
Having gone through two rounds of checking (and opportunities for Value Management changes), and ideally with the involvement of a good Builder on board as we work in with their trusted Structural Engineer, we are well placed to wrap up the project through Documentation and Interiors stages. As we step through, there are things to keep in mind.
The documentation package (drawings, schedule and spec) are part of your contract with your Builder. It will pay off to make sure it is thorough and well prepared.
We assist by obtaining Trade Quotes for selections where possible. This is often included in the Contract as provisional allowances.
Having a trusted Builder also means working with their trusted Contacts and taking advantage of their relationships. For example, a trusted Cabinetmaker may be able to provide early feedback on materials and costings for custom cabinetry.
Our strong preference is to step with our clients through the entire project process. This includes the design and documentation of internal elements, plus selections of colours, finishes, fixtures, appliances and the like. Our 3D images help to convey our expectations of materiality and eventual quality.
Early Value Management is key!
Cost feedback early in the process helps to minimise risk of price shock for our projects, and allows us to react to cost as early as possible in the life of the project. Keep in mind that over time, more and more detail is built into a 3D ArchiCAD file, and more Consultants are involved. This means that reacting to budget at the latter stages of the project is often far more time consuming.
There will always be risk when it comes to projects and matters of cost - but as you can see, we try to cross-check and obtain qualified opinions to guide us as we step through a project.
Our top tips for a smooth and cost effective build
Don’t cheap out on Design - especially the early stages. So much cost can be saved in these stages by exploring and refining a strong idea.
Right-size your home. Big, empty spaces are so passe - feelings of generosity can come from strong connection to nature and bigger volumes, rather than bloat. Good design can help to “blend” spaces in an intentional way, rather than creating rooms that only have single functions.
Find a good team. We’re here to walk with you, but we need to find a good team of Collaborators. We find projects much smoother when there is a trusted Builder on board - and we can work with Consultants and Suppliers that they already have an established relationship with.
Document and Prepare Well. As much as some in the building game want to have leeway to “work things out on site”, solutions worked out on site are usually more costly and less elegant.
Finally, remember that good design should be work without excessive adornment. Bad spaces need to be over-dressed with expensive bits to hide what is ordinary or suboptimal to begin with. We strive to design well, and as much as possible, let things be authentic in material and expression.