Cost Consultancy

Integrating an obsession to detail with big picture thinking.

Cost Consultancy

An insight into our methodology

Our core specialism is cost consultancy and commercial management. We feel being predictable is the key to our clients’ strategic planning and commercial success. We focus on managing client expectations, helping them to set and build to realistic project budgets. We achieve this by producing transparent and well-considered cost advice. We challenge conventional thinking and strive for innovation, converting this into improved commercial positions for our clients. We give our clients surety, knowing that their position is considered and they are receiving best value on their projects. 

Why fivethirds?

“We accept nothing but commercial excellence. We truly understand the build process and this translates into our cost advice. The value we create has always been in excess of our fees. We don’t consider ourselves as a project cost; working with fivethirds is an investment into your business, one which we feel obligated to create a tangible return on.

 

Step 1

Define

At project inception we use cost metrics to define scope; this means we can provide you with cost advice based on conceptual information. As the design information progresses, we detail the scope further.

Step 2

Interrogate

We use a broad range of cost information to price the defined scope. Then we interrogate our rationale. Is this project comparable to our data sources? Will the clients’ objectives impact on the cost outturn? Are there any market indicators suggesting an adjustment to the data is necessary?

Step 3

Benchmark

We take a step back and think big picture. How does this compare to the outturn cost of similar projects? How do our cost provisions compare on an elemental basis to previously completed projects? Where we differ from benchmarked information can we articulate why?

Step 4

Control

We focus on controlling project factors that impact cost. We assess how each iteration of the design impacts on our cost assumptions. We control risk holistically. We control the impact of client change. We present our clients with the needed information to make decisions on outturn costs.

Cost Consultancy

Exper-
ience

Demonstrating how we identify and mitigate common commercial challenges within our industry.

Scenario

The design team has released a revised design pack, showing a number of changes that appear to impact on cost .

Our Approach

We do not feel it is a cost consultants role to tell a client what they can or cannot have. This is a decision to be made by the client. Our role is to assist the client in facilitating the best possible end product for the money they have available. We re-cast the cost plan based on the revised design information. Then, we help the client and the design team to understand which sub elements are impacting costs. We produce a cost model allowing the design team and client to understand the entire cost impact of each design decision, facilitating easier decision making. Further we identify a design route that can realign them to their original budget.    

Scenario

Tender returns are received that are in excess of the original cost plan, creating project viability issues.

Our Approach

We first assess whether our client has sampled a suitable proportion of the market in their tender enquiry process. We then analyse and compare Contractor bids to ensure scope compliance and to identify any anomalous allowances. We interrogate each allowance to ensure that they represent fair market value. We meet with the supply chain and propose suitable value engineering and explore the commercial benefits associated with risk reapportionment. Finally we assess the implications of adjusting the agreed procurement route. We have found that this methodology consistently creates improved procurement positions for our clients. 

Scenario

Contractor delays impact cash flow, creating penalties and increased interest for the client from the project funder. 

Our Approach

We understand that project finance costs greatly impact on your businesses bottom line. We review average cash flow to date and compare this with average labour levels. We reset your cashflow by cost loading the remaining construction programme. We interrogate your contractors methodology behind the programme and seek to understand its vulnerabilities. After, we produce an independent cashflow based off of our assessment of project performance going forward. This has allowed our clients to prepare for any changes to project completion and renegotiate terms with project funders, limiting their commercial exposure. 

Scenario

A client is unable to recover their commercial entitlement due to poor contract administration.

Our Approach

We start off with building relationships with our clients’ client. We seek to understand their view of the account and key issues that need to be addressed. Then we start a forensic examination of all correspondence issued over the course of the project. We translate this into a register, detailing the required actions from both parties to bring the contract to conclusion. We advise our client of their commercial exposure and realistic expectations for improvement. We then work with them to produce and agree necessary deliverables, allowing for account closure and cash release.  

Cost Consultancy

Facilitating design innovation

We believe that cost consultants should be facilitators of design innovation. We also feel that our cost advice should give you the latitude to make decisions that allow you to achieve design and construction excellence. We help you to set the right budget expectations and then we focus on helping you to make ‘Best Value’ decisions.

Our core service offerings

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Strategic & Project Procurement

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Contract Formation

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Cost Planning

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Benchmarking

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Tendering Advice & Preparation

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Cost Value Reconciliations

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Cashflow Forecasting

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Final Account Negotiations

ABOUT US 

Efficiency | Clarity |  Predictability

Fivethirds is an independent cost and project management construction consultancy founded on comprehensive industry knowledge and a commitment to deliver professionalism and excellence.

OUR SERVICES

Enhancing results through collaboration and risk management.

OUR SERVICES

Integrating an obsession to detail with big picture thinking.

CONTACT US

Get in touch