TECHNICAL FILES: The role of cost manager in Real Estate projects

Real Estate projects engage a wide set of stakeholders, among promoters, contractors, designers and consultants. It’s an industry that is very exposed to derived demand effects, which is the same that saying that is very volatile to disruptions in demand from final customers. In this way, variables like productivity, profitability and cost play an essential role. On this kind of multidisciplinary teams, there is the tendency to an inefficient communication between the promoter/owner and the remaining stakeholders, making the management of these variables difficult.

In a market where clients tend sometimes to choose the lowest-priced contractors, it is common to verify the existence of unrealistic low price proposals – with the development of the project, either contractors ask for post-contract extras or don’t meet with the agreed quality level. The opposite can also happen, through the presentation of inflated proposals that don’t meet with the reality of the market. Several cost control mistakes can also be verified in the design phase – usually designers don’t take into consideration cost control issues, originating unnecessary cost increases that hardly represent added-value for the project. Also in the execution phases cost control is not well assured, causing the noncompliance with the stipulated costs and budget overruns.

"Rua do Alecrim" is a project in which DIMSCALE is been providing cost management consultancy since its design phase

Cost management makes the connection between all stakeholders, preserving the interests of the client regarding the costs of the project. Should be integrated from the design phase, in order to work directly with the architecture team and early optimize costs. The cost manager provides with its specialized technical knowledge, expertise in constructive solutions and should seek to understand and preserve the concept drawn by the design team. In this way, it’s important that the cost manager owns both the technical and conceptual backgrounds. All design changes are discussed with the client, to whom are presented all possible scenarios and respective cost implications. The cost management team should in this way be composed by professionals with specific technical expertise in all different specialties.

Cost consultancy should provide also with all quantity surveying work, assuring that the project is accurately quantified and all written and drawn information is correct. Also all the information from different specialties should be compatibilized. Quantity surveying work assures that all information is taken into consideration and avoids eventual errors and misinformation, enabling to establish an accurate cost for the project. This cost prevision is also based on market consultations, being its final values the base of the specifications document that is delivered to applicant contractors. The quality of the work done so far will enable the promoter, together with the cost manager, to negotiate a fairer deal with the selected contractor. 

During the execution phases, cost management continues to act as a link between the project team (designers, contractors and other consultants) and the promoter/owner in order to control all the costs involved. After being made an optimization of the invested capital in the early stages, the job of the cost manager in the execution phase is to assure that is being followed the stipulated plan regarding the project’s costs. The goals are to prevent budget overruns situations and to safeguard the final quality of the project.

"Rua do Alecrim" is a project in which DIMSCALE is been providing cost management consultancy since its design phase

Photos: João Morgado

TECHNICAL FILES: Project Management, Financial Project Management and Quantity Surveying

Our consultancy services are directed to Architecture offices and to Real Estate developers and investors. Safeguarding the project's final quality and the concept drawn by the designer, our goal is to reduce the capital invested on each project and to control all the costs involved, from the design phase to the project's conclusion.

Our three main services are connected between them, making up an integrated consultancy service that begins in the project's quantification and ends in its cost control during all its phases, passing through a consultancy process that takes into account several aspects such as the constructive solutions and the compatibilization between specialties.

Project Management and Financial Project Management

The Project Management applies to all phases of a project life (Conception / Planning, Realization and Utilization/Exploitation), and guarantees that goals are achieved at every stage of the project. The Financial Project Management, which is part of the Project Management applied to the reality of Construction, has as main objectives to ensure the project quality, the optimization of the available capital and the control of all costs stipulated. It represents an added-value for real estate investor in terms of capital savings and reducing the risk associated with budget overruns.


Quantity Surveying

Quantity Surveying is the basis of the work developed on Financial Project Management. The project is quantified and analyzed, aiming to identify inconsistencies and missing information. It is made to reconcile the written and drawn information from all specialties, and made the necessary adjustments in conjunction with the designer. Measurements are formalized through a set of documents that are delivered to the promoter, and which serve as a reference in the context of execution of work. The work on Quantity Surveying phase is reflected throughout the project development, having particular impact in its budgetary aspects.

DIMSCALE's rehabilitation process at the Pombaline zone of Lisbon is an example of a project that has being followed since its design phase. These consultancy services are applicable to projects with different dimensions - they are an added-value either to small and large scale projects.

 

DIMSCALE - Where We Come From

Artur Sousa - CEO DIMSCALE - Architect and Project Manager

 
DIMSCALE arises from our experience and training in the areas of project management, supervision,  Quantity Surveying and Architecture, and is presented as a response to a set of necessities for managing projects of Architecture and Construction. Based on the trust relationships we have with the people we work with, our mission is to bring real added value to projects.

We combine technical expertise resulting from over 20 years of experience with training in Architecture, allowing us to speak the same language as our customers wich in turn allows us to better understand the concept of each project. As a result we are able to better manage the conceptual, technical and economic aspects of each project, wich will lead to a higher consistency, credibility and quality of the project.

DIMSCALE specializes in the provision of services of Financial Project Management and Quantity Surveying. Having a strong specialization in the economic area, it ensures at the same time an integrated
management of projects that meet the goals set for its correct execution.

"Our participation in projects translates into capital savings by the real estate
investors, and into the safeguard ofthe final quality and the concept drawn
up by the project designer. " - Artur Sousa