“In a perfect world, the owner never changes his mind, the engineer never alters his drawings, the contractor never has execution problems, the resident engineer’s decisions are perfect, and Mother Nature behaves herself. That perfect world does not exist.
In the real world, with geometric precision, the forces of owner, engineer, contractor, and Mother Nature combine to make change. The owner changes his mind. The engineer changes his drawings. The contractor changes his means and methods. Mother Nature then changes what the others have missed.” – Andrew Avalon (Owner Practices that May Result in Construction Claims).
The Perfect Imperfection of Construction
The above has and continues to be one of our favorite construction/development related quotes. Why – because it’s true. It is extremely rare to come across a development project that does not encounter a challenge. More often than not – several challenges.
The development process is imperfect, and challenges are bound to occur, requiring budget preparations to incur these challenges. To ensure that budget risks are mitigated, Construction Cost Estimates are prepared and updated regularly in all phases of the project. The GeoFocus Group implements a four-class Construction Cost Estimate process in all projects to ensure accurate and comprehensive cost estimates. The different classes of estimates (D, C, B, A) provide rough to highly detailed information on project cost estimates. It is essential to include an experienced Construction Manager in the construction cost estimate process to ensure accurate and comprehensive cost estimates. The GeoFocus Group is a construction advisory firm specializing in construction management, project management, project recovery, and land development planning, with principals who have vast experience in developing, managing, acquiring, and participating in projects in Canada, the United States, and Europe.
Dental Research Facility Project Management and Construction Management (Mississauga) by The GeoFocus Group
Construction Cost Estimates
At The GeoFocus Group, we understand that every project is unique, and therefore, we utilize a comprehensive Class D, C, B, and A Construction Cost Estimate process for all of our projects. This process is critical because preliminary budgets often rely on assumptions and exclusions due to a lack of information, which can ultimately lead to inaccurate cost estimates.
To ensure accurate cost estimates, we update our Construction Cost Estimates regularly throughout the Schematic and Design Development phases of the project. This allows our team to address any potential budget overages and value engineer any designed components to meet the project budget and schedule. Additionally, it allows us to eliminate any assumptions or exclusions as drawings and designs progress, ultimately providing our clients with a reliable budget for financing and construction.
By partnering with The GeoFocus Group, you can rest assured that your construction cost estimates are accurate and up-to-date, allowing you to make informed decisions and maximize your project’s success.
Hotel Project Turnaround, Completion and Construction Management (Vaughan) by The GeoFocus Group.
Classes of Construction Cost Estimates
The GeoFocus Group utilizes a comprehensive construction cost estimate process that includes Class D, C, B, and A estimates. Class D estimates are preliminary estimates that are prepared in the early stages of a project when there is limited information available. They are used to provide a rough estimate of the project’s cost and are typically accurate within a range of +/- 30% to 50%.
As the project progresses and more information becomes available, Class C, B, and A estimates are developed. Class C estimates include more detailed information about the project, such as the size and location, and are typically accurate within a range of +/- 20% to 30%. Class B estimates are developed when the project design is well-defined and include detailed information about the materials, labor, equipment, and permits required. They are typically accurate within a range of +/- 10% to 20%.
Class A estimates are the most detailed and accurate type of estimate, developed when the project is fully defined and all design and engineering work is complete. They include highly detailed information about the project, including all materials, labor, equipment, and other costs, and are typically accurate within a range of +/- 5% to 10%.
By utilizing this comprehensive approach, The GeoFocus Group ensures that construction cost estimates are accurate and reliable at every stage of the project. This allows for better planning, budgeting, and decision-making throughout the project lifecycle, ultimately leading to a successful and cost-effective project.
Multi-Family Midrise Condominium Project Management and Construction Management (Oakville) by The GeoFocus Group
Importance of Retaining an Experienced CM
The involvement of an experienced Construction Manager (CM) is crucial in the construction cost estimate process to ensure that the estimates are accurate and all-encompassing. The CM brings their expertise and knowledge to the table, ensuring that all aspects of the construction project are considered in the cost estimate. They work closely with other stakeholders/participants, such as the Owner/Developer, Architects, Engineers, Quantity Surveyors, and Trades/Vendors/Suppliers, to gather all necessary information and incorporate it into the estimate.
Architects and Engineers provide detailed information about the design and engineering of the project, while Quantity Surveyors offer historical and projected cost data for materials and labor. The Trades/Vendors/Suppliers provide valuable information about the cost of equipment, materials and labour required to execute the work. The CM uses their experience to identify potential risks and opportunities for cost savings, providing valuable insights into the construction process. They identify inefficient and/or too expensive construction means and methods.
The involvement of an experienced CM early in the construction cost estimate process is essential to ensure that the estimates are realistic and achievable. This helps to prevent cost overruns and ensures that the project stays within budget. Ultimately, it leads to the successful completion of the project.
Single Family Home Project Recovery, Completion and Construction Management (Etobicoke) by The GeoFocus Group.
Why Retain The GeoFocus Group?
The GeoFocus Group is a specialized construction advisory firm that offers a range of services including construction management, project management, project recovery, and land development planning. Our principals have a vast experience in managing, developing, and participating in construction projects across Canada, the United States, and Europe.
In the current construction industry, personnel shortages have led to inexperienced contractors, managers, and supervisors, resulting in severe delays, deficiencies, and project failures. To combat this issue, The GeoFocus Group offers client-centric services, assigning a principal to each project to ensure a meticulous and successful delivery.
Our firm is founded on advanced knowledge and experience, typically associated with larger management firms, but we use our size to our advantage. We offer industry-leading technical expertise based on real-world experience, providing leadership and guidance to ensure that each project is delivered to the highest standards.
With over 50 years of experience in the industry, we have gained valuable insights into the causes of project failures and suspensions. We leverage this expertise to provide technical due diligence and strategic project recovery services to our clients. Our record of delivering successful projects speaks for itself, and we are committed to providing the best possible service to our clients.
Single Family Townhomes Project Turnaround, Completion and Construction Management (Thornbury) by The GeoFocus Group.
