Cost to Complete Reports and Review
Cost to Complete Reporting
As construction is being completed to site, many factors can exert pressure and financial stress on a development and its costs/programs.
These factors can include:* Interest rate increases;
* Holding costs;
* Cost escalation on materials;
* Contractors cash flow and availability;
* Inclement weather, etc.
These factors can usually be absorbed and controlled mutually between a developer and contractor. In the event that this co-operative relationship starts to have more pressure applied to it and the nature of this co-operation breaks down, some developments cease to a halt.
This may see a development cease construction works for months as developer seek additional funding to cover costs, or see results of inclement weather pass by. Remembering that inclement weather for 3 days, may affect the program for weeks.
In the event that the developer / contractor relationship in irreparable, it will require an additional contractor to be procured.
As such, MCG Quantity Surveyors recommend that a Cost to Complete report be completed.
A Cost to Complete Report will review the remaining works to be completed to site and reassess the costs associated with these works. Significant construction cost increases from the date of the original contracted works may affect the new contractors ability to complete the remaining works as per the original budget.
In addition to this, the report will form a valuable tool in assessing the newly submitted tenders on the development and can be used as the benchmark against which all other tenders can assessed and evaluated.
MCG Quantity Surveyors are acutely aware of the demanding and competitive nature of the construction industry and as such, the MCG Quantity Surveyors team will ensure that reporting turn around times are consistently met, and clients are kept up to date with the status of projects and reports.
Should you have any further queries or questions pertaining to Cost Estimating Services or additional reporting services, do not hesitate to contact the team at MCG Quantity Surveyors.
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