|Step 1: The work request||Step 2: The Estimate||Step 3: The Approval||Step 4: The Work||Step 5: Invoicing & Closure||Step 6: Project Feedback|
Step 2: The estimate
Total Project Estimate (TPE)
Next we prepare an estimate of the cost to complete the work.
The Total Project Estimate (example) summarises the work required and details the estimated cost to complete it. It includes all elements – such as consultant’s fees, contractor’s quotations, FMD fees and a contingency sum – necessary to ensure that the work is completed to the customer’s satisfaction. It also includes the estimated VAT liability.
The costs within the TPE reflect:
- our compliance obligations
- the use of framework organisations
- employing competent contractors
- the prevailing recharge rates
- University requirements
...as well as the specific costs associated with the work to be undertaken.
Sometimes, due to budgetary constraints, our customers ask us to provide a second or even a third TPE incorporating a new scope of works. At this stage the Project Manager will advise the customer whether sufficient funding remains available, or if extra funding is required.
We are fully aware of our privileged position in delivering bespoke construction and maintenance-related project work to our customers. As a result we are very determined not only to deliver a first class service, but also to ensure that our recharge rates are competitive when compared to the services offered by external organisations.
Cost variations between projects
We are often asked why similar projects can result in strikingly different costs. This of course is very unwelcome … if it’s your project that costs more. Maybe the best way to understand how this can arise is via an example.